National Medium-Term Development Plan (RPJMN) 2025-2029 and its Implications for Agricultural Development Planning in Indonesia

National Medium-Term Development Plan (RPJMN) 2025-2029 and its Implications for Agricultural Development Planning in Indonesia

Published: 2025.09.12
Accepted: 2025.09.12
4
Policy Analyst
Indonesian Center for Agriculture Socio Economic and Policy Studies (ICASEPS)
Senior Agricultural Economist and Research Professor
Indonesian Agricultural Researcher Alliance (APPERTANI), Indonesia

ABSTRACT

The current administration of the Republic of Indonesia has formulated Indonesia's Medium-Term Development Plan for the 2025-2029, which contains the vision, mission, goals, and targets for development. However, the existing conditions faced today are not easy, especially in the agricultural sector. This article aims to describe major points of the RPJMN Indonesia for the 2025-2029 period and the targets in the RPJMN related to the agricultural sector. The vision of the Indonesian President for 2025-2029 is "Together with Advanced Indonesia, Towards Golden Indonesia 2045" described in 8 missions, 17 priority programs, and 8 Quick Wins Programs. The RPJMN 2025-2029 targets three primary targets for national development, namely reducing poverty rates, improving the quality of human resources, and high and sustainable economic growth. In the agricultural sector, the focus of development will be directed at achieving food self-sufficiency and promoting downstream industry of agricultural commodities that make a large contribution to the Gross Domestic Product, have high added value, and pay attention to the potential for absorbing local labor. It is recommended that the Strategic Plan established by the Ministry of Agriculture be oriented towards achieving food self-sufficiency and promoting downstream of agricultural commodities.

Keywords: strategic plan, food self-sufficiency, downstream industry of agricultural commodities

INTRODUCTION

The National Medium-Term Development Plan (RPJMN) 2025-2029 is an Indonesian development planning document that contains the vision, mission, and direction of national development for a period of 5 years. The 5-year period is in accordance with the corresponding time period of the new administration. RPJMN is a reference for the Indonesian government at the central, provincial, and district levels, as well as other stakeholders in implementing the national development program and policies.

The scope of the RPJMN consists of several main components including: (1) Vision and Mission of the Indonesian Government for 5 years which is the philosophical basis in providing direction and goals for national development; (2) targets and goals to be achieved within a 5-year period; and (3) Development strategies that explain ways to achieve the goals and targets that have been set. By establishing the RPJMN, the Indonesian government hopes to increase the effectiveness and efficiency of national development, which is ultimately expected to achieve community welfare.

The derivative documents of the RPJMN are the Strategic Plan (Renstra) of Ministries/Institutions (Renstra-K/L) and the Regional Medium-Term Development Plan. The Renstra of the Ministry of Agriculture is the main derivative document in the agricultural sector. The preparation of the Renstra of the Ministry of Agriculture must refer to the RPJMN, especially in determining the objectives, targets, and targets for development in the agricultural sector. Currently, the strategic plan is being prepared and is targeted for completion in mid-2025.

The biggest challenges in implementing the RPJMN are the harmonization of policies between sectors, the harmonization and coordination of central and regional policies, the availability of adequate resources, and policy consistency amidst political and social dynamics (Tarumingkeng, 2025). These challenges are compounded by the problem of the quality of Indonesian human resources who will implement the RPJMN. Muhyidin (2019) explains that the problem of Indonesian human resources is related to the Level of Education and Health. Based on the 2022 PISA (Program for International Student Assessment) score, Indonesian students' mathematics, reading, and science skills lag behind those of neighboring countries and the average OECD country (OECD, 2023). In addition, the basic skills of the workforce in Indonesia are very low. In comparison, the skills of higher education graduates in Indonesia are equivalent to the skills of high school graduates in Denmark (Muhyidin, 2019). On the health side, the problems faced are the still low level of health and nutrition of children, the high rate of infant mortality and stunting in toddlers, and the high prevalence of non-communicable diseases and the prevalence of smoking. On a sectoral basis, problems related to the quality of human resources predominantly occur in the agricultural sector (Sumedi et al., 2023, Yofa, 2020). Therefore, it is crucial for the agricultural sector to prepare its strategic plans.

This paper aims to describe the 2025-2029 Indonesian RPJMN and the targets in the RPJMN related to the agricultural sector. The paper concludes with conclusions and policy recommendations for synchronizing the Ministry of Agriculture's Strategic Plan with the RPJMN.

INDONESIA'S NATIONAL MEDIUM-TERM DEVELOPMENT PLAN 2025-2029

Vision and Mission of the President of Indonesia

The President of Indonesia, who was elected in the 2024 Election, Prabowo Subianto, issued Presidential Regulation of the Republic of Indonesia (Perpres) Number 12/2025 concerning the National Medium-Term Development Plan (RPJMN) for 2025-2029 on February 10, 2025. The RPJMN 2025-2029 is the first stage implementation of the National Long-Term Development Plan (RPJPN) 2025-2045. The RPJMN 2025-2029 is also the initial foundation for achieving Indonesia's vision in the RPJPN, namely Golden Indonesia 2045. Based on Presidential Regulation Number 12/2025, it is stated that the RPJMN 2025-2029 contains a formulation of transformative initiatives in accordance with the focus of policy direction in the Phase I of the RPJPN 2025-2045.

The transformation regulated in the 2025-2029 RPJMN includes social transformation; economy; governance; supremacy of law, stability, and Indonesian leadership; socio-cultural and ecological resilience; regional development and infrastructure; and development continuity. The transformation initiatives and efforts are framed and in the vision of the President of Indonesia for the 2025-2029 period, namely "Together with Advanced Indonesia, Towards Golden Indonesia 2045". This vision means that development requires cooperation from all Indonesian people with a common determination based on the foundation that has been built by the previous government to achieve an Indonesia that is equal to one of the developed countries in 2045. This vision is achieved through the President's Eight Missions which are the Eight Priorities of the National Medium-Term Development Plan and are called the Eight Asta Cita, namely:

  1. Strengthening the ideology of Pancasila, democracy, and human rights;
  2. Strengthening the country's defense and security system and encouraging national independence through self-sufficiency in food, energy, water, sharia economy, digital economy, green economy, and blue economy;
  3. Continuing infrastructure development and increasing quality employment opportunities, encouraging entrepreneurship, developing creative industries, and developing agro-maritime industries in production centers through the active role of cooperatives;
  4. Strengthening the development of human resources, science, technology, education, health, sports achievements, gender equality, as well as strengthening the role of women, youth (millennial and Z generation), and people with disabilities;
  5. Continuing development of downstream and natural resource-based industries to increase added value domestically;
  6. Building from the village and from below for economic growth, economic equality, and poverty eradication;
  7. Strengthening political, legal and bureaucratic reforms, as well as strengthening the prevention and eradication of corruption, drugs, gambling and smuggling; and
  8. Strengthening the alignment of harmonious life with the natural and cultural environment, as well as increasing tolerance between religious communities to achieve a just and prosperous society.

The mission contains 17 priority programs of the President covering development plans in various sectors and steps in the form of 8 Quick Wins Programs (Table 1). All of these initiatives are formulated to answer the main problems and challenges quickly, precisely, and measurably to create a solid structure to support the implementation of various national development programs.

Table 1. Indonesia's National Development Targets and Indicators, 2025-2029

Priority Programs

Quick Wins Programs

  1. Achieving self-sufficiency in food, energy, and water
  2. Improving the state revenue system
  3. Political, legal, and bureaucratic reform
  4. Prevention and eradication of corruption
  5. Eradication of poverty
  6. Prevention and eradication of narcotics
  7. Ensuring the availability of health services for all people
  8. Strengthening education, science, technology, and digitalization
  9. Strengthening national defense and security and maintaining conducive international relations
  10. Strengthening gender equality and protecting the rights of women, children, and people with disabilities
  11. Ensuring environmental sustainability
  12. Ensuring the availability of fertilizers, seeds, and pesticides directly to farmers
  13. Ensuring the development of quality, affordable, and well-sanitized housing for rural/urban communities
  14. Continuing economic equality and strengthening MSMEs through business credit programs and the development of the Indonesian Capital City and other innovative and independent cities
  15. Continuing development of downstream and natural resources-based industries, including maritime resources to open up as many job opportunities as possible to achieve economic justice
  16. Ensure harmony between religious communities, freedom of worship, establishment and maintenance of places of worship
  17. Preserving arts and culture, increasing the creative economy, and increasing sports achievements.
  1. Provide free lunch and milk in schools and Islamic boarding schools, as well as nutritional assistance for toddlers and pregnant women.
  2. Organize free health checks, reduce TB cases and build complete quality hospitals in districts
  3. Create and increase agricultural land. productivity with village, regional and national food barns.
  4. Build integrated superior schools in each district, and repair schools that need renovation
  5. Continue and add social welfare card and business card programs to eliminate absolute poverty
  6. Increase the salaries of government employees (especially teachers, lecturers, health workers, and extension workers), military/police, and state officials
  7. Continue the development of village and sub-district infrastructure, Direct Cash Assistance, and ensure the provision of affordable, well-sanitized housing for those in need, especially the millennial generation, generation Z, and low-income communities
  8. Establish the State Revenue Agency and increase the ratio of state revenue to gross domestic product (GDP) to 23 percent

Source: GoI, 2025

National Development Targets

The Ministry of State Secretariat of the Republic of Indonesia (2025) explained that the 2025-2029 Development Plan has three primary national development targets, namely reducing poverty rates, improving the quality of human resources, and achieving high and sustainable economic growth. The achievement of these targets is measured by a number of indicators, including reducing poverty rates to 4.5-5.0%, the human capital index (IMM) reaching 0.59%, and economic growth towards 8.0% in 2029. The targets on foreign policy and environmental aspects reinforce these targets.

The representation of the success of Development in 2025-2029 is reflected in the achievement of national Development targets. In detail, the national Development targets can be seen in Table 2.

Table 2. Indonesia's National Development Targets and Indicators, 2025-2029

Target

Indicator

Increase per capita income to be equivalent to developed countries

Economic growth from 5.05% (2024) to 5.30% (2025) and towards 8.00% (2029)

GNI per capita increases from US$4,870 (2023) to US$5,410 (2025) and US$8,000 (2029)

Maritime GDP contribution increases from 7.9% (2022) to 8.1% (2025) and 9.1% (2029)

Manufacturing GDP contribution increases from 18.7% (2023) to 20.8% (2025) and 21.9% (2029)

Increase leadership and influence in the international world

Global Power Index increased from rank 34 (2023) to rank 33 (2025) and rank 29 (2029)

Decrease poverty and inequality

Poverty rate decreases from 9.0% (March 2024) to 7.0-8.0% (2025) and 4.5-5.0% (2029) and extreme poverty (2.15 PPP) to less than 0.5% (2026)

The Gini ratio fell from 0.379 (March 2024) to 0.378-0.382 (2025) and 0.372-0.375 (2029)

KTI's GRDP contribution increased from 20.9% (2023) to 21.4% (2025) and 22.4% (2029)

Increase human resource competitiveness

Human Capital Index (HMI) increased from 0.54 (2020) to 0.56 (2025) and 0.59 (2029)

Decrease GHG emission towards net zero emissions

Reduction in GHG emissions from 34.09% (2022) to 35.53% (2025) and 45.17% (2029)

The environmental quality index increased from 72.54 (2023) to 76.49 (2025) and 77.20 (2029)

Source: GoI, 2025

Development priority strategy

The 2025-2029 RPJMN emphasizes explicitly the strategy of reducing poverty levels, improving the quality of human resources, and achieving sustainable high growth. The emphasis on the three methods is the key to the success of achieving medium-term development targets and the foundation for long-term national development.

Strategy to reduce -poverty rate

To achieve significant poverty reduction, the Indonesian government has established four strategies. The first strategy is to ensure macroeconomic stability through inclusive and sustainable economic growth. Inclusive economic growth aims to ensure that the benefits of development are evenly distributed to all segments of society, including the poor and vulnerable. Efforts to create jobs, empower the local economy and strengthen the micro, small and medium enterprises (MSME) sector are priorities along with efforts to maintain inflation stability to protect people's purchasing power.

The second strategy is carried out by reducing the burden of expenditure on the poor and vulnerable through the implementation of the Welfare Card as a tool to integrate various social assistance and subsidy programs. To support the accuracy and effectiveness of implementation, the Indonesian government uses single socio-economic data in targeting, which is continuously updated and shared through the Socio-Economic Registration System and strengthened through digital technology in distribution.

The third strategy is to increase people's income by strengthening entrepreneurship and creating job opportunities through the Business Card to support escaping poverty. Steps taken include increasing relevant capacity based on potential and needs, expanding access to productive resources, and implementing affirmative principles. The Business Card strategy emphasizes the importance of partnerships and collaboration with the private sector.

The fourth strategy strengthens basic infrastructure services and regional development. This strategy focuses on ten priority provinces, namely North Sumatra, West Java, Central Java, East Java, East Nusa Tenggara, West Papua, South Papua, Mountainous Papua, Central Papua, and Southwest Papua as well as 3T (underdeveloped, outermost, and remote) areas and poverty pockets. Interventions will be carried out through the provision of access to safe drinking water, proper sanitation, health services, quality education, connectivity, and other basic infrastructure. The poverty reduction strategy is carried out with a cross-sectoral approach across National Priorities. This requires prerequisites, namely, First, integration and improvement of target data for social protection and community empowerment programs; Second, implementation of a standardized, inclusive, and sustainable approach in expanding economic and social empowerment programs; Third, optimization of development assistance and improvement of multi-sector strategic collaboration with strong participation of the community and private sector to accelerate the progress of community empowerment, local job creation, encourage community-based entrepreneurship, and increase access to markets and technology; and Fourth, commitment to support all levels of government and stakeholders in focusing available resources on poverty eradication.

Strategy to improve human resources quality

Human development places humans and society at the center as objects and subjects of development. Complete human development is based on the fulfillment of basic services, human capital development, and socio-cultural capital development. A life cycle approach, gender mainstreaming and social inclusion, and balanced population growth support these three pillars.

The main pillars in supporting the development of productive human resources are concrete interventions in education and health. Key interventions in the field of education include increasing access to and the quality of education services, strengthening the management of educators, and creating quality education personnel. The strategy for improving the quality of education is carried out through 13 years of compulsory education; Development and implementation of superior schools; revitalization of quality school and madrasah facilities and infrastructure; restructuring of teacher management authority, legal protection and performance-based welfare; expansion of early childhood education services; prevention and handling of children who do not go to school; increasing the relevance and expansion of access to higher education; and increasing the quality and relevance of competitive vocational education graduates.

In the health sector, key interventions consist of preventing stunting and increasing the survival rate of children and adults. The strategy to avoid stunting is focused on the first thousand days of life. The strategy to increase the survival rate of children and adults is achieved through increasing access and integrated management of health services; strengthening early detection of diseases, prevention of infectious and non-infectious diseases, improving mental health, accompanied by investment in primary services to expand health promotion and prevention efforts, and fulfilling health resource needs.

Strategy to achieve sustainable high growth

In the next five years, Indonesia's economic growth is targeted to grow high, from 5.3% in 2025 to 8.0% in 2029. Concretely, there are eight strategies for sustainable high economic growth, namely: (1) Increasing agricultural productivity towards food self-sufficiency; (2) Labor-intensive, export-oriented, and sustainable industrialization (downstream); (3) Economic growth in the tourism and creative economy sectors; (4) Development of the blue economy and green economy; (5) Making urban areas the center of economic growth; (6) Digital transformation; (7) Investment with export-oriented Foreign Direct Investment (FDI) and non-APBN investment; and (8) Priority state spending to increase productivity through free nutritious food programs, construction of 3 million houses, and other programs. All of these strategies must be complemented by the main levers, namely licensing deregulation and pro-growth fiscal and monetary policies.

Sustainable economic growth is a contribution from regional growth, thus equitable regional development is key. In this case, there are driving factors that can accelerate equitable distribution between regions as follows (Figure 1). In addition to the regional approach, a cross-sector approach is also used in operationalizing sustainable economic growth strategies. National Development Priority 2 focuses on steps to achieve food self-sufficiency, energy self-sufficiency, water self-sufficiency, green economy, digital economy, defense and security, and blue economy. National Priority 3 focuses on the development of infrastructure, tourism, and the creative economy. Furthermore, National Priority 4 focuses on the development of quality Human Resources. National Priority 5 focuses on development of downstream industry of superior Natural Resources, skilled labor-intensive industries, technology-intensive industries, basic industries, and regional development. National Priority 6 focuses on economic equality, National Priority 7 focuses on bureaucratic reform, and National Priority 8 focuses on mitigating environmental impacts.

Top Priority Activities

As a concrete step to achieve medium-term targets, especially for achieving poverty reduction targets, improving the quality of human resources and sustainable high economic growth, several Main Priority Activities have been identified in the 2025-2029 RPJMN (Table 3). Main Priority Activities are integrated policies that have high leverage towards achieving national development targets. These Main Priority Activities are the focus of emphasis in the implementation of the 2025-2029 RPJMN. Main Priority Activities are also prepared by considering contributions from various parties, including ministries/institutions, regional governments, state-owned enterprises BUMN, the private sector, and other stakeholders.

Table 3. Main Priority Activities of RPJMN 2025-2029

National Priority

Top Priority Activities

NP-1

  1. Strengthening of responsible, educative, honest, objective and healthy media and media industry

NP-2

  1. Transformation of defense industry governance and implementation of spend to invest scheme
  2. Development of food production center areas (kspp)/food barns in Central Kalimantan, South Sumatra, South Papua, and Others
  3. Development of aquatic food (blue food); animal food; local and plant food; and food fortification and biofortification.
  4. Increasing the provision, access, service coverage, and energy transition
  5. Conservation of water resources, and development of upstream to downstream drinking water supply systems
  6. Provision and supervision of safe, sustainable, and climate-resilient sanitation based on city-wide inclusive sanitation (CWIS)
  7. Integrated development of the north coast of Java
  8. Strengthening supporting factors for the digital economy
  9. Strengthening the Digital Economy and Industry and other Strategic Factors
  10. Management of food loss and waste
  11. Increasing bioprospecting, biotechnology, biosafety, and access and benefit sharing of genetic resources
  12. Increasing the management of river and lake water quality
  13. Increasing the quality of peat ecosystems
  14. Behavioral change and strengthening waste management
  15. Increasing waste collection and processing and residue processing at TPA/LUR
  16. Development of the salt industry and processed marine products

NP-3

  1. Development of electricity network infrastructure and its digitalization
  2. Development and improvement of digital ecosystem
  3. Acceleration of development of priority tourism destinations Borobudur-Yosrakarta-Prambanan; Lombok-Gili Tramena; Lake Toba; Labuan Bajo
  4. Strengthening of application and game ecosystem
  5. Development of production sector cooperatives

NP-4

  1. Expansion of early childhood education services
  2. Revitalization of quality school and madrasah facilities and infrastructure
  3. Prevention and handling of children not attending school
  4. Development and implementation of excellent schools
  5. Restructuring of teacher management authority
  6. Increasing relevance and expansion of access to higher education
  7. Increasing the intermediation function and utilization of science and technology and innovation
  8. Reducing maternal and child mortality
  9. Prevention and reduction of stunting
  10. Implementation of free health check-ups
  11. Eradication of tuberculosis
  12. Providing nutritious food for students, islamic boarding school students, pregnant women, breastfeeding mothers, and toddlers
  13. Strengthening the ecosystem supporting the provision of nutritious food
  14. Elimination of Leprosy & Schisrosomiasis
  15. Investment in primary health services
  16. Construction of complete quality hospitals in districts/cities and development of mobile health services and difficult-to-access areas
  17. Production and utilization of health human resources
  18. Management and development of national talent (mtn) arts and culture; research and innovation; and sports

NP-5

  1. Development of Downstream industry of nickel, copper, bauxite, tin, palm oil, coconut, and seaweed
  2. Development of chemical industry; semiconductor; textile and textile products; basic metals, iron and steel; and aerospace industry
  3. Development of Sei Mangkei Special Economic Zone, Batang Integrated Industrial Zone, and Weda Bay Industrial Zone.

NP-6

  1. Distribution of adaptive social assistance and targeted subsidies through Welfare Cards
  2. Increasing competitiveness through Productive Business Cards
  3. Increasing independence through Adaptive Business Cards
  4. Planning and development of areas, and relocation to the capital city of the archipelago
  5. Facilitating the provision of integrated housing with PSU
  6. Fulfillment of basic services and village infrastructure

NP-7

  1. Prevention of corruption
  2. Improving ASN welfare through the implementation of the ASN Performance-Based Total Reward Concept
  3. Digital transformation of priority public services
  4. Extensification and intensification of tax revenue
  5. Intensification of non-tax state revenue

NP-8

  1. Strengthening national character and identity
  2. Utilization of cultural treasures and development of cultural advancement areas
  3. Increasing coastal and marine climate resilience

Source: GoI, 20

National Strategic Projects

National Strategic Projects are prepared and determined as a concrete technical step that primarily supports and ensures the implementation of Main Priority Activities. Planning and preparation of National Strategic Projects are carried out using clear, accountable procedures and criteria, and support the implementation of Pancasila values and the mandate of the 1945 Constitution to achieve a just and prosperous society.

National Strategic Projects are designed as projects or programs (collections of projects) that are strategic, measurable and have a significant impact on achieving the targets of the 2025-2029 RPJMN, especially the President's Priority Programs, to improve the quality of human resources, reduce poverty, increase quality and sustainable economic growth, and encourage equitable development. National Strategic Projects include the Free Nutritious Meal Program, projects that contribute directly and significantly to the achievement and realization of food self-sufficiency, energy self-sufficiency, water self-sufficiency, and downstreaming, as well as projects that support the achievement of the targets of the President's Priority Programs in the field of human development.

National Strategic Projects can be initiated/proposed and implemented by the Central Government, Regional Governments, State-Owned Enterprises or private business entities. Projects proposed and implemented by entities other than the Central Government represent a contribution from Regional Governments, State-Owned Enterprises, and private business entities to achieving RPJMN targets that require Government support.

Planning, implementation and control of National Strategic Projects are an integral part of the national development planning process. National Strategic Projects are determined annually by the time frame for implementing development priorities and project readiness including the availability of funding and based on the President's approval. Formulation of the National Strategic Projects is carried out through the Government Work Plan mechanism. To ensure that National Strategic Projects run according to plan, control and evaluation steps are taken for the readiness and performance of their implementation and national development risk management is applied. Based on the results of this control and evaluation, updates to National Strategic Projects can be carried out in an integrated manner with the work plan mechanism.

In order to accelerate the planning process, preparation, implementation and smooth control of operations, including the financing mechanism for National Strategic Projects, the government can provide facilities in the form of both licensing and non-licensing. For this purpose, harmonization of regulations and institutional arrangements for the management of National Strategic Projects will be carried out.

AGRICULTURAL DEVELOPMENT PLANNING

Status of Agricultural Development in the Framework of RPJMN 2025-2029

In the 2025-2029 RPJMN framework, the status of agricultural development is in 8 presidential missions, 17 priority programs, and 8 best fast result programs. This status makes the agricultural sector one of the priority sectors in development and receives strong political support. In resource management, the agricultural sector gets a fairly large fund allocation compared to the previous period.

In the President's mission, agricultural sector development is in 2 missions, namely (1) Strengthening the state's defense and security system and encouraging national independence through self-sufficiency in food, energy, water, sharia economy, digital economy, green economy, and blue economy; and (2) Continuing development of downstream and natural resource-based industries to increase added value domestically. The agricultural sector is also included in 2 of the 17 priority programs, namely: (1) achieving self-sufficiency in food, energy, and water; and (2) ensuring the availability of fertilizers, seeds, and pesticides directly to farmers. In the 8 best fast result programs, the agricultural sector is also in 2 programs, namely (1) providing free lunch and milk in schools and Islamic boarding schools, as well as nutritional assistance for toddlers and pregnant women; and (2) expanding printing and increasing agricultural land productivity with village, regional, and national food barns. The Agricultural Development Planning in the RPJMN is a guide for the Ministry of Agriculture in compiling the Ministry of Agriculture's Strategic Plan.

Achieving food self-sufficiency

In national independence, Indonesia needs to focus on achieving self-sufficiency in various strategic, crucial sectors, including the food sector as a pillar of national life. However, the agenda of achieving food self-sufficiency faces strategic issues that are not easy. The increasing number and diversity of demand for food product ingredients is a central issue (demand driver) that requires the achievement and realization of food self-sufficiency. A variety of food products are currently used for both human food and animal feed. In addition, the development of food products is also used for bioenergy, health, and other purposes. The increase in demand for food products is faced with stagnation/decrease in food production. For example, there was a decrease in rice production from 54.60 million tons of dry milled grain in 2019 to 53.98 million tons of dry milled grain in 2023 (BPS, 2025). This decrease in production was caused by a decline in the area of rice fields from 7.46 million ha in 2019 to 7.38 million ha in 2024 (GoI, 2025). This condition is further exacerbated by the large number (around 89.54%) of agricultural land that is less sustainable (BPS, 2022), the increasing dominance (around 70.00%) of farmers over 43 years old (aging farmers) (BPS, 2023), and the low adoption of agricultural technology (GoI, 2025).

The imbalance between food production and demand has implications for high dependence on food imports. Strategic commodities such as rice, corn, soybeans, garlic, beef, milk, and sugar are commodities that depend on imports with varying degrees of dependence. Other implications include fluctuating food prices both between seasons and between regions, and around 14.66% of districts/cities in Indonesia in 2023 will be vulnerable to food insecurity (NFA, 2024). Further implications of this condition are the low welfare of farmers and the added value of the agricultural sector workforce, considering that food farmers in Indonesia are net consumers (Yofa et al, 2024).

With the existing conditions as described above, the main targets and indicators are determined in achieving food self-sufficiency. The main target for food self-sufficiency is to increase the nation's independence in meeting the need for quality food in a sustainable manner with the food, energy, and water nexus (FEW Nexus) approach. The indicators for this main target are (1) increasing the food security index from 71.2 in 2024 to 73.2 in 2025 and 82.0 in 2029; and (2) GDP growth in Agriculture, Forestry, and Fisheries from 1.30% in 2023 to 2.20% in 2025 and 3.46% in 2029.

To achieve the main targets and indicators for food self-sufficiency, a series of necessary policy interventions are carried out. Policy interventions are carried out through the development of eco-regions of food systems based on local resources and wisdom, which are healthy and nutritious, inclusive, equitable, sustainable, and resilient, with the food, energy, and water nexus approach. Food self-sufficiency is directed to (a) strengthening the availability of food ingredients, especially from domestic production through the development and strengthening of food production centers, agroforestry, pond revitalization, and strengthening inputs and supporting infrastructure for production; (b) improving the management of food distribution and strengthening the Agency for Legal Affairs; (c) ensuring food accessibility for all people so that they can live healthily, actively, and productively; (d) encouraging the utilization and consumption of diverse, balanced, healthy and safe foods; (e) improving the welfare of farmers/fishermen/fish farmers/forest farmers; and (f) developing a sustainable agricultural and fisheries cultivation system through a nature-based solutions approach, integrated landscape management, piloting direct assistance to farmers, soil health, and sustainable jurisdiction, including organic farming and regenerative farming.

Several food self-sufficiency policy interventions, especially: (a) development of food production centers/food barns sustainably in potential areas/regions; (b) strengthening food reserves; (c) development of aquatic food (blue food), animal food, local food, and plant food; (d) diversification of food consumption; (e) control of diseases originating from animals, fish, and plants, as well as assurance of food quality and safety; (f) food fortification and biofortification; (g) handling food insecurity; (h) development of economic institutions, regeneration of human resources in agriculture and fisheries, research, innovation, modernization, digitalization and adaptive and inclusive direct assistance; (i) strengthening the production of agricultural commodities oriented towards added value; and (j) development of sustainable agricultural cultivation systems. Policy interventions are also supported by the Fast Best Results Program, which aims to create and increase agricultural land productivity through village, regional, and national food barns. The implementation of the Fast Best Results Program is carried out through several Priority Activities, namely: Development of the Food Production Center Area/Food Barn in Central Kalimantan, South Sumatra, South Papua, and others.

Until 2029, this policy intervention is targeted to increase food production equivalent to 20 million tons of dry milled grain or equivalent to 10 million tons of rice, which is estimated to require an additional harvest area of around 4 million ha, equivalent to the area of rice fields. Policy interventions are carried out by preparing investigation and design surveys; structuring forest area boundaries for updating forest area determination; construction of irrigation, farm roads, drainage systems, and bridges; printing of rice fields; assistance for agricultural inputs to support increased agricultural production; assistance and provision of agricultural machinery workshops; strengthening farmer economic institutions (including cooperatives and farmer-owned businesses); assistance for post-harvest facilities and agricultural insurance; and increasing agricultural training.

Strengthening food security is still a strategic policy issue. However, the most recent research on rural transformation indicated that structure of agricultural production has shifted from staple food production (rice in particular) toward production of high value commodities, i.e., horticulture, estate crops, and livestock (Sudaryanto et al., 2023). This shift ultimately provides impact on higher rural household income and lower poverty rate.  

Promoting downstream industry of agricultural commodities

Indonesia can convert basic commodities into highly competitive products, which can also create more quality jobs and drive domestic economic growth. Thus, Indonesia is not only a country that produces raw materials, but can also become a producer and manufacturer of quality and competitive products at the global level. However, this is faced with strategic issues that are also not easy to solve.

In the Presidential Regulation 12 of 2025 (GoI, 2025), it is explained that the strategic issue that needs to be faced is the decline in the ratio of manufacturing industry GDP to total GDP. In 2015, the ratio was 20.99% and in 2023 it fell to 18.67%. This means that resource-based and low-technology industries still dominate the structure of Indonesia's manufacturing industry. The implication is that Indonesia's competitive industrial performance index is ranked 39th in 2021, relatively low compared to other ASEAN countries such as Vietnam (ranked 30), Thailand (ranked 25), and Malaysia (ranked 20). The growth of Indonesian labor productivity has also stagnated in the last 4 decades. As many as 88.7% of Indonesia's workforce is unskilled labor and only 18.6% are higher education graduates. Over the past 15 years, Indonesia has only been able to add (diversify) 11 new products with a high level of complexity, so it is only at Grade C. This is different from Vietnam, which has been able to diversify up to 41 new products (Grade A+).

On the other hand, Indonesia has a wealth of natural resources, serving as a key hub for downstream processing. However, this capital has not been widely processed into high value-added products domestically. In the agricultural sector, the main capital is in palm oil and coconut. In 2023, Indonesia's palm oil supply reached 53.6 million tons, but 51.6% of it was directly exported in the form of CPO and only 24.0% was further processed as raw materials for the domestic industry (GoI, 2025). With regard to coconut commodities, the performance condition is better where the export volume of Indonesian processed coconut products averaged 62.1% per year in the 2017-2024 period (Pusdatin Kementan, 2025).

In the downstreaming of agricultural commodities, the implementers are mainly the Ministry of Agriculture, the Ministry of Industry, and the Ministry of Investment and Downstream Industry. In the case of palm oil, the main target is to achieve increased productivity and diversification. There are 5 leading indicators, namely: (1) increasing palm oil production from 235 million tons in 2023, to 240 million tons in 2025 and 257 million tons in 2029; (2) increasing the variety of downstream palm oil products from 193 products in 2024 to 208 products in 2025 and 250 products in 2029; (3) production of CPO and PKO raw materials increases from 52 million tons in 2022 to 53 million tons in 2025 and 57 million tons in 2029; (4) the ratio of downstream palm oil product exports to raw materials increases from 92.0% in 2024 to 92.3% in 2025 and 93.7% in 2029; and (5) the value of FDI/DDI in palm oil downstream industry increases from IDR 1.5 trillion (USD 5.6 billion) in 2025 to IDR 2.3 trillion (USD 8.7 billion) in 2029. Indicators 1 and 2 will be managed by the Ministry of Agriculture, whereas indicators 3 and 4 by the Ministry of Industry, and indicator 5 by the Ministry of Investment and Downstream Industry.

In the case of coconut, the main target is to achieve increased productivity, production, and utilization of the coconut industry. There are 4 indicators, namely: (1) increasing coconut productivity from 1.12 tons/ha in 2022 to 1.13 tons/ha in 2025 and 1.21 tons/ha in 2029; (2) increasing coconut production from 2.87 million tons in 2024 to 2.88 million tons in 2025 and 2.94 million tons in 2029; (3) the value of FDI/DDI of coconut downstream industry  increases from IDR 392 billion  (USD 24.1 million) in 2025 to IDR 708 billion  (USD 43.5 million) in 2029; and (4) utilization of the coconut processing industry will increase from 40% in 2024 to 55% in 2025 and 75% in 2029. The Ministry of Agriculture will manage indicators 1 and 2, indicator 3 by the Ministry of Investment and Downstream Industry, and indicator 4 by the Ministry of Industry.

With regard to sago and cassava commodities, the main target is to achieve increased productivity and diversification. There are 5 indicators, namely: (1) increasing sago production from 386 thousand tons in 2022 to 394 thousand tons in 2025 and 479 thousand tons in 2029; (2) sago starch production capacity increases from 60 thousand tons in 2024 to 100 thousand tons in 2025 and 320 thousand tons in 2029; (3) cassava production increases from 16.8 million tons in 2024 to 17.3 million tons in 2025 and to 18.3 million tons in 2029; (4) sago productivity increases from 3.08 tons/ha in 2022 to 3.12 tons/ha in 2025 and 3.19 tons/ha in 2029; and (5) cassava productivity increased from 21.11 tons/ha in 2023 to 27.81 tons/ha in 2025 and 29.56 tons/ha in 2029. All of these indicators will be managed by the Ministry of Agriculture, except indicator 2, by the Ministry of Industry.

Policy interventions carried out for the downstreaming process of agricultural commodities are through (1) facilitating investment and a conducive business climate for deepening the industrial structure; (2) industrial governance and availability of raw materials accompanied by increased productivity of the upstream sector; (3) preparation of skilled workers; (4) guaranteeing the availability of reliable and competitive energy; (5) increasing the adoption of technology and the use of research and innovation results in the production process and diversification of industrial products; (6) optimizing the application of standards and certifications recognized by the global market; (7) expanding domestic and foreign markets to increase economic scale through strengthening branding, optimizing the use of trade agreements, and government procurement of goods and services; and (8) supported by coordination of policy implementation in a targeted, systematic and effective manner, including through the establishment of an aerospace industry policy committee and a palm oil management institution. In addition, industrial development will be carried out while still paying attention to decarbonization efforts and the application of a circular economy in the industry.

CONCLUSION AND RECOMMENDATION

Conclusion

The 2025-2029 Indonesian RPJMN is the master document in compiling a more detailed development plan. At the central government level, this document serves as a guide in compiling the Strategic Plan of Ministries/Institutions. At the regional government level, it serves as a guide in compiling the Regional Medium-Term Development Plan (RPJMD). The RPJMN is based on the vision of the Indonesian president and the 2025-2045 RPJPN, namely "Together with Advanced Indonesia, Towards Golden Indonesia 2045". This vision is broken down into 8 missions, 17 priority programs, and 8 Quick Wins Programs. The 2025-2029 RPJMN targets three main targets for national development, namely reducing poverty rates, improving the quality of human resources, and high and sustainable economic growth.

In the 2025-2029 RPJMN framework, the status position of agricultural development is related to 2 presidential missions, 2 priority programs, and 2 Quick Wins Programs. This status makes the agricultural sector one of the priority sectors in development and gets strong political support. In resource management, the agricultural sector receives a fairly large budget allocation compared to the previous period. Agricultural development will focus on achieving food self-sufficiency and promoting downstream industry of agricultural commodities that make a large contribution to Gross Domestic Product, have high added value, pay attention to the potential for local labor absorption, and their impact on the environment.

Recommendation

The Ministry of Agriculture needs to immediately establish a Strategic Plan derived from the 2025-2029 RPJMN. The formulated Strategic Plan needs to contain the vision, mission, objectives, and indicators of the Ministry of Agriculture's objectives. Based on the design of Agricultural Development in the 2025-2029 RPJMN, the orientation of the Ministry of Agriculture's Strategic Plan is on achieving food self-sufficiency and promoting downstream industry of agricultural commodities. Therefore, resource allocation should be prioritized for Work Units that have the function of developing food crops, plantation crops, agricultural infrastructure and facilities, developing agricultural human resources, and agricultural policy analysis work units.

In order to achieve sustainable food self-sufficiency, it is recommended that the area of rice fields be increased by opening up the new rice field in potential areas. In addition, improving irrigation networks both in irrigated rice fields and in swampy areas needs to be a priority. Assistance in agricultural production facilities, including farming tools and machinery, is still very much needed. Support for agricultural financing and insurance as well as support for output prices through the Government Purchase Price policy will be the main incentive for farmers in producing food sustainably and become an attraction for the younger generation (millennials and generation Z) to enter the agricultural cultivation sub-sector.

In order to achieve the downstream industry development of agricultural commodities, especially palm oil, coconut, sago, and cassava, four main strategies are recommended. First, strengthening the integrated value chain requires collaboration between farmers, cooperatives, industry players, and exporters to ensure the quality and continuity of supply. Consistency of quality and continuity of supply of raw materials are the main requirements for producing competitive and sustainable downstream products. One effort that can be made is to build partnerships between farmers and the processing industry to ensure continuity of raw material supply. Second, developing innovations in cultivation, harvesting, post-harvest handling, and processing of agricultural commodity-based products. Third, digitalization and branding to penetrate the market and reach consumers from various parts of the world. Fourth, development of integrated industrial areas starting from cultivation, processing industry, training for human resource development, and research centers. In this area, an Integrated Processing Unit can also be built to produce various derivative products.

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