Agro Tembus Industry Investment IDR 85.05 Trillion, Absorb 9.8 Million Workers

Minister of Industry Agus Gumiwang Kartasasmita (Photo: antara)

The Ministry of Industry (Kemenperin) noted that the realization of investment in the agro industry sector reached IDR 85.05 trillion until the first semester of 2025.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the agro industry sector is still a magnet for investors.

"Throughout the first semester of 2025, the realization of investment in this sector reached IDR 85.05 trillion," Agus said in a written statement, quoted on Thursday, October 30.

According to Agus, this achievement was also supported by the absorption of around 9.8 million people or 50.26 percent of the total workforce in the non-oil and gas processing industry.

He added that the agro industry also posted an export value of US$37.38 billion during the first six months of 2025 and a trade balance surplus of US$26.96 billion.

"The data shows that the agro industry is not only a motor of growth, but also pillars of economic equity and the creation of productive jobs," he said.

According to Agus, this achievement is in line with the target of Astacita President Prabowo Subianto and Vice President Gibran Rakabuming Raka, which emphasizes the importance of accelerating industrialization through increasing added value in the country.

"To realize this target, the Ministry of Industry is implementing the New National Industrialization Strategy (SBIN) as a comprehensive framework for strengthening the integrated national industrial system from upstream to downstream," he said.

Through SBIN, the Ministry of Industry spurs the integration of the national industrial supply chain (backward and forward linkage) with the support of smart regulations, guaranteeing the availability of raw materials, increasing efficiency in the production process and strengthening innovation and market access.

"In the context of the agro sector, the industrialization approach is directed to strengthen downstreaming based on natural resources. Raw materials such as cocoa beans, sago, seaweed and copra are encouraged to be processed into high-added derivative products in the country," he said.

In addition, Agus continued, his party continues to encourage the formation of an inclusive agro-industrial ecosystem by strengthening partnerships between industry players, cooperatives and farmers to ensure the sustainability of raw material supply.

The application of green and sustainable industry principles is an important part of this strategy, including through energy efficiency and the application of sustainability certification, such as Rainforest Alliance, UTZ and Organic Certification.

"With these strategic steps, we are targeting the agro-industrial sector to be able to generate added value up to 180 times compared to raw material products while strengthening Indonesia's position in the global market," concluded Agus.