PTPN I Plans Rp26.76 Trillion Investment in Downstream Processing
The plantation industry is expected not only to produce raw commodities but also to create added value through processing and the development of derivative products. In response to this challenge, PT Perkebunan Nusantara I (PTPN I) has prepared an investment plan worth Rp26.76 trillion to strengthen its business from upstream to downstream and support the national food and energy security agenda.
PTPN I President Director Abdul Rivai Ras said the investment was part of the company’s transformation to optimise plantation potential, improve competitiveness and expand its contribution to the national economy.
Rivai said PTPN I’s business development plans were aligned with the government’s priority agenda, set out in President Prabowo Subianto’s Asta Cita, particularly food self-sufficiency, energy security, job creation, more equitable economic growth and improved public welfare.
“President Prabowo’s Asta Cita is closely connected to PTPN I’s business areas. Our land resources, plantation commodities and operational network across various regions give the company the means to support that agenda,” Rivai said in Jakarta on Wednesday (21 October 2026).
He explained that the investment plan was intended not only to raise plantation productivity but also to build processing capacity so that commodities could generate greater economic value. Business development would therefore integrate cultivation (on-farm) with processing (off-farm).
Of the total planned investment of Rp26.76 trillion, Rp16.34 trillion has been allocated to upstream development covering 342,321 hectares of plantations. A further Rp10.42 trillion is set aside to build 25 processing facilities, planned for a number of strategic locations across Indonesia.
Upstream development includes replanting and optimising a range of commodities, including maize, coconut, rubber, coffee, cocoa, cashew and nutmeg. Downstream, the processing facilities are expected to strengthen links between raw-material production, processing industries and markets.
One opportunity under consideration is using maize as a feedstock for bioethanol to support the development of new and renewable energy. The company is exploring ways to add value to plantation and agricultural commodities while taking business feasibility and market demand into account.
“For PTPN I, downstream processing is not merely about developing a new business; it is an effort to change how the company creates value. The strength of a plantation cannot be measured solely by the size of its land or its production volume, but also by the economic value generated when commodities are processed into derivative products,” Rivai said.
Investment oversight and partnerships
To ensure the investment plan is implemented in a measured way, PTPN I is preparing project oversight through business feasibility studies, supply-chain integration and stronger market certainty through off-takers. This approach is intended to ensure that processing facilities are developed in line with the availability of raw materials and market needs.
The company is also promoting partnerships with farmers and local businesses, including through the development of smallholder nucleus-estate schemes. Partner participation is expected to strengthen raw-material supplies while extending the economic benefits of plantation industry development.
“Farmers are at the forefront of supporting the nation’s food security. Through partnerships and the development of plasma schemes, the success of downstream processing must therefore bring tangible benefits to farmers and local partners,” Rivai said.
As of early October 2026, PTPN I’s rubber development covered 1,479 hectares, while maize development reached 1,125 hectares. Overall, the development of priority commodities in the on-farm sector is projected to cover 11,516 hectares, or about 59–60 per cent of the 2026 annual target.
The programme is being accelerated through cross-functional coordination, budget controls and collaboration with various stakeholders using a pentahelix approach.
Through the investment plan, PTPN I aims to strengthen the plantation industry’s value chain, from cultivation through to product processing. The move is expected to increase commodity value, broaden business opportunities and strengthen the company’s role in supporting national food and energy security.