Jakarta (VNA) – Indonesia, the largest economy in ASEAN, is stepping up its downstream industrial strategy to enhance added value, strengthen energy self-reliance, and ensure food security amid global uncertainties.
Speaking in Jakarta on March 28, Indonesian Agriculture Minister Andi Amran Sulaiman stressed the need for the country to move away from exporting raw materials and instead develop downstream industries to retain value domestically.
He highlighted key commodities such as coconut, crude palm oil (CPO), and gambier, noting that these are still largely exported in raw or semi-processed forms. With deeper processing, however, products such as virgin coconut oil, coconut milk, coconut water, and various industrial goods could increase in value by tens or even hundreds of times.
Indonesia is currently the world’s largest coconut producer, yet much of its output remains unprocessed. Similarly, the country supplies around 80% of global gambier demand but mainly exports semi-finished products, allowing importing nations to capture greater added value. In the palm oil sector, Indonesia accounts for more than 60% of global production and holds significant potential to develop high-value products such as margarine and cosmetics.
According to the minister, downstream processing will not only drive economic growth but also improve farmers’ incomes, generate employment, and enhance the country’s global standing. However, he acknowledged challenges, including resistance from some stakeholders as Indonesia reduces import dependence and pursues greater self-sufficiency.
The government remains committed to advancing downstream industries, food self-sufficiency, and energy independence in line with the direction of President Prabowo Subianto.
Notably, a reduction of rice imports by up to 7 million tonnes, equivalent to nearly 100 trillion IDR (5.89 billion USD), is believed to have contributed to a decline in global rice prices from 660 USD per tonne to 340 USD, or about 44%.
Indonesia’s agricultural achievements have also gained international recognition, including food security awards from the Food and Agriculture Organisation in 2024 and 2025.
The achievements have attracted interest from countries such as Japan, Canada, Chile, and Belarus, which have visited Indonesia to study its food system.
Amran warned that food security is critical aspect, noting that a food crisis could trigger political instability and social conflict, making it a top national priority./.
