Minister: Gov’t to Boost Downstreaming for Agricultural Commodities

Minister of Agriculture Andi Amran Sulaiman on Thursday (10/09) delivers a statement after a limited Cabinet meeting at the Merdeka Palace, Jakarta. (Photo by: BPMI of Presidential Secretariat.)

The Government will continue to boost downstreaming in the agricultural sector, as part of strategic measures to increase added value, create jobs, and accelerate the equitable distribution of the people’s welfare.

“We must retain the added value in Indonesia. If we continue to do this, it will create jobs, reduce poverty, improve welfare, and lower unemployment,” Minister of Agriculture Andi Amran Sulaiman said after attending a limited Cabinet meeting chaired by President Prabowo Subianto at the Merdeka Palace, Jakarta, Thursday (10/09).

Amran stated that the economic potential from downstreaming coconut commodities is enormous.

“Through downstreaming, coconuts can be processed into coconut milk and VCO (Virgin Coconut Oil) whose price can be 100 times higher. If it goes up 100 times, it can generate Rp2,400 trillion. Even if it’s only half of that, namely fifty times higher, it can still generate Rp1,200 trillion in foreign exchange. And that’s just from coconuts,” Amran said.

In addition to coconuts, the Government is also preparing downstreaming for commodities from Uncaria gambir, which currently supply 80 percent of global demand. Its derivative products can be used for ink in general elections, as well as other household needs. A similar approach is being applied to palm oil commodities which fall under the Government’s control. Amran also explained that fresh fruit bunches (FFB) will be processed into biofuel, cooking oil, margarine, and butter.

“We are now accelerating the downstreaming of cocoa, cashew, coconut, pepper, and others. Downstreaming, especially for coconut, is promising. The data shows that we have produced 33 million tons, while last year it was only 29 million tons,” Amran added.

In addition to the downstreaming acceleration, the Government is also optimizing a budget of Rp9.95 trillion to support plantation and horticulture development programs.

“We will distribute seeds to farmers across Indonesia, namely cocoa, coffee, coconut, cashew, and nutmeg seeds, for 800,000 hectares of land nationwide, and the seeds will be distributed free of charge. This program will create 1.6 million jobs within a maximum of two years,” Amran remarked.  (BPMI of Presidential Secretariat) (RI/TM)