CORE Suggests Government Evaluate Agricultural Strategies To Maintain Economic Growth

JAKARTA - Agricultural observer from the Center of Reform on Economics (CORE), Eliza Mardian, advised the government to conduct a thorough evaluation of the agricultural sector development strategy in order to maintain sustainable economic growth.

He emphasized the importance of structuring roles between ministries so as not to overlap, especially between the Ministry of Agriculture (Kementan) and the Ministry of Trade (Kemendag).

"If you want economic growth to continue to be high and sustainable, the Ministry of Agriculture should focus on strengthening the upstream sector, not carrying out the main tasks of the Ministry of Trade which should carry out supervision on the downstream side," said Eliza when contacted by VOI, Wednesday, August 6.

He also highlighted the practice of mixing or mixing agricultural commodities such as rice which has recently occurred. According to him, instead of boosting the economy, this practice is actually detrimental to consumers and the state.

"This supply does not boost the economy, it actually harms consumers and the government itself. Some of the commodities subsidized are not on target because there is a misappropriation of the dipolos," said Eliza.

Eliza said, if the government does not immediately improve the supervisory system and clarify the institutional role, then the development target of the agricultural sector will be difficult to achieve.

The Agriculture Sector Becomes The Backbone Of The Indonesian Economy

The government claims that Indonesia's economic growth in the second quarter of 2025 recorded positive performance. Based on data from the Central Statistics Agency (BPS), the national economy grew by 5.12 percent (year-on-year) and 4.04 percent (quarter-to-quarter).

In the midst of global uncertainty, the agricultural sector appears as the backbone of the national economy. In terms of production, the agricultural, forestry and fishery business fields in the second quarter recorded the highest growth of 13.53 percent compared to the previous quarter which only recorded 9.74 percent.

The contribution of this sector to Gross Domestic Product (GDP) reached 13.83 percent, making it the second largest sector after the processing industry.

Increased agricultural production is driven by various strategic government policies such as accelerating planting, pumping programs, and increasing the allocation of subsidized fertilizers.

Minister of Agriculture (Mentan) Andi Amran Sulaiman previously stated that this high growth was the result of a real collaboration between the government, farmers, and all stakeholders.

"The growth in the agricultural sector of up to 13.53 percent is not a coincidence. This is the result of real programs that directly touch the needs of farmers. Pumpization, faster distribution of fertilizers, and infrastructure support have proven to have a big impact," said Amran, Tuesday, August 5.

The Ministry of Agriculture is committed to continuing to strengthen national priority programs such as expanding planting areas, replanting palm oil, and modernizing agriculture. Indonesia looks to a more productive, resilient, and sustainable agricultural future.