Six Danantara Liquefaction Projects Start, Investment Value Rp118 Trillion

JAKARTA - Danantara Indonesia officially launched six downstream projects today.

The projects cover the energy, mining, and agriculture sectors, and are marked by the simultaneous groundbreaking in a number of areas.

The six downstream projects are spread across 13 regions in Indonesia. The launch of the project was directly commanded from Danantara's office at Wisma Danantara, South Jakarta.

Danantara Rosan Roeslani's Chief Executive Officer (CEO) said that downstreaming is a national priority program in line with President Prabowo Subianto's directions.

According to Rosan, these projects are not only aimed at generating financial profits, but also encouraging wider economic impacts.

"The industrialization is the main priority program of President Prabowo Subianto. This is also the main program of us at Danantara to ensure that this program not only provides good returns, but also in terms of job creation and added value, which will have a positive impact on Indonesia's economic growth," said Rosan at Wisma Danantara, Jakarta, Friday, February 6.

The six downstream projects launched by Danantara include bauxite, alumina, and aluminum processing facilities in Mempawah, West Kalimantan, as well as the Smelter Grade Alumina Refinery (SGAR) 2 project, which is also located in Mempawah.

In the renewable energy sector, Danantara is working on the construction of the Glenmore phase 1 bioethanol plant in Banyuwangi, East Java, as well as a biorefinery or bioavtur plant in Cilacap, Central Java.

Meanwhile, in the food sector, Danantara is developing an integrated poultry farming project spread across Malang, North Gorontalo, South Lampung, South Sulawesi, East Kalimantan, and West Nusa Tenggara (NTB).

In addition, the downstream project also includes the construction of a salt plant in Sampang, Madura; Manyar, Gresik; and Segoromadu 2, Gresik.

Rosan said the total investment value of the six projects reached US$ 7 billion or equivalent to Rp. 118.2 trillion with an assumption of a rate of Rp. 16,887 per US dollar.

Furthermore, Rosan hopes that this investment will be able to strengthen the national industrial structure while encouraging the equalization of economic growth in various regions.

With the start of these projects, Danantara emphasized its commitment to becoming a national downstream driving force that is oriented towards the creation of added value and long-term economic sustainability.

"We ensure that this program not only provides good returns, but also in terms of job creation, value creation, which will have a positive impact on Indonesia's economic growth," said Rosan.

For information, the downstream projects are being worked on by a number of SOEs.

For example, the aluminum processing project and SGAR 2 are being worked on by MIND ID.

Then, the Glenmore bioethanol plant project was worked on by PT Perkebunan Nusantara (PTPN) and Pertamina New & Renewable Energy (PNRE).

Then, the Pertamina Group is also working on a biorefinery plant project in Cilacap. Meanwhile, the integrated poultry farming project is being worked on by ID FOOD, and the salt plant project by PT Garam.

"The President emphasized the acceleration of downstream projects that have a direct impact on the economy and society. Therefore, if we look at it, the contribution from this downstream is increasing," said Rosan.