KORAN - THOUGHTS OF THE PEOPLE - The Dean of the Faculty of Economics and Management at IPB University, Professor Sahara, emphasized the importance of a comprehensive transformation of the national food system in facing global and domestic challenges.
"The transformation of the agricultural system is no longer an option, but a necessity, especially in the era of President Prabowo's administration, which prioritizes agriculture as a national priority," said Professor Sahara in a press release received by "PR" on Wednesday, June 18, 2025.
Indonesia currently ranks 63rd out of 113 countries in the Global Food Security Index (GFSI) with a score of 60.2. This achievement is still below the target set by the National Medium-Term Development Plan (RPJMN), which specifies a score of 73.2 by 2025 and 82.0 by 2029.
The lecturer from the Department of Economics at IPB University stated that the majority of Indonesia's food production still relies on small farmers who face various obstacles, such as limited land, infrastructure, aging farmers, low education, and price fluctuations.
This situation is compounded by foreign trade policies that are increasingly difficult. "The United States (US) has just implemented retaliatory tariffs that could cause our food prices to rise," he said.
I also highlighted the decline in the contribution of the agricultural sector to the Gross Domestic Product (GDP), from 24% (1982) to 12% (2023), even though it still absorbs 28% of the workforce. "This indicates that industrialization has not been optimal," he said.
Professor Sahara explained that the total factor productivity (TFP) growth in Indonesia's agricultural sector remains low (-2.18% to 3.53%), far below China's (4-5%). This means that production increases still rely on expanding land area, not technological innovation.
On the other hand, the consumption pattern of the community is shifting from carbohydrates to high-nutrient products such as vegetables, fruits, meat, and milk, as the middle class continues to grow. "Production increases should be directed towards high-value-added food," he said.
According to Professor Sahara, the US reciprocal tariff policy risks triggering inflation, reducing Indonesia's food exports, and disrupting the agricultural sector.
Professor Sahara suggests the integration of agriculture with industry and services through technological innovation as well as the smile curve approach in the food value chain, which means that farmers should receive a fairer share of added value.
"The agricultural sector needs to grow by 4.6% annually to support the national economic growth target of 8%. However, in reality, the actual growth of this sector has only been 3.5% over the past two decades," he said. ***
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