“These (downstreaming projects) will create decent jobs with fair wages,” Lahadalia stated at the “Submission of Pre-Feasibility Study Documents for National Priority Downstreaming and Energy Security Projects” event here on Tuesday.
In total, the 18 projects are expected to generate 276,636 direct and indirect jobs. He emphasized that the wages offered would go beyond the regional minimum wage (UMR).
The salary above the UMR serves as an instrument to promote fair and inclusive regional economic growth, he remarked.
Meanwhile, he noted that the Downstreaming Task Force will coordinate with sovereign wealth fund Danantara to discuss financing schemes, business models, project execution, site selection, and the resolution of issues related to the projects, including land permits and social-environmental mitigation.
Meanwhile, Danantara CEO Rosan Roeslani noted that investment in the downstreaming sector has significantly increased.
“In the second batch of investment, or within one semester, around 30 percent of more than Rp950 trillion (around US$52.8 billion) in investments came from downstreaming,” he stated.
He remarked that in the four months since Danantara’s launch, it has secured funding through cooperation with other sovereign wealth funds totaling US$7 billion.
“Of the US$7 billion, US$4 billion came from Qatar, US$2 billion from the China Investment Corporation (CIC), and also contributions from the Russian Direct Investment Fund (RDIF). We are in talks with other sovereign wealth funds to explore joint investments in Indonesia,” he highlighted.
According to preliminary studies by the Downstreaming and Energy Security Task Force, mineral and coal downstreaming represents the largest portion, with eight projects valued at US$20.1 billion and the potential to absorb 104,974 workers.
Projects in the agriculture and maritime sectors are expected to create 23,950 and 67,100 jobs, respectively.
Meanwhile, energy transition projects, valued at US$2.5 billion, are expected to absorb 29,652 workers.
In the energy security sector, investment is projected to reach US$14.5 billion, with a potential workforce absorption of 50,960.
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Translator: Putu, Kenzu
Editor: Azis Kurmala
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