The plantation industry is expected not only to produce raw\ncommodities but also to create added value through processing and the\ndevelopment of derivative products. In response to this challenge, PT\nPerkebunan Nusantara I (PTPN I) has prepared an investment plan worth\nRp26.76 trillion to strengthen its business from upstream to downstream\nand support the national food and energy security agenda.<\/p>\n
PTPN I President Director Abdul Rivai Ras said the investment was\npart of the company\u2019s transformation to optimise plantation potential,\nimprove competitiveness and expand its contribution to the national\neconomy.<\/p>\n
Rivai said PTPN I\u2019s business development plans were aligned with the\ngovernment\u2019s priority agenda, set out in President Prabowo Subianto\u2019s\nAsta Cita, particularly food self-sufficiency, energy security, job\ncreation, more equitable economic growth and improved public\nwelfare.<\/p>\n
\u201cPresident Prabowo\u2019s Asta Cita is closely connected to PTPN I\u2019s\nbusiness areas. Our land resources, plantation commodities and\noperational network across various regions give the company the means to\nsupport that agenda,\u201d Rivai said in Jakarta on Wednesday (21 October\n2026).<\/p>\n
He explained that the investment plan was intended not only to raise\nplantation productivity but also to build processing capacity so that\ncommodities could generate greater economic value. Business development\nwould therefore integrate cultivation (on-farm) with processing\n(off-farm).<\/p>\n
Of the total planned investment of Rp26.76 trillion, Rp16.34 trillion\nhas been allocated to upstream development covering 342,321 hectares of\nplantations. A further Rp10.42 trillion is set aside to build 25\nprocessing facilities, planned for a number of strategic locations\nacross Indonesia.<\/p>\n
Upstream development includes replanting and optimising a range of\ncommodities, including maize, coconut, rubber, coffee, cocoa, cashew and\nnutmeg. Downstream, the processing facilities are expected to strengthen\nlinks between raw-material production, processing industries and\nmarkets.<\/p>\n
One opportunity under consideration is using maize as a feedstock for\nbioethanol to support the development of new and renewable energy. The\ncompany is exploring ways to add value to plantation and agricultural\ncommodities while taking business feasibility and market demand into\naccount.<\/p>\n
\u201cFor PTPN I, downstream processing is not merely about developing a\nnew business; it is an effort to change how the company creates value.\nThe strength of a plantation cannot be measured solely by the size of\nits land or its production volume, but also by the economic value\ngenerated when commodities are processed into derivative products,\u201d\nRivai said.<\/p>\n
Investment oversight and partnerships<\/strong><\/p>\n To ensure the investment plan is implemented in a measured way, PTPN\nI is preparing project oversight through business feasibility studies,\nsupply-chain integration and stronger market certainty through\noff-takers. This approach is intended to ensure that processing\nfacilities are developed in line with the availability of raw materials\nand market needs.<\/p>\n The company is also promoting partnerships with farmers and local\nbusinesses, including through the development of smallholder\nnucleus-estate schemes. Partner participation is expected to strengthen\nraw-material supplies while extending the economic benefits of\nplantation industry development.<\/p>\n \u201cFarmers are at the forefront of supporting the nation\u2019s food\nsecurity. Through partnerships and the development of plasma schemes,\nthe success of downstream processing must therefore bring tangible\nbenefits to farmers and local partners,\u201d Rivai said.<\/p>\n As of early October 2026, PTPN I\u2019s rubber development covered 1,479\nhectares, while maize development reached 1,125 hectares. Overall, the\ndevelopment of priority commodities in the on-farm sector is projected\nto cover 11,516 hectares, or about 59\u201360 per cent of the 2026 annual\ntarget.<\/p>\n The programme is being accelerated through cross-functional\ncoordination, budget controls and collaboration with various\nstakeholders using a pentahelix approach.<\/p>\n Through the investment plan, PTPN I aims to strengthen the plantation\nindustry\u2019s value chain, from cultivation through to product processing.\nThe move is expected to increase commodity value, broaden business\nopportunities and strengthen the company\u2019s role in supporting national\nfood and energy security.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ptpn-i-plans-rp26-76-trillion-investment-in-downstream-processing-1792698642",
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"sponsor": "Okusi Associates",
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