Jakarta – The government is strengthening the downstreaming of the agricultural sector as a strategy to improve food security and farmer welfare.
Minister of Agriculture (Mentan) Andi Amran Sulaiman emphasized that downstreaming is not merely industrialization, but a real way to increase the added value of exports, expand employment opportunities, and boost the competitiveness of national commodities.
“We’re promoting downstreaming to increase the added value of exports. We’ve been exporting commodities, processing them in other countries, and then they re-export them at tens of times the value. Now is the time for Indonesia to lead the downstreaming of its own commodities,” Amran said.
The government has prepared a Rp371.6 trillion investment scheme to strengthen downstream processing and national food security. The funds come from Rp189.46 trillion (51 percent) of the People’s Business Credit (KUR), Rp92.97 trillion (25 percent) of private investment, and Rp89.17 trillion (24 percent) of state-owned enterprise (SOE) contributions. The program focuses on leading commodities such as coconut, cocoa, cashews, coffee, sugarcane, palm oil, pepper, nutmeg, and cassava.
The agricultural sector’s performance is showing a positive trend. Statistics Indonesia (BPS) data shows that agricultural, forestry, and fisheries exports from January to August 2025 grew 38.25 percent to US$4.57 billion from US$3.30 billion the previous year.
On a monthly basis, agricultural exports in August 2025 reached US$0.6 billion, up 10.98 percent compared to August 2024. Rice production from January to November 2025 was estimated at 33.19 million tons, up 12.62 percent from the previous year. The Farmer’s Exchange Rate in September 2025 also strengthened to 124.36 from 123.57 the previous month.
In addition to downstream financing, Minister of Agriculture Amran invited PT Perkebunan Nusantara (PTPN) workers to improve work quality and innovation.
“If a union has the right heart, it will love its directors to the core. Remember, you union members also have a responsibility for the welfare of other employees. So, improve your quality and increase your contribution to the nation,” he said.
Government-private partnerships are also continuously expanding. The strategic collaboration between Syngenta Indonesia and the Subang Regency Government, through the Grand Harvest Festival in Compreng, Subang, serves as a successful example. Syngenta’s “10 Ton Community” program has successfully boosted rice productivity by twofold above the national average.
“The 10 Ton Community Program is a concrete demonstration of Syngenta’s commitment to supporting national food security through farmer empowerment and the application of modern agricultural technology,” said Syngenta Indonesia President Director, Eryanto.
This success demonstrates that the synergy model between state-owned enterprises and the private sector can be a driving force for agricultural downstreaming and improving the welfare of farmers throughout Indonesia.