The Ministry of Agriculture's Budget Increases to Rp5.8 Trillion in 2023: Here's the Breakdown

The Indonesian House of Representatives' Commission IV approved an additional budget proposal (ABT) of Rp5.83 trillion for the Ministry of Agriculture (Kementan) for the 2023 Fiscal Year (TA). The additional funds will be used to accelerate the production of corn and rice.

"Commission IV of the DPR RI approved the Ministry of Agriculture's proposed additional budget, which will be used to accelerate planting in order to increase the production of rice and corn, including through the provision of seeds, agricultural machinery and equipment (alsintan), agricultural infrastructure and facilities, and technical guidance," said Deputy Chairperson of Commission IV DPR Anggia Erma Rini in a meeting with the Ministry of Agriculture on Tuesday (14/11/2023).

Minister of Agriculture Amran Sulaiman stated that the ABT proposal had been previously submitted to the Ministry of Finance (Kemenkeu) via the Minister of Agriculture's Letter Number B-241/RC.110/M/2023 on November 6, 2023.

Amran explained the results of consultations with the Ministry of Finance, indicating that only a significant portion of the proposed amount may be utilized by the end of 2023.

"The remaining shortfall in the regular 2024 budget can be proposed again through the ABT TA 2024," said Amran.

Of the approved additional budget for the Ministry of Agriculture, the largest allocation goes to the Directorate General of Agricultural Infrastructure and Facilities, amounting to Rp1.56 trillion. These funds will be used for the procurement of post-harvest agricultural machinery and equipment (alsintan), swamp land optimization, and fertilizers and pesticides.

The next largest allocation is for the Directorate General of Food Crops at Rp2.5 trillion and the Agricultural Human Resources Development and Extension Agency (PPSDMP) at Rp165.43 million.

The Ministry of Agriculture also allocated funds for the Agricultural Instrument Standardization Agency (BSIP) and the Secretary General, totaling Rp55 billion. These funds will be used for agricultural standardization training and performance improvement within the Ministry of Agriculture.

(See also: From Rice to Onions, These are Indonesia's Agricultural Production Targets for 2023)