By: Rahmat Hidayat )*
The government is embarking on a new chapter in national economic development by strengthening the downstreaming of strategic commodities, particularly in the plantation sector. This policy is not merely a short-term economic strategy, but a major step toward the nation’s economic independence, sovereign over its own resources. Downstreaming is key to increasing the added value of Indonesian agricultural products, reducing dependence on raw material exports, and strengthening the country’s position in the global supply chain. With abundant natural resources such as palm oil, rubber, coffee, cocoa, and sugarcane, Indonesia has the potential to become a highly competitive plantation-based industrial hub in Asia and even globally.
The Minister of Agriculture, Andi Amran Sulaiman, stated that his office has convened several governors and regents/mayors for a Plantation Downstreaming Coordination Meeting. This step was taken to strengthen synergy and collaboration to accelerate the strategic commodity downstreaming program. In line with President Prabowo Subianto’s ambitious plan, downstreaming is being encouraged to increase added value and improve public welfare.
The downstreaming program includes sugar cane, coconut, palm oil, cocoa, coffee, rubber, cashew nuts, nutmeg, and pepper. These commodities play a vital role as foreign exchange earners, labor absorbers, drivers of regional economic growth, and support food security. Furthermore, the downstreaming program can stimulate industry and create jobs. Through this downstreaming program, the government targets the creation of 1.6 million jobs and an increase in agricultural Gross Regional Domestic Product (GRDP) of 1.02 percent and total GRDP of 0.14 percent.
The downstreaming initiative also addresses a long-standing challenge faced by Indonesia: the imbalance between resource potential and the resulting economic value. For years, the country has been a net exporter of raw materials, while the added value has been enjoyed by other countries that process them into finished products. Through downstreaming, the government seeks to reverse this trend, ensuring that resources originating from Indonesia’s soil provide the greatest possible benefits for the welfare of the Indonesian people. President Prabowo Subianto has emphasized on numerous occasions the importance of national economic independence based on downstreaming, by positioning farmers and domestic businesses as key actors in development.
Furthermore, the downstreaming policy for plantation commodities also promotes equitable development. When processing industries are established near producing areas, new centers of economic growth will emerge outside Java. Regencies and provinces that have traditionally been commodity hubs can develop into integrated industrial zones that foster local economies. Supporting infrastructure, such as roads, ports, and electricity networks, will automatically improve in quality.
Beyond the economic aspect, downstreaming also supports environmental sustainability. With planned management, the downstream plantation industry can optimize the utilization of waste into renewable energy or new raw materials. For example, empty palm oil fruit bunches can be used as organic fertilizer, biomass, or green fuel. This approach reflects the spirit of the circular economy, which is now a global trend in creating highly competitive yet environmentally friendly industries. The government also continues to strengthen sustainability standards through product certification and regulations that support ethical and environmentally friendly plantation practices.
Meanwhile, Deputy Minister of Forestry, Rohmat Marzuki, stated that the downstreaming program for strategic plantation commodities is highly relevant to the Ministry of Forestry’s policy direction, particularly in the management of Social Forestry. Furthermore, four of the seven national strategic plantation commodities are timber crops, making the integration of the downstreaming program with forestry policy a strategic step.
It is also important to note that the success of downstreaming depends not only on government policy but also on synergy between stakeholders. The business sector, research institutions, and universities have a crucial role in strengthening technological innovation in processing. Meanwhile, banks and financial institutions are expected to provide inclusive financing support so that small and medium-sized enterprises in the plantation sector can participate in the downstream industrial chain. Farmers must also continue to be empowered through training, fair partnerships, and access to technology and markets.
In a dynamic global geopolitical context, downstreaming also represents a form of national economic resilience. Amid fluctuating global commodity prices and trade tensions between countries, IndonesiaIndonesia can no longer rely solely on foreign markets. By strengthening its domestic downstream industry, Indonesia can maintain economic stability even during global market volatility. The resulting added value also strengthens foreign exchange reserves and increases the country’s ability to finance development without heavy reliance on foreign debt.
Ultimately, the downstreaming of strategic plantation commodities is a concrete manifestation of the spirit of economic self-reliance, as mandated by the nation’s founders. This is a long road toward economic sovereignty that no longer relies on foreign parties, but stands firmly on its own potential and capabilities. Indonesia is not only a fertile land, but also a resilient and creative nation. With targeted and inclusive downstreaming, Indonesia’s economic future is not just a dream, but an inevitability that is being realized together.
)* The author is an economic observer