Setia Diarta, Director of Forestry Products and Plantation Industries at the Ministry of Industry (Kemenperin), announced initiatives to boost agro-industry growth in all regions, aiming to enhance local economic development. "The agro-industry encompasses seven key sectors, including food and beverage, plantation products, paper, printing, wood processing, and cones, with an average growth rate of 4.84% projected until 2024," he stated during the Kapuas Economic Forum organized by Bank Indonesia's West Kalimantan representative. This growth surpasses achievements in 2023 and 2020, contributing over 51% to the gross domestic product (GDP) of the processing industry, while also registering a trade surplus of 17.91%. Total investment in the agro-industry currently approaches IDR 90 trillion.

Setia emphasized the competitiveness of the agro sector, particularly in palm oil, where Indonesia is the world's largest producer. In 2023, the country produced 250 million fresh fruit bunches, yielding crude palm oil (CPO) production between 50 million and 51 million tons. However, challenges remain, particularly the reliance on imported raw materials in the food and beverage sector. "Certain commodities, like salt, still need to be imported due to specific industry requirements," he remarked. Kemenperin acknowledges ongoing challenges with the utilization of agro-industrial capacity, which has not yet fully returned to pre-pandemic levels. Boosting productivity is a primary focus, particularly for smallholder plantations, which currently yield only 6 to 8 tons per hectare. With better management, the productivity of fresh fruit bunches (TBS) could significantly increase. The government aims to raise the contribution of industry to the national GDP to 21.9% by 2029, aligning with agro sector development and enhanced human resource competencies.

Source: https://www.antaranews.com/berita/4401821/kemenperin-dorong-penguatan-industri-agrodi-daerah