Gapmmi Boss Reveals Kakao And Kelapa Pacu Downstream Institutional Initiation

JAKARTA - The Association of Indonesian Food and Beverage Producers (Gapmmi) conveyed that the management of cocoa-kelapa institutions approved by President Joko Widodo could spur downstream in the sector to be more optimal. "We hope that this regulation can ensure the availability of raw materials and encourage downstreaming according to government programs," said Gapmmi Adhi Lukman, quoted from ANTARA, Tuesday, July 16.

According to him, institutional initiation proposed by the Ministry of Industry can directly maintain the sustainability of the food and beverage sector (mamin), increase competitiveness, as well as encourage increased economic added value contributions (EVA) in the cocoa-kelapa industry. Gapmi appreciates the strategic steps taken by the Indonesian Ministry of Industry which has initiated the establishment of this cocoa and coconut institutions," he said., with the delegation of cocoa and coconut management to the Palm Oil Plantation Fund Management Agency (BPDPKS) by forming two new deputies, namely the Deputy Kakao and Deputy Kelapa can take advantage of the budget they have to immediately spur the contribution of this sector. "I am sure, the management of the funds carried out will strengthen the upstream sector, so that the growth of the upstream sector can support the rapid growth of the downstream sector," he said. Previously, the Ministry of Industry initiated the establishment of cocoa and coconut institutions to ensure the availability of industrial raw materials, increase competitiveness, as well as increase the added value of the economy (EVA) obtained from the sector.

Minister of Industry Agus Gumiwang Kartasasmita said, related to this, President Joko Widodo had held a limited meeting regarding the Kakao and Kelapa Fund Management Agency which from the results of the flats decided that the management of the two sectors was delegated to the Palm Oil Plantation Fund Management Agency (BPDPKS) by forming two new deputies, namely the Deputy for Kakao and the Deputy for Coconut. During the 2015-2023 period, according to Agus, there was a decrease in Indonesian cocoa production by 8.3 percent per year and there was an increase in imports from 239,377 tons to 276,683 tons.

He considered that the growth of the cocoa processing industry had not been accompanied by the availability of raw materials which caused nine out of 20 companies to stop operating, because currently industries in the cocoa sector imported 62 percent of raw materials.

Therefore, it is hoped that the initiation of cocoa and coconut institutions will have a positive impact on farmers and industry, such as increasing productivity through intensification and land rejuvenation, increasing processed products, and ensuring certainty of harvest absorption.

Benefits for industry in the form of increasing economic added value (EVA), increasing export contribution, and diversifying derivative products with high added value.