Jakarta Claimed as Model for Non-Mining Downstream Practices

TEMPO.CO, Jakarta - Jakarta Governor Pramono Anung claims that the region is the "best place to learn" about downstreaming, especially for non-mining sectors such as food products. According to him, Jakarta's downstreaming successfully retains food prices.

Local government-owned companies, Pramono mentions, hold an integral role in the implementation of food downstreaming in Jakarta. One such example is PT Food Station Tjipinang Jaya (Food Station), which is involved in the distribution and sale of rice.

According to the governor, Food Station helps maintain rice prices in Jakarta, making them the most stable in the country. "Despite Jakarta only accommodating 2 percent of the area for farmers, while the rest 98 percent is infertile land," said the member of the Indonesian Democratic Party of Struggle (PDIP).

Pramono said Food Station has effective rice distribution and packaging facilities. As a result, the final products sold by the company are more affordable compared to other regions despite the raw materials used coming from outside Jakarta.

Another success downstreaming story claimed by the governor concerns the meat industry. In Jakarta, one of the companies involved in animal slaughter and meat trading is Perumda Dharma Jaya, owned by the Jakarta government.

According to its official website, Perumda Dharma Jaya is the largest supplier of beef in Jakarta's meat trading industry. The company has several downstream business units, including cattle fattening units, animal slaughterhouse units, and production and marketing units.

Pramono claims the results of downstreaming in this sector are visible during the increase in sales of sacrificial animals during the 2025 Eid al-Adha, which he says exceeded targets. He attributes the sales growth to lower prices of sacrificial animals in Jakarta compared to surrounding regions.

He said that lower prices in Jakarta are a result of effective distribution and trade chains. "The distribution is running well, so this (downstreaming) becomes a very simple and easy example," said Pramono.

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