Jakarta. Indonesia has allotted Rp 195.3 trillion or $10.9 billion for food security in 2027, the highest in five years, but concerns over its sufficiency remain, according to an analyst.

Indonesia earmarked Rp 115.1 trillion for food security in 2023, and the budget went up to Rp 159.5 trillion the following year. It then dropped to Rp 143.9 trillion in 2025 before rising to Rp 190.9 trillion in 2026 and eventually Rp 195.3 trillion.

According to Yusuf Rendy Manilet, an analyst at the think-tank CORE Indonesia, the budget remains extremely limited despite the recent hike, considering Indonesia’s 6% growth target and inflation capped at 1.5 and 3.5%.

Yusuf said that the budget only marked a 2.3% growth compared to the 2026 outlook. 

“This budget only reflects consolidation rather than a major expansion in the food sector,” Yusuf said on Monday.

Assessing budget adequacy requires looking beyond mere nominal figures. What matters more is the increase in production and the improvement in food access generated by every rupiah spent. 

The 2027 budget will go into developing 2.7 million hectares of rice-growing areas, creating 100,000 hectares of new paddy fields, optimizing 200,000 hectares of agricultural land, and providing 23,528 units of agricultural machines.

Amid stagnant land productivity, the conversion of rice fields continues. The majority of farmers only hold very small plots. Additional budget allocations risk failing to significantly alter long-term production capacity.

The 2027 food security budget also tilts heavily towards physical infrastructure. 

While creating 100,000 hectares of new rice fields is indeed necessary, preserving existing productive fields warrants greater attention. Developing new fields is relatively costly and requires time to reach optimal productivity. The construction of 14 dams must also be accompanied by tertiary irrigation networks that actually reach farmers' fields. 

"Rehabilitating irrigation systems, small reservoirs, and deep wells can, in certain situations, yield production increases more quickly," he noted.

Several other aspects also need strengthening, particularly drought-resistant superior seeds, variety research, post-harvest handling, agricultural extension services, and food diversification. The provision of 23,528 units of agricultural machinery will not automatically boost productivity without supporting management institutions and maintenance budgets.

 "An over-reliance on rice also renders the food system more vulnerable when production is disrupted," he warned.

The government has claimed that Indonesia already reached self-sufficiency in rice, corn, table sugar, broiler chicken meat, eggs, shallots, among others. Senior food minister Zulkifli Hasan had said that self-sufficiency had not been reached for industrial-grade corn and salt, necessitating reliance on imports.

“We no longer import corn or table salt because we can produce them domestically. We still import industrial grade corn and salt,” Zulkifli said.

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