Bioeconomy Approach
A complete value chain, from bioprospecting to market.
Value chain illustrations
How bioeconomy creates value while sustaining nature and well-being.
Bioeconomy connects the sustainable use of biological resources with innovation, value creation and human well-being, while maintaining the health of ecosystems and biodiversity. Across different value chains, these principles translate into approaches that reflect the characteristics of each sector, ensuring that economic opportunities are developed alongside ecological sustainability and inclusive benefits.
| Stage → | 01Bioprospecting | 02Production and Post-Harvest | 03Processing | 04Logistics and Warehousing | 05Marketing |
|---|---|---|---|---|---|
| Added Value | Identification of potential superior domestic varieties | Enhancement of the quality, quantity, and marketability of raw harvested crops and by-products | Value addition of various new processed food products derived from raw resources Valorization of processing residues into useful by-products | Preservation of the quality and safety of processed products throughout the supply chain | Creation of viable markets for high-quality, nutrient-dense processed food products |
| Technology Application | Development and quality testing of seed varieties | Transfer of food production and post-harvest technologies to local communities Improvement of overall production efficiency | Innovation and efficiency in material utilization, novel product development, and waste valorization | Deployment of storage technologies to maintain quality and nutritional value | Utilization of product technologies to ensure full traceability Strategic digital marketing and the use of artificial intelligence (AI) in targeted marketing |
| Enhancement of Well-being | Intellectual recognition of local communities’ knowledge and fair sharing of commercial benefits from IP rights between communities and industry | Capacity building and skill development for farmers and local communities in post-harvest handling | Diversification of high-quality processed products aligned with zero-waste and eco-conscious consumer demand | Ensuring safe and sustainable handling of processed products | Assurance of consumer safety, health, and well-being through the implementation of rigorous food processing standards |
The role of community groups
Communities as partners in sustaining nature and creating shared value.
Indonesia’s bioeconomy depends on the sustainable use of biological resources and the health of the ecosystems that sustain them. Local communities, Indigenous Peoples, and small-scale enterprises play important roles in managing biological resources, maintaining biodiversity, creating economic value, and shaping inclusive value chains and governance. Recognizing these roles is essential to ensuring that bioeconomy development supports ecological sustainability, equitable benefits, and long-term prosperity.
- 1
Community Groups as Community-Based Producers
Community-based producers sustain local bioeconomies through the responsible use of biological resources, biodiversity-friendly production, and the creation of local economic value.
Policy: Empowerment through access to capital, fair market pricing, and capacity building and mentoring, including for technology adoption.
- 2
Community Groups as Industrial Partners
Communities contribute to bio-based industries as suppliers and service providers, while sustainable sourcing and fair partnerships help maintain resource availability and ensure inclusive value creation.
Policy: Transparent and fair profit-sharing mechanisms, safeguarding the bargaining position of communities in partnership agreements, and technology and skills transfer to meet the standards required by industrial partners.
- 3
Community Groups as Ecosystem Stewards
Indigenous Peoples and local communities contribute to conserving ecosystems and biodiversity, helping sustain the biological resources and ecological functions on which long-term bioeconomy development depends.
Policy: Legal certainty regarding land access (customary land, agrarian reform objects (TORA), social forestry), capacity building, and access to innovative financing mechanisms for biodiversity conservation — donor funding, carbon credits, biodiversity credits, and state budget (APBN) allocations.
Policy directions for bioeconomy development
Five main policy directions.
A foundation and guiding framework to advance bioeconomy-related sectors such as food, energy, cosmetics, pharmaceuticals, and environmental services while upholding environmental sustainability, based on national and global bioeconomy policy trajectories.
- 1
Advancement of Research and Innovation
Strengthening basic and applied research in biotechnology, particularly across the agriculture, forestry, maritime, and industrial sectors. Research outputs are expected to drive innovation in developing high-value bioeconomy products.
- 2
Integration and Application of Research Findings
Integrating biotechnology research outputs into industrial sectors to enable practical applications in product and technology development. This aims to establish efficient supply chains and enhance value addition for bioeconomy products.
- 3
Development of Supporting Components
Preparing foundational supporting components for bioeconomy, such as infrastructure development, human resource capacity, and raw material supply.
- 4
Strengthening of Value-Added Chains
Building value-added chains for bioeconomy products by processing raw materials into higher-value goods for both domestic and export markets. This includes the development of complex products derived from Indonesia’s natural resources.
- 5
Promotion of Bioeconomy Product Exports
Enhancing the competitiveness of Indonesia’s bioeconomy products in global markets. Bio-based products, particularly those with high value-added, are incentivized for export to increase foreign exchange earnings.
Phases towards the Indonesia Emas 2045 Vision
Bioeconomy roadmap, 2023–2045.
The roadmap outlines a phased approach to Indonesia’s bioeconomy development towards the 2045 vision, aligned with national development planning periods. It sets out a pathway for strengthening the foundations of the national bioeconomy, advancing implementation, and developing monitoring and evaluation frameworks to guide future progress.
- 2023–2024RPJMN 0
- Formulating the national bioeconomy foundation (definitions, goals, principles)
- Initiating pilot projects and bioeconomy models
- 2025–2029RPJMN ICURRENT
- Developing Indonesia’s Bioeconomy Strategic Action Plan
- Scaling bioeconomy models to address social, environmental, and economic challenges
- 2030–2034RPJMN II
- Developing bioeconomy-based industrial clusters
- Commercializing bioeconomy products
- 2035–2039RPJMN III
- Decade of Action: Accelerating bioeconomy development to meet Strategic Action Plan targets
- Conducting a mid-term review of the Bioeconomy RPJPN
- 2040–2045RPJMN IV
- Conducting in-depth and comprehensive M&E
- Formulating the post-2045 Strategic Action Plan
Way Forward
Effective implementation requires further elaboration on several strategic aspects.
- 01
Refining the scope of bioeconomy
Clearly defining which activities can be classified under bioeconomy — including the position of environmental services, which requires further examination.
- 02
A detailed and actionable Strategic Action Plan
Measurable targets, indicators, and implementation stages; new regulations (biotechnology utilization, incentives for bioeconomy industries, governance of environmental services) and adjustments to existing regulations to ensure policy synergy across sectors; the proportional role of business actors, with the government as an enabler.
- 03
Traceability system
Ensuring responsible practices from upstream to downstream, while serving as a hub for sustainable business actors to coordinate regarding off-takers and upstream producers.
- 04
Bio-based economic zones
Integrated biomass processing infrastructure and a bio-industry cluster-based approach for efficient processing, reduced logistics costs, and increased economies of scale.