PAPUA – Strengthening downstream processing in Papua continues to be directed towards expanding economic value and opening up new growth opportunities for communities in various regions. This program is part of a regional potential-based development strategy that focuses not only on raw material production but also on processing it to the industrial stage.
During Vice President Gibran Rakabuming’s working visit to West Papua, the government reiterated the importance of optimizing the Special Autonomy Fund (Otsus) to directly impact public welfare. One focus was the development of leading commodity industries, which are beginning to integrate from upstream to downstream.
Deputy Minister of Home Affairs Ribka Haluk emphasized that the implementation of the Special Autonomy Fund has shown an increasingly appropriate direction in encouraging regional economic growth, particularly through strengthening productive sectors managed directly by the community.
“This is the result of effective implementation of the Special Autonomy Fund. But what’s most important isn’t just the visible physical development, but how the results are truly felt by the people in the villages, including increased income, job creation, and the growth of new economic activity at the local level,” Ribka Haluk emphasized.
He added that downstreaming is key to ensuring Papua is not merely a producer of raw materials but is able to enter higher levels of the industrial value chain. This way, economic value doesn’t leave the region but circulates within Papua, providing a broader impact for Indigenous Papuans.
Similarly, Anton, the person in charge of the Agats Diocese Sago Field School, explained that community-based development is key to strengthening downstreaming at the grassroots level. The approach emphasizes simultaneously strengthening local culture and the local economy.
“Here, we focus more on strengthening local aspects. So, while in Meranti, we’re using large-scale sago industrial technology, here we’re using a local scale, with a more cultural approach. We’re also developing downstream processing,” Anton said.
This model demonstrates that downstream processing can be adaptive to regional characteristics while maintaining the social and cultural sustainability of local communities. Local processing of downstream products is also a crucial step in creating a longer economic value chain.
Minister of Agriculture Andi Amran Sulaiman also emphasized his support for accelerating downstream processing. He stated that the government continues to accelerate the development program for smallholder plantation commodities integrated with the processing industry.
“This year, it’s Rp3.2 trillion, and last year, it was Rp2 trillion. The total is over Rp5.5 trillion. We reported this to the President, and he said this assistance will continue,” said Andi Amran Sulaiman.
He added that all districts in Papua are involved in a strategic commodity development program that includes strengthening production and downstreaming, covering hundreds of thousands of hectares of land across various regions.
With the strengthening of these policies, downstreaming in Papua is seen as increasingly opening up broader economic opportunities. The transformation from a mere producer of raw materials to a region producing value-added products is a crucial foundation for more equitable and sustainable economic growth in Papua.