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Modernizing Indonesia’s Agriculture

Pink Flowers


Girl with Backpack

Aditya Alta

Girl with Backpack

Risti Permani

With both achievements and persistent challenges over the last few decades, ensuring food security remains a priority for policy makers and development efforts in Indonesia. Setting aside some backsliding resulting from the Covid-19 pandemic, Indonesia’s poverty reduction journey has come along way since the Asian financial crisis to less than 10% by2019.

Likewise, meaningful progress has been seen in daily calorie consumption and a declining stunting rate. But despite these gains, many challenges are evident. On the production side, agriculture struggles to promote productivity, community livelihood, and sustainability—a challenge made more pronounced by increased extreme weather events, climate change, and emissions. Meanwhile, on the consumption side,not everyone enjoys access to food and nutrition security equally.

Modernizing agriculture is seen as a potential response to challenges in agriculture. Increased investment in agricultural mechanization and digital technologies provides a critical avenue to transform the sector into a more inclusive, efficient, and sustainable system. With the expected increase in productivity and income—including for smallholder farmers—agricultural modernization will help Indonesia’s economy structurally transform and finally shift off-farm toward higher-paying, higher-productivity sectors outside of agriculture.

The challenges facing Indonesia's food security and modernization efforts in agriculture set the broad context for this book. While solutions to food insecurity are complicated and involve many stakeholders, this book focuses on optimizing the private sector’s role in improving food security. The Center for Indonesian Policy Studies(CIPS) has gathered expertise on a range of topics related to improving Indonesian agriculture and food security and the private sector’s contribution. CIPS is an independent ,non-profit, non-partisan think tank advocating for practical policy reforms informed by evidence-based policy research and analysis. CIPS presents this book as part of its commitment to empowering Indonesians to lead prosperous and peaceful lives by supporting open food trade and agriculture markets to ensure food security and sustainable livelihoods.

Girl with Backpack

Maria Monica Wihardja

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