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Downstreaming (Hilirisasi)

More than half of primary output still leaves unprocessed

Why downstreaming in Lampung

Lampung's primary sector is worth IDR 165.31 trillion, yet 54.4% of it is sold as unprocessed commodities. Every commodity that is not yet processed locally — coffee, cacao, corn, pepper, livestock, fisheries — is an opportunity for processing, packaging and export industries. Agricultural residues add a new biochar opportunity.

  • IDR 89.99 trillion of primary commodities still unprocessed (54.4%)
  • Food & beverage industry already 16.14% of GRDP, 80% local inputs
  • Biochar potential from rice, corn, palm, coconut, cassava and cocoa residues
  • Oil & gas and petrochemical-based Katibung estate (300 Ha)

Key commodities

CommodityProductionArea (Ha)Economic valueNational rank
Robusta Coffee Kopi Robusta127,578 tons152,527Rp6.69 T#4
Cacao Kakao49,109 tons76,262Rp4.36 T#5
Corn Jagung1,703,725 tons194,488Rp10.25 T#5
Pepper Lada14,615 tons44,386Rp1.46 T#1
Coconut Kelapa86,655 tons90,705Rp2 T#11

Source: FOILA 2026 p.10 (agricultural potential), p.18 (shrimp), p.26 (bioethanol feedstock, 2024)

Where it is produced

Top producing regencies (tons). Source: Disperindag 2026 via FOILA 2026 p.11–18.

Robusta Coffee

Cacao

Corn

Pepper

Coconut

Robusta Coffee: investment opportunities

  • Expansion of coffee plantations
  • Downstream (processing industry, coffee outlets/coffee shops)
  • Export to international markets
  • Coffee and edufarm agrotourism
  • Coffee cultivation technology

Cacao: investment opportunities

  • Cultivation and development of cocoa plantations
  • Downstream (chocolate processing industry)
  • Cocoa agrotourism and edufarm
  • Development of cocoa cultivation technology
  • Access to the export market and premium cocoa branding
  • Partnerships and agroforestry

Corn: investment opportunities

  • Corn-based food industry (downstream)
  • Corn-based industrial raw materials
  • Animal feed industry
  • Distillation & fermentation industry
  • Corn cultivation technology
  • Development of maize cultivation

Pepper: investment opportunities

  • Large-scale expansion and rehabilitation of pepper plantations
  • Downstream (pepper processing industry)
  • Exports and access to global markets
  • Pepper agrotourism and edufarm
  • Pepper cultivation and post-harvest technology
  • Development of superior varieties of pepper

Coconut: investment opportunities

  • Expansion of plantations and large-scale coconut production
  • Downstream (coconut processing industry)
  • Development of coconut cultivation technology
  • Exports and global market access
  • Development of special varieties of coconut and its derivative commodities
Rp165.31 T
Primary sector value 2025
Source p.21
Rp75.31 T
Downstreamed (45.6%)
Source p.21
Rp89.99 T
Still unprocessed (54.4%)
Source p.21

Primary value by commodity, processed vs unprocessedEstimate

IDR trillion — estimates per the source footnote

Source: FOILA 2026 p.21

Biochar from agricultural residues

Rice residues

Rice husks and rice straw

Corn residues

Corn cobs and corn stalks

Plantation residues

Coconut shells and palm oil EFB (empty fruit bunches)

Wood waste

Sawdust, twigs and wood offcuts

Crop residues

Cassava stalks, coffee husks, bamboo

Other residues

Cocoa pod husks, sugarcane bagasse

Processing industry dashboard →

Companies already active

Sari Makmur Tunggal MandiriIndonesiaNestléLouis Dreyfus Company (LDC)HaldinBerindo JayaIndonesiaOlamBarry CallebautPT Multikarya Top Quality (Central Cocoa)IndonesiaKrakakoaIndonesiaPT Torabika Eka SemestaIndonesiaMAUPPT Charoen Pokphand IndonesiaThailandPT Agro Utama IndonesiaIndonesiaSyngentaCV Kusuma AndalasIndonesiaPT Mahkota Anugrah SatriaIndonesiaIndomina Langgeng SejahteraIndonesiaJapfa (PT Japfa Comfeed Indonesia)IndonesiaPT Aman Jaya PerdanaIndonesiaPT Putrabali AdyamuliaIndonesiaUnnamed pepper company (jar & leaf logo)PT Hasil Alam IndoIndonesiaPT Suma Briket PremiumIndonesiaPT Kelapa Jaya MandiriIndonesiaPT Nusantara Nexus IndonesiaIndonesiaDelcoco (Sari Segar Husada)IndonesiaFreemanPT Crest International Industrial Development IndonesiaIndonesia

Source: company logos shown in FOILA 2026 p.11–18 (Disperindag 2026)