Antara News·Indonesia·Sunday, October 18, 2026 at 01:09 PM UTC

Prabowo-Gibran marks 2 years with Rp225T downstreaming projects

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Maria, Kenzu

Jakarta (ANTARA) - The Government Communication Agency (Bakom) reported that the Prabowo Subianto–Gibran Rakabuming Raka administration prepared 26 downstreaming projects worth Rp225 trillion (US$12.46 billion) during its first two years.

Bakom Deputy for Partnerships and Media Relations Kurnia Ramadhana stated that the projects are projected to employ 37,833 workers while strengthening domestic industry through natural resource value addition.

"Downstreaming and industrialization are part of the government's policy direction to strengthen economic self-reliance and encourage job creation," Ramadhana said in a statement on Sunday.

In implementation, sovereign wealth fund Danantara prepared 26 downstreaming projects across two phases, backed by Rp225 trillion (US$12.46 billion) in total investment.

Besides encouraging downstream investment, the government strengthened governance over strategic commodity trade using a single-gate export policy.

Managed by Danantara Sumberdaya Indonesia (DSI), the policy took effect June 1 for three core commodities: coal, palm oil, and ferroalloys.

In 2025, export revenue across these three commodities reached US$66.13 billion (Rp1,193.85 trillion), accounting for 23.4 percent of total national exports.

The single-gate export framework is being rolled out gradually to tighten export oversight, prevent under-invoicing, and optimize management of export proceeds.

Institutionally, the government restructured state-owned enterprises (SOEs) to improve operational efficiency and commercial performance.

As part of this consolidation, the government closed 328 SOEs, streamlining a corporate group previously totaling 1,074 state-owned entities and subsidiaries.

Ramadhana noted that the restructuring generated overhead cost savings of Rp50 trillion (US$2.77 billion) by reducing executive compensation, property and vehicle rentals, and business travel.

"The government targets these cost savings to rise to more than Rp70 trillion by the end of 2026," he said.

Meanwhile, to enhance transparency in trading strategic commodities, the government established the Task Force for Accelerating the Establishment of the Indonesia Mineral Exchange on June 12.

The government targets the Mineral and Strategic Commodities Exchange (BMKS) to begin operating on Jan. 1, 2027, under Financial Services Authority (OJK) oversight.

The exchange aims to establish transparent commodity trading, set domestic benchmark prices, and limit transfer pricing and under-invoicing risks.

These initiatives form part of broader government efforts to expand downstreaming, boost SOE efficiency, and reform strategic commodity trade governance to generate higher national economic value.

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