Indonesia sources new Downstream Ministry budget from ESDM Ministry

Jakarta (ANTARA) - The operational budget for Indonesia’s newly established Coordinating Ministry for Downstream Industry and Energy Transition is being sourced directly from the Ministry of Energy and Mineral Resources (ESDM), according to Deputy Finance Minister Suahasil Nazara.

Speaking at the Presidential Palace Complex in Jakarta on Monday, Suahasil explained that the internal budget reallocation was carried out to ensure the immediate operational readiness of the new coordinating ministry as its institutional structure takes shape.

"(Minister) Bahlil is handling the budget very well. (The budget comes) from the ESDM Ministry," Suahasil stated.

Under the 2027 State Budget (APBN), the ESDM Ministry was allocated Rp27.37 trillion (approximately US$1.53 billion). This allocation will undergo internal restructuring to finance the new coordinating ministry's administrative and operational requirements.

Suahasil noted that the government is currently drafting the formal budget governance framework, including budget section designations, administrative mechanisms, and final funding breakdowns.

"We still need to determine the specifics—such as the budget section designation, governance, administration, and the specific budget allocation amount; that is currently in the process of being drafted," he said.

The Coordinating Ministry for Downstream Industry and Energy Transition was established to accelerate President Prabowo Subianto’s priority targets regarding national downstream development and energy transition.

The new ministry, led by Bahlil Lahadalia—who concurrently serves as ESDM Minister—will coordinate cross-agency policies, including those under the Ministry of Investment and Downstream Industry.

For its initial operations, the coordinating ministry is housed within the ESDM Ministry headquarters in Jakarta.

Translator: Maria Cicilia Galuh, Genta Tenri, Yashinta Difa
Editor: Aditya Eko Sigit Wicaksono
Copyright © ANTARA 2026