Politics · Indonesia · 9 hrs ago
Indonesia Pushes Further Processing of Palm Oil, Coconut and Seaweed
Indonesia’s government is pushing further processing of commodities including palm oil, coconut and seaweed.
Industry Minister Muhammad Sarmuji said processing should continue beyond raw or semi-finished materials to make finished goods and support industries.
Seaweed can supply ingredients for cosmetics, medicines, food and drinks, while processed coconut products already have markets abroad.
The government also plans a special sago industrial zone in Seram Bagian Timur, Maluku, where sago is plentiful.
The aim is to create jobs and strengthen local industries, including in coastal communities with limited access to industrial work.
Officials say the plans could spread development beyond Java; the government hopes locally based industries will improve people’s welfare.
Indonesia is pushing further processing of palm oil, coconut and seaweed to create higher-value products and expand industry.
Industry Minister Muhammad Sarmuji said processing should continue from raw materials through to finished goods and supporting industries.
He said industrialisation should be judged by value added, technological capability, job creation and stronger supply chains, not only investment.
The government also plans a special sago-based industrial area in Seram Bagian Timur, Maluku.
The initiatives are intended to create jobs and spread development, particularly outside Java.
- Who
- The Indonesian government, with Industry Minister Muhammad Sarmuji outlining the push.
- What
- The government is promoting further processing of palm oil, coconut and seaweed, and plans a special sago-based industrial area.
- When
- Sarmuji spoke on Friday, October 30, 2026.
- Where
- At the 2026 national leadership meeting of the Indonesian Chamber of Commerce and Industry in Jakarta.
- Why
- To increase the value of local commodities, expand industry and employment, and spread development to regional areas.
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- Commodities targeted
- Palm oil, coconut and seaweed
- Minister
- Muhammad Sarmuji
- Announcement venue
- 2026 national leadership meeting of the Indonesian Chamber of Commerce and Industry, Jakarta
- Planned industrial area
- Special sago-based area in Seram Bagian Timur, Maluku
- Meeting date
- October 30, 2026
What people are saying
We should not stop at supplying raw or semi-finished materials, but should link everything from raw materials to finished goods and even create a new ecosystem that can grow supporting industries for industrialisation in the future.
Our coconut industry is growing very well, and we will also focus on our coconut industry.
If this is developed, our sea and coastline are so extensive that it will surely bring great benefits to the lives of people in remote areas and along the coast who have so far had insufficient access to the industrial sector.
We have abundant sago. It is abundant in East Seram. We plan to make this a special sago industrial area.