JAKARTA — The government has emphasized that industrial downstreaming is a real strategy to move Indonesia towards a high-value-added economy.
Under the leadership of President Prabowo Subianto, this policy has become a key pillar in strengthening national competitiveness and optimizing the potential of natural resources across various sectors.
Downstreaming is no longer limited to the mineral sector, but now encompasses up to 26 strategic commodities such as agriculture, fisheries, plantations, forestry, and oil and gas.
The government is targeting an economic transformation from an exporter of raw materials to a producer of processed products that can create quality jobs and increase state revenue.
Minister of Agriculture Andi Amran Sulaiman emphasized that accelerating downstreaming in agriculture and plantations is a key step in increasing the economic value of superior national products.
“If chocolate is exported as raw cocoa beans, the price is only around IDR 26,000 per kilogram. However, after being processed into ready-to-eat chocolate, the value can reach IDR 1 million per kilogram,” he said.
Amran also highlighted the significant potential of coconut commodities. He stated that Indonesia still exports Rp 26 trillion worth of raw coconuts, whereas if processed into virgin coconut oil and coconut milk, the export value could skyrocket to Rp 2,600 trillion.
He emphasized that downstreaming not only increases revenue but also creates jobs and strengthens national economic resilience.
From a fiscal perspective, Febrio Kacaribu, Director General of Economic and Fiscal Strategy at the Ministry of Finance, revealed that downstreaming has had a significant impact on Indonesia’s trade balance surplus for five consecutive years.
“Since 2022, Indonesia’s trade with China has reversed from a deficit to a surplus. The added value of products such as nickel, ferronickel, and copper cathode has increased up to 15 times compared to raw material exports,” he explained.
In the agro-industry sector, Putu Juli Ardika, Director General of Agro-Industry at the Ministry of Industry, stated that the government is also encouraging seaweed downstreaming to ensure exports generate higher economic value.
“So far, seaweed exports have only been in the form of raw materials. Therefore, we are encouraging the industry to produce derivative products such as carrageenan, agar-agar, and bioplastics,” he said.
Putu added that investment in the agricultural sector has reached IDR 200 trillion in the past two years, reflecting the industry’s strong interest in the potential of downstream processing.
With concrete steps across various sectors, industrial downstreaming has proven to be a national strategy that strengthens the economic foundation and leads Indonesia into an era of high-value-added economy.
