Government Encourages Downstreaming of Local Commodities to Increase Global Competitiveness
Jakarta – The government continues to strengthen the downstreaming agenda for local commodities as an effort to increase Indonesia’s competitiveness in the global market. This program is believed to not only strengthen food security but also create new jobs and restore the glory of national plantation commodities.
Minister of Agriculture Andi Amran Sulaiman emphasized that the government has prepared a large investment scheme to support the downstreaming program. The total allocated budget reaches IDR 371.6 trillion, which will come from People’s Business Credit (KUR), participation by state-owned enterprises (BUMN), and the private sector.
“This is a plantation downstreaming program and can create jobs. Our budget is planned at IDR 371 trillion. BUMNs, the private sector, and KUR funds will participate,” said Amran.
He added that the target of accelerating downstreaming will be achieved within the next three years, as directed by the President. The government emphasized that cross-sectoral support, including support from local governments, is key to the success of this agenda.
“In three years, we have accelerated our efforts to achieve the target set by the President. We want to restore the glory of spices and plantation commodities. The budget is already around IDR 10 trillion. The support of regional heads is key to the success of downstreaming; without it, we can’t do much,” said Amran.
The Ministry of Agriculture’s move has received full support from other ministries. Minister of Home Affairs Tito Karnavian believes that agricultural downstreaming will strengthen the industrialization of the food sector and open up opportunities for Indonesia to escape the middle-income trap.
“I thank the Minister of Agriculture for mobilizing us all. With the available budget, agricultural downstreaming and industrialization can boost self-sufficiency, make us an exporter, and even a major player in the global market,” said Tito.
Tito emphasized that the success of downstreaming will have a multiplier effect, from increased production, opening up export opportunities, to creating new jobs in various regions. With integrated industrialization, Indonesia is believed to be able to compete with other countries in value-added agricultural products.
Meanwhile, support has also come from the regions. North Maluku Governor Sherly Tjoanda Laos emphasized her region’s readiness to participate in the downstreaming program, particularly for leading commodities such as coconut, nutmeg, and cloves. She stated that these commodities have been mostly sold raw, thus limiting the added value received by farmers.
“Downstreaming is important so that leading commodities are not only sold raw, but also processed into value-added derivative products that improve farmer welfare, national competitiveness, and contribute to the country’s foreign exchange,” she said.
Sherly cited the example of North Maluku’s coconut derivative processing plant, which has positively impacted selling prices at the farm level. With the national downstreaming program, she is optimistic that the development of superior seeds and the processing industry can further strengthen the welfare of the people in her region.
“Currently, we already have a coconut derivative product factory, so prices at the farm level are quite good. With this program, we are optimistic that seed development and downstreaming will further strengthen the community’s welfare,” Sherly said.
The downstreaming program for local commodities, currently being intensified by the government, is considered a crucial momentum for restoring Indonesia’s glory as a respected agricultural nation. With substantial budget support, cross-sector synergy, and regional preparedness, Indonesia is believed to be able to strengthen its position in the global market and deliver tangible benefits to farmers and consumers.
