Cross-Sector Downstreaming is the Government’s Major Strategy to Boost Added Value and Job Creation
Jakarta — The government continues to accelerate cross-sector downstreaming as a major strategy to strengthen economic independence, create jobs, and increase national competitiveness. Several concrete steps have been taken, involving the agriculture, plantation, fertilizer, and petrochemical sectors, through synergy between local businesses and international partners.
The Head of the Agriculture and Plantation Service, Cut Huzaimah, emphasized the importance of halting raw rubber exports so that the added value can be enjoyed directly domestically.
“Rubber production must be processed here so that the benefits directly reach the community. Exporting raw rubber only benefits others,” he said.
A modern rubber processing plant with a capacity of 2,500 tons of dry rubber per month is now ready for operation, demonstrating a commitment to downstream processing that absorbs labor and strengthens the local economy.
Arsari Group President Director, Hashim Djojohadikusumo, called this factory a concrete manifestation of the downstreaming of the plantation industry.
“With sophisticated machinery capable of processing 10 tons of wet rubber per hour, daily production can reach 100 tons of dry rubber, and capacity will continue to increase depending on the supply of raw materials,” he explained.
In the fertilizer and petrochemical sector, PT Pupuk Indonesia (Persero) and Petronas Chemicals Group Berhad (PCG) continued their strategic partnership by signing a memorandum of understanding (MoU) that expands synergies ranging from urea and ammonia supply, technology transfer, to the development of a methanol plant in Indonesia.
“This collaboration is a strategic step to strengthen the downstreaming of the national industry, making it efficient, competitive, and sustainable,” said Pupuk Indonesia President Director Rahmad Pribadi.
Domestically produced methanol is expected to reduce dependence on imports and strengthen national energy independence. Furthermore, this collaboration opens up opportunities for market expansion in Southeast Asia while creating new jobs in the production and distribution sectors.
Special Staff to the Minister of Investment and Downstreaming, Sona Maesana, emphasized that downstreaming must create sustainable added value, involve SMEs, and encourage Indonesian entrepreneurs to move up a class.
“Downstreaming isn’t just about building factories, but also about who benefits. There must be active participation from the nation’s youth in the supply chain,” he said.
He emphasized the need for integration between local and foreign players, incentives for investors developing local industries, and accelerated and guaranteed licensing. Downstream processing, Sona said, also needs to be expanded to the digital, agricultural, pharmaceutical, and creative industries sectors, so that its benefits reach a wider cross-section of society.
The government is optimistic that the cross-sector downstreaming strategy will become a key pillar of national economic growth. With the active involvement of business actors, support from modern technology, and pro-investment policies, Indonesia can strengthen its position as a major player in the global market while ensuring the welfare of its people remains a top priority.
