Jakarta — The government, through the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), emphasized that the national coconut downstreaming program is targeted for completion in 2025 and is expected to become a new driver of national economic growth.
The downstream initiative is projected not only to increase the added value of plantation commodities but also to generate large-scale employment opportunities. The government estimates that investments flowing into the coconut processing industry will reach Rp1.65 trillion, with the potential to absorb around 10,000 workers across major producing regions.
Minister of Investment and Downstreaming/Head of BKPM, Rosan Perkasa Roeslani, stated that coconut industrialization is designed to provide comprehensive benefits—both for the industrial sector and smallholder farmers. According to him, downstreaming is focused not only on producing higher-value derivative products but also on improving farmers’ welfare.
“Coconut downstreaming is projected to increase farmers’ income. The logistical chain that has kept selling prices low can be significantly reduced,” Rosan said.
He explained that investors’ decisions to invest directly in Indonesia have strengthened the domestic industrial structure while boosting coconut prices at the farm level, as the export logistics costs of raw materials no longer suppress selling prices.
“One of the largest producers of coconut and its derivatives in China, Zhejiang FreeNow Food, is among the key investors, with an investment value of 100 million US dollars,” he added.
Rosan noted that although the investment value is smaller compared to mineral downstreaming—which can reach USD 1–3 billion—the impact of non-mineral downstreaming on employment is significantly larger.
“Indeed, mineral downstreaming still dominates in terms of value. But job absorption is increasing more in the non-mineral sectors—such as plantations, agriculture, and maritime industries,” he said.
Meanwhile, Minister of Agriculture Andi Amran Sulaiman revealed that coconut prices in several production centers have risen sharply since the downstreaming initiative began—from around Rp600 per nut to Rp3,500 per nut.
“The government is targeting a minimum price of Rp6,000 per nut to provide optimal incentives for farmers,” Amran stated.
He explained that coconut downstreaming will expand the economic value of the commodity, which previously stood at around Rp24 trillion. With full-scale industrialization, the added value is projected to increase many times over and create millions of new jobs.
“Going forward, the government aims to make strategic commodities such as coconut and sugar the driving force of agricultural transformation as well as a catalyst for more equitable national economic distribution,” he concluded.
With rising investment and increased absorption of local production, he believes that coconut downstreaming will become a significant milestone in strengthening regional economic independence while enhancing its contribution to national economic growth. *