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Home GovAct

Agriculture Ministry’s Budget Rises to USD1.8bn in 2025

Haris Sunandar by Haris Sunandar
January 3, 2025
in GovAct
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agriculture ministry
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Heaptalk, Jakarta — The Indonesian Ministry of Agriculture (Kementan) is set to receive a significant budget increase in 2025, with a total allocation of Rp29.37 trillion. This follows the decision of the Budget Committee (Banggar) of the House of Representatives (DPR RI), which approved an additional Rp21.49 trillion to the previously allocated Rp7.91 trillion.

“After discussions with the DPR RI Budget Committee and a letter from the Directorate General of Budget on September 11 regarding budget adjustments for ministries and institutions, it was agreed that the Ministry of Agriculture would receive an additional Rp21.49 trillion. This brings the total budget for next year to Rp29.37 trillion,” Deputy Minister of Agriculture Sudaryono stated.

The additional funding will primarily support the “Quick Wins” program initiated by President-elect Prabowo Subianto. Approximately Rp15 trillion will be allocated to create 150,000 hectares of new rice fields and intensify the cultivation of 80,000 hectares of existing farmland.

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“The remaining Rp6.4 trillion will fund non-Quick Wins programs, with Rp4.3 trillion dedicated to increasing rice and maize production and Rp2.13 trillion for boosting meat and dairy production,” Sudaryono added.

Minister of Agriculture Andi Amran Sulaiman expressed gratitude to Indonesian farmers for President Prabowo’s strategic decision to increase the base prices of rice and maize in 2025. The government raised the floor price of unhulled rice from Rp6,000 to Rp6,500 per kilogram and maize from Rp5,000 to Rp5,500 per kilogram.

“On behalf of Indonesian farmers, we extend our deepest gratitude to President Prabowo Subianto. His extraordinary attention to the agricultural sector and farmers is commendable,” Minister Amran said.

Minister Amran also acknowledged President Prabowo’s approval of critical policies for developing and revitalizing irrigation infrastructure. Improving irrigation systems is expected to enhance the planting index (IP) and increase rice productivity.

“The President has approved primary, secondary, and tertiary irrigation projects covering 2 million hectares in collaboration with the Ministry of Public Works and Housing, with a budget of Rp12 trillion for nationwide implementation,” Amran revealed.

Additionally, the President has addressed fertilizer distribution issues. Starting January 1, 2025, farmers will benefit from a simplified process to access subsidized fertilizers, with the allocation increased to 100% or 9.55 million tons. According to a Presidential Regulation, the Ministry of Agriculture will allocate the fertilizer, which will then be distributed by Pupuk Indonesia directly to farmer groups.

Tags: agriculture ministry

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