Agricultural Downstreaming in Lampung, Indonesia: An Integrated Strategy for Regional Value Addition and Inclusive Agroindustrial Development
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Abstract
Agricultural downstreaming is a central development issue in Lampung because the province combines a large and diverse primary-production base with persistent challenges in retaining value within local value chains. This study analyzes the regional potential for downstream agricultural development, identifies cross-cutting constraints to value creation, and develops an integrated strategy for inclusive and sustainable agroindustrial upgrading. A qualitative document-based design was used, combining official statistics and regional policy documents with peer-reviewed literature on agrifood value chains, agroindustry, smallholder inclusion, post-harvest systems, finance, digitalization, and sustainability. The evidence was organized through content analysis and thematic synthesis. Lampung’s downstreaming opportunities are concentrated in commodity-linked pathways such as cassava processing, maize-feed-livestock integration, quality-based coffee upgrading, and local processing of cocoa, coconut, and horticultural products. Across commodities, however, the same enabling conditions recur: reliable raw-material quality, post-harvest infrastructure, fair farmer-industry relationships, accessible finance, certification, logistics, digital market access, and environmental performance. The study proposes a regional downstreaming framework that treats processing capacity as one component of a wider governance system. Downstreaming is therefore most likely to increase regional value added when industrial expansion is accompanied by stronger farmer institutions, transparent value-chain coordination, rural enterprise upgrading, and measurable sustainability outcomes.
IMPACT STATEMENT
The study reframes agricultural downstreaming in Lampung from a factory-centered policy into a regional value-creation system. It identifies how production, post-harvest capability, farmer institutions, finance, standards, markets, and sustainability must operate together if more value is to remain in producing areas. The framework can support provincial and district planning by linking commodity priorities to infrastructure, partnership design, MSME upgrading, and monitoring indicators. It also provides a practical basis for assessing whether downstreaming improves farmer bargaining power, rural employment, local enterprise capability, resilience, and environmental performance rather than measuring success only through processing volume or the number of new plants.
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