Jakarta (ANTARA) -

Indonesia’s plantation downstreaming program could generate 1.6 million new jobs, Agriculture Minister Andi Amran Sulaiman said on Wednesday, as the government seeks to boost value-added industries and strengthen rural economies.

“This downstreaming will create 1.6 million jobs,” Sulaiman said during a coordination meeting with state-owned food enterprises in Surabaya, East Java, according to an official statement released on Wednesday.

The initiative follows President Prabowo Subianto’s directive to enhance value creation in agriculture through downstreaming and crop replanting programs. The government has allocated Rp9.95 trillion ($640 million), including funding for free seed distribution to farmers.

Sulaiman emphasized that the program aims to increase land productivity and generate employment, with state-owned plantation firm PT Perkebunan Nusantara (PTPN) leading field implementation.

A key focus is sugarcane. The government has earmarked Rp1.6 trillion for a ratoon replanting program targeting 100,000 hectares—70,000 of which are in East Java across 26 districts.

“Previously, ratoon replanting covered just 5,000 hectares annually. This year, it’s reached 17,000 hectares—up 200 percent. With the new budget, we can expand further, and the program is free for farmers,” he said.

He described the scheme as one of the largest government support packages for plantations and urged farmers to act quickly.

“If possible, we finish within three months. This is not a one-off—next year there will be more,” he added.

Sulaiman also highlighted new policy changes to the People’s Business Credit (KUR) scheme, noting that previous borrowing limits have been removed.

“Farmers can now access financing without accumulation limits, as long as they meet requirements,” he said.

In addition to sugarcane, the program targets strategic commodities such as cocoa, coconut, coffee, cashew, pepper, and nutmeg.

Sulaiman said the measures would strengthen Indonesia’s position in the global plantation sector while improving domestic welfare.

State-owned companies attending the meeting included Pupuk Indonesia Holding Company, Bulog, PT Perkebunan Nusantara (PTPN) III Holding, PTPN I, PTPN IV, PT Sinergi Gula Nusantara, PT Riset Perkebunan Nusantara, and food holding firm ID Food.


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