Jokowi Pushes for Agricultural Downstream to Stabilize Corn Prices

TEMPO.CO, Jakarta - President Joko Widodo or Jokowi is encouraging downstream to stabilize corn prices. This was disclosed by Jokowi when inspecting the corn harvest in Sumbawa Regency, West Nusa Tenggara on May 2, 2024. The President was accompanied by the Minister of Agriculture Andi Amran Sulaiman during the event.

The President was informed that the price of corn for farmers had dropped to Rp4,200 per kilogram, a price suitable for breeders, not farmers. 

The President explained that downstream, or adding value through further processing, is the key to ensuring corn prices remain stable and profitable for farmers.

The former Governor of Jakarta also encouraged increasing downstream initiatives in the agricultural sector, for example, by processing corn into various derivative products. The relevant factories must also be established near corn fields, “so it can be used as animal feed or transformed into cooking oil, thereby creating a downstream production," he said in a written press release.

Downstream efforts by bringing the industry closer to corn production centers could be a solution to reduce the relatively high transportation costs. Thus, corn prices can be more stable.

Andi Amran Sulaiman said that downstream will also positively impact farmers' welfare. This measure is expected to reduce price fluctuations which often become a problem in the agricultural sector, especially when the harvest season arrives.

According to the minister, agricultural downstream is important to increase the added value of products and reduce dependence on imports. "As well as opening up new economic opportunities for farmers and related industries," said Amran.

ILON ESTHERINA

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