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Newsletter June 2021 | Let Indonesian Farmers Enter the World and Flourish

Dear readers,

Will you keep your child always inside the safety of your house? Will that allow it to have a comfortable future in this world? Most probably not. After all, it is outside our comfort zone where we stretch and grow.

The same applies to Indonesia’s agriculture. It has long been kept under an overprotective watch and it needs to venture out and learn by being exposed to the world.

While being protected, agriculture is not getting the access to inputs, know-how, and technology it needs to support higher productivity. In the Global Food Security Index of The Economist Intelligence Unit, Indonesia scores a meager 50.8 (out of 100) for access to agricultural technology, education, and resources.

The good news is that the Ministry of Agriculture has acknowledged the need for greater innovation and R&D in the sector. The government hopes this will lead to export opportunities and more business initiatives.

Our Associate Researcher Dr. Donny Pasaribu has recently published an analysis on the challenges for Australian FDI in Indonesia’s agriculture. In a country as large as Indonesia, there are more than just regulatory hurdles that turn investors away. We discussed our findings and recommendations in this webinar.

CIPS will now shift its attention to farmers’ access to modern agricultural inputs such as seeds and fertilisers. We want to ensure that sorely needed agricultural inputs increase the yield on Indonesian farms. This should help to feed a growing population and also reduce further human encroachment into animal habitat.

One thing keeps coming up in our studies: In order to modernise our agriculture, policies must facilitate greater market openness and competition. It’s time for Indonesia to let go of its overprotective instincts and embrace global opportunities.

Lastly, a hearty congratulations to our Associate Researcher, Andree Surianta, for winning the Hadi Soesastro Prize 2021 by the Australian Ministry of Foreign Affairs. Together with CIPS Board Member Dr. Arianto Patunru, he recently published an analysis of Indonesia’s position in global value chains in the Journal on Southeast Asian Affairs.

Do you know someone who’d be interested in our work? Forward this email to them and they can subscribe here!

Salam hangat,

Rainer Heufers

Executive Director

Center for Indonesian Policy Studies


Don't forget to check out and download our policy papers here. Through these papers, we present evidence-based arguments to recommend policy changes that focus on building prosperity and better livelihoods for low-income Indonesians.


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