- Indonesia proposes 18 resource-focused development projects worth $38.6B.
- Plans include mineral processing, energy security, and renewables.
- Projects aim to boost industrial capacity and economic growth to 8%.
Indonesia's mining ministry has compiled a list of 18 projects totaling $38.6 billion aimed at developing the nation's natural resources and submitted them to sovereign wealth fund Danantara Indonesia on Tuesday for potential investment.
Initiated earlier this year, Danantara serves as Indonesian President Prabowo Subianto's primary tool to reach his 8 percent economic growth goal by 2029 by overseeing all shares of state enterprises and reinvesting the profits into commercial ventures.
Among Prabowo's key economic agenda priorities is the growth and enhancement of Indonesia's local processing industries.
Energy and Mineral Resources Minister Bahlil Lahadalia stated that the fund was capable of financing and overseeing the projects.
Bahlil stated during the handover ceremony that the priority projects consist of eight initiatives for mineral and coal processing, two aimed at enhancing energy security, and the remainder focuses on energy transition as well as the processing of agricultural and fishery products.
The government has conducted preliminary research on the suggested projects and handed them over to Danantara for additional evaluation and execution.
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According to ministry officials, the projects encompass oil refineries and storage units, a facility for solar panel production, biofuels for aircraft, and smelters for iron and alumina.
Danantara, which recently obtained a $10 billion credit line, will fund the projects if they align with the investment criteria set by the fund, its CEO Rosan Roeslani informed reporters.
"The financing can come from Danantara, state-owned enterprises...We can also even invite domestic or foreign private companies to make sure we can employ the best technology," Rosan said.