May 7, 2024

Indonesia's President Joko Widodo urges downstream initiatives to stabilise corn prices

Indonesia's President Joko Widodo has emphasised the importance of downstream initiatives to stabilise corn prices in Indonesia, Tempo reported.

He made this statement while inspecting the corn harvest in Sumbawa Regency, West Nusa Tenggara on May 2, 2024, accompanied by Indonesia's Agriculture Minister Andi Amran Sulaiman.

During the event, the President was informed about the decrease in corn prices for farmers, which had fallen to IDR 4,200 (US$0.26) per kg, a rate more suitable for breeders than farmers.

Jokowi highlighted the significance of downstream processes, which involve adding value through further processing, to ensure stable and profitable corn prices for farmers. He encouraged increasing downstream activities in the agricultural sector, advocating for the processing of corn into various derivative products.

Calling for the need for relevant factories to be established near corn fields, Jokowi stated that this approach could facilitate the production of animal feed or cooking oil, thereby creating downstream production.

Bringing the industry closer to corn production centres through downstream efforts could address the challenge of high transportation costs, potentially leading to more stable corn prices.

Minister Andi Amran Sulaiman echoed Jokowi's sentiments, emphasizing that downstream initiatives would positively impact farmers' welfare and help mitigate price fluctuations, particularly during harvest seasons.

Amran highlighted the importance of agricultural downstream in increasing the added value of products and reducing dependence on imports, while also creating new economic opportunities for farmers and related industries.

-      Tempo