Downstream Plantation Development: The Government’s Strategy to Create 8.6 Million New Jobs
Yogyakarta – The government has reaffirmed its commitment to accelerating the downstreaming of plantation commodities as a strategy to create millions of new jobs while strengthening national economic resilience.
Minister of Agriculture (Mentan), Andi Amran Sulaiman, revealed that downstreaming has the potential to absorb up to 8.6 million workers, from the cultivation sector to the processing of plantation products.
“Just imagine, if we implement downstreaming, we’ll create jobs and absorb up to 8 million workers. We’ve been asked to lead this downstreaming effort, and we can’t do it alone,” Amran said while attending the Yogyakarta Regional Leadership Council (BPD) HIPMI (Indonesian Indonesian Palm Oil Association) Family Gathering in Yogyakarta.
Amran emphasized that downstreaming is a top priority for future agricultural development policies. Several commodities, such as coconut, cocoa, cashew, coffee, palm oil, and cotton, are considered to have significant potential for development into high-value derivative products, both for export and import substitution.
For example, coconuts can be processed into value-added products such as virgin coconut oil (VCO), cocopeat, cocofiber, and even bioenergy. According to Amran, the value of these derivative products can even increase 107-fold—from a coconut price of Rp1,350 per kilogram to VCO at Rp145,000 per liter.
“The added value of commodities must remain domestic. We must no longer sell raw materials. All plantation products must be processed, absorbed by the domestic industry, and become a lever for farmer welfare,” Amran emphasized.
On that occasion, Amran encouraged young entrepreneurs from the Indonesian Young Entrepreneurs Association (HIPMI) to take an active role in agricultural downstreaming. He described HIPMI as a vital part of the nation’s future generation, which must be given space and support to directly participate in agriculture-based national economic development.
“HIPMI is our children, our generation. Give them as much space as possible, give them support. Because they are the ones who will continue development. This is where HIPMI has a great opportunity to act,” he said.
Amran is optimistic that, with abundant natural resources and year-round production capacity, Indonesia has a comparative advantage that many other countries lack. Synergy between the government and various stakeholders, including the Indonesian Food and Agriculture Association (HIPMI), is key to accelerating downstreaming, strengthening competitiveness, and maintaining food security.
The Chairperson of the Yogyakarta Regional Leadership Council (BPD) of the Indonesian Young Entrepreneurs Association (HIPMI), Ekawati Rahayu Putri, expressed her appreciation for Minister Amran’s invitation. She believes the invitation serves as motivation and encouragement for young entrepreneurs to play a greater role in national development.
“Thank you, Minister, for motivating us. We will gather all agricultural entrepreneurs and promote synergy with the government,” said Ekawati.
He emphasized that HIPMI DIY is ready to be a driving force for Indonesian agricultural development. “Hopefully, we can play a role together in realizing national food security and self-sufficiency,” he concluded. ()
