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Indonesia has initiated 13 projects across energy, mining, and agriculture sectors with a total investment of USD 6.7 billion. The move is aimed at reducing dependence on imports and strengthening domestic production. Key developments include refinery expansion, fuel storage facilities, coal-to-DME processing, and steel manufacturing units. The government is also pushing forward agro-based production such as biodiesel. Some projects revive earlier stalled plans, reflecting a renewed focus on energy security and industrial growth. These initiatives are expected to improve capacity, support local industries, and enhance long-term self-sufficiency.
Indonesia has moved ahead with a set of 13 projects across the energy, mineral and agriculture sectors, with a total planned investment of around USD 6.7 billion. The announcement was made by President Prabowo Subianto, who indicated that the projects are part of a broader effort to reduce reliance on imports and strengthen domestic supply chains. Advertisement
The projects cover a wide range of infrastructure and industrial developments. In the energy segment, state-owned firm Pertamina is set to expand its refining capacity by building gasoline refinery units at its Dumai and Cilacap facilities. These units are expected to have a combined processing capacity of 62,000 barrels of oil per day. In addition, the company will develop three fuel storage facilities across East Kalimantan, Papua and East Nusa Tenggara, with a total storage capacity of 153,000 kilolitres.
Another major initiative involves the construction of a coal-to-dimethyl ether (DME) processing plant in South Sumatra. This project is being undertaken by state mining holding firm MIND ID along with Pertamina. The facility is designed to produce 1.4 million metric tonnes of DME annually and is expected to replace a portion of Indonesia’s LPG imports. The country had previously attempted a similar project, but it did not progress after its US-based partner Air Products and Chemicals Inc exited the plan.
In the metals sector, state-owned Krakatau Steel and its partners will develop a nickel-based stainless steel plant in Central Sulawesi, with an annual production capacity of 1.2 million tonnes. Another facility in Cilegon, Banten will manufacture carbon steel slabs, with a capacity of 1.5 million tonnes per year. These projects are expected to support Indonesia’s push to strengthen its downstream metal processing industry.
The agriculture sector is also part of the plan, with state plantation company PT Perkebunan Nusantara set to establish production facilities for oleofood and biodiesel products in North Sumatra. This aligns with Indonesia’s ongoing focus on expanding biofuel output and reducing reliance on imported fuel alternatives.
Indonesia has been consistently working to build domestic capacity in key sectors, especially after facing supply chain disruptions and rising import costs in recent years. The latest set of projects reflects a continued focus on energy security, industrial growth and value addition within the country.
Source Reuters
5th Jun, 2025
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