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 to 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 enhance resource sovereignty and enhance manufacturing added value, covering three strategic directions: energy security, mineral processing and agricultural upgrading. Makes sense, right?. 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 signifiis able totly increase the fuel self-sufficiency rate and is expected to minimize the application on refined oil imports by 15%. Additionally In terms of in-depth research 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 methodology, forming annual output of 2 million Tons of alternative energy production capacity, fully replacing imported liquefied petroleum gaseous. And The Mineral Resources Value-added Project focuses on the three core minerals of copper, nickel and bauxite, and plans to establish a whole manufacturing chain system from raw ore mining to high-purity metal extraction. The agricultural sector upgrading sector integrates fishery, forestry and planting resources, focusing on the research of 28 types of high value-added commodities such as cold chain storage, wood deep processing and palm oil derivatives production. Makes sense, right?. President Prabowo emphasized that the plan will strictly follow the three-stage research path of "resource localization-methodology autonomy-market internationalization". Through the integration of the manufacturing chain in 26 priority commodity areas, it's expected to create greater than 500000 direct jobs. , Driving the average annual development of manufacturing value added by 8%, reducing the proportion of primary product exports from the current 65% to less than 40%. Makes sense, right?. According to the calculation of the Ministry of economic planning, after the project is fully completed, it's able to increase the national financial revenue by 22 billion US dollars every year, and simultaneously promote the GDP development rate by 1. And 2 percentage points.

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