Indonesia launches Rp225 trillion downstream projects and SOE overhaul to boost jobs and export control
The government announced 26 downstream projects worth Rp225 trillion, aiming to create tens of thousands of jobs and tighten export oversight of key commodities.
Indonesia’s government unveiled a suite of 26 downstream projects funded by sovereign wealth fund Danantara, totaling Rp225 trillion in investment. Kurnia Ramadhana highlighted that the initiatives are expected to generate a large workforce and support the country’s self-reliance policy. A new single-gate export framework, effective from June 1, now governs coal, palm oil and ferroalloys to improve oversight and curb under-invoicing.
State-owned enterprises have been streamlined, with 328 entities closed out of a previous 1,074, yielding Rp50 trillion in overhead savings. Officials aim to raise these savings to over Rp70 trillion by 2026. Export earnings from the three core commodities are forecast to reach US$66.13 billion in 2025, representing 23.4% of total national exports, and a mineral exchange is slated to launch on Jan. 1 2027.
Why it matters
The reforms could reshape Indonesia’s industrial base, create jobs and increase transparency in strategic commodity trade.
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