JAKARTA - Minister of Agriculture (Mentan) Amran Sulaiman said the government would encourage the acceleration of downstream programs in the agricultural sector, especially coconut. With this step, he said, Indonesia could reap a profit of IDR 2,400 trillion per year.
Amran said the economic potential of downstreaming coconut is very large. This is because whole round coconut, which is usually exported directly, will be processed first into derivative products such as coconut millik and virgin coconut oil (VCO).
"We will downstream it later from coconut to coconut, so this is VCO. The price can increase 100 times. If it's 100 times, we just calculate the average, it can produce Rp2,400 trillion. Let's say half of the 50 (fold the additional value) produces Rp1,200 trillion foreign exchange. That's just coconut," he said in a press conference quoted from the Presidential Secretariat's YouTube, Thursday, October 9.
Apart from coconut, Amran said the government is also preparing downstream for other commodities, such as gambir. Indonesia is known to supply 80 percent of the world's gambir needs that can be used for various industries, ranging from ink to basic shampoo materials.
Amran emphasized that this step is part of the government's grand plan to make Indonesia a center for processing world agricultural raw materials.
Our dreams are all raw materials that we export around the world, including CPO, we downstream. Especially those controlled by the government, palm oil is controlled by the government, we downstream. From FFB (fresh fruit sign) to biofuels, cooking oil, margarine or butter. Edit value must be in Indonesia," he explained.
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According to Amran, the downstream strategy not only strengthens domestic industries but also has a direct impact on people's welfare.
"If we do this continuously, create jobs, reduce poverty, then improve welfare, then reduce unemployment. These are our big dreams in the agricultural sector, after we secure food," said Amran.
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