Overview
President Prabowo Subianto has formed a Task Force for the Acceleration of Downstreaming and Resilience. The establishment was stipulated in Presidential Decree Number 1 of 2025, effective from January 3, 2025 and will directly report to the President. The Task Force has two main missions, the first is to accelerate downstreaming in the fields of minerals and coal; oil and gas; agriculture; forestry; and marine & fisheries to increase domestic added value; while the second mission is to accelerate national energy security.
The Task Force is chaired by Minister of Energy and Mineral Resources Bahlil Lahadalia and has 6 representatives, namely:
1. Minister of Investment and Downstream/Head of the Investment Coordinating Board
2. Minister of Agrarian and Spatial Planning/Head of the National Land Agency
3. Minister of Agriculture
4. Minister of Forestry
5. Minister of Maritime Affairs and Fisheries
6. Minister of State Secretary
Meanwhile, there are also 9 members consisting of:
1. Minister of Law
2. Minister of Finance
3. Minister of Industry
4. Minister of State-Owned Enterprises
5. Minister of Environment/Head of the Environment Agency
6. Minister of Public Works
7. Minister of Trade
8. Attorney General
9. Chief of the Indonesian National Police.
There are four main substances of the Presidential Decree Number 1 of 2025:
1. Mapping Raw Material: Resources Minister Bahlil explained the Task Force was designed to immediately formulate, propose, and determine areas related to raw material resources both in Ministry of Energy and Mineral Resources and elsewhere, be it forestry, fisheries, or agriculture to prioritize downstream.
2. Formulating Financing: The Task Force was ordered to formulate, identify, and recommend strategic downstream and national energy security projectsfor financing purposes. Financing can be done through banking or non-banking and does not rule out the possibility through the State Budget (APBN).
3. Licenses Management: The task force is expected to address overlapping policies related to downstream synchronization, particularly in licensing as obtaining licenses in sectors related to downstreaming remains challenging. For example, while Mining Business Licenses (IUP) are relatively easy to secure, permits such as the Borrowing Permit for Forest Area Use (IPPKH), Environmental Impact Analysis (AMDAL), and Budget Work Plan (RKAB) are still difficult to obtain. The task force is tasked with accelerating the issuance of these permits. Additionally, the task force can provide recommendations to the heads of ministries, institutions, and/or local governments to act against officials who are deemed to obstruct the acceleration of downstreaming and national energy security. These recommendations will take the form of administrative actions.
4. Ensuring Effective Downstream Coordination: Through this Task Force, the President wishes the downstream to be equitable and wellcoordinated. The Presidential Decree obligates the Task Force to give the accountability report at least once every six months directly to the President.
Latest Update
- Chinese Investors Announces IDR 120 trillion Investment to Indonesia
- Indonesia’s Ministry of Investment announced that several Chinese companies have committed to invest US$7.46 billion (IDR 120 trillion) in new projects.
- The statement was issued following Minister of Investment Rosan Roeslani’s visit to the Chinese cities of Hangzhou, Quzhou, and Beijing from December 18-20, 2024. The largest investment commitment comes from Hongshi Holding Group, one of China’s 12 large national cement enterprises supported by the State Council, that plans to build an Industrial Park to produce silicon, polysilicon, as well as batteries and related components. The investment is estimated at US$5 billion (IDR 80 trillion) and will include the construction of a 2-Gigawatt power plant to support the operation of the Industrial Park.
- Investment commitment comes from Zhenshi Holding Group Co., Ltd, one of China Top 500 Enterprise operating as an investment company. Zhenshi’s subsidiary, Jushi Group, plans to make a new investment of US$ 1 billion (IDR 16 trillion) (first phase) in the fiberglass industry, with an estimated employment of 4,500 people.
- In addition, there is also an investment commitment from Wankai New Materials (Zhink Group). This investment plans totals US$ 1 billion (IDR 16 trillion) and will be carried out in three stages. Zhink Group itself is the 3rd largest PET (Polyethylene Terephthalate) producer in China and the 5th largest in the world.
- Rosan Roeslani also held a meeting with nickel company Huayou Holding Group, which already has a large investment in Indonesia. The Indonesian Investment Minister asked the company to set up a research and development (R&D) center in Indonesia, which was positively welcomed by Huayou.
- Currently, Huayou’s project sites are spread across three main locations, namely Indonesia Morowali Industrial Park (IMIP), Indonesia Weda Bay Industrial Park (IWIP), 3 and Indonesia Pomalaa Industry Park (IPIP). Rosan said, in the future the projects from Huayou will be developed in Sorowako and Buli. Huayou’s total investment in Indonesia has reached US$ 6.3 billion (IDR 100 trillon) of integrated smelter mining, High-Pressure Acid Leach (HPAL) and Rotary Kiln-Electric Furnace (RKEF); refining; and precursors.
- Rosan also met with Geely Automobile Holdings, discussing the potential for investment in the development of the automotive industry in Indonesia. Geely is one of the leading global automotive manufacturers and a shareholder in several wellknown European car brands, including Volvo, Daimler, and Lotus.
- Indonesia Officially Joins BRICS Block As A Full Member
- Brazil’s government said in a statement on January 6, 2025, that Indonesia has formally joined BRICS as a full member, further expanding the group of major emerging economies, becoming the 10th member of the bloc.
- Joining BRICS will provide Indonesia with larger opportunity growth in many sectors; however Indonesia shall be more mindful in nurturing its foreign relationship to maintain a healthy balance. Since independence, Indonesian foreign relations have adhered to a “free and active” foreign policy, seeking to play a role in regional affairs commensurate with its size and location but avoiding involvement in conflicts among major powers.
- According to the Center of Economic and Law Studies (CELIOS), Indonesia’s full membership of the BRICS grouping will provide new benefits, especially in expanding its export market.
- Europe currently has begun to feel uneasy with Indonesia’s export policy; hindering Indonesia’s foreign trade, for instance, through the implementation of the EU Deforestation Regulation (EUDR), which challenges the exports of palm oil. Joining BRICS will enable Indonesia to be free from traditional markets such as the US and Europe, tapping the potential trade from BRICS member that accounts for 37.82% of the GDP and 48% of the world’s total population.
- Indonesia’s inclusion as a full member of BRICS will also help bolster investments in the oil and gas sector, according to the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas).
- Apart from bolstering investments, Indonesia’s membership in BRICS will unfold new opportunities for exchanges in technology and human resources in the oil and gas sector among member countries. Indonesia’s inclusion in the economic bloc may also open new opportunities to acquire Russia’s oil at potentially lower prices.
- Elecmetal Invests US$ 40 Million to Build Grinding Ball Production Factory in KITB
- PT Elecmetal Longteng Indonesia, a cooperation of ME Elecmetal and Longteng Special Steel, has started construction of a grinding ball production facility in the Kawasan Industri Terpadu Batang (KITB). With a land area of 4.99 Ha and a total investment of nearly US$ 40 million (IDR 600 billion), this project marks a major step in the development of the base metal industry in Indonesia.
- ME Elecmetal is a public company listed on the Santiago Exchange, Chile, and is the largest mill liner manufacturer in the world, also backed by the Claro Group, one of the most influential conglomerates in South America. The company has been recognized as a leader in metal processing technology.
- Meanwhile, China-based Longteng Special Steel Co., Ltd. is a major player in the global special steel market. With the world’s largest grinding ball-manufacturing facility with a capacity of over 500,000 MT.
- The facility in KITB is designed to produce 200,000 tons of high-quality grinding media per year, with a distribution of 30-35% for the domestic market and 65-70% for export. Most exports are destined for Australia, one of the key markets for these grinding ball products.
- By combining ME Elecmetal’s superior technology and Longteng’s manufacturing expertise, the company aims to become a market leader in Indonesia.
- Apple to Invest US$ 1 Billion in Batam
- Minister of Investment and Downstreaming/Investment Coordinating Board (BKPM) Rosan Roeslani after receiving Apple’s Vice President of Global Policy, Nick Amman, and his entourage at his office in Jakarta on January 7, 2024, said that Apple will invest to build its first AirTag factory in Batam for a total of US$ 1 billion (IDR 16 trillion).
- Rosan said the government is committed to inviting other vendors. That way, the value of Apple’s investment is expected to continue to increase. Currently in Thailand, there are more than 23 vendors, and with Vietnam there are more than 30 vendors.
- Rosan said the factory construction will begin somewhere in 2025 and is targeted for completion in early 2026. The construction of the factory in Batam is estimated to absorb 2,000 workers. Upon completion, 65% of Apple’s AirTag needs will be met from the factory.
- PLN Nusantara Power Develops Solar Power in Subang Smartpolitan
- PLN Nusantara Power (PLN NP) has added a business portfolio through the development of a clean energy-based Subang Smartpolitan Industrial Estate through 18 MWp Solar Power Plants.
- This was marked by the signing of the Shareholders Agreement between PT PLN Nusantara Renewables (PLN NR) a subsidiary of PLN NP and PT Surya Subang Smartpolitan (SSS).
- This project was a follow-up to the Memorandum of Understanding between PLN and SSS on April 5, 2023.
- SMBC Indonesia extends $10 million financing support to SUN Energy
- PT Surya Utama Nuansa (SUN Energy), a leading solar energy project developer in Indonesia, has partnered with PT Bank SMBC Indonesia to secure a US$10 million (IDR 160 billion) multi-option trade facility. The financing aims to support the operational needs and expansion of solar energy projects within the commercial and industrial (C&I) sectors.
- This flexible funding facility is designed to cater to SUN Energy’s specific needs, with key features including a Letter of Credit (LC) to facilitate international payments for raw material procurement.
- The funds are primarily allocated to two areas: procuring solar energy materials and enhancing SUN Energy’s competitiveness in strategic project tenders. The procurement of materials is critical for the success of projects in the C&I sectors, and the facility ensures the continuity of both current and upcoming initiatives. Additionally, it strengthens the company’s ability to compete effectively in tenders, helping secure strategic projects.
- SMBC Indonesia actively supports green financing through sustainability-linked loans for projects like solar plants, sustainable plantations, and eco-friendly vehicles. This aligns with Financial Services Authority policies and SMBC’s net-zero goals: operations by 2030 and loans by 2050.
- SMBC Indonesia reported nearly IDR 17.3 trillion (US$ 1.08 billion) in sustainable loan disbursements by the end of September 2024, an 18% increase from the previous year. The collaboration with SUN Energy is part of a strategic step in advancing the development of green business.
- Government Plans to Create a Holding for Micro, Small & Medium Enterprise
- The Minister of Micro, Small and Medium Enterprises (MSMEs), Maman Abdurrahman, began planning the formation of an MSME holding, for easier financing access and to improve the supply chain ecosystem between MSMEs and large industries. MSMEs are always faced with funding problems, and MSME Holding may be a solution to funding MSMEs through investment activities.
- Maman said the plan to form an MSME holding benchmarked at what was already running in several countries such as China, India, Japan and South Korea. The MSME holding will be designed to combine 10 strategic sectors, without further details, involving entrepreneurs such as the Indonesian Employers Association (Apindo) and consolidating more than 3,000-4,000 MSMEs into the holding.
- Financing of this MSME holding may come from government and private sectors.
- PT Xanh SM Green Enters Indonesia to Become the First Electric Transportation
- Service in the Country o PT Xanh SM Green and Smart Mobility (GSM) officially launched its electric taxi service, Xanh SM, in Indonesia. The launch of Xanh SM in Indonesia becomes a significant landmark for the company’s progress toward its vision for “Go Green Global” and is the third launch in Southeast Asia, after its launch in Vietnam and Laos.
- Vietnam’s Xanh SM in Indonesia was just officially launched on December 18, 2024. The company is aggressively expanding globally, including Indonesia. Quoting its official Instagram page, Xanh SM will still serve the Central Jakarta and South Jakarta areas using VinFast electric cars as its first go to market in the country.
- Xanh SM was established in 2023 by operating 100,000 units of electric vehicles, including electric cars, electric motorbikes, and units managed by company partners. It quickly became Vietnam’s 2nd most popular ride hailing with 32% market penetration. It was nominated as one of the fastest growing ride-hailing in Vietnam, 6 securing 2 major awards – “Fast Enterprise Award” and “Inspirational Brand Award” – in the Asia Pacific Enterprise Award 2024 (APEA 2024).
- Government stakeholders from Indonesia and Vietnam welcomed the arrival of Xanh SM to play a pivotal role in reducing emissions, improving air quality, and contributing to the broader goal of creating a sustainable economy and low-carbon economic activities in the country.
- Merger Plans Between Garuda Indonesia and Pelita Air
- PT Garuda Indonesia is currently exploring corporate action of a merger with PT Pertamina’s subsidiary Pelita Air. The merger plan is still in the initial discussion stage.
- Garuda Management said that the company is still preparing initial studies and discussions with parties, especially the Ministry of State-Owned Enterprises (SOEs) as Garuda Indonesia’s main shareholder. This step is to optimize various business opportunities and strengthen the ecosystem of the air transportation industry.
- Minister of Energy and Mineral Resources Pushes Certainty for Tuban’s New Grass Root Refinery in 2025
- Minister of Energy and Mineral Resources, Bahlil Lahadalia requested that the Financial Investment Decision for the Tuban’s New Grass Root Refinery (NGRR) project by Pertamina and its Russian partner Rosneft be completed by March 2025 as the project has become an urgency to support national energy security.
- PT Kilang Pertamina Internasional is currently finalizing the FID process. Bahlil emphasized that if Rosneft fails to meet its regulatory obligations, the government will consider alternatives and invite new investors to ensure there are no delays in the utilization of state assets.
- China’s Xpeng Enters Indonesian EV Market
- One of China’s uprising automaker companies, Xpeng, is set to make a debut in the Indonesian market in early 2025 as the Southeast Asian country tries to boost its EV adoption.
- Indonesia’s target to aim for 2 million EV cars on its road by 2035, with 31,000 charging station has become a lucrative market for the Chinese automaker, and in line with XPeng’s expansion plans into the Southeast Asian market.
- The company has signed a distribution deal with local company Sinar Eka Selaras (ERAL), a subsidiary of the handset distributor Erajaya Swasembada (ERAA). Xpeng has partnered with ERAL’s subsidiary Era Inovasi Otomotif (EIO) as its official distribution partner in Indonesia. This makes EIO the sole agent of Xpeng’s cars.
- To provide assurance to its customers in Indonesia, XPeng is also committed to directly assemble the vehicles in Indonesia. At the beginning of its marketing, XPeng is rumored to bring two vehicles, namely the G6 medium SUV and the X9 which is a premium 7-seater MPV to attract Indonesian market.
- For the full year 2024, Xpeng delivered 190,068 vehicles worldwide, up 34.23% yearon-year. At the end of December, Xpeng’s cumulative deliveries since inception in 2014, stood at 590,379 vehicles in total sales. 7
- By the end of 2024, the Indonesian government has announced that there will be 7 new Chinese car companies entering Indonesia in 2025, without giving further details.
- Indonesian Government Opens 20 million Hectares of Forest Land for Food and Energy Sector
- Forestry Minister Raja Juli Antoni has identified 20 million hectares of forest reserves that can be utilized as a source of food, energy and water security. Comparatively, the potential forest area is almost twice the size of Java, which has an area of 128,297 square kilometers or 12.28 million hectares.
- In informal talks with President Prabowo and Minister of Maritime Affairs and Fisheries, he said one of the main focuses was upland rice cultivation – rice that can grow on dry land.
- It was projected the potential of 1.1 million hectares of land that can produce up to 3.5 million tons of rice per year. This amount is equivalent to Indonesia’s total rice imports in 2023.
- In addition, the government also plans to plant sugar palm trees as a source of bioethanol, where one hectare of sugar palm can produce 24,000 kiloliters of bioethanol. By plant 1.5 million hectares of sugar palms; Indonesia will be able to produce 24 million kiloliters of bioethanol, which can replace 26 million kiloliters of fuel imports.
- However, concerns have also been raised about environmental damage and climate crises. Clearing forest twice Java’s size would worsen deforestation which according to Global Forest Watch (GFW) data for the 2001-2022 period reached 102 million hectares, and conflict with Indonesia’s NZE goals and its commitment in COP29 to restore 12.7 million hectares of forest.
- PLN Upgrades Power Capacity for JIIPE Industrial Park
- o State-owned electricity company PT PLN has boosted the power supply to PT Berkah Kawasan Manyar Sejahtera (BKMS), which operates the Java Integrated Industrial and Port Estate (JIIPE) in Gresik, East Java. The power supply capacity has increased from 24 MVA to 29.5 MVA. The upgraded capacity was activated on December 27 at the Bungah Substation within the JIIPE area.
- This increase in power supply is aimed at addressing the growing electricity needs of BKMS due to the expansion and intensifying industrial activities in JIIPE Industrial Park. PLN had been providing 24 MVA to BKMS since August 2024, and the additional 5.5 MVA is now fully operational to support the industrial park development. JIIPE industrial tenants include PT Freeport Indonesia, which last year launched the world’s largest single-line copper cathode smelter.
- Throughout 2024, PLN installed and upgraded capacity for 312 medium-voltage (TM) and high-voltage (TT) customers, totaling 531.4 MVA.
- Indonesia Claims of the Biggest RDF Plant in the World Completion in February 2025
- Indonesia will have a Refuse-Derived Fuel (RDF) Plant in Rorotan, North Jakarta. RDF is a fuel created from waste materials that helps reduce the amount of waste that ends up in landfills. The waste use is usually inorganic or difficult to decompose – 8 plastic, paper, cloth, rubber, and leather. RDF process consists ofscreening, separating, drying and shredding waste.
- Upon completion, the facility will be the largest RDF in the world, with a waste processing capacity of up to 2,500 tons per day. That capacity surpasses the one in Tel Aviv, Israel, which currently holds the record with a capacity of 1,500 tons per day.
- RDF Rorotan was built in collaboration between PT Wijaya Karya (WIKA) and the DKI Jakarta Provincial Environmental Department since March 2024. To date, the project has reached 94.88% construction progress and is scheduled to be fully operational in February 2025.
- The project is designed to process domestic waste from 16 Sub-Districts in Jakarta, reducing the burden on Bantargebang landfill, while producing an alternative fuel equivalent to coal. The RDF produced can be used as an alternative fuel, for the energy needs of industrial factories and waste power plants. o The construction of this facility is a solution to the surge in Jakarta’s waste volume, which reaches more than 7,500 tons per day, while the Bantargebang landfill has almost reached its maximum capacity with a landfill height staggering 60 meters.
- With this facility, the DKI Jakarta Provincial Government targets to reduce waste by 2,750 tons per day, in accordance with the 2023-2026 Regional Development Plan.
- In the process of building RDF Rorotan, WIKA adopts advanced waste processing technology from various countries, such as primary shredder, secondary shredder, dynamic screener, and wind shifter. This technology allows precise separation of materials to produce high-quality RDF.
-end-
REFERENCES
- Skylight Analytics Hub
- https://www.tempo.co/arsip/satgas-hilirisasi-ketahanan-energi-bisa-beri-saran-tindakpejabat-yang-hambat-percepatan-hilirisasi—1192303
- https://www.tempo.co/ekonomi/berikut-empat-tugas-satgas-percepatan-hilirisasi-yangdibentuk-prabowo-1192613
- https://www.cnbcindonesia.com/news/20250110151947-4-602313/satgas-resmiterbentuk-ada-opsi-hilirisasi-di-ri-pakai-apbn
- https://nasional.kontan.co.id/news/pemerintah-umumkan-komitmen-investasiperusahaan-china-senilai-rp-120-triliun
- https://ekbis.sindonews.com/read/1506995/34/investasi-jumbo-china-rp120-triliun-akanmengalir-ke-indonesia-menyasar-sektor-ini-1734919920#goog_rewarded
- https://en.zhenshigroup.com/company1.html http://www.ezhejiang.gov.cn/2019-04/19/c_393268.htm
- https://en.antaranews.com/news/340758/indonesias-brics-entry-promises-growth-in-oilgas investments?utm_source=antaranews&utm_medium=desktop&utm_campaign=related_n ews
- https://en.antaranews.com/news/340938/expect-brics-membership-to-boost-exportstrademinister?utm_source=antaranews&utm_medium=desktop&utm_campaign=related_news
- https://en.antaranews.com/news/340778/indonesia-must-make-stance-clear-afterjoining-brics-expert
- https://www.cnbcindonesia.com/market/20250109100117-17-601854/tanam-rp-600- miliar-raksasa-logam-terbesar-dunia-bangun-pabrik-di-ri
- https://www.cnnindonesia.com/ekonomi/20250108074939-92-1184871/apple-akaninvestasi-rp16-t-di-batam
- https://voi.id/en/economy/444879
- https://vir.com.vn/xanh-sm-strikes-double-wins-at-asia-pacific-enterprise-awards116984.html 10
- https://ekonomi.bisnis.com/read/20241218/98/1825186/profil-xanh-sm-taksi-listrikvietnam-yang-resmi-diluncurkan-hari-ini
- https://www.cnbcindonesia.com/news/20241223143343-4-598183/xanh-sm-luncurkanlayanan-taksi-listrik-di-indonesia
- https://nasional.kontan.co.id/news/pemerintah-berencana-bangun-holding-umkmseperti-apa-skemanya
- https://www.tempo.co/ekonomi/garuda-indonesia-akui-akan-merger-dengan-pelita-air1191820
- https://www.cnbcindonesia.com/news/20250103142305-4-600552/bahlil-minta-proyekkilang-ri-rusia-segera-ada-kepastian-investasi
- https://jakartaglobe.id/business/chinas-xpeng-to-enter-indonesian-ev-market-this-year
- https://otomotif.antaranews.com/berita/4574558/xpeng-masuk-indonesia-karenapotensi-pasar-yang-besar
- https://www.forbes.com/sites/greatspeculations/2025/01/06/whats-new-with-xpengstock/
- https://cnevpost.com/2025/01/01/xpeng-deliveries-dec-2024/
- https://otomotif.kompas.com/read/2024/12/13/134100915/ada-7-merek-mobil-chinamasuk-indonesia-tahun-depan
- https://www.mongabay.co.id/2025/01/05/berbagai-kalangan-ingatkan-bahaya-buka-20- juta-hektar-hutan-untuk-pangan-dan-energi/
- https://lestari.kompas.com/read/2024/12/31/100000286/20-juta-hektare-hutandiidentifikasi-bisa-dimanfaatkan-untuk-pangan-hingga
- https://www.petromindo.com/news/article/pln-upgrades-power-capacity-for-jiipeindustrial-zone
- https://investor.id/business/385870/indonesia-akan-punya-rdf-terbesar-di-dunia
- https://smartcity.jakarta.go.id/id/blog/pengelolaan-sampah-di-rdf-plant-rorotan-jakartautara/
