The downstream projects span multiple sectors, including mining, agriculture, fisheries, and forestry. Minister Bahlil highlighted that the government plans to expand the number of projects in subsequent phases, with a long-term target of attracting $618 billion in investments. This comprehensive approach underscores Indonesia’s commitment to achieving energy independence and sustainable economic development.

Danantara’s role in financing these projects has been met with both optimism and caution. While the sovereign wealth fund is expected to provide significant financial support, experts have raised concerns about the risks associated with large-scale investments in downstream industries. Minister of Investment and Downstream Industries Rosan Roeslani assured that Danantara would follow proper procedures, including due diligence, before committing funds.

The refinery project is part of Indonesia’s broader strategy to maximize the value of its natural resources through downstream processing. By refining crude oil domestically, the country aims to reduce its trade deficit, increase revenue from exports of processed products, and strengthen its position in the global energy market. This aligns with the government’s vision of transforming Indonesia into a high-income economy by 2045.

The announcement has sparked discussions about the potential economic and environmental impacts of the project. While the refinery is expected to boost energy security and create jobs, critics have called for careful consideration of environmental sustainability and community welfare. As Indonesia moves forward with its downstream ambitions, balancing economic growth with environmental responsibility will remain a key challenge. (Uki Ruknuddin)

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