National Food System Transformation Key to Facing Global Disruption, IPB University Professor Analyzes
Prof Sahara, Professor of the Faculty of Economics and Management at IPB University, emphasized the importance of a comprehensive transformation of the national food system in facing global and domestic challenges.
“Transformation of the food system is no longer an option, but a necessity, especially in the era of President Prabowo’s administration which makes food a national priority,” said Prof Sahara in the Press Conference of the Pre Scientific Oration of Professor of IPB University which was held online, Thursday (6/12).
Indonesia currently ranks 63rd out of 113 countries in the Global Food Security Index (GFSI) with a score of 60,2. This achievement is still below the target of the National Medium-Term Development Plan (RPJMN) which sets a score of 73,2 in 2025 and 82,0 in 2029.
The lecturer of the Department of Economics at IPB University said that the majority of Indonesia’s food production still depends on small farmers who face various obstacles, such as limited land, infrastructure, aging farmers, low education, and price fluctuations.
This condition, coupled with foreign trade policies, makes it even more difficult. “The United States (US) has just implemented a counter-tariff that could make our food prices rise,” she explained.
She also highlighted the declining contribution of the agricultural sector to gross domestic product (GDP)-from 24% (1982) to 12% (2023)-though it still absorbs 28% of the workforce. “This shows that industrialization has not been optimal,” she said.
Productivity and Changing Consumption Patterns
Prof Sahara explained that the growth of Total Factor Productivity (TFP) in Indonesia’s agricultural sector is still low (-2,18% to 3,53%), far below China (4-5%). This means, he explained, increasing production still depends on land expansion, not technological innovation.
On the other hand, people’s consumption patterns are shifting from carbohydrates to products with high nutrition such as vegetables, fruit, meat and milk as the middle class increases. “Increased production must be directed towards high-value-added food,” she said.
Global Policy Impacts and Transformation Solutions
According to Prof Sahara, the US reciprocal tariff policy risks triggering inflation, reducing Indonesia’s food exports, and disrupting agro-industrial sectors such as timber, meat, fisheries, rice, and sugar. The Global Trade and Environment Balance (GTEB) analysis predicts global trade will decline, with Indonesia’s economic growth potentially stagnating at 5 percent.
As a solution, Prof Sahara proposes five pillars of food system transformation:
Integration of agriculture with industry and services through technological innovation. Namely, human resource and institutional development, infrastructure development, increasing access to financing, and strengthening international trade resilience.
She also encouraged the smile curve approach in the food value chain, which means that farmers should get a fairer added value. “Added value should not only be concentrated in the upstream and downstream, but should be enjoyed fairly by farmers as the main actors,” she said.
“The agricultural sector needs to grow 4,6 percent per year to support the national economic growth target of 8 percent. However, in reality, the real growth of this sector has only been 3,5 percent in the last two decades.”
According to her, without a technological leap, the agricultural sector will not be able to sustain the vision of the Golden Indonesia 2045. She emphasized that food system transformation must be carried out holistically from upstream to downstream by involving all stakeholders. (Fj) (IAAS/RWA)
