Danantara to Launch $12.4 Billion in Downstream Projects

The Daya Anagata Nusantara Investment Management Agency, known as Danantara, is advancing its plans to develop 26 downstream projects in Indonesia with a total investment of approximately $12.4 billion (Rp225 trillion). This initiative is part of a broader strategy to enhance the value of the country's natural resources, strengthen local industries, and create employment opportunities.

According to Dony Oskaria, the Chief Operating Officer of Danantara, the projects are designed to not only attract investment but also to provide tangible benefits to the national economy. He stated that downstream processing must yield real benefits for the national economy, not just from an investment perspective, but also in terms of its impact on society. The projects are expected to generate around 37,833 jobs, significantly contributing to local employment.

The implementation of these projects will occur in two phases. The first phase includes six priority projects across 13 locations, with an investment of about $7.2 billion (Rp109 trillion) and an estimated job creation potential of 11,456 positions. The second phase is set to encompass 10 additional priority projects, with an investment of approximately $7.5 billion (Rp116 trillion) and the potential to create 26,377 jobs.

“Downstream processing must yield real benefits for the national economy, not just from an investment perspective, but also in terms of its impact on society.”Dony Oskaria, COO of Danantara

These downstream projects cover a range of strategic commodities, including the construction of smelters for aluminum, stainless steel, and copper, as well as developments in the energy and food sectors, such as biofuel facilities and palm oil processing. Dony emphasized that the goal of these initiatives is to ensure that the added value from these resources is enjoyed domestically, thereby stimulating local economies.

As Indonesia continues to push for economic growth through industrial development, the Danantara projects align with the government's objectives to enhance local production capabilities and reduce reliance on imports.