By: Dhita Karuniawati)
The Indonesian government is accelerating the downstreaming of the agricultural sector as part of a national strategy to achieve food self-sufficiency. This step is increasingly relevant amid various global challenges, such as climate change, geopolitical crises, and fluctuations in international food prices, all of which impact domestic food security. Agricultural downstreaming is seen as a strategic solution to increase the added value of agricultural products, strengthen farmers’ economic resilience, and reduce dependence on food imports.
To date, the national agricultural sector has primarily focused on the production of raw materials. As a result, farmers often suffer losses due to low commodity prices during harvest seasons. On the other hand, high-value processed products are still largely imported. This situation reveals a significant gap between Indonesia’s agricultural potential and the reality on the ground.
Through downstreaming, the government promotes the processing of agricultural products into finished or semi-finished goods domestically. Thus, farmers are not only raw material producers but also agro-industry entrepreneurs who have greater control over the value chain.
Minister of Agriculture Andi Amran Sulaiman is currently working to develop the downstreaming of Indonesia’s coconut production to increase its economic value through exports. The government is prioritizing the development of coconut commodities through downstream processing to produce high-selling value products.
This downstreaming potential is particularly attractive to neighboring countries, especially Singapore and Malaysia, considering the economic value could increase up to 100-fold, thus benefiting communities—particularly in Jambi province.
Meanwhile, the Governor of Jambi, Al Haris, stated that coconut downstreaming brings new hope for boosting local incomes.
The coconut potential in Jambi Province is considerable, especially in Tanjung Jabung Timur and Tanjung Jabung Barat Regencies, which are the largest coconut-producing centers in the province. According to Al Haris, neighboring countries like Singapore and Malaysia are strategic markets for coconut derivative products. Based on data from the Central Statistics Agency (BPS) of Jambi in 2020, coconut plantations in the province covered 119,000 hectares, with an estimated annual production of 110,000 tons.
Minister Sulaiman is also pushing for agricultural downstreaming and transformation in Riau Province as a strategic move to accelerate regional food self-sufficiency based on local potential and sustainable farmer empowerment. He emphasized the importance of strengthening food production while also developing the downstreaming of strategic commodities such as rice and coconut to bolster national food resilience in the face of climate crises and global uncertainties. According to him, Riau has utilized only around 20% of its land potential, resulting in local rice production meeting only 22% of the population’s annual demand of 662,000 tons.
Recognizing this opportunity, the Ministry of Agriculture is ready to support Riau in expanding production by up to 50,000 hectares over the next two to three years with an estimated investment of IDR 1.7 trillion. In addition to the food sector, the Minister also highlighted the importance of coconut downstreaming as a new economic strength for Riau. With vast community-based coconut potential and promising global market prospects, coconut is considered one of the province’s top export commodities. He stated that agricultural transformation in Riau should focus on three main areas: new rice field development, coconut cultivation, and irrigation infrastructure. He believes that food self-sufficiency will reduce inflation, increase people’s purchasing power, and improve farmers’ welfare.
In response, Riau Governor Abdul Wahid affirmed his full support for the national strategic agenda in the food sector. The province currently has 59,000 hectares of rice fields, but these only fulfill 22% of regional needs. He explained that community coconut plantations in Riau span over 400,000 hectares across various regencies, but processing facilities remain limited. Therefore, he hopes for full support from the central government to promote downstreaming so that farmers’ selling prices can improve.
Agricultural downstreaming is not just about increasing farmers’ income; it is also a vital foundation for building national food sovereignty. By processing agricultural products domestically, Indonesia can reduce its reliance on imported food, stabilize prices, and strengthen strategic food reserves.
Amid global geopolitical dynamics and the climate crisis, food self-sufficiency has become a critical and non-negotiable issue. A country that cannot meet its people’s food needs is highly vulnerable to external pressures. Therefore, agricultural downstreaming is part of a long-term strategy to strengthen national resilience overall.
Agricultural downstreaming is a visionary step that not only aims to increase farmers’ income but also serves as a key pillar in building national food self-sufficiency. The government is committed to continuing the transformation of the agricultural sector from merely raw material producers to a competitive national industry. Through downstreaming, Indonesia aspires not only to be the world’s food barn but also a producer of high-value agricultural products capable of generating broad-based prosperity for its people.
*) The author is a Contributor to the Indonesian Strategic Information Study Institute.
