Danantara breaks ground on six Phase I downstream projects

By Calvin Purba

Daya Anagata Nusantara (Danantara), Indonesia’s sovereign wealth fund, on Friday (Feb. 6, 2026) broke ground on six Phase I downstream projects across multiple sectors, with a total investment value of about US$7 billion, or Rp118.14 trillion.

“With the six downstream projects launched today, the total investment indeed reaches US$7 billion,” Danantara Chief Executive Officer Rosan Roeslani said at the Phase I Downstream Projects Groundbreaking ceremony.

The first project, located in Mempawah, involves the construction of an aluminium smelter and the second phase of a Smelter Grade Alumina Refinery (SGAR). The aluminium smelter will have a production capacity of 600,000 tonnes per annum, requiring an investment of around Rp40.6 trillion and employing approximately 1,370 workers.

SGAR Phase II will have an annual production capacity of 1 million tonnes of alumina, with an investment value of about Rp14.8 trillion and an estimated workforce of 878 people.

The second project, in Banyuwangi, is being developed by PT Pertamina (Persero) in partnership with PT Perkebunan Nusantara (PTPN). It involves the construction of a bioethanol plant integrated with the agriculture and energy sectors, with a production capacity of 30,000 kilolitres per year.

The third project is a biorefinery in Cilacap, initiated by Pertamina, which will produce bioavtur with a planned capacity of 6,000 barrels per day. The project will be developed in two phases, with the first phase targeting a capacity of 3,000 barrels per day.

Read also: Inalum targets EPC tender for SGAR Phase II next year

The fourth initiative is an integrated poultry farming project to be developed at six locations—Malang, Gorontalo, Lampung, South Sulawesi, East Kalimantan, and Sumbawa—by ID Food, Berdikari, and PTPN III.

The fifth project involves the construction of a salt processing plant in Gresik by PT Garam and ID Food. The facility aims to upgrade salt into raw materials for strategic industries.

Rosan said the downstream projects form part of President Prabowo Subianto’s flagship programmes and are a key focus for Danantara, as downstreaming generates strong returns while creating jobs and added value.

“This programme not only provides good returns, but also creates employment and added value, which will certainly have a positive impact on Indonesia’s economic growth going forward,” he said.

Rosan, who also serves as Indonesia’s Minister of Investment, added that downstream projects contributed around 30%, or Rp584.1 trillion, of total investment in 2025, representing a 43.3% increase from the previous year.

“Downstreaming will continue to grow. Previously, it was concentrated mainly in two regions, particularly mineral downstreaming in North Maluku and Sulawesi. Going forward, we expect the distribution to become more balanced,” he said.

Editing by Reiner Simanjuntak