Energy and Mineral Resources Minister Bahlil Lahadalia stated that the directive was conveyed during a two-hour limited cabinet meeting held at the Presidential Palace in Jakarta on Thursday.
"We aim to complete all preliminary processes this year so that on-field implementation can begin in 2026," Lahadalia remarked after joining Coordinating Minister for Economic Affairs Airlangga Hartarto, Finance Minister Purbaya Yudhi Sadewa, and other ministers in the meeting.
He highlighted that the 18 downstreaming projects have passed pre-feasibility studies and will be supported by Indonesia’s Investment Management Agency, Danantara, whose CEO, Rosan Perkasa Roeslani, attended the discussion.
"By accelerating the execution of these 18 projects, valued at almost Rp600 trillion, we can drive economic growth, create jobs, and reduce dependence on imported goods," Lahadalia explained.
He identified one of the projects as a facility in East Kalimantan that will convert coal into dimethyl ether to replace liquefied petroleum gas (LPG) used for various purposes, including as feedstock for the newly inaugurated petrochemical plant in Cilegon, Banten.
"We know the Cilegon plant requires about 1.2 million tons of LPG annually, shooting up the national consumption to nearly 10 million tons in 2026. Hence, we must move fast to strengthen domestic industries," he affirmed.
The minister also noted that the government continues to bolster Indonesia’s oil industry, including through a diesel refinery project in Balikpapan, East Kalimantan, slated for inauguration on November 10.
Also present at the cabinet meeting were Marine Affairs and Fisheries Minister Sakti Wahyu Trenggono, Minister of State Secretariat Prasetyo Hadi, and Cabinet Secretary Teddy Indra Wijaya.
President Prabowo chaired the discussion after inaugurating Southeast Asia’s largest petrochemical factory in Cilegon, built with South Korean investment worth US$3.8 billion.
The plant is designed to produce one million tons of ethylene, 520 thousand tons of propylene, 400 thousand tons of benzene/toluene/xylene, 350 thousand tons of polypropylene, and 140 thousand tons of butadiene annually.
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Translator: Genta T, Tegar Nurfitra
Editor: Azis Kurmala
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