Indonesia Launches US $40 billion Strategic Investment Plan to Deepen Resource Industry Chain Layout

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The Indonesian government has approved 21 downstream industrial projects with an investment of US $40 billion billion to strengthen energy security, mineral processing and agricultural upgrading, which is expected to create 500000 jobs and increase economic value added.

In

, the Indonesian government officially launched a strategic investment plan for downstream industries with a total amount of US $40 billion (about 659.2 trillion rupiah) through the National Energy Investment Danantara (BPI), and the first batch of 21 key projects have been approved. The plan aims to strengthen resource sovereignty and enhance industrial added value, covering three strategic directions: energy security, mineral processing and agricultural upgrading.

in the field of energy security, the government will build a national oil reserve base on Nipah Island to ensure that the strategic crude oil reserve reaches the national 30-day consumption demand standard. The simultaneous promotion of the intelligent refinery project with a daily processing capacity of 500000 barrels will significantly increase the fuel self-sufficiency rate and is expected to reduce the dependence on refined oil imports by 15%. In terms of in-depth development of coal resources, South Sumatra, East Kalimantan and South Kalimantan simultaneously started coal gasification projects, and converted inferior coal into dimethyl ether (DME) clean fuel through independent innovation technology, forming an annual output of 2 million Tons of alternative energy production capacity, fully replacing imported liquefied petroleum gas.

The

Mineral Resources Value-added Project focuses on the three core minerals of copper, nickel and bauxite, and plans to establish a whole industrial chain system from raw ore mining to high-purity metal extraction. The agricultural industry upgrading sector integrates fishery, forestry and planting resources, focusing on the development of 28 types of high value-added commodities such as cold chain storage, wood deep processing and palm oil derivatives production.

President Prabowo emphasized that the plan will strictly follow the three-stage development path of "resource localization-technology autonomy-market internationalization". Through the integration of the industrial chain in 26 priority commodity areas, it is expected to create more than 500000 direct jobs., Driving the average annual growth of manufacturing value added by 8%, reducing the proportion of primary product exports from the current 65% to less than 40%. According to the calculation of the Ministry of economic planning, after the project is fully completed, it can increase the national financial revenue by 22 billion US dollars every year, and simultaneously promote the GDP growth rate by 1.2 percentage points.

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