“The US dollar could reach Rp1 thousand in the future. But we must start working on it now,” he said during a regional development coordination meeting (Rakordal) for the second quarter at Gedhong Pracimasono, Kepatihan, Yogyakarta, on Tuesday.
He cited the example of whole coconuts, which are currently exported in raw form, with their total value pegged at Rp20 trillion. If processed domestically, their added value could increase by up to 100 times.
“Right now, our coconut exports are worth Rp20 trillion. Multiply that by 100, and you get Rp2 thousand trillion,” he said.
“If we process all of our exported commodities domestically, we could reach Rp20 thousand to Rp50 thousand trillion in value,” he pointed out.
According to the minister, President Prabowo Subianto has approved a budget of Rp371 trillion to support the national downstreaming program.
Amran said that of the total, Rp40 trillion is ready for use, including Rp8 trillion he signed off on the same day.
“Today, I signed it. The Rp8 trillion has been disbursed, and the total is Rp40 trillion. This is the agricultural budget for today,” he added.
Amran informed that high-demand commodities such as cocoa, cashews, and coffee will be prioritized in the downstreaming initiative.
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The Ministry of Agriculture has also prepared an additional Rp4 trillion to Rp7 trillion to build domestic processing facilities.
He noted that Indonesia has been losing value by exporting raw commodities such as cocoa, which are processed abroad and then sold at much higher prices.
He gave the example of cocoa from Sulawesi, which, once ground in Singapore, can sell for up to 38 times its original price.
“All Singapore does is grind it, just like that. Now, we’re starting a change. We’ve prepared around Rp4 trillion to Rp7 trillion to develop downstream processing in Indonesia. So, the grinding will be done here from now on. All our commodities will be processed domestically,” he said.
Amran also highlighted that the shifting global consumption patterns, particularly in India and China, toward coconut meal are a major opportunity for Indonesia.
Those countries cannot grow coconuts, giving Indonesia a strong chance to dominate the market.
“In Europe, raw coconut sells for Rp34 thousand each. Moving forward, we can target six of the 13 strategic commodities. If that happens, our current exports of Rp600 trillion, even if multiplied by just 50 or 100, could reach Rp30 thousand trillion. This will help us achieve Golden Indonesia and become a future global superpower,” the minister said.
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Translator: Primayanti
Editor: Rahmad Nasution
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