transformation

Jakarta, Indonesia – Indonesia has significantly accelerated its national food self-sufficiency target, achieving in just one year what was initially projected to take four years. This ambitious goal, spearheaded by Minister of Agriculture Andi Amran Sulaiman, has been realized through the implementation of nine pivotal strategies designed to strengthen national food production and resilience. The Ministry of Agriculture (Kementan) has undertaken a comprehensive transformation, yielding tangible results that position Indonesia firmly on a path toward sustainable food security.

The rapid progress underscores a resolute commitment from the Indonesian government to fortify its agricultural sector against domestic and global challenges. Historically, Indonesia, a vast archipelago with a large and growing population, has grappled with the complexities of food security, often relying on imports to meet domestic demand, particularly for staple commodities like rice. This reliance exposed the nation to global price fluctuations, supply chain disruptions, and inherent vulnerabilities that impacted both farmer welfare and national economic stability. Past administrations have made efforts towards self-sufficiency, but often faced hurdles related to policy inconsistencies, infrastructure deficits, and market inefficiencies. The current administration’s approach, therefore, marks a distinct shift towards an integrated and aggressive strategy.

Background: The Imperative for Food Security

As one of the world’s most populous nations, ensuring adequate and affordable food for its citizens is a paramount concern for Indonesia. Food security is not merely an economic issue but also a social and political one, directly influencing national stability, public health, and poverty alleviation efforts. For decades, Indonesia has experienced periods of rice deficit, necessitating imports to stabilize prices and prevent shortages. These imports, while addressing immediate needs, often depressed local farmer prices, disincentivized domestic production, and drained foreign exchange reserves. Furthermore, the agricultural sector remains a crucial pillar of Indonesia’s economy, employing a substantial portion of the workforce, especially in rural areas. Enhancing agricultural productivity and farmer income directly contributes to rural development and reduces income inequality. The current government’s focus on accelerating self-sufficiency reflects a strategic imperative to build resilience against future shocks, including those posed by climate change, geopolitical tensions, and global pandemics that can disrupt international food supply chains. The target acceleration from four years to one year highlights a recognition of the urgency and the potential for rapid, decisive action to transform the sector.

The Nine Pillars of Agricultural Transformation

Minister Amran Sulaiman detailed the nine key strategies that have served as the foundation for this expedited journey towards self-sufficiency. These strategies are interconnected, forming a holistic framework designed to address systemic issues across the agricultural value chain, from policy and governance to production and market intervention.

1. Policy and Regulatory Reform:
   The first critical step involved a sweeping overhaul of existing policies and regulations. The government streamlined hundreds of cumbersome rules that previously hindered agricultural development. A significant achievement in this area was the issuance of at least 16 strategic regulations in the form of Presidential Regulations (Perpres) and Presidential Instructions (Inpres). These new legal frameworks were specifically designed to accelerate food production and distribution, while simultaneously strengthening inter-sectoral coordination. A prime example of this reform was the drastic simplification of fertilizer distribution regulations. Historically, obtaining approvals for fertilizer distribution was a bureaucratic labyrinth, requiring endorsements from up to 12 ministers, 38 governors, and 514 regional heads. This convoluted process led to delays, inefficiencies, and opportunities for corruption. Through a Presidential Instruction, the government slashed 145 such rules, enabling direct and more efficient distribution of fertilizers from the Ministry of Agriculture to PT Pupuk Indonesia, and subsequently, to farmers. This move drastically reduced lead times and ensured that vital agricultural inputs reached farmers more swiftly and accurately.

2. Fertilizer Governance Reform:
   Building on regulatory simplification, the government undertook a comprehensive reform of fertilizer governance. This included a substantial increase in fertilizer allocation, reaching up to 9.55 million tons, to ensure adequate supply for farmers. Crucially, the price of fertilizer was reduced by an unprecedented 20 percent, a move hailed by farmers as a significant relief to production costs. Access to subsidized fertilizers was also expanded and simplified, allowing farmers to procure essential inputs using only their national identity cards (KTP). This measure removed barriers that previously excluded many smallholder farmers from accessing critical resources, thereby leveling the playing field and boosting productivity. The minister emphasized that such a price reduction had never occurred in the history of independent Indonesia, underscoring the magnitude of this reform.

3. Budget Realignment and Efficiency:
   A substantial reallocation of the national budget was a cornerstone of the strategy. Approximately Rp3.8 trillion (around USD 240 million) was diverted from non-priority spending items to productive sectors within agriculture. This involved an aggressive efficiency drive, or "refocusing," of funds. Non-essential expenditures such as official travel costs, hotel expenses, and unnecessary office renovations were cut. The freed-up funds were then channeled directly into high-impact areas, including irrigation infrastructure, procurement of superior seeds, pompanization programs (water pumping systems), and the acquisition of agricultural machinery and equipment. This strategic shift ensured that financial resources were optimally utilized to directly enhance agricultural output and farmer capabilities.

4. Agricultural Intensification:
   Intensification efforts focused on maximizing productivity from existing agricultural lands. This involved the widespread use of superior, high-yielding seeds, ensuring timely and precise fertilization, and implementing pompanization programs. The pompanization initiative targeted approximately 500,000 hectares of rain-fed land, transforming them into more productive areas capable of supporting two to three harvests per year (increasing the cropping index). This measure significantly mitigates the risks associated with erratic rainfall patterns and expands the effective planting area. Additionally, the strategy included the optimization of around 800,000 hectares of swamp land, converting previously underutilized or challenging terrains into productive agricultural zones. Combined, these intensification programs are projected to increase the total planted area by approximately 1.3 million hectares. The provision of free, high-quality seeds capable of yielding 8-10 tons per hectare further empowered farmers to achieve higher outputs.

5. Agricultural Extensification:
   Complementing intensification, the government initiated an extensification program through the creation of new rice fields. This ambitious project aimed to establish approximately 200,000 hectares of new paddy fields, effectively expanding Indonesia’s total national rice cultivation area. This measure is crucial for accommodating future food demand increases and providing additional buffers against potential shortfalls. Such large-scale land development requires significant planning and investment, reflecting the long-term vision of the self-sufficiency program.

6. Strengthening Water Resource Infrastructure:
   Reliable water supply is fundamental to agricultural success. The government committed to strengthening water resource infrastructure through the construction and revitalization of 61 dams. These dams have the potential to serve an irrigation area of up to 400,000 hectares. Furthermore, extensive rehabilitation of tertiary irrigation networks was undertaken to ensure efficient water distribution from main canals to individual farm plots. This investment in water infrastructure not only enhances productivity but also builds resilience against droughts and improves water management across agricultural regions.

7. Agricultural Modernization:
   Embracing technology, the strategy emphasized the modernization of agricultural practices. This involved the widespread adoption of modern agricultural tools and machinery, the utilization of drones for monitoring and spraying, and the implementation of precision farming technologies. The minister highlighted that the use of modern machinery has been proven to reduce production costs by up to 50 percent and, in some cases, increase yields by as much as 100 percent. This technological leap aims to improve efficiency, reduce labor dependency, attract younger generations to farming, and make agriculture a more profitable and sustainable endeavor.

8. Institutional and Governance Reform:
   To ensure the effective execution of these programs, institutional and governance reforms were critical. This involved rigorous evaluation and rotation of officials within the Ministry of Agriculture and related agencies. A total of 248 officials underwent rotation and evaluation, signaling a commitment to meritocracy and accountability. Furthermore, thousands of fertilizer distribution permits were revoked to curb malpractices and ensure that inputs reached their intended beneficiaries – the farmers – promptly and without diversion. This firm stance against inefficiencies and corruption aimed to restore trust in public institutions and streamline the implementation of agricultural policies.

9. Market Intervention and Price Stabilization:
   The final strategy focused on stabilizing market prices and providing certainty for farmers. This involved strengthening the role of Perum Bulog, the state logistics agency, in directly absorbing farmers’ unhusked rice (gabah) at a guaranteed price of Rp6,500 per kilogram, regardless of quality (the "any quality" scheme). This intervention mechanism serves a dual purpose: it protects farmers from price crashes during harvest seasons, ensuring they receive a fair return for their labor, and simultaneously helps build the government’s rice reserves. This proactive market intervention is crucial for maintaining price stability for both producers and consumers, thereby fostering a more predictable and equitable agricultural ecosystem.

Tangible Results and Verifiable Achievements

The implementation of these nine strategies has yielded remarkable and verifiable results, fundamentally transforming Indonesia’s agricultural landscape:

• Increased National Rice Production: National rice production is projected to increase by 4.07 million tons, or 13.29 percent, by 2025. This significant boost surpasses domestic demand, which typically ranges between 2.5 and 2.6 million tons per month, ensuring a comfortable surplus. The minister confidently stated that the combined impact of expanded planting areas from intensification and extensification programs accounts for an additional 1.5 million hectares, directly translating to this increased production.
• Record Government Rice Reserves (CBP): As of mid-April 2026, the Government Rice Reserves (CBP) have reached an unprecedented 4.8 million tons. This figure represents the highest level in Indonesia’s history, nearly doubling the previous maximum stock of 2.6 million tons recorded during the Republic’s independence. This robust reserve provides a critical buffer against potential food crises and strengthens national food security.
• Highest Farmer’s Exchange Rate (NTP): The Farmer’s Exchange Rate (NTP), a key indicator of farmer welfare, has surged to 125.35. This is the highest NTP recorded in the last 34 years, signaling a significant improvement in the economic well-being of Indonesian farmers. A higher NTP indicates that the prices received by farmers for their produce are increasing faster than the prices they pay for goods and services, thus enhancing their purchasing power and quality of life.
• Robust Agricultural Sector Growth: The agricultural sector has demonstrated robust growth, reaching 5.74 percent. This represents the highest growth rate for the sector in 25 years, underscoring its renewed vitality and contribution to the national economy.
• Zero Medium Rice Imports: A pivotal achievement highlighted by the government is that these gains were made without resorting to medium rice imports. This confirms that the increased production and reserves are entirely sustained by domestic output, a true testament to the success of the self-sufficiency programs.

Minister Amran Sulaiman affirmed the veracity of these figures, stating that the data aligns with assessments from reputable international and national bodies, including the Central Statistics Agency (BPS) of Indonesia, the Food and Agriculture Organization (FAO) of the United Nations, and the United States Department of Agriculture (USDA). He challenged any skepticism, encouraging critics to direct their inquiries to these independent statistical authorities.

Implications and Future Outlook

The rapid achievement of enhanced food self-sufficiency carries profound implications for Indonesia. Economically, it contributes to macroeconomic stability by reducing inflationary pressures, especially for staple foods. It also strengthens the country’s balance of payments by reducing the need for food imports. For rural communities, the improved Farmer’s Exchange Rate signifies better livelihoods, potentially slowing rural-to-urban migration and fostering more equitable development.

Strategically, it bolsters national resilience against global food price volatility and geopolitical disruptions that could impact supply chains. By lessening reliance on external markets, Indonesia gains greater control over its food destiny, enhancing its sovereignty and capacity to respond to crises. The modernization efforts also pave the way for a more sustainable and technologically advanced agricultural sector, potentially attracting younger generations to farming and ensuring the long-term viability of the industry.

While the current achievements are commendable, maintaining this momentum will require continuous effort. Challenges such as climate change, land conversion for non-agricultural uses, and the need for ongoing innovation remain. However, the comprehensive and results-driven approach demonstrated by the Ministry of Agriculture provides a strong foundation for Indonesia to sustain its food security gains and continue its journey towards becoming a resilient and self-reliant food producer on the global stage. The accelerated timeline for self-sufficiency serves not just as a national success story but also as a potential model for other developing nations striving for similar goals.