Speaking at the launch of the Patriot Expedition Team in Jakarta on Monday, Deputy Minister of Industry Faisol Riza said the measure is to create added value over natural resources and spur economic growth.
Riza stated that one grand strategy of industrialization to achieve Golden Indonesia 2045 is by building industry to support equitable economic growth through the development of micro and small industries based on industrial areas.
An IKM hub, he said, can be established in a certain industrial cluster, whether in one village or several villages that are related to one another. The creation is based on the availability of the natural and human resources of the locales, he explained.
It is expected that the center can supply products for larger industrial areas or stakeholders, thus ensuring a strong and sustainable business ecosystem.
He cited Morowali, Central Sulawesi, as an example. Initially, it was a transmigration destination, and it has since transformed into a large industrial area. The place used to only have two thousand people, but now there are 90 thousand workers there.
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He stated that before the industrial area existed, the migrants worked in the agricultural and maritime sectors. However, after 20 years, the area is now a center for natural resources processing, such as nickel, alumina, and gas.
"The transmigrants now reap lots of benefit from these industrial activities and even become a vital part in its development," he noted.
Through downstreaming of industry, transmigration can improve raw materials supply chain, expand job opportunities, and create added value of domestic products, he noted.
Riza mentioned some local commodities which have great potential to be developed in transmigration areas, such as cocoa, coffee, sugar, and corn.
According to him, domestic production of cacao is still below national demand. The ingredient can be processed into paste, even used for the manufacturing of cosmetics and pharmaceutical products.
Among some areas potential for cocoa farming are Aceh, Sulawesi, and West Papua.
Moreover, Indonesian coffee has its own high demand on a global scale, and serves many purposes, from material for instant coffee to self-care products, he noted. Aceh, South Sumatra, and Lampung are among some areas which have high potential for this commodity.
"Downstreaming is one sector which is very relevant to transmigration. So whatever is done by the government today, essentially is to carry on with what transmigrants have done for years," he said.
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Translator: Shofi Ayudiana, Mecca Yumna
Editor: Rahmad Nasution
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