REPUBLIKA.CO.ID, JAKARTA -- Daya Anagata Nusantara Investment Management Agency (BPI Danantara) will soon begin its campaign to fund national strategic projects. President Prabowo Subianto, when launching Danantara, said that the giant sovereign wealth fund will invest in 20 National Strategic Projects (PSN).
To date, the relevant PSN details have not been disclosed transparently. However, he called some sectors of PSN targets with total funds available for investment of Rp 300 trillion, which is felt from the Ministry's efficiency proceeds fund.
“The first wave of investments worth $20 billion in approximately 20 billion-dollar stategical projects will be focused on downstream nickel, bauxite, copper, construction of artificial intelligence data centers, oil refineries, petrochemical plants, food and protein production, aquaculture, and renewable energy,” Prabowo said.
On Friday (7/3/2025), Minister of Energy and Mineral Resources Bahlil Lahadalia said that the project for the construction of a 500,000-barrel oil refinery built near Singapore in the Sumatra region will be partially financed by Danantara.
“Part of the fund is (funded) by Danantara, some we are looking for. If indeed Pertamina can participate, it is much better,” Minister ESDM said in response to reporters' questions when he was met at the Presidential Palace Complex in Jakarta.
However, Bahlil has not been able to name how much he will finance later. In a separate location, Bahlil briefly referred to the Sumatra area as the site of oil refinery construction due to business considerations.
“Yes, it is a business consideration yes,” Bahlil told reporters when he met at the ESDM Ministry's Office in Jakarta on the same day.
The development of the refinery is part of 21 first-stage downstream projects that will receive investment funding of 40 billion US dollars or about Rp 657 trillion. The projects are also part of a $618 billion downstream target by 2025.
Alongside refinery construction, several other major downstream projects also include the construction of an oil storage facility on Nipah Island, Riau Islands, to strengthen national energy resilience.
Later, there was the downstream project of Dimethyl Ether (DME) raw coal as a replacement for imported LPG. In addition to the energy sector, Bahlil continued downstream targeting other commodities such as copper, nickel, bauxite alumina, then agriculture, fisheries, and forestry sectors.
Bahlil insists the funding of those projects is not entirely dependent on foreign investment, for example for downstream Dimethyl Ether (DME).
He reiterated that the government continues to increase the number of downstream projects in the next phase to reach the target of 26 commodity sectors that are the downstream priorities of President Prabowo Subianto's administration. If established, this refinery could potentially be the largest production refinery in Indonesia.
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