At the start of 2026, Indonesia made a
major announcement: the sovereign wealth fund
Danantara took the lead, investing
USD 7 billion in a single push to simultaneously launch
6 major projects. These six projects are a real-world blueprint for President
Prabowo's three main objectives.
More importantly, over the past
15 years, China and Indonesia have built a solid foundation for industrial cooperation. From the completion of the
Jakarta-Bandung High-Speed Railway to deep involvement in
nickel smelting, from infrastructure assistance to industrial co-building, China has been deeply integrated into Indonesia's development path.
These 18 downstream projects offer opportunities not only in smelting, refining, and
equipment exports for new energy,
mature technology transfer, and
full-process industrial supporting services, but also in
joint investment with Danantara.
Let's break it down step by step:
Part 1: Six Projects with USD 7 Billion – Each Targeting Prabowo's Core Objectives
At the start of 2026, Danantara fired the first shot in the downstreaming initiative — 6 projects with approximately USD 7 billion started simultaneously. Every dollar is focused on the three priorities of the Prabowo government:
food self-sufficiency,
energy self-sufficiency, and
reindustrialization. The distribution of these six projects is quite strategic.
- Mempawah, West Kalimantan: Focused on bauxite deep processing, turning bauxite into alumina and aluminum metal, and leveraging Pelindo's Kijing Port for transportation. It is a classic example of how industrialization requires both "resources and a port."
- Kuala Tanjung, North Sumatra: It is already a core base for Indonesia's aluminum industry, with an existing port suitable for metal smelting and foreign trade.
- Cilacap, Central Java: Indonesia's refining hub, now being upgraded into a green refinery. Using used cooking oil to produce aviation fuel, currently 3,000 barrels per day, targeting 6,000 barrels per day — addressing energy self-sufficiency while advancing low-carbon transition, hitting two birds with one stone.
- Banyuwangi, East Java: Close to agricultural areas, focusing on bioethanol projects with easy access to raw materials and controllable costs.
- Gresik, East Java (GESIK): An established industrial city, now focusing on chlor-alkali chemical industry to fill gaps in manufacturing and reduce dependence on imported industrial salt.
- Cross-regional Poultry Integration Project: Ties together the production, supply, and price stability of meat and eggs to safeguard people's daily meals.
These six projects connect resources, ports, refining, agriculture, and chemicals by geographic location, forming a complete industrial map.
Part 2: 6 Projects as a Sample, 18 Projects as Indonesia's "Self-Sufficiency Checklist"
The six projects just introduced are just the "first batch of pilots" for Indonesia's priority projects in 2026. In fact, Indonesia plans to advance a total of
18 priority projects this year, with a total investment of approximately
USD 38.6 billion. These 18 projects are essentially a combination list of "import substitution + energy security + new processes."
Let's break it down simply:
- Half of the projects focus on energy security and import substitution: For example, promoting coal-to-DME projects in 6 regions to replace imported LPG; while improving the layout of refineries and oil depots across regions to complete the full chain of energy extraction, storage, and transportation for energy autonomy.
- The other half of the projects lay the foundation for reindustrialization: Directly processing Indonesia's domestic mineral resources into usable materials (e.g., bauxite to aluminum, nickel to stainless steel, deep processing of copper), breaking free from the trap of "only exporting raw materials, not manufacturing."
- Balancing livelihood improvement and new energy transition: There are also livelihood projects such as poultry farming, tilapia fillet processing, and palm oil deep processing, as well as new energy projects like photovoltaic modules and waste oil to aviation fuel, achieving simultaneous progress in industrial upgrading and livelihood security.
In a word: These 18 projects are not just simple mineral deep processing; they are a "combination punch" by Indonesia to achieve food and energy self-sufficiency and restart industrialization using its own strength.
Part 3: Danantara Is Not an Ordinary Fund – It Is the "Main Force" of Indonesia's Industrial Transformation
After discussing the projects, we must talk about the key player behind them —
Danantara. Its positioning is far from an ordinary fund; it is more like a national-level "industrial engine" for Indonesia. It reports directly to the president, with the core mission of managing government investments and state-owned enterprise assets, supporting Indonesia's long-term industrial growth, and all its actions are aligned with national strategy.
Danantara was launched in February 2025, and as of early 2026, it is nearly one year old. It has already implemented several concrete actions: its planned investment ceiling for 2026 is approximately USD 14 billion, and it has already mobilized USD 45 billion in partner funds, with all capital prioritized for key areas such as
energy security, food security, and digital infrastructure.
The USD 7 billion and 6 projects mentioned at the beginning are the first step in turning national strategy into reality, and they represent a
prime opportunity for Chinese capital to enter the Indonesian market.
Summary: New Opportunities for Chinese Capital Lie in Indonesia's "Self-Sufficiency" Master Plan
In fact, whether it is the 6 projects with USD 7 billion or the remaining 12 of the 18 follow-up projects, they all fundamentally represent Indonesia's grand plan to achieve food and energy self-sufficiency and restart industrialization by leveraging its own resources — and Danantara is the core driver of this plan.
What is more noteworthy for Chinese capital is that, leveraging the 15-year industrial cooperation foundation between China and Indonesia, these 18 projects are full of opportunities: smelting, refining, and new energy projects require large quantities of mature equipment; low-carbon transition and industrial upgrading depend on advanced technology; the entire project implementation process needs comprehensive industrial supporting services; and there are valuable opportunities for joint investment with Danantara.
