The demand for food in Indonesia is projected to continue increasing along with the growing population. According to projections from the Central Statistics Agency (BPS), by 2050, the population will reach 328 million people. This will drive the demand for key food commodities, including 40-50 million tons of rice.
However, Indonesia is currently facing food vulnerability, as the production of strategic food commodities has not yet met domestic needs. This is also reflected in Indonesia’s food security index, which remains below the global average according to the Global Food Security Index (GFSI).
The GFSI measures the affordability, availability, quality, and safety of food, as well as sustainability and adaptability across 113 countries. The index includes indicators to compare the factors determining food security in both developing and developed nations.
According to a white paper published by the Indonesian Business Council (IBC), titled “15 Policy Package Recommendations to Support the Development Agenda of Indonesia’s President and Vice President 2024-2029”, there are several challenges hindering Indonesia’s food productivity.
These challenges include high production costs, limited agricultural land, and minimal access to markets and financing. Additionally, tens of thousands of hectares of rice fields are at risk of crop failure due to climate change.
Another pressing challenge is the difficulty in adopting new technologies, low levels of mechanization, and limited research and development (R&D), particularly in the food technology sector.
To address these challenges, the IBC proposes several recommendations to achieve food self-sufficiency. First, adjusting land-use planning with a “fit for purpose” approach to realize the potential for adding 6-9 million hectares of agricultural land.
Second, enhancing land redistribution and agricultural land effectiveness through collaboration between the private sector and the government. Third, providing incentives to boost technology adoption and mechanization while optimizing digital infrastructure for the agricultural sector.
This article was originally published in KataData in September 2024