• Author: Nabilla Chika Putri 
• Editor: Roxanna M

Indonesia’s government is fast-tracking its push toward food self-sufficiency, rolling out nine strategic policy measures as rice production rises, national reserves reach record highs, and farmer welfare indicators strengthen across 2025–2026.

The Ministry of Agriculture reported that the country’s self-sufficiency target, initially projected within four years, has now been accelerated to just one year, supported by sweeping regulatory, fiscal, and production reforms.

Agriculture Minister Andi Amran Sulaiman said the shift reflects a broad transformation across the agricultural sector. “The national food self-sufficiency target, initially projected to take four years, has been accelerated to one year through a comprehensive transformation carried out by the Ministry of Agriculture,” he said recently, as quoted by Antara.

The policy package has already delivered measurable gains. Rice production increased by 13.29 percent in 2025, equivalent to an additional 4.07 million tons, while government rice reserves reached 4.8 million tons by mid-April 2026, the highest level in national history.

1. Policy overhaul and structural reforms

A central pillar of the strategy lies in regulatory simplification and governance reform, aimed at removing longstanding bottlenecks in agricultural production and distribution.

Key measures include:

• Streamlining hundreds of overlapping regulations
• Issuing at least 16 strategic presidential regulations and instructions
• Eliminating 145 fertilizer-related regulations to simplify distribution
• Allowing direct fertilizer flow from the Ministry of Agriculture to PT Pupuk Indonesia and onward to farmers

These changes have significantly improved delivery speed and coordination across the supply chain.

2. Fertilizer reform and fiscal reallocation

The government has also introduced major adjustments in input support and budget allocation to directly boost productivity.

• Fertilizer allocation increased to 9.55 million tons
• Fertilizer prices reduced by 20 percent, the largest cut since independence
• Distribution expanded through a national ID-based system

3. Budget reallocation toward productive sectors

• IDR 3.8 trillion reallocated from non-priority spending
• Funds redirected toward irrigation, seeds, machinery, and water pumps
• Reductions applied to travel, hotel, and administrative expenditures

4. Production intensification and land expansion

Indonesia is scaling up output through a combination of intensification and expansion strategies.

• Intensification across ~500,000 hectares of rain-fed farmland
• Increased planting cycles to two or three times per year
• Optimization of ~800,000 hectares of swamp land
• Total intensified land reaching ~1.3 million hectares

5. Expansion of cultivated land

In parallel, the government is developing around 200,000 hectares of new rice fields to expand national cultivation capacity.

6. Strengthens water infrastructure Infrastructure

Water infrastructure and technology adoption are being positioned as key enablers of sustained growth.

• Construction and revitalization of 61 dams
• Irrigation support for up to 400,000 hectares
• Rehabilitation of tertiary irrigation networks

7. Agricultural modernization

At the same time, modernization efforts include mechanization, drones, and precision farming technologies. The Ministry of Agriculture estimates these measures have reduced production costs by up to 50 percent while significantly increasing yields in some areas.

8. Institutional reform and enforcement

Governance and market stability measures have been introduced to reinforce implementation and protect farmer income.

• Evaluation and rotation of 248 officials
• Revocation of thousands of fertilizer distribution permits
• Strengthened oversight and targeting of subsidy programs

9. Market intervention and price stability

To stabilize prices, the government has expanded market intervention through the state logistics agency, which purchases farmers’ grain under an “any quality” scheme at IDR 6,500 per kilogram.

“This measure has proven effective in maintaining stable grain prices at the farm level while increasing government rice reserves,” Amran said.

Strong production growth and record reserves

The cumulative impact of these policies is reflected in both output and macro indicators.

• Rice production increased by 4.07 million tons (13.29 percent) in 2025
• Additional planting area reached approximately 1.5 million hectares
• Government rice reserves rose to 4.8 million tons, nearly double the previous peak of 2.6 million tons

Farmer welfare and sector performance have also improved:

• Farmer Exchange Rate (NTP): 125.35 (highest in over 30 years)
• Agricultural sector growth: 5.74 percent (strongest in 25 years)

Importantly, these gains have been achieved without reliance on medium-grade rice imports, with domestic production fully supporting national supply.

Official data context: Statistics Indonesia (BPS)

Indonesia’s agricultural performance is further supported by official data from Statistics Indonesia (BPS), the country’s primary reference for production, farmer welfare, and sectoral activity.

Recent indicators align with government-reported improvements. The Farmer Exchange Rate (NTP) reached 125.35 in early 2026, reflecting stronger purchasing power and improved rural welfare.

Rice and paddy statistics, compiled through the Area Sampling Framework (ASF) and Crop Cutting Survey (UBinan), show generally resilient output trends, supported by seasonal cycles, expanded harvested areas, and productivity gains in key regions.

Meanwhile, national accounts data indicate that the agriculture, forestry, and fisheries sector grew by approximately 5.74 percent, underscoring its renewed contribution to economic growth.

Overall, BPS data provides a robust statistical foundation for assessing Indonesia’s agricultural progress, reinforcing the narrative of rising output, improving farmer welfare, and strengthening food security during the 2025–2026 period.

Published Date: April 19, 2026