Jakarta – The government continues to accelerate the downstreaming of agricultural commodities through 2025 as a strategic effort to increase product added value, expand exports, and improve farmer welfare. This effort is being implemented through policy alignment between ministries and agencies, the development of agricultural processing facilities, and the implementation of an integrated financing scheme involving state-owned enterprises, the banking sector, and the private sector.
Minister of Agriculture Andi Amran Sulaiman emphasized that downstreaming is key to strengthening the national agricultural sector. He stated that this step not only increases exports and creates new jobs but also strengthens the local economy and has a tangible impact on farmer welfare.
“With downstreaming, Indonesia will no longer be merely an exporter of raw materials. We want to become a major player in the agricultural derivative industry so that farmers can directly experience the added value,” said Amran.
The government has allocated Rp 371.6 trillion in investment to strengthen the agricultural downstreaming program. This budget will be used to support national food security and increase the competitiveness of Indonesian products in the global market. The funding is planned to come from a combination of micro, small, and medium enterprises (MSMEs) credit (KUR), state-owned enterprise funds, and private sector participation in joint financing schemes.
The downstreaming program will focus on leading commodities with significant added value potential and broad economic impact. In the 2025 roadmap, the government has identified several priority commodities and prepared technical policies, production facilities, processing, and marketing to strengthen the domestic value chain. This measure also aims to reduce raw material exports and encourage domestic processing.
Regionally, Riau Governor Abdul Wahid also supports the agricultural downstreaming agenda. He is pushing for the accelerated development of sago and coconut processing factories as part of a strategy to increase the market value of agricultural products in his region.
“We are committed to continuously strengthening agricultural production and sales value so that the benefits directly reach the community. Hopefully, this National Coordination Meeting will be a real momentum for improving farmer welfare,” said Wahid.
He also stated that the Ministry of Agriculture has fully supported the factory’s development plan, including assisting in attracting investors and technical partners to accelerate the development of sago and coconut-based downstream industries in Riau.
The government is inviting all parties, including local governments, business actors, state-owned enterprises (SOEs), academics, and farmer organizations, to collaborate in realizing inclusive and sustainable downstream processing. Through this program, farmers are expected to directly benefit from increased selling prices, technology transfer, and new business opportunities in the agro-industrial sector. The government is also committed to continuing to openly report program developments and achievements as a form of transparency and public accountability.
