The agricultural commodity downstreaming in Indonesia needs revitalization to unlock export opportunities, tap into a productive workforce, and boost farmers' income. Currently, due to limited capital, governance issues, and inadequate government support, downstreaming activities for strategic agricultural commodities are inefficient and mostly involve exporting raw and semi-processed goods, resulting in minimal value addition and negative impacts on farmers and national revenue.

To achieve successful revitalization, a combination of strategies is required. These include increasing productivity, investing in downstreaming activities, and implementing policies that promote both productivity enhancement and investment. Additionally, government support is crucial in enhancing downstreaming technology capabilities, structuring the industry, establishing product safety standards for enhanced competitiveness, expanding export markets, investing in vocational education to develop skilled human resources, and creating a favorable investment climate. Special efforts are needed to facilitate industrial upgrading, develop downstreaming based on comparative advantages, attract foreign investment with advanced technology, establish national standards aligned with international ones, and encourage joint ventures and export-oriented endeavors for local entrepreneurs.

Source:
https://www.pikiran-rakyat.com/kolom/amp/pr-016847579/hilirisasi-komoditas-pertanian