Prabowo Sparks $7.3 Billion Industrial Revolution: 13 Massive Downstreaming Projects to End Indonesia’s Import Reliance

JAKARTA, Investortrust.id — President Prabowo Subianto has officially triggered a massive $7.29 billion (Rp 116 trillion) investment wave, breaking ground on 13 critical industrial downstreaming projects centered in Cilacap, Central Java.

This Phase II rollout marks a decisive shift in Indonesia’s economic strategy, moving beyond raw material exports toward a high-tech industrial future. The 13 projects span the energy, metal, construction material, and agro-industry sectors, designed to fortify the national supply chain.

For global investors and regional markets, this move signals Indonesia’s intent to dominate the value chain in Southeast Asia. By converting domestic resources like nickel and coal into high-value products like stainless steel and Dimethyl Ether (DME), Indonesia aims to slash its massive import bills and stabilize the Rupiah. This aggressive industrialization strategy, known locally as hilirisasi, is the cornerstone of Prabowo’s "Asta Cita" vision to transform the archipelago into a global economic powerhouse.

Ending the Import Addiction

The energy sector takes the lion's share of the focus, with state-owned energy giant PT Pertamina (Persero) leading refinery expansions in Dumai and Cilacap. These upgrades will boost gasoline capacity by 62,000 barrels per day, effectively cutting gasoline imports by nearly 10%.

Further north in Tanjung Enim, a collaboration between Pertamina and the mining holding PT Mineral Industri Indonesia (MIND ID) is set to turn coal into DME. This facility will produce 1.4 million tons annually, directly challenging the country’s reliance on imported LPG, which currently accounts for 80% of national consumption.

"A nation that wants to be independent, a nation that wishes to remain independent, is a nation that is capable and brave enough to master its own resources," President Prabowo stated during the ceremony on Wednesday. He emphasized that downstreaming is the "only path" for the nation to achieve true prosperity and respect on the global stage.

Metals and Mineral Dominance

The industrial push extends deep into the metals sector, where PT Krakatau Steel (Persero) Tbk., the country's largest steelmaker, is partnering with strategic investors to ramp up production. A new 1.2-million-ton stainless steel slab facility is slated for the Morowali Industrial Park, utilizing Indonesia's massive nickel reserves.

In Gresik, East Java, the focus shifts to copper and gold through MIND ID and the defense electronics firm PT Len Industri (Persero). New facilities will process anode slime into precious metals and brass products, ensuring that the wealth generated from Indonesian soil stays within its borders.

Agro-Industry and Regional Growth

Prabowo’s roadmap also targets the agricultural heartland, with PT Perkebunan Nusantara III (PTPN III), the state-owned plantation giant, spearheading palm oil processing into biodiesel and food products. This move is expected to bolster the welfare of local farmers while securing domestic energy needs.

The Eastern regions are not being left behind, as the administration greenlit integrated coconut and nutmeg processing plants in Maluku. These facilities will transform raw spices and fruit into high-value exports like oleoresin and activated carbon, diversifying the nation's export portfolio.