Indonesia\u2019s Minister of Agriculture Andi Amran Sulaiman said\ndownstream processing is key to strengthening the economy, boosting\nenergy independence, and securing food resilience amid global\nuncertainty.<\/p>\n
Speaking in Jakarta on Saturday, the minister said Indonesia must\nstop exporting raw commodities and instead expand downstream industries\nto capture higher added value domestically.<\/p>\n
He highlighted key commodities such as coconut, crude palm oil (CPO),\nand gambier, saying their derivatives\u2014ranging from processed oils to\nindustrial products\u2014could significantly increase economic returns\ncompared with raw exports.<\/p>\n
Indonesia is the world\u2019s top coconut producer, but much of its output\nis exported unprocessed, he said, noting products like virgin coconut\noil, coconut milk, and coconut water could multiply value by tens to\nhundreds of times.<\/p>\n
\u201cIf coconut is processed into virgin coconut oil, coconut milk, and\ncoconut water, the value can increase tens to hundreds of times,\u201d he\nsaid.<\/p>\n
He added that Indonesia supplies about 80 percent of global gambier\ndemand, yet exports it mostly in semi-processed form, allowing other\ncountries to capture higher value.<\/p>\n
Amran also pointed to palm oil, saying Indonesia controls more than\n60 percent of global CPO production, which could be transformed into\nhigher-value goods such as margarine and cosmetics.<\/p>\n
He said downstreaming would not only strengthen the national economy\nbut also improve farmers\u2019 welfare, create jobs, and enhance Indonesia\u2019s\nglobal economic position. However, he acknowledged challenges, including\nresistance from parties opposed to Indonesia reducing imports and\nbecoming more self-reliant in food and energy.<\/p>\n
The government remains committed to advancing downstreaming, food\nself-sufficiency, and energy independence in line with President Prabowo\nSubianto\u2019s directives, he said.<\/p>\n
Amran said Indonesia\u2019s reduced rice imports\u2014cut by up to 7 million\ntons, equivalent to about Rp100 trillion\u2014had contributed to a drop in\nglobal rice prices from US$660 per ton to US$340 per ton, or around 44\npercent.<\/p>\n
He added that Indonesia\u2019s food sector gains had earned international\nrecognition, including global food security awards from the Food and\nAgriculture Organization (FAO) in 2024 and 2025.<\/p>\n
The achievements have attracted interest from countries such as\nJapan, Canada, Chile, and Belarus, which have visited Indonesia to study\nits food system.<\/p>\n
Amran warned that food security is critical aspect, noting that a\nfood crisis could trigger political instability and social conflict,\nmaking it a top national priority.<\/p>\n
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Translator: Muhammad Harianto, Martha Herlinawati Simanjuntak<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/indonesia-pushes-downstream-strategy-to-boost-economy-end-raw-exports-1774713076", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }