Indonesia names Bahlil Lahadalia coordinating minister for downstream and energy transition

During the latest cabinet reshuffle, Bahlil Lahadalia received the newly created coordinating ministerial portfolio for downstream and energy transition, while remaining energy and mineral resources minister. He framed the combined responsibilities as essential for speeding up downstream development and the energy shift, citing that roughly nine-tenths of downstream investment is managed by his ministry. Lahadalia has previously led the Downstream and Energy Security Acceleration Task Force, which holds broad authority over marine and forest areas.

The administration targets US$618 billion in downstream investment by 2040 across 28 commodities, with nickel processing illustrating both growth and challenges for the energy transition. A major 100-GW-peak solar program, requiring up to $73 billion, is also under his purview. However, analysts argue the new senior post may duplicate existing structures, increase bureaucracy, and raise fiscal costs in a government already operating 41 ministries.