Indonesia Accelerates Mineral Downstreaming to Strengthen Energy Independence
Indonesia is accelerating efforts to strengthen energy independence and expand domestic industrial capacity through new resource-processing projects. President Prabowo Subianto has instructed ministries to speed up mineral downstreaming and optimise national resources, with the aim of increasing state revenue and reducing reliance on raw material exports. Details of the policy direction were outlined following a cabinet discussion on strategic resource management, according to a report by ANTARA.
Energy and Mineral Resources Minister Bahlil Lahadalia said the government plans to develop 13 additional downstreaming projects with total investment estimated at Rp239 trillion (around US$15 billion). The projects are intended to strengthen Indonesia’s economic structure by expanding domestic industrial processing and generating greater value from the country’s natural resources.
Expanding industrial processing of mineral resources
The new projects build on an existing pipeline of 20 downstreaming initiatives currently overseen by the government. Some of these have already entered the construction phase, while the remainder are scheduled to begin next month. The policy reflects a continued shift away from exporting raw commodities towards domestic processing and higher-value industrial activity.
According to Lahadalia, Indonesia’s natural resources are regarded as strategic national assets that must be managed to deliver stronger economic returns for the state.
“The president has instructed me to prioritize national interests above all else and to safeguard our natural resources as state assets,” — Bahlil Lahadalia, Minister of Energy and Mineral Resources, Indonesia
He added that the ministry has also been tasked with identifying new sources of mineral-related revenue to ensure the state receives a fair share of the value generated from resource extraction and processing.
Investment pipeline for new downstreaming projects
The 13 additional projects represent a significant expansion of Indonesia’s downstream strategy. While further technical details are still being finalised, the initiatives are expected to reinforce domestic supply chains and strengthen industrial capacity.
“We are adding 13 downstreaming projects with a total investment of around Rp239 trillion, and we will finalize the details,” — Bahlil Lahadalia, Minister of Energy and Mineral Resources, Indonesia
Downstreaming policies have become a central part of Indonesia’s industrial strategy in recent years, aiming to move the economy further up the value chain. These initiatives are expected to complement broader national development efforts, including programmes that encourage innovation and digital infrastructure such as public–private partnerships to strengthen Indonesia’s digital ecosystem.
Linking resource policy with energy self‑sufficiency
Alongside mineral processing, the government is also seeking to increase energy self-sufficiency by optimising domestic resources. This includes expanding the use of biofuels such as ethanol and biodiesel derived from crude palm oil, while also accelerating the transition towards renewable energy sources.
The integrated policy approach reflects a broader effort to strengthen economic resilience while supporting technological and industrial development. Indonesia has also been investing in advanced infrastructure projects, including initiatives such as plans for a quantum AI data centre in Batam, which aim to enhance the country’s long‑term competitiveness.
Monitoring commodity markets and production levels
Lahadalia said the government’s policies on coal and nickel production remain unchanged. Authorities continue to monitor global commodity prices and international supply conditions to maintain a balance between competitiveness and market stability.
If global price conditions remain favourable, the government may consider measured adjustments to production planning to maximise economic benefits while avoiding oversupply. The broader objective is to support a more resilient national economy through coordinated resource management, industrial downstreaming and stronger domestic energy capacity.
