Indonesia Aims for IDR 13,000 Trillion Investment, Focusing on Mineral Downstreaming
Fri 01 Aug 2025, 18:30 PM
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Coordinating Minister for Economic Affairs Airlangga Hartarto has revealed that the government is targeting a total investment of IDR 13,000 trillion between 2025 and 2029.
Of that amount, downstream projects in the mineral and coal (minerba) sector are expected to be the main driving force, contributing an investment of USD 20 billion, equivalent to IDR 330.26 trillion (at an exchange rate of IDR 16,513 per US dollar).
Airlangga explained that as a country with abundant coal reserves, Indonesia has a great opportunity to not only export raw coal but also process it for alternative energy needs.
"We have large coal reserves. Downstreaming projects in the minerba sector are estimated to contribute around USD 20 billion," Airlangga said during the Indonesia Mining Forum 2025 held by Metro TV, as quoted on Sunday, August 3, 2025.
Citing data from the Ministry of Energy and Mineral Resources (ESDM), Indonesia's coal resources were recorded at 97.29 billion tons and reserves at 31.71 billion tons as of December 2023. Of this total, 70% is low-quality coal, while the rest is medium and high-quality coal.
This vast potential is a strong basis for promoting minerba downstreaming, such as gasification projects to produce DME (dimethyl ether) as an LPG substitute and methanol production.
Government Offers Various Incentives
Airlangga noted that large-scale projects like DME are already being directed to Special Economic Zones (SEZs), and the government has provided various incentives, ranging from tax facilities to support for machinery capital expenditure.
However, these projects face challenges. Despite clear resources and market potential, implementation has been slow. The Golkar Party politician expressed his hope for support from the House of Representatives (DPR) and related ministries to make the project successful.
"The DME project may need to be overseen by the DPR and the Ministry of Investment. We hope the project can 'hatch' (begin to run) in at least two to three years," he stated.
Looking ahead, Airlangga said that mining technology must also be developed, including mastering underground mining methods. Several companies are already beginning to implement underground mining, which allows for deeper and more efficient exploration of untapped coal reserves.
He also emphasized that minerba downstreaming is a crucial part of President Prabowo Subianto's directive to build domestic industrial self-sufficiency. Of the 28 commodities targeted for downstreaming, Indonesia is projected to increase its export value significantly, approaching USD 850 billion by 2040. This will also boost the GDP by about USD 236 billion and attract investments of USD 618 billion.
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