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Jakarta Post

Investment, financing key to sustaining agriculture

  • Dzulfiqar Fathur Rahman


Jakarta   /   Wed, September 2 2020   /  01:00 am
(Clockwise, from upper left) Financial Services Authority (OJK) senior analyst at the Directorate of Financial Technology Regulation, Licensing and Supervision, Tomi J. Irianto, Operations Officer at IFC's Financial Institutions Group Nyoman Yogi, TaniHub Group President Panmitra Wineka, The Jakarta Post Journalist Yunindita Prasidya, Agriculture Minister Syahrul Yasin Limpo, Center for Indonesian Policy Studies (CIPS) head of research Felippa Amanta and Indonesian Farmers Union (SPI) chairman Henry Saragih pose during The Jakarta Post webinar Jakpost Up Close, Land without farmers: Invest in agriculture, on Tuesday, Sept. 1, 2020.(JP/-)

The Indonesian agriculture sector is in desperate need of increased investment and financing, despite having proven resilient during the pandemic. The agriculture sector grew 2.19 percent year-on-year in the second quarter of this year, at a time when Indonesia's GDP contracted 5.3 percent. "These promising figures demonstrate that agriculture can become a powerful engine to resuscitate the economy. Not only has the sector proven its hardiness during the crisis, it has the potential to create additional jobs and employ millions more workers," said Agriculture Minister Syahrul Yasin Limpo during a virtual talk hosted by The Jakarta Post. However, the sector has suffered from a low appetite for investment, especially from foreign investors. In 2019, foreign direct investment (FDI) in the sector accounted for just 3 percent of total FDI, according to da...