By: Juanda Syah)*
The government continues to strengthen the direction of national economic development through a major downstreaming strategy in the agricultural sector, aimed at increasing the added value of domestic commodities. This concept is believed to open new job opportunities and encourage economic independence for the people. With a total investment plan of IDR 371 trillion, spanning the agriculture, plantation, livestock, and horticulture sectors, this ambitious program is expected to create around eight million new jobs across various regions. This substantial investment reflects the government’s commitment to revitalizing the real sector, which has long been the backbone of the national economy.
Minister of Agriculture Andi Amran Sulaiman stated that downstream processing is key to improving farmer welfare and strengthening the competitiveness of national products. The program’s primary focus is on leading commodities such as sugar cane, cocoa, cashews, and coconuts. He noted that when these products are processed domestically, their selling value increases sharply, providing direct benefits to farmers. For example, the price of coconuts, which was previously only Rp 600 per coconut, has now risen to Rp 3,500 after being processed into derivative products such as coconut oil, packaged coconut milk, and coconut fiber. This price increase is clear evidence of the success of downstream processing in creating significant added value.
According to Andi Amran, the government is targeting an increase in the scale of the processing industry to increase the added value of agricultural products tenfold. By strengthening the domestic industry, Indonesia will become not only a producer of raw materials but also a major player in the global supply chain for processed agricultural products. This step will also strengthen national food security and reduce dependence on imports.
On the other hand, Minister of Investment and Downstreaming, Rosan Roeslani, stated that agricultural downstreaming has a far greater social impact than mineral downstreaming. This is because the agricultural sector is labor-intensive and directly involves communities on the ground. While mineral downstreaming tends to require significant capital investment with limited labor absorption, agricultural downstreaming can create significant jobs and strengthen local economies. This provides a compelling reason for the government to accelerate the implementation of the agricultural downstreaming program as a key driver of economic equality.
Rosan Roeslani added that his office, along with the Ministry of Agriculture and the national investment agency Danantara, has identified several priority projects ready for implementation. Several state-owned enterprises will also be involved to expedite program implementation on the ground. This cross-ministerial and institutional collaboration is expected to accelerate the creation of a robust and sustainable agricultural downstream ecosystem.
According to Rosan, superior products like coconut and cocoa have a strong competitive advantage in the global market. With the right downstreaming strategy, these commodities have the potential to become new sources of foreign exchange and strengthen Indonesia’s position in the international supply chain. Downstreaming not only grows the processing industry but also creates a multiplier effect on other sectors such as logistics, packaging, and trade.
Meanwhile, Rosan Roeslani, CEO of BPI Danantara, emphasized that his institution will fully support the implementation of the downstreaming program in the agricultural sector. Danantara will oversee and evaluate each stage of the project’s implementation to ensure it remains on track. With the involvement of national investment institutions, the government ensures that downstreaming projects go beyond planning and deliver tangible impacts to the community.
The synergy between the Ministry of Agriculture, the Ministry of Investment and Downstreaming, and Danantara serves as a concrete example of cross-sector collaboration in building a people’s economy. Agricultural downstreaming is expected to be a key driver in creating an inclusive and equitable economy, where the benefits of development are felt equally by communities across all regions.
In addition to improving farmer welfare, downstreaming also encourages the growth of new entrepreneurs in the agricultural processing sector. By increasing the selling price of products, small and medium-sized businesses in the regions have the opportunity to develop cottage industries based on local commodities. This will strengthen village economic independence and reduce regional disparities.
The agricultural downstreaming program also aligns with government policy to strengthen national food security and economic transformation. By optimally and sustainably utilizing natural resource potential, Indonesia can move away from its dependence on raw material exports. The agricultural sector, previously synonymous with primary productivity, is now transforming into a modern, highly competitive industrial sector.
This downstreaming effort is not merely an economic policy, but also a long-term strategy to build national independence. With the support of appropriate regulations, investment, and technology, the government aims to make Indonesian agriculture a leading sector capable of supporting national economic growth.
Through the collaboration between the Ministry and the national investment institution Danantara, the government demonstrates its commitment to transforming Indonesian agriculture toward a more modern, productive, and competitive direction. With the spirit of downstreaming, the agricultural sector is no longer just about planting and harvesting, but also about building industry, creating jobs, and improving the well-being of the people from upstream to downstream.
)* The author is a Jakarta student living in Bandung