The Indonesian government has prioritized the TEKAD program to develop remote and underdeveloped areas, including Papua. One of the main programs of TEKAD is downstream of local commodities, which is expected to increase added value and regional economic growth. However, Papuan Local Commodity downstream must be environmentally friendly.
The Director General of the Acceleration of Underdeveloped Regions (PPDT) at the Ministry of Villages, Underdeveloped Regions, and Transmigration (Kemendes PDTT), Eko Sri Haryanto, stated that the downstream of local commodities in Papua must take environmental factors into account and be in line with the Green Economy Growth (GEG) program.
The GEG program aims to promote sustainable and environmentally friendly economic growth.
The Downstreaming of Papua’s Local Commodities
The downstream of Papua’s local commodities can increase the added value of local products and ultimately boost regional economic growth. Some potential local commodities that can be downstream include coffee, cocoa, seaweed, sago, eco-tourism, coconut-based products, nutmeg, and other processed goods.
The downstream process starts from the upstream, beginning with planting seeds and harvesting. Then, taking care of the crops until they are sold.
In addition, it is essential to pay attention to every stage of the downstream process to produce quality products that meet environmentally friendly standards.
An Example of Downstreaming Coffee Commodities
One successful example of downstream local commodities in Papua is downstream of coffee. Before downstream, farmers sold their coffee without any further processing. After the intervention of the GEG program, farmers received various processing support tools, such as pulping machines, pruning saws, pruning scissors, and others.
Moreover, 167 farmers received training on business plans, post-harvest processing, quality control, the use of coffee peeling machines, and coffee plant care.
The downstream process had a real impact, as Papua’s coffee products can be valued properly today. Coffee farmers supported by the GEG program have successfully sold 8.5 tons of green coffee beans and connected with 17 coffee shops.
Benefits of Downstreaming Local Commodities
The downstream of local commodities in Papua provides many benefits, including:
- The Increased Value of Local Products
Downstreaming local commodities can increase the added value of local products, which allows them to be sold at higher prices. This has a positive impact on the region’s economy.
- Increased Regional Economic Growth
With the increase in the added value of local products, the region’s economic growth will also increase.
- Job Creation
In addition, downstream local commodities in Papua can create job opportunities for local people in the production and processing stages.
- Improved Product Quality
In the downstream process, local products are processed in such a way that they produce high-quality products that meet environmentally friendly standards.
- Environmentally Friendly
The downstream of local commodities must be carried out considering environmentally friendly factors. The downstream process should be conducted to be free from carbon dioxide emissions towards the environment, conserves natural resources, and promotes social justice.
The TEKAD program and Green Economy Growth (GEG)
The National Workshop on TEKAD Program Management in Denpasar, Bali, aims to align perceptions with increasing synergy for better development and empowerment of rural communities.
Thus, it is affirming the commitment and active role of both the central and local governments in driving the success of the TEKAD program.
The TEKAD program is a government priority in developing remote and underdeveloped areas, including Papua. One of the main programs of TEKAD is downstream of local commodities, which is expected to increase added value and regional economic growth.
Meanwhile, the GEG program promotes sustainable and environmentally friendly economic growth. This program is highly relevant to the Papuan Local Commodity downstream must be environmentally friendly.
