InfoSAWIT, JAKARTA – The performance of the national agricultural sector shows encouraging achievements over the past year. Minister of Agriculture, Andi Amran Sulaiman, in the press conference on One Year Performance Achievements of the Ministry of Agriculture, stated that the contribution of Gross Domestic Product (GDP) from the agricultural sector grew significantly to 13.8%, the highest among other sectors. This figure was also conveyed by the Ministry of Finance in a working meeting with the DPR RI.
In addition, the Farmer's Exchange Rate (NTP) also experienced an increase to 124.36, the highest level in recent years. This increase was driven by the policy of adjusting the Government Purchase Price (HPP) from Rp5,000 to Rp6,500 per kilogram, which had a positive impact on farmers' welfare and increased paddy absorption to 4.2 million tons.
"This is the result of hard work that is praiseworthy. Farmers enjoy better prices, while harvest absorption reaches the highest record," said Amran, monitored by InfoSAWIT, Wednesday (22/10/2025).
On the other hand, agricultural product exports also surged 42.19% compared to 2024, while labor absorption in the agricultural sector continues to increase, especially from millennials who are now starting to be interested in modern agriculture through support for tools and agricultural mechanization.
Outstanding achievements are also seen in national rice production, which increased from 30 million tons in 2024 to 33.19 million tons this year. The Central Statistics Agency (BPS) estimates production until the end of the year could reach 34.33 million tons, up 4 million tons—the highest increase in Indonesia's history.
"This leap in production of this magnitude is an extraordinary achievement and has been recognized by international institutions like FAO," added Amran.
In line with the production increase, the government has also issued 18 Presidential Instructions (Inpres) and Presidential Regulations (Perpres) supporting irrigation revitalization and strengthening the food security system. Corn production has also increased significantly and is projected to lead Indonesia towards food self-sufficiency in 1-2 months, with estimated production reaching 34 million tons.
To maintain production sustainability, the Ministry of Agriculture has also carried out major reforms in subsidized fertilizer management. Amran emphasized that regulations are now simpler, so fertilizer distribution is no longer hindered by lengthy bureaucracy. The total volume of fertilizer already distributed reaches 9.55 million tons, while fake fertilizer findings are only about 2% of the total market and have been followed up by law enforcement.
"Fertilizer prices have now dropped. Urea from Rp112,500 to Rp90,000 per sack, and NPK from Rp2,500 to Rp1,840 per kilogram. If there are distributors or retailers who raise prices above government standards, their licenses will be immediately revoked," he stressed.
The Ministry of Agriculture has also opened direct complaint contacts for farmers experiencing fertilizer distribution problems. To date, 3,029 retailers have had their licenses revoked for proven violations of price regulations.
"This concerns the livelihood of many people. When fertilizer prices drop, NTP rises, farmers' welfare increases, and automatically production also increases," said Amran.
As part of the national agricultural transformation, the Ministry of Agriculture continues to encourage the downstreaming of agricultural products, such as processing coconuts into Virgin Coconut Oil (VCO) and developing the downstream cocoa industry. This step is expected to increase the added value of local products while strengthening Indonesia's export competitiveness in the global market. (T2)
