Enviro News Asia, Jakarta – Indonesia’s agro industry is experiencing significant growth, establishing itself as a key sector in strengthening the national economy. With abundant natural resources, the agro industry has demonstrated outstanding performance.
“With supportive regulations and continuous investment, we are optimistic that this sector will continue to grow and remain competitive in the global market. Moreover, we have a vast domestic market potential that needs to be optimized by local industries, including the agro sector,” said Minister of Industry Agus Gumiwang Kartasasmita in an official statement in Jakarta on Friday (March 28).
The Ministry of Industry recorded that the agro industry grew by 5.20% and contributed 8.89% to the national Gross Domestic Product (GDP) in 2024. This highlights the vital role of the agro industry in the national economic structure, particularly through the non-oil and gas processing sector, which accounted for 51.81%.
“The agro industry not only drives economic growth but also employs more than 9.37 million people. This means the sector plays a crucial role in improving the welfare of communities across Indonesia,” said the Minister of Industry. Some of the leading subsectors in the agro industry include the food and beverage industry, as well as the wood, paper, and furniture industries.
However, the agro industry also faces various challenges, such as fluctuations in raw material prices, changes in global regulations, and the impact of climate change. “Therefore, we must anticipate these challenges with adaptive policies and technological innovation. Government support, sustainable investment, and enhanced competitiveness are key to ensuring the agro industry continues to develop sustainably,” Agus added.
In the context of international trade, the agro industry’s trade balance has shown positive results, with export values reaching USD 67.08 billion and a total export volume of 67.07 million tons in 2024. “Indonesia’s agro products are becoming more dynamic in terms of both quality and quantity, with the processed food and beverage sector contributing USD 41.4 billion. A balanced export-import ratio is also key to ensuring the sector’s sustainability,” the Minister of Industry stated.
Meanwhile, investment realization in the agro sector has also shown promising growth, with total investment reaching IDR 206.3 trillion. This includes IDR 126 trillion from foreign capital and IDR 80.4 trillion from domestic capital. “This reflects strong business confidence in the long-term prospects of this industry,” Agus emphasized.
He further stated that this remarkable performance indicates that Indonesia’s agro industry in 2024 is creating a dynamic and opportunity-filled ecosystem. “We invite all stakeholders, including ministries, relevant institutions, business players, and the public, to collaborate in maintaining the sustainable growth, high competitiveness, and adaptability of the agro industry amid the ever-evolving global challenges,” Agus concluded.
