UNS Economist: Implementation Of Organic Agriculture Can Accelerate Agro Industry Advancement

JAKARTA - University of Sebelas Maret Surakarta (UNS) economist Ernoiz Antriyandardi said the implementation of organic farming in the national agricultural system could directly accelerate the promotion of the agro industry, considering that the products produced from this system are healthier.

"Organic farming produces agricultural products that are safer for consumption, so that they can advance agroindustry," he said in Jakarta, quoted from Antara, Saturday, August 24.

According to him, through the implementation of the organic farming scheme, the community is presented with diversification of quality agro-industrial products, because this farming system uses natural inputs, such as organic fertilizers and organic pesticides, and does not use synthetic chemicals.

He said the agricultural concept can also ensure sustainable and safe food production, as well as maintain ecosystem balance for future generations.

In addition, Ernoiz said the ongoing positive impact (multiplier effect) felt for entrepreneurs in the agro sector if they implemented an organic agricultural scheme, namely reducing production costs, added value of products (hilirization), and improving the welfare of farmers.

Therefore, according to him, in order to realize this, support and incentives are needed by the government, such as education and training, cooperation with the private sector, local market development, and improvement of supporting infrastructure.

"Building processing and distribution facilities specifically for organic products, as well as ensuring an efficient supply chain for organic inputs such as natural fertilizers and pesticides," he said.

The Ministry of Industry (Kemenperin) noted that in 2023 the food and beverage industry, which is included in the agro industry, contributed 39.10 percent to the gross domestic revenue (GDP) of the non-oil and gas industry and 6.55 percent of the national GDP.

The sector also recorded a positive trade balance of 25.21 billion US dollars with an export value in 2023 reaching 41.70 billion US dollars and imports of 16.49 billion US dollars. Meanwhile, investment in this sector continues to grow with the development of investment realization reaching IDR 85.10 trillion in 2023.