By: Andika Pratama
Downstream agricultural processing has become a strategic milestone in strengthening the national economy amidst the multidimensional challenges facing the nation. Programs initiated by the Ministry of Agriculture (Kementan) under the leadership of Minister Andi Amran Sulaiman through 2025 demonstrate concrete evidence that transforming the agricultural sector is not merely a discourse, but a concrete step capable of creating a direct impact on society. One key indicator of the program’s success is the creation of significant new job opportunities.
Indonesian House of Representatives member Bambang Soesatyo expressed high appreciation for this initiative. He emphasized that the Ministry of Agriculture’s downstream agricultural product development has proven capable of creating up to eight million new jobs. This figure represents a concrete response to the threat of unemployment looming over Indonesia, especially considering that by February 2025, the number of unemployed people is recorded at 7.28 million. Downstream processing is not merely processing agricultural products into semi-finished or ready-to-sell goods, but also stimulates supporting industries, manufacturing, and MSMEs, all of which operate from the grassroots to create a sustainable economic ecosystem.
In addition to the challenge of unemployment, 2025 will also be a challenging period for the nation, particularly due to the disasters in several areas of Sumatra, which affected 3.3 million people. Pressure on the MSME and manufacturing sectors will also increase due to the onslaught of illegally imported products. In this context, downstreaming measures that encourage added value at the local level are an appropriate strategy for restoring domestic competitiveness. Bamsoet emphasized that inter-ministerial synergy and full support from the central government are crucial for protecting the domestic market and creating new, quality jobs.
This downstreaming program is being implemented with a substantial investment of IDR 371 trillion for 14 strategic commodities, including palm oil, coconut for VCO and coconut milk, sugar cane, cocoa, coffee, pepper, nutmeg, cashew nuts, and gambier. This strategy not only aims to increase the added value of products hundreds of times but also absorbs a workforce of around 8.6 million people. With the presence of processing plants close to production centers, local farmers can directly experience the economic benefits of their hard work, while simultaneously strengthening economic independence rooted in Article 33 of the 1945 Constitution.
Minister of Agriculture Amran emphasized that downstreaming is key to farmer and national independence. Natural resources should no longer be left to flow in their raw form, but rather processed to provide maximum added value. This will improve farmer welfare, grow regional economies, and enable Indonesia to produce export-ready goods that are competitive in the global market. This ambitious vision aligns with President Prabowo Subianto’s commitment to upholding the principle of a national economy that favors the people. All natural resources must be utilized to the maximum for the prosperity of the people, not for the benefit of foreign parties.
Appreciation for the downstreaming program also came from regional heads who felt the real impact of this policy. The Mayor of Sabang, Zulkifli H. Adam, highlighted the success of the A+ cocoa downstreaming process, which has attracted the interest of international consumers from Malaysia to Europe. The Ministry of Agriculture’s support in the form of the construction of a processing plant and the provision of raw materials is a crucial factor in maximizing the product’s added value. Similarly, the Mayor of Batam, Amsakar Achmad, emphasized that good collaboration between the central and regional governments strengthens the agricultural ecosystem and opens up opportunities for horticultural exports to Singapore. Both regional heads assessed that Minister Amran’s commitment presents a real long-term solution for the development of their region’s leading commodity.
Agricultural downstreaming also boosts the supporting industrial sector, including the procurement of agricultural machinery, irrigation pumps, and superior seeds, which strengthens local production capacity. These efforts have a direct impact on the growth of MSMEs, informal employment, and strengthening village economies. By building processing plants near production centers, downstreaming ensures that all added value remains in the hands of local farmers and workers. This also addresses the challenges of smuggling and the onslaught of imported products that erode the competitiveness of domestic industries.
In the long term, agricultural downstreaming forms the foundation for sustainable economic development. By creating millions of job opportunities, encouraging exports, and increasing the added value of local products, Indonesia not only maintains food security but also strengthens national economic independence. This program is clear evidence that downstreaming-based policies can be a strategic solution to unemployment, economic inequality, and global competitiveness, while simultaneously improving the quality of life for people across the country.
Given the success and tangible impact of downstreaming, it’s no exaggeration to say that this program has received high praise from various parties, from the legislature and the executive branch to regional heads. The key to success lies in harmonious collaboration between the central and regional governments, the courage to innovate, and a focus on empowering local communities and farmers. Agricultural downstreaming demonstrates that inclusive and sustainable economic development is not just a slogan, but a strategy capable of opening the door to a brighter future for the nation.
With this momentum, the government is expected to expand the scope of downstream processing to other commodities, continue to improve the quality of agricultural human resources, and strengthen connectivity between production centers, processing plants, and domestic and international markets. Agricultural downstream processing is not only an economic strategy but also a concrete manifestation of the nation’s commitment to ensuring the welfare of its people, creating quality jobs, and affirming Indonesia’s position as a nation capable of managing its own natural resources for the prosperity of all its people.
*The author is a social observer
