Palm Cracking Industrialization Increases the Economic Value of Farmers and Regions

JAKARTA - In the midst of fiscal efficiency demands, and the dependence of local governments on central government budget transfers, North Halmahera Regency is building economic independence based on local potential.

The breakthrough of the North Halmahera Regency Government in empowering local commodities is worth emulating because it has succeeded in exploring the source of Local Original Income (PAD) through the coconut downstream program. This step is considered a role model for other regions.

The North Halmahera Regency has recorded a history that is quite proud, namely releasing the first export of processed coconut products. Such as packaged coconut milk and pure coconut oil, penetrating the Chinese market worth billions of rupiah.

This downstream policy has changed the old pattern of selling only raw copra, now into high value-added products that have a direct impact on increasing farmers' buying prices and increasing regional income.

Political communication and public policy expert Dr. Adi Suparto assessed that the innovation of economic potential is one of the main indicators of the success of regional heads, because it is able to empower regional potential by processing raw materials into high-value-added products.

"The key to success lies in the concept of downstream to downstream downstream, strengthening the supply chain, and using digital technology to expand market access," Adi told reporters in Jakarta, Saturday (18/7/2026).

According to him, this success is an undeniable fact, that under the leadership of Regent Piet Hein Babua, the North Halmahera Regency Government has managed to formulate policies that can provide real benefits to the wider community, as well as answer the skewed issues and negative views for his political opponents.

Political Opponents Start Spreading Negative Rumors

However, Adi continued, the phenomenon of the success of regional heads often triggers jealousy for his political rivals, so that negative opinions and slander spread. This is a classic dynamic in regional government.

"This usually happens when political opponents find it difficult to match the track record and performance achievements of the regional head, so they choose to lead the opinion to undermine the credibility of the regional head in the eyes of the public," he explained.

Adi also touched on the mass action of a number of elements in Jakarta which highlighted the performance of the North Halmahera Regent regarding the alleged misuse of the APBD.

According to Adi, accusations against the regional government of corruption without valid evidence have the potential to degrade public trust. In addition, it can create instability, and can disrupt the course of public services.

In the regional financial audit, there are official instruments appointed by the government, namely the Financial Audit Agency (BPK) which concretely presents all regional financial results reports.

He said, the allegation of state financial losses due to corruption must be based on data and the results of official examinations from authorized state institutions.

"The BPK Audit Report is the main formal instrument that shows whether there are budget irregularities and how much the real state losses are," he said.

Regarding the use of the budget in the North Halmahera Regency Government, Adi added, the BPK has certainly audited the results of the regional financial statements in detail.

"In fact, the auditor once gave the WTP predicate to the North Halmahera Regency Government," he concluded.