Jakarta, March 7, 2025 — Siti Wahyuningrum, S.ST, M.Si, during a guest lecture delivered to 6th-semester students of the ESL Department as part of the capstone course preparation, stated that the Indonesian Government, through the Coordinating Ministry for Economic Affairs, reaffirmed its commitment to supporting the agricultural sector as the backbone of the national economy. Amid global uncertainty due to geopolitical turmoil and protectionism from developed countries, adaptive and strategic macroeconomic policies continue to be promoted to ensure the resilience and recovery of the agricultural sector.

According to the latest report, global economic growth in 2025 is projected to slightly increase to 3.3%, although it remains below the historical average. Meanwhile, Indonesia’s economy is predicted to grow steadily at 5.1%, an improvement from 2024’s rate of 5.03%.

The agricultural sector, which is the third-largest contributor to the national GDP, experienced a contraction of 3.75% in early 2024 due to the effects of El Niño, which delayed the rice planting season. However, the major harvest expected in April-May 2024 is anticipated to drive significant recovery in the second quarter and sustain growth in the following quarters.

The government is also strengthening food security programs with various stimuli, including fertilizer subsidies, food assistance, and optimizing the distribution of People’s Business Credit (KUR) for farmers. The “Closed Loop” partnership model — involving farmers, businesses, and the government — continues to expand. This program has proven to increase farmers’ incomes by 31.85%, ensuring price stability and market access.

“Despite escalating global challenges, we remain optimistic that Indonesia’s agricultural sector will continue to grow positively. The right macroeconomic policies will ensure our farmers keep producing, enhance competitiveness, and contribute more significantly to national economic recovery,” said the Deputy for Economic Cooperation and Investment Coordination at the Coordinating Ministry for Economic Affairs.With this strategy, the agricultural sector is expected not only to survive but to become more productive, capable of meeting domestic needs, and competing in global markets.