Indonesia is preparing to unlock an estimated IDR 138 trillion in economic value between 2025 and 2027 by accelerating downstream processing across six key plantation commodities, with coconut offering the highest potential. The program is projected to create more than 1.6 million jobs and expand cultivation over 870,890 hectares. Agriculture Minister Andi Amran Sulaiman emphasized that processing commodities domestically—such as coconut oil, refined coconut milk, cocoa derivatives, sugar, coffee, cashew, pepper, and nutmeg—will significantly increase added value for farmers while reducing reliance on raw material exports. With global demand rising for coconut-based and plant-based products, the government aims to shift from exporting raw coconuts toward building domestic industries capable of producing high-value goods, supported by new processing facilities across multiple regions.
The Agriculture Ministry’s projections show strong economic contributions from each commodity: coconut is expected to generate IDR 5.77 trillion from 2.88 million tons harvested across 221,890 hectares, cocoa could reach IDR 67.1 trillion, sugarcane IDR 23.2 trillion, coffee IDR 14.93 trillion, cashew IDR 2 trillion, and pepper/nutmeg IDR 25.5 trillion. Minister Amran highlighted that downstreaming will also strengthen Indonesia’s position within global supply chains by prioritizing exports of finished products rather than raw materials. Beginning in 2025, the initiative will be implemented in stages, supported by agricultural mechanization, infrastructure improvements, and enhanced market systems. The program is designed to boost national food and plantation output while opening wider opportunities for cooperatives, SMEs, and farmers, ultimately reinforcing Indonesia’s economic resilience.
