Jakarta – The government is accelerating the national downstreaming program by strengthening institutions, governance, and developing value-added industries in various strategic sectors, particularly agriculture and plantations. These efforts are considered crucial for strengthening national economic resilience and improving public welfare.
Esther Sri Astuti, Executive Director of the Institute for Development of Economics and Finance (Indef), stated that industrial downstreaming is an effective strategy for increasing the added value of Indonesian plantation commodities. She noted that commodities such as coffee, cocoa, and coconut have significant potential if processed into intermediate and final products domestically.
“Downstreaming is a strategic step because Indonesian plantation commodities can be processed into higher-value-added products, thereby strengthening their competitiveness in both domestic and global markets,” Esther said.
He added that the acceleration of downstreaming must be supported by good governance and policies that favor farmers and national industry players. In addition to increasing economic value, downstreaming is also expected to create new jobs and support poverty alleviation.
According to Esther, the government needs to strengthen farmers’ access to financing, technology, superior seeds, and extension services to increase the productivity and quality of national commodities.
“Strengthening institutions, regulations, infrastructure, and mentoring are essential foundations for sustainable downstreaming and ensuring the benefits are directly felt by the community,” he said.
Meanwhile, Minister of Agriculture Andi Amran Sulaiman stated that the government is committed to promoting downstreaming in the agricultural sector so that Indonesia is no longer just a supplier of raw materials.
“Indonesian agricultural products must enter the global value chain to provide greater benefits to farmers and strengthen the national economy,” Amran said.
According to him, the various downstream projects currently being developed by the government will strengthen the national supply chain while increasing commodity price stability at the farmer level.
Similarly, Danantara Indonesia CEO Rosan Roeslani believes downstream projects can be a driving force for more sustainable and globally competitive national economic growth. He believes downstreaming has the potential to be a turning point in transforming Indonesia’s agricultural sector from an exporter of raw materials to a producer of high-value-added products.
“If implemented consistently, downstreaming will not only improve farmer welfare but also create new jobs and strengthen the national industrial structure,” Rosan concluded.