By: Mahmud Sutramitajaya
The administration of President Prabowo Subianto continues to demonstrate its commitment to strengthening national food security through an integrated downstreaming strategy linked with industrial development. One concrete step is the preparation of 18 strategic projects across various vital sectors, ranging from minerals and coal, energy transition, to maritime, fisheries, and agriculture.
This initiative has received full support from the Minister of Energy and Mineral Resources (ESDM) and Head of the National Energy Security and Downstreaming Task Force, Bahlil Lahadalia, who stated that these projects have undergone in-depth pre-feasibility studies. The total investment value reaches USD 38.63 billion, equivalent to IDR 618.13 trillion, reflecting the government’s serious intent to drive downstreaming as a motor for sustainable economic growth.
Eight projects are focused on the mineral and coal sector, two support the energy transition, two strengthen energy security, three focus on agricultural downstreaming, and three on fisheries and maritime downstreaming. This strategy is expected to optimize domestic resources, reduce import dependency, and open up high-value-added export market opportunities.
Bahlil emphasized that the downstreaming agenda has been carefully discussed among cross-sector teams, academics, and business players. The deep analysis ensures that the planned projects can be realized as targeted. He is optimistic that under Danantara’s leadership, these projects will progress well thanks to funding readiness and implementation preparedness on the ground.
Downstreaming is not only limited to the mineral sector; it is also key to transforming the agricultural sector. Minister of Agriculture Andi Amran Sulaiman has taken progressive steps by promoting agricultural downstreaming and transformation, particularly in Riau Province. The region is seen as having great potential to become a new national food barn and a center for high-value coconut commodity development.
During his visit to Riau, Minister Andi emphasized the importance of strengthening food production while developing downstream industries for strategic commodities such as rice and coconut. This transformation is a tangible step to ensure national food security amid the challenges of climate crisis and global economic uncertainty.
Riau, with a population of around seven million, has significant food needs. However, current data shows that local rice production only meets 22% of the population’s demand. To address this, the Ministry of Agriculture targets a planting area expansion of up to 50,000 hectares within the next two to three years. This effort will be supported by IDR 1.7 trillion in funding to optimize land use, which currently stands at only around 20%.
In addition to rice, developing the coconut downstream industry is a key focus. Riau’s abundant smallholder coconut potential offers significant opportunities to boost the regional economy. With an investment of IDR 371 billion, the government targets the coconut industry to increase value-added by thousands of percent. This price surge is expected to directly impact farmers’ welfare and open new jobs in processing industries.
In his long-term strategy, Andi emphasized agricultural transformation through three main pillars: new rice field development, smallholder coconut cultivation, and irrigation infrastructure development. These pillars are believed to accelerate food self-sufficiency, reduce regional inflation, and improve purchasing power among the population.
According to Andi, local commodity downstreaming is not merely about increasing selling prices, but also plays a vital role in job creation, driving the village economy, and maintaining social stability in rural areas. Therefore, agricultural and fisheries downstreaming programs are vital instruments to support long-term food security based on national industrialization.
The central government’s efforts have also received full support from regional governments. Riau Governor Abdul Wahid stated his commitment to supporting this strategic agenda. He noted that of Riau’s total irrigated rice field area of 59,000 hectares, local rice production still meets only a fraction of the region’s demand. However, with central government intervention, rice productivity increased by 7% last year and is targeted to rise by 12% this year.
Beyond rice, smallholder coconut potential in Riau is also a downstreaming priority. With over 400,000 hectares of coconut plantations, the opportunity to make coconut a leading export commodity is significant. However, the lack of processing facilities remains a challenge that must be addressed through cooperation between central and regional governments.
The government also stresses that ideas without implementation will yield no meaningful impact. Therefore, strong commitment between central and regional governments is key to the success of the downstreaming program. With measured strategies, sufficient funding, and multi-stakeholder collaboration, this downstreaming effort is expected to create a resilient food industry ecosystem.
Amid global uncertainty, the transformation of downstreaming in agriculture and fisheries is the answer to ensuring Indonesia’s food independence. Moreover, the potential for high-value-added processed exports will further open up new foreign exchange opportunities for the country.
This downstreaming effort is also in line with President Prabowo Subianto’s vision to make Indonesia an advanced, food- and energy-sovereign nation. By maximizing natural resources and human capital, the government hopes Indonesia can escape the middle-income trap and rise to become an innovation-based industrial country.
Downstreaming agriculture and fisheries is not just a slogan but a real manifestation of inclusive and sustainable economic development. This program is expected to be a policy legacy with not only short-term impact but also a strong foundation for national food security for decades to come.
With measurable steps, sufficient investment support, and central-regional synergy, Indonesia is optimistic in strengthening industry-based food security, increasing the value of local products, and improving the welfare of farmers and fishers across the archipelago.
The author is a student at Indraprasta University, Jakarta.
