Indonesia recorded a significant achievement in the first half of 2025, with realized investments totaling USD 59 billion. The figure represents nearly 50% of the government’s full-year target of USD 119 billion, according to Investment and Downstreaming Minister Rosan Roeslani, who also leads the Investment Coordinating Board (BKPM).
The results exceeded earlier estimates from Deputy Minister Todotua Pasaribu, who noted that second-quarter investments amounted to USD 29.7 billion. Combined with USD 29 billion recorded in the first quarter, total investments for the first six months reached USD 58.8 billion, highlighting stronger-than-expected performance.
Notably, 30% of the total investment came from downstream projects—a key sector in the government’s strategy to add value to natural resources and boost industrial growth.
“Investment in downstreaming has increased significantly. From the total USD 59 billion recorded in the first half, around 30% comes from downstream projects,” Rosan said at the Energy and Mineral Resources Ministry in Jakarta on July 22, 2025, as quoted by investor.id.
The downstream initiative is central to Indonesia’s plan to transform its commodity-based economy. The program targets added-value processing across key sectors, including minerals, coal, agriculture, plantations, fisheries, and marine products. By focusing on domestic processing rather than raw material exports, the government aims to strengthen revenue and create quality jobs.
To support this agenda, authorities formed the Task Force for Downstream Acceleration and National Energy Resilience. Its role includes identifying potential development areas, streamlining licensing to avoid overlaps, and ensuring fair implementation of downstream projects across industries.
“Downstreaming is not limited to minerals but also extends to plantations, agriculture, and other sectors. This will have a very positive and significant impact on achieving our economic growth targets,” Rosan added.
Major Projects and Job Creation
The task force, led by Energy and Mineral Resources Minister Bahlil Lahadalia, has completed pre-feasibility studies for 18 priority downstream projects worth USD 38.6 billion. These projects are projected to create over 270,000 new jobs, underlining the program’s potential to drive inclusive growth.
“These pre-feasibility studies, valued at USD 38.6 billion, will generate employment for more than 270,000 people,” Rosan stated. He confirmed that Danantara Indonesia, the company he leads, will oversee the next phase, including project finalization and financing, to ensure smooth implementation.
With nearly half of the annual investment target already secured in the first six months, Indonesia’s downstream-focused approach is poised to play a pivotal role in delivering sustainable and high-quality economic growth throughout 2025.
Source: investor.id, rmol.id
Photo Credit: presidenri.go.id
