Indonesia’s $15b Food Security Budget Fails to Improve Agricultural Sector, Says Expert

Alfida Rizky Febrianna
August 12, 2024 | 9:10 pm
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Workers prepare to unload sacks of imported rice from a cargo ship at Probolinggo Port in East Java, Saturday, March 16, 2024. (B-Universe Photo/Zulkiflie)
Workers prepare to unload sacks of imported rice from a cargo ship at Probolinggo Port in East Java, Saturday, March 16, 2024. (B-Universe Photo/Zulkiflie)

Jakarta. Dwi Andreas Santosa, an agricultural expert and Professor at Bogor Agricultural University (IPB), revealed that President Joko "Jokowi" Widodo’s administration spent Rp 954 trillion ($15.22 billion) for food security initiatives over the past decade.

Dwi explained that this funding, known as the food security budget, covered various areas including the Agriculture Ministry’s budget, subsidies for fertilizers and seeds, food estates, and special allocation funds for regional food security.

Despite this significant investment, Dwi criticized the development of Indonesia’s agricultural sector, noting that the country remains heavily reliant on food imports to feed its 270 million population. He pointed out that food imports have hit record levels during Jokowi’s tenure.

“Food imports surged from $10.1 billion in 2013 to $18.8 billion in 2023. This has resulted in a growing trade deficit in food commodities, from $8.9 billion in 2013 to$16.3 billion in 2023,” he explained.

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He identified several factors contributing to these issues. First, many farmers continue to experience financial losses. Second, agricultural land is being reduced due to conversion for non-agricultural purposes.

“Third, there is a lack of innovation in agriculture. Over the past 20 years, rice productivity has stagnated, and in the first five years of the current administration, productivity declined. Indonesia was a leader in Southeast Asia in rice productivity before 2000,” he added.

Additionally, Santosa highlighted the impact of climate phenomena, particularly El Niño, and severe pest and disease problems affecting agriculture.

He advised the incoming administration to address these challenges by focusing on key commodities to improve food security.

“Instead of aiming too broadly, we should concentrate on a few essential commodities, such as rice and corn. By focusing on these key areas, achieving food self-sufficiency is certainly within reach,” Santosa concluded.

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