Department of Agribusiness of IPB University Holds FGD Highlighting Agricultural Downstreaming and Reindustrialization
The Department of Agribusiness, Faculty of Economics and Management (FEM) of IPB University, in collaboration with the Indonesian Agribusiness Association (AAI), successfully held a Focus Group Discussion (FGD) titled “Agricultural Downstreaming and the Reindustrialization of the Indonesian Economy.”
The event, hosted at the IPB Startup Center Building, Taman Kencana Campus, Bogor City, served as a strategic cross-sector discussion platform to accelerate agriculture-based industrialization as the backbone of the national economy.
Dr Burhanuddin, Chairman of the Agribusiness Department at IPB University, opened the event by emphasizing the crucial synergy between research, policy, and business actors to achieve impactful downstreaming efforts.
In his introductory remarks, Prof Bungaran Saragih highlighted that Indonesian agriculture has made significant progress over the past four decades. However, the shift toward industrialization continues to face major challenges, such as low technological efficiency and high levels of food loss.
“We must position agroindustry as the spearhead of Indonesia’s reindustrialization. Without downstreaming, Indonesia risks stagnating at the middle-income level,” stated Prof Bungaran.
Strategic Discussions on Downstreaming and Reindustrialization
The discussion was moderated by Prof Bayu Krisnamurthi, featuring speakers from various strategic institutions. One of the speakers, Wahyu Wijayanto, Director of Industry, Tourism, and Creative Economy at the National Development Planning Agency (Bappenas), stressed the importance of improving labor productivity and accelerating the adoption of Industry 4.0 technologies to drive industrial sector growth.
Meanwhile, Yulia Astuti from the Ministry of Industry (Kemenperin) discussed strategies for developing agro-industries based on local products to substitute imports and strengthen exports.
Moorman Amanda from the Investment Coordinating Board (BKPM) highlighted significant investment opportunities in the downstream sector, which is projected to absorb more than three million workers by 2040. She also underlined the need for collaboration between regional entrepreneurs and major investors to establish new economic growth centers.
Challenges and Policy Recommendations
The discussion also addressed key challenges in downstreaming, including low upstream productivity and inadequate educational facilities to support industrial needs. The speakers proposed several recommendations, including strengthening research and development (R&D) to enhance product value addition.
Other recommendations included implementing pro-downstream fiscal policies, such as production-based subsidies and tax incentives, alongside developing efficient logistics infrastructure to lower operational costs.
Commitment to the Future
This event underscored the vital role of downstreaming as a catalyst for sustainable, inclusive, and competitive reindustrialization. “Downstreaming is not merely about factories but encompasses the entire value chain, from upstream to downstream, to build a robust economic ecosystem,” stated Prof Bayu Krisnamurthi.
Through this FGD, the Agribusiness Department of FEM IPB University aims to contribute to the creation of strategic policies and cross-sector collaborations that support Indonesia’s vision of becoming a developed nation rooted in agriculture and industry. (NA/Rz) (IAAS/RUM)
