Jakarta. The Head of the National Development Planning Agency (Bappenas), Suharso Monoarfa, said on Tuesday that the Indonesian government is prioritizing industrialization to enhance the export of processed commodities with higher added value.

Speaking at the Investor Daily Roundtable discussion in Jakarta, Suharso highlighted that Indonesia is taking cues from China by involving investors and adopting advanced technologies to increase the value of its exported commodities.

"Industrialization in the downstream sector is the focal point of our government's policies to limit the export of unprocessed commodities and minerals," Suharso said during the discussion, which was hosted by Enggartiasto Lukita, the executive chairman of B-Universe Media Holdings.

Suharso stressed that the potential for value creation is significant, particularly in sectors like crude palm oil (CPO). "Indonesia's CPO could generate much higher revenues if exported as derivative products," he noted.

While Indonesia is a major producer of CPO, Suharso pointed out a gap between upstream production and downstream processing. "We have CPO production at the upstream level and many small industries downstream, but there remains a void in between," he said.

This gap often forces Indonesia to import CPO-based products, which diminishes its standing as the world's largest CPO producer.

Suharso praised China's approach, where the government collaborates with investors and introduces new technologies to establish a robust industrial foundation. This strategy has had a positive impact on China's economy, he added.

According to him. China has gradually built a strong industrial structure that has significantly boosted people's purchasing power.