The government is pushing to broaden downstream industrialization into non-mining sectors to strengthen national value creation. Minister of Investment and Downstreaming/Head of BKPM, Rosan Roeslani, explained that current development priorities have expanded to include the marine sector as well as plantations.

One of the initiatives being prepared is a coconut downstreaming project in Morowali, Central Sulawesi, with an investment of approximately US$100 million, equivalent to around Rp1.66 trillion (at an exchange rate of Rp16,600).

“Downstreaming is no longer focused solely on minerals, but is also being directed toward plantations, agriculture, and marine-based industries. For example, in the plantation sector—particularly coconut—we have already made progress. In the Morowali region, the results are valued at around US$100 million,” Rosan stated during a working meeting with Commission XII of the Indonesian House of Representatives at the Parliamentary Complex, Jakarta, Tuesday (December 2, 2025).

The project is expected to create 10,000 jobs and begin operations by mid-2026. Additionally, the facility will have the capacity to absorb up to 500 million coconuts annually.

“The job creation potential reaches 10,000 workers. God willing, by mid-2026 the plant in Morowali will be completed, and it will be able to process 500 million coconuts each year,” Rosan added.

Previously, a significant share of coconuts from the region was exported to China. Rosan then traveled to China to persuade investors to build their processing facilities in Indonesia instead. This approach is considered more efficient, as investors will no longer need to account for logistic costs.

“Because we observed that many coconuts from the area were being exported to China, we went there to convince them to build their factories here. As a result, coconut prices have risen domestically since they no longer have to factor in logistical expenses for transporting coconuts from Indonesia to China,” he concluded.