Indonesia pushes agricultural downstreaming to boost farmers’ income

19.01.2026 130 views

Agriculture Minister Andi Amran Sulaiman has called on regional governments to accelerate downstreaming of local agricultural commodities—particularly coconuts, cashew nuts, and cocoa—to increase added value and raise farmers’ incomes. 

Speaking at the opening of the National Working Meeting of the Association of Indonesian District Governments (Apkasi) in Batam on Monday, Sulaiman said the central government has allocated a substantial budget to support regional downstreaming initiatives. 

“We have prepared Rp40 trillion (around US$2.3 billion) for district heads, who are at the forefront of implementing downstreaming programs,” he stated. 

He highlighted the success of coconut downstreaming in North Maluku, which has significantly boosted economic returns. 

Indonesia is the world’s largest coconut producer, yet most exports remain in raw form, valued at around Rp24 trillion. With processing, he noted, the export value could rise dramatically—potentially reaching Rp896 trillion. 

Sulaiman also pointed to shifting global consumption trends, with countries such as China increasingly turning from cow’s milk to coconut-based products like coconut milk and coconut oil (TCO). 

Beyond coconuts, commodities such as cocoa, cashew nuts, and gambier are seen as having strong potential for downstream development. 

“Downstreaming is our way to increase farmers’ income, especially in sectors with high global value—coconuts, cocoa, cashews, and more,” he emphasized. 

 

Source - https://en.antaranews.com

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