Enviro News Asia, Bogor — The Government of Indonesia is intensifying efforts to accelerate downstream industrialization and strengthen energy resilience as part of its strategy to achieve national economic self-sufficiency. During a meeting with President Prabowo Subianto in Hambalang, Bogor, on 25 March 2026, Minister of Energy and Mineral Resources Bahlil Lahadalia outlined key measures to optimize the utilization of natural resources and reduce dependence on energy imports.
Minister Bahlil reported that, of the 20 first-phase downstream projects, several have already entered the groundbreaking stage, while the remaining projects are scheduled to commence next month. In addition, the Government is preparing to finalize 13 new downstream initiatives with a total investment value of approximately Rp239 trillion.
Beyond industrial downstreaming, the Government is also prioritizing the optimization of domestic energy resources to enhance energy independence. Key focus areas include the development of ethanol and biodiesel derived from crude palm oil (CPO), aimed at reducing reliance on imported fuels.
During the meeting, the Minister also provided updates on global commodity prices, particularly coal and nickel. He confirmed that no policy changes have yet been implemented regarding the management of these strategic resources, although the Government continues to closely monitor global market dynamics.
The Government is considering a calibrated relaxation of coal and nickel production, ensuring that supply levels remain balanced with global demand to avoid price suppression. “Any relaxation must be measured and limited, while maintaining equilibrium between supply, demand, and price stability,” Bahlil stated.
Furthermore, the Government signaled a potential adjustment to the benchmark mineral price (HPM) for nickel to ensure fairer state revenues from the exploitation of strategic resources. Minister Bahlil indicated that an increase in the nickel HPM is under consideration.
President Prabowo has also instructed that natural resource management must prioritize national interests, emphasizing that these resources constitute strategic state assets. The Government is committed to maximizing state revenues from the mineral sector while ensuring sustainable and equitable resource utilization.
Minister Bahlil underscored that 2026 will serve as a critical year in demonstrating Indonesia’s mineral sovereignty. He stressed that the country must move away from exporting raw materials at low prices and instead focus on maximizing added value for the national economy. (*)
