Jakarta, INTI - The Ministry of Industry continues to accelerate business development and enhance the competitiveness of the cassava starch industry through product specification diversification, import substitution, and supply chain strengthening. As part of its commitment to expanding the domestic cassava starch market, the Ministry, in collaboration with the Indonesian Tapioca Flour Entrepreneurs Association (PPTTI), held a Cassava Starch Business Matching event on January 22, 2026.
The initiative aims to ensure that the needs of the cassava starch industry can be optimally met by domestic products by bringing producers and end-user industries together through the Business Matching forum. This effort aligns with one of the key pillars of the National Industrial Grand Strategy (SBIN), which is based on President Prabowo Subianto’s Asta Cita agenda, namely, strengthening backward and forward linkages to create an integrated and efficient industrial value chain. As part of the implementation of SBIN, the Ministry of Industry is accelerating resource-based industrialization by reinforcing upstream–downstream linkages in the strategic cassava starch commodity.
“Currently, there are 125 cassava starch companies with a utilization rate of 43 percent, and they have captured 79 percent of the domestic market. We are optimistic that the cassava starch industry can be further strengthened and will be able to penetrate a much broader market,” said Minister of Industry Agus Gumiwang Kartasasmita during his remarks at the opening of the Cassava Starch Business Matching event in Jakarta on Thursday, January 22.
Cassava starch is considered a strategic commodity with high value-added potential. It can be used as a raw material for a wide range of food products, including sweeteners, seasonings, snack foods, and noodles. In non-food applications, cassava starch is utilized in the production of paper, chemicals, and ethanol.
Lampung Positioned as a Hub for Tapioca Industry Diversification
The sector has also recorded strong performance, with cassava starch exports reaching US$18.7 million in November 2025, representing a 58.34% increase compared to the previous year.
However, despite its significant potential to drive economic growth and strengthen national industry, the sector continues to face several challenges, including price and quality competition from imported products. “To address this issue, the Ministry of Industry is encouraging stronger synergy between cassava starch producers and user industries, including through the implementation of the Commodity Balance (NK) mechanism,” the Minister added.
The Minister also expressed hope that the domestic cassava starch industry would diversify product specifications to better meet the needs of downstream industries. He further conveyed his appreciation for the efforts of producers and users of cassava starch in improving performance, expanding market access, and optimizing the use of domestic raw materials and products.
The Cassava Starch Business Matching event involved 17 cassava starch producers based in Lampung Province and 51 prospective buyers, comprising two industry associations and 49 cassava starch, using companies in the food sector, including sweeteners, seasonings, snack foods, and instant noodles, as well as non-food industries such as paper, chemicals, and ethanol. The event adopted a one-on-one business meeting format between producers and users of cassava starch, conducted across three separate sessions.
The Acting Director General of Agro Industry, Putu Juli Ardika, also expressed his appreciation to both producers and users for their efforts in increasing the value added of cassava starch. “We hope that partnerships between cassava starch producers and user industries will continue to grow, thereby strengthening the self-reliance of domestic industry,” he added.
Lampung Governor Rahmat Mirzani Djausal reaffirmed his commitment to positioning Lampung as a center for tapioca industry diversification. “We want the tapioca industry in Lampung to go beyond conventional products and expand into a wide range of high value-added derivative products. Through this Business Matching, we hope it will generate concrete commitments, long-term partnerships, and accelerate national economic growth,” he concluded.
Conclusion
The Cassava Starch Business Matching initiative reflects Indonesia’s broader strategy to strengthen domestic industry, reduce import dependence, and build an integrated upstream–downstream value chain. By fostering collaboration between producers and users, promoting diversification, and leveraging regional strengths such as Lampung, the government aims to enhance industrial self-reliance while supporting food security and sustainable economic growth.
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