FY2025 National Budget Increases Food Security Allocation

Economics & Macro

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Adi Ahdiat 19/08/2024 16:50 WIB

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In the 2025 Indonesian State Budget (RAPBN), the Indonesian government has allocated Rp124.4 trillion for food security, a 7.9% increase compared to 2024.

Government Budget for Food Security (2020-2025)

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Government Budget for Food Security (2020-2025)

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In the 2025 State Budget (RAPBN), the Indonesian government has allocated Rp124.4 trillion for food security.

This represents a 7.9% increase compared to the similar budget in the 2024 APBN outlook and is the highest level since 2020, as shown in the graph.

Based on the RAPBN 2025, during the 2020-2024 period, the food security budget was used to develop rice and corn farming areas, and to provide assistance in the form of facilities and infrastructure for farmers and fishermen.

However, Indonesia's food sector still faces various challenges.

"Agricultural productivity is considered still low. This is caused, among other things, by the conversion of agricultural land, rising production input prices, limited agricultural facilities and infrastructure, and limited capacity and access to capital for farmers and fishermen," as quoted from the RAPBN 2025.

"In addition, climate change causes droughts and extreme rainfall that reduce food production, increase food insecurity, and increase food prices," it continues.

The RAPBN 2025 also states that domestic food security is still overshadowed by the risk of disruptions to the food supply chain due to geopolitical dynamics, as well as high food distribution costs.

These various conditions are considered to be able to affect the availability of supply, the stability of food prices, and could impact food inflation.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."