Indonesia's Agriculture Minister seeks doubling of 2027 budget to $3 billion

Indonesian Minister of Agriculture Amran Sulaiman has formally requested a significant increase in the Ministry of Agriculture's budget for 2027. The proposal seeks to raise the allocated funds from the initial 23.23 trillion IDR to 45.66 trillion IDR, a near doubling of the budget.

During a hearing with Commission IV of the House of Representatives, Minister Amran urged approval for the revised indicative ceiling. The current 23.23 trillion IDR budget for 2027 is sourced from various streams, including state revenue, non-tax state revenue, public service agencies, foreign loans, and Islamic sharia bonds. This budget is primarily allocated to mandatory basic expenditures, such as employee salaries (9.62 trillion IDR), and national priority work programs (13.61 trillion IDR).

The proposed increase is intended to bolster key agricultural programs. A substantial portion, 11 trillion IDR, is earmarked for the development of integrated food production areas, with an additional 1.8 trillion IDR for plantation area development. The ministry has also outlined ambitious production targets for the coming year, including 34 million tons of rice, 18.23 million tons of corn, and 245 million tons of palm oil, among other commodities.

Minister Amran's request for an additional 22.43 trillion IDR aims to support these production targets and advance programs such as livestock downstreaming. The ministry's detailed allocation plan includes significant funding for various directorates general, such as Land and Irrigation (7.06 trillion IDR), Food Crops (2.15 trillion IDR), and Plantations (1.68 trillion IDR), reflecting a strategic push to enhance agricultural output and food security.

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We kindly ask that Madam Chair and the leadership and members of Commission IV approve the proposed revision of the indicative ceiling.