The Indonesian Economists Association (ISEI) provides recommendations to the Government to focus on strengthening the downstreaming of the food sector, in order to accelerate Indonesia’s economic transformation.
This affirmation was conveyed by Perry Warjiyo in a press conference after being re-elected as Chairman of ISEI for the 2024-2027 period, through the XXII ISEI Congress at Alila Solo, Friday (20/9).
The man who also serves as Governor of Bank Indonesia said that the food sector was chosen as one of the recommended strategic focuses, because it has three advantages in both the short and long term.
According to him, downstreaming the food sector, in addition to strengthening national food security, reduces imports, and also creates jobs.
“Downstreaming the food sector clearly aims to strengthen food security and reduce imports, as well as support sustainable and environmentally friendly economic growth,” Perry added.
What is clear, he continued, is that ISEI recommends two strategies to realize downstreaming in the short and long term.
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Downstreaming, Perry emphasized, needs to be focused on commodities that support food security, price stability, and labor-intensive sectors, especially for the production of rice, various chilies, and shallots.
In the long term, downstreaming must be directed to increase productivity, trade institutions, regional policies, and financing strategies.
He added that President Joko Widodo (Jokowi), when attending the 22nd ISEI Congress in Solo, in his briefing also encouraged ISEI to play a role in designing a concrete business model for downstreaming the food sector.
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Therefore, Perry said frankly, ISEI will follow up with various programs in the future, which will be submitted to the central and regional governments.
What is interesting for ISEI is that President Jokowi in his direction also highlighted the importance of downstreaming seaweed, which has many derivative products such as aircraft fuel, organic fertilizer, cosmetics, and flour.
In addition, it is expected that in the future, ISEI will implement the great potential of coffee and cocoa downstreaming, and participate in designing policies concerning the development of labor-intensive products. (N-2)
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