Indonesia Launches Massive Agricultural Downstreaming Initiative

Rp371 Trillion Investment to Boost Agricultural Sector

The Indonesian government has announced a significant investment of Rp371 trillion through Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara) for agricultural downstreaming projects. This initiative aims to develop various agricultural sectors including plantations, livestock, and horticulture, creating approximately 8 million new jobs ¹

Strategic Focus Areas

The investment will be primarily directed towards downstreaming various agricultural commodities such as sugar cane, cocoa, and cashew nuts. Agriculture Minister Andi Amran Sulaiman stated that the feasibility studies (Pra-FS) for these projects will be completed shortly, accelerating the implementation process. The decision was made following discussions with Danantara, where all principles were agreed upon to expedite the projects ¹

Confidence in Project Funding

Rosan Roeslani, CEO of Danantara, assured that there are no funding issues for the 18 downstreaming projects currently being developed. He reported to President Prabowo Subianto that Danantara is ready to support the financing of these strategic projects, confirming that investor confidence remains strong ²

Economic Impact

This massive investment is expected to significantly boost Indonesia's agricultural sector, not only creating millions of jobs but also enhancing the country's economic growth through value-added agricultural products. The downstreaming strategy aims to increase the sector's contribution to the national economy while providing employment opportunities across various regions.

Implementation Timeline

With the feasibility studies set to be completed shortly, the projects are expected to gain momentum in the near future. The government's commitment to expediting these initiatives demonstrates its focus on agricultural development as a key economic driver.