Indonesia’s agri-food economy is projected to see significant growth by 2025, driven by increased domestic demand and export potential, according to a recent report by Oxford Economics. The study, titled ‘From Farm to Table: The Indonesian Agri-Food Economy in 2025 and the Road to Competitiveness,’ outlines the sector’s opportunities and challenges in the coming years.
Analysts note that Indonesia’s vast agricultural resources and growing middle class position it well for expansion. However, infrastructure gaps and regulatory hurdles remain key obstacles. ‘The sector could contribute substantially to GDP if these issues are addressed,’ said one economist familiar with the report.
Government officials have signaled plans to boost agricultural productivity through technology adoption and better supply chain management. ‘We are committed to making Indonesia a global agri-food hub,’ a senior agriculture ministry official stated anonymously.
Looking ahead, experts emphasize the need for private sector involvement and sustainable practices to ensure long-term competitiveness. The report suggests that targeted investments could yield high returns, particularly in processing and logistics.