Want To Study 18 Downstream Projects, Danantara Opens Potential Governance With SOEs To Private

JAKARTA - The Anagata Nusantara Power Investment Management Agency (Danantara Indonesia) will review 18 downstream projects that have been submitted with pre-feasibility study documents by the Head of the National Downstream and Energy Resilience Acceleration Task Force Bahlil Lahadalia today, Tuesday, July 22.

Danantara will later open opportunities for the private sector and state-owned companies to finance a number of existing projects.

Danantara CEO Rosan Roeslani said, from the document, Danantara will then evaluate to determine which downstream projects will be a priority to get funding from Danantara.

"This financing remains open, yes. So, it can be from Danantara, it can be through existing SOEs, or it could be between existing SOEs and investment Danantara. It could also be that we invite other private sector business worlds," said Rosan to the media crew at the Ministry of Energy and Mineral Resources Building, July 22.

Rosan emphasized that his party also opened up opportunities for this project to be funded by Danantara by considering a number of criteria such as projects that create the most jobs.

"One of the probably what I can convey is for us the most job creation," explained Rosan.

Furthermore, Rosan said, Danantara did not rule out cooperation with foreign private companies.

Moreover, he said, currently many downstreamings still use technology from abroad.

"So maybe the best technology is owned, still owned, or controlled by foreign parties, so we also use technology," he explained.

Rosan, who also serves as Minister of Investment, said that the contribution of investment in the downstream sector increased significantly.

"Approximately more than an investment that is included in the second batch or if in one semester, it is more or less the contribution of more than IDR 950 trillion, reaching 30 percent, it is based on downstreaming," he said.

Rosan also said that during the four months the Danantara was launched, it had received funding through cooperation with other Sovereign Wealth Funds (State Wealth Fund) amounting to US $ 7 billion.

"Of the 7 billion dollars with Qatar 4 billion US dollars, then with CIC (China Investment Corporation) 2 million US dollars and also then with the Russian Direct Investment Fund (RDIF). And we are having talks with other Sovereign Wealth Funds to jointly invest, especially in Indonesia," concluded Rosan.

To note, based on the initial study of the National Energy Downstream and Resilience Task Force, of the 18 projects, the mineral and coal downstream project was the largest with 8 projects worth US$20.1 billion and the potential to absorb 104,974 workers.

Projects in the agricultural and marine sectors absorb 23,950 and 67,100 workers, respectively.

Meanwhile, the energy transition project is worth 2.5 billion US dollars and absorbs 29,652 workers.

In the energy security sector, the investment value reaches 14.5 billion US dollars with the potential for absorption of 50,960 workers.

Overall, these 18 projects have the potential to create 276,636 direct and indirect jobs.