RRI.CO.ID, Cilacap - An Indonesian sovereign wealth fund agency, Danantara Indonesia, held the groundbreaking ceremony for the second phase of national downstreaming projects in Cilacap Regency, Central Java, on Wednesday, April 29, 2026. It consists of 13 projects in the energy, mineral, and agriculture sectors, worth around Rp116 trillion, equivalent to about US$ 6.68 billion.

The projects are spread across all of Indonesia's seven regions: Sumatra, Java, Kalimantan, Sulawesi, Nusa Tenggara, Maluku, and Papua. Because Danantara Indonesia has had the mandate to manage all state-owned companies, the agency involves state-owned companies in the projects.

The energy company Pertamina, for example, will develop gasoline refineries in Dumai (Sumatra's Riau) and Cilacap, with a combined capacity of 62,000 barrels per day. This project is expected to reduce gasoline imports by up to 2 million kiloliters per year.

In addition, Pertamina is developing three fuel terminals in Palaran (East Kalimantan), Biak (Papua), and Maumere (East Nusa Tenggara) with a total capacity of 153,000 kiloliters, expected to increase national fuel capacity by 3.1%. Meanwhile, Pertamina and mining holding company MIND ID are developing a dimethyl ether (DME) facility in Tanjung Enim (South Sumatra) with a capacity of 1.4 million tons per year.

Steel producer Krakatau Steel, collaborating with strategic partners, is building a nickel-based stainless steel production facility in Morowali Regency, Southwest Sulawesi, with a capacity of 1.2 million tons per year. Meanwhile, in Cilegon, Java's Banten, Krakatau Steel and its partners are constructing a steel slab production facility with a capacity of 1.5 million tons per year, utilizing Indonesia’s local iron ore.

Construction companies Wijaya Karya and Jasa Marga have initiated an asphalt market development in Buton Island, Southwest Sulawesi. Supported by the ecosystem synergy of Danantara Indonesia, it aims to optimize over 100 million tons of resources on the island.

MIND ID, together with defense holding company Defend ID, is building a brass mill and brass cups facility in Gresik, East Java, with a capacity of 10,000 tons per year. They will also be developing gold bar manufacturing.

Lastly, the plantation company Perkebunan Nusantara (PTPN) is constructing three downstream processing facilities for plantation products. For example, in Sei Mangkei Special Economic Zone in North Sumatra, a palm oil downstreaming project is expected to include oleofood, cocoa butter equivalents (CBE), cocoa butter substitutes (CBS), and biodiesel facilities.

PTPN is also developing a nutmeg processing facility into oleoresin at Awaya Plantation in Central Maluku Regency, Maluku, with a capacity of 2,560 tons of dried nutmeg seeds per year. Additionally, the company is building an integrated coconut processing facility in the regency with a capacity of 300,000 coconuts per day.