KBRN, Jakarta: Indonesia is set to unlock an estimated IDR 138 trillion (USD 8.29 billion) in economic potential by advancing downstream processing of coconut and five other strategic plantation commodities between 2025 and 2027. The initiative is expected to absorb more than 1.6 million workers and expand cultivation across 870,890 hectares.

Agriculture Minister Andi Amran Sulaiman emphasized that downstreaming is a critical step to reduce raw material exports and ensure farmers gain greater value from derivative products such as coconut oil, processed coconut milk, cocoa, sugar, coffee, cashew, pepper, and nutmeg.

“This downstreaming effort ensures commodities are no longer sold as raw materials. By processing them domestically, farmers can secure higher added value,” Minister Amran said during the Fourth Plenary Session of the 11th National Congress of the Indonesian Ulema Council (MUI) in Jakarta on Friday, November 21, 2025, as quoted by Antara.

Among the six commodities, coconut holds the largest potential. Indonesia’s vast coconut resources can be transformed into high-value products including refined coconut oil, processed coconut milk, and virgin coconut oil (VCO).

“Coconut’s value can increase a hundredfold when processed. We must stop exporting raw coconuts and instead build industries at home, especially as global demand shifts toward coconut milk and plant-based products,” Minister Amran noted.

Data from the Agriculture Ministry projects coconut cultivation on 221,890 hectares, yielding 2.88 million tons with an economic value of IDR 5.77 trillion. Processing facilities will be established across regions to strengthen supply chains.

Cocoa is targeted for 248,500 hectares with a potential value of IDR 67.1 trillion, while sugarcane is projected to generate IDR 23.2 trillion from 200,000 hectares. Coffee cultivation is set at 99,500 hectares with an estimated IDR 14.93 trillion in value. Cashew and pepper/nutmeg are expected to contribute IDR 2 trillion and IDR 25.5 trillion respectively.

Minister Amran stressed that downstreaming is not only about boosting domestic value but also about positioning Indonesia more strongly in global supply chains. “If we process commodities ourselves, other countries will face shortages of raw materials. That is our strength. We must export finished products, not just raw goods,” he said.

The ministry plans to roll out downstreaming in stages starting in 2025, alongside agricultural mechanization, production infrastructure development, and market system improvements to enhance export competitiveness.

The program will also integrate with efforts to increase national food and plantation output, reinforcing economic independence while creating new opportunities for cooperatives, small and medium enterprises (SMEs), and farmers nationwide. ***