Business · Companies · 2 hrs ago
Indonesia Seeks Investment to Strengthen Petrochemicals and Palm Oil Processing
Deputy coordinating minister Dradjad H. Wibowo says Indonesia needs to strengthen manufacturing and develop more industries that turn raw materials into higher-value goods.
He says the country has been slow to build its petrochemical industry, which supplies materials used in products such as plastic.
Dradjad says the sector is controlled by one player, and the government is inviting new investors to enter it.
He also points to palm oil, which has nearly 200 possible derivative products, while Indonesia’s processing often stops at crude palm oil and cooking oil.
More local processing could make wider use of palm oil, including in products such as soap and cosmetics.
The debate over deindustrialization is complicated because some activity in industrial areas is recorded as real estate, but Dradjad says manufacturing’s role still needs to grow.
He says the data should be checked, while the government seeks investors for petrochemicals.
Indonesia is inviting new investors into its petrochemical industry, Deputy Coordinating Minister for Economic Affairs Dradjad H. Wibowo said.
He said the country had been slow to develop petrochemicals, limiting the strength of its manufacturing supply chain.
Palm oil processing also remains concentrated on crude palm oil and cooking oil, despite the commodity having almost 200 derivative products, he said.
Dradjad said Indonesia should develop industries beyond raw-material processing to produce higher-value goods.
He also said Indonesia’s manufacturing industry needs a greater role, while noting that some industrial activity may be classified as real estate in official statistics.
- Who
- Indonesia’s government is seeking new investors. Deputy Coordinating Minister for Economic Affairs Dradjad H. Wibowo discussed the issue.
- What
- The government is inviting investors into the petrochemical industry and seeking to strengthen domestic downstream processing.
- When
- Dradjad made the comments on Wednesday, November 4, 2026.
- Where
- Indonesia.
- Why
- Dradjad said petrochemical development had been slow and the industry was dominated by one player. He said stronger downstream industries could support manufacturing and produce higher-value goods.
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- Investor invitation
- The government is inviting new investors into the petrochemical industry.
- Palm oil derivatives
- Almost 200, according to Dradjad.
- Current palm oil products
- Crude palm oil and cooking oil.
- Petrochemical market
- Dradjad said the industry was controlled by one player.
What people are saying
Palm oil has almost 200 derivative products, if I’m not mistaken. But we always get stuck at CPO and cooking oil.
Yes, we were late building our basic industries, then petrochemicals and plastics. This is also controlled by one player, and this one player has received many state facilities from long ago. So, we are inviting investors to enter this sector.