Indonesia’s Agriculture Minister, Andi Amran Sulaiman, announced that downstreaming of plantation commodities is projected to create about 1.6 million new jobs. The initiative aligns with President Prabowo Subianto’s directive to increase added value in the agricultural sector by further processing plantation products. To support this effort, the government has allocated nearly IDR 9.95 trillion for this program, including free distribution of seeds to farmers, with one of the major components being the rejuvenation (replanting) of unproductive sugarcane through a “bongkar ratoon” program. This sugarcane program is budgeted at IDR 1.6 trillion, targeting 100,000 hectares nationally (70,000 hectares in East Java across 26 districts), and has already increased the annual ratoon dismantling from 5,000 to 17,000 hectares.
Besides sugarcane, other strategic plantation crops to be developed include cocoa, coconut, coffee, cashew, pepper, and nutmeg. Another significant change is in the People’s Business Credit (KUR) scheme: the government has removed the previous accumulation limit for subsidised loans in agriculture, allowing farmers to access financing as long as they meet eligibility requirements. State‐owned enterprises (BUMN), especially plantation companies (PTPN), will serve as key players in field-level assistance and implementation. The government’s ambition is that through these policies, not only will productivity improve, but also long-term welfare and industrial strength in the plantation sector will rise.
