President Prabowo Accelerates Agricultural Downstreaming to Boost Exports and Farmer Welfare
By: Dona Dwiana
Amidst rapid global change, Indonesia’s agricultural sector is demonstrating extraordinary resilience and potential. Not only does it provide food for more than 270 million people, but it is also a crucial pillar in driving national economic growth. One major step being accelerated is the downstreaming of agriculture—the process of processing agricultural products from raw materials into high-value-added products. This step is not merely a development strategy, but also a great hope for a more independent, modern, and highly competitive future for Indonesian agriculture in the global market.
The government, through various relevant ministries, has demonstrated a strong commitment to accelerating the downstreaming of agricultural products. This effort is not without merit. For years, Indonesia has been known as an exporter of raw commodities such as coffee, cocoa, rubber, palm oil, and spices. However, the value generated from these raw material exports is far smaller than the value of processed products exported by other countries. This is the major gap that downstreaming aims to close: adding value to domestic products, creating jobs, and generating higher incomes for farmers.
Agriculture Minister Andi Amran Sulaiman emphasized the importance of downstreaming the agricultural sector as a strategy to boost export growth, improve farmer welfare, strengthen the local economy, and create new jobs. The government has prepared an investment scheme worth Rp 371.6 trillion to strengthen the agricultural downstreaming program, while simultaneously supporting national food security and increasing Indonesia’s global competitiveness.
Concrete steps are already beginning to emerge. One example is a significant increase in the value of agricultural exports in early 2025. According to official data, Indonesia’s agricultural exports from January to August 2025 jumped more than 38 percent compared to the previous year. This is not just a figure, but evidence that the direction of agricultural development is shifting toward a more promising direction. Commodities previously shipped only in raw form are now being processed into ready-to-use products with higher sales value, both domestically and internationally.
In many regions, the downstreaming process is beginning to be felt. Coconut farmers in Sulawesi, for example, now not only sell coconuts but also produce Virgin Coconut Oil (VCO) for sale as far away as Europe. The selling price has skyrocketed, from just thousands of rupiah per kilogram to hundreds of thousands of rupiah per liter. In East Java, coffee farmer groups have begun managing their own roasting and packaging processes, enabling local coffee products to compete with international brands. Some have even successfully penetrated Asian and Middle Eastern markets. This is clear evidence that when farmers are given access to technology, training, and policy support, they can move up the ranks and become part of the global supply chain.
West Sulawesi Deputy Governor Salim S. stated that the potential for coconuts in West Sulawesi is enormous for downstream processing, processing them into high-value products such as coconut oil, coconut fiber, activated charcoal, and derivatives that are highly sought after by the international market. Therefore, he hopes that with strong government support and strong investor interest, coconut downstreaming will become a new, leading sector for West Sulawesi’s future economic growth.
This accelerated downstreaming has also brought a breath of fresh air to young people. Millennials, who might have previously been hesitant to enter the agricultural world, are now beginning to see that agriculture can be a promising sector. Many are forming agrotechnology-based startups, developing processed products, and even utilizing e-commerce to penetrate international markets. This demonstrates that downstreaming not only increases economic value but also brings about social transformation—where agriculture is no longer viewed as outdated, but rather as a vibrant and sustainable sector of the future.
The government itself has prepared various support measures to accelerate this process. The 2025–2027 agricultural downstreaming roadmap was developed with the involvement of various parties, from business actors and academics to farmers themselves. The primary focus is not only on increasing production but also on post-harvest efficiency, strengthening the supply chain, opening up export market access, and, of course, providing easier and more farmer-friendly financing.
Agricultural downstreaming is not a process that can be completed overnight. However, with strong commitment, clear policy direction, and a spirit of mutual cooperation between the government, farmers, the private sector, and the community, Indonesia is on the right track. We are not only building a stronger economy but also realizing our ambitious goals: making farmers the key actors in development, strengthening villages as centers of growth, and establishing Indonesia as a global powerhouse in processed agriculture.
The future of Indonesian agriculture is now in our hands. By accelerating downstream processing, we will not only increase export value but also enhance the livelihoods of millions of farmers and their families. And amidst increasingly complex global challenges, downstream processing offers an optimistic answer—that Indonesian agriculture can not only survive but also leapfrog into a brighter future.
)* Agricultural Department Student
