This article examines Indonesia’s agri-food system, covering everything from farming to food manufacturing and distribution. It shows just how vital this sector is for the country.
According to recent research, in 2025, the agri-food sector added a whopping USD 448.2 billion to Indonesia’s economy. That’s nearly one-third of the country’s GDP! It also supported 68.3 million jobs, accounting for almost half of all employment in Indonesia.
However, local agri-businesses face tough conditions. Rising trade tensions and U.S. tariffs on Indonesian agri-food exports are increasing costs and uncertainty. Experts warn that if these tariffs continue, global GDP could drop by 2.3% over the next five years, putting more pressure on demand.
Despite these challenges, there are opportunities to explore. An expanding network of trade agreements could help businesses find new export markets. Improving logistics and enhancing partnerships within agri-food clusters can cut down costs and increase productivity.
Looking ahead, focusing on the National Medium-Term Development Plan (RPJMN 2025-2029) will be crucial. This plan aims to improve the ease of doing business in Indonesia, allowing companies to invest and grow confidently.
Additionally, a recent survey by the World Bank indicates that 58% of businesses in Indonesia are optimistic about growth in the next year, despite current challenges. This is a good sign for the agri-food sector’s future. To further strengthen food security and promote inclusive growth, Indonesia can deepen its integration into regional and global supply chains.
Overall, while hurdles remain, the Indonesian agri-food system shows resilience and potential. By seizing strategic opportunities and adapting to changing conditions, it could thrive in the years to come.
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AFBA,agri-food,FIA,Indonesia,Manufacturing,Trade,Value Chain
