Government to Boost Agriculture, Prabowo’s Favored Sector, to Navigate Global Uncertainty
Key Takeaways
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JAKARTA, Investortrust.id — The Indonesian government plans to accelerate development in the agriculture sector, one of President Prabowo Subianto’s closest policy priorities, as a key driver of economic growth amid rising global uncertainty, according to the Finance Ministry’s Director General of Economic and Fiscal Strategy, Febrio Nathan Kacaribu.
“Perhaps what we often overlook is the agriculture sector,” Febrio said during the Investortrust Economic Outlook 2026 seminar in Jakarta on Wednesday, Nov. 5, 2025. “This sector remains very close to President Prabowo’s heart.”
He emphasized that agriculture continues to play a crucial role in employment and national output, contributing 28.15% to Indonesia’s total workforce and 14.35% to GDP. Based on the August 2025 Labor Force Survey, out of 146.54 million employed Indonesians, around 41.25 million work in agriculture.
The sector expanded 4.93% year-on-year in the third quarter of 2025, rebounding strongly from 1.65% in the previous quarter. The growth was supported by a 14% surge in rice production, which lifted national rice reserves to around 4 million tons.
“One of the key highlights is that rice production has increased by about 14%, which strengthens our national stock,” Febrio said. “Food security is a real issue. When facing global challenges, we need food security.”
The government sees agriculture not only as a buffer against external shocks but also as a foundation for inclusive growth in rural regions, where most of Indonesia’s workforce is concentrated.
Alongside agriculture, Febrio noted that the government will revive the manufacturing sector through debottlenecking policies—efforts to remove bureaucratic and logistical barriers that slow down industrial activity.
On the fiscal side, the Prabowo administration will push ministries and government agencies to frontload spending at the beginning of 2026. The goal is for ministries with large budgets to disburse most of their allocations in the first quarter to sustain momentum after a strong fourth quarter in 2025.
“We expect that positive sentiment built from high growth in Q4 2025 can continue into Q1 2026,” he said. “The idea is to keep confidence and economic activity moving forward.”