Published on February 6, 2026, by Detik Finance
Reported by Hana Nushratu
Jakarta – Investment Management Agency Danantara Indonesia held a groundbreaking ceremony for six downstream projects across 13 locations in Indonesia worth a combined $7 billion or about 118.14 trillion rupiah.
These projects are part of the national economic transformation agenda to strengthen the real sector, adding value to the domestic industries while creating more jobs and encouraging sustainable economic growth. The projects are expected to employ more than 6,000 workers.
The inauguration marks the start of phase I development of Indonesia’s priority downstream projects in sectors such as energy, food, minerals, and metals, as part of the efforts to reduce import dependence and strengthen national industry.
Danantara Indonesia CEO Rosan Roeslani said that the downstreaming program is President Prabowo Subianto’s priority and it is also one of Danantara Indonesia’s main focuses in driving national economic transformation.
“The initial phase of these projects is expected to have a tangible positive impact on the Indonesian economy, both through the creation of industrial added value and employment. Going forward, these downstream projects are expected to become the backbone of stronger, more sustainable, and globally competitive economic growth,” Rosan said in a written statement on Friday (6/2).
“Through close collaboration between the government, state-owned enterprises, and strategic partners, downstreaming will be a crucial foundation for strengthening industrial independence and propelling Indonesia towards a more advanced and high-value-added economy,” he continued.
MIND ID, together with its members INALUM and ANTAM, inaugurated a bauxite-alumina-aluminum processing and refining facility located in Mempawah, West Kalimantan.
This facility consists of a new aluminum smelter with a capacity of 600,000 metric tons of aluminum per annum and a Phase II Smelter-Grade Alumina Refinery with a capacity of 1 million metric tons of alumina per annum.
This project aims to support Indonesia’s mineral security program and bolster the supply of raw materials for the domestic manufacturing sector, as part of strengthening the national industrial value chain.
Through this national strategic project, MIND ID is driving a 70-fold increase in added value, converting bauxite into alumina and aluminum.
This is based on the price of raw bauxite hovering around $40 per metric ton, increasing to around $400 per metric ton after processing into alumina and again soaring to around $2,800-$3,000 per metric ton when processed into aluminum.
MIND ID President Director Maroef Sjamsoeddin stated that this project will strengthen domestic aluminum production capabilities and demonstrate Indonesia’s increasing ability to reduce its dependence on aluminum imports.
He said the facility will reduce import dependence and will improve foreign exchange reserves. When the new aluminum smelter is operational, foreign exchange reserves are estimated to increase by 394% to 52 trillion rupiah per year, from 11 trillion rupiah currently.
In addition, manufacturing industry players will receive guaranteed domestic raw materials.
“This project is a contribution from the MIND ID Group to creating added value domestically, strengthening the economy, and strengthening state sovereignty in the mineral sector, for the sake of Indonesia’s future civilization,” said Maroef.
The implementation of these downstream projects aligns with Prabowo’s directive to accelerate national economic transformation by strengthening the real sector, increasing the added value of domestic resources, and developing competitive and sustainable industries.
Danantara Indonesia, along with state-owned enterprises, ensures that priority projects are implemented in a disciplined manner, on time, and provide tangible economic impact.
The inauguration was also attended by the Governor of West Kalimantan, members of Commission XII of the Indonesian House of Representatives (DPR RI), the Regent of Mempawah Regency, the King of Mempawah XIV, the Dayak Traditional Council, the Board of Directors and Commissioners of MIND ID, ANTAM, Bukit Asam, INALUM, and PT Borneo Alumina Indonesia.