Indonesia allocates Rp164.4 T to boost food security programs in 2026

  • Published on 19/08/2025 GMT+7

  • Reading time 3 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

Minister of Finance Sri Mulyani Indrawati has targeted food security budget of Rp164.4 trillion (US$10.1 billion) for 2026, representing a 5.9 percent increase from the Rp155.2 trillion budget in 2025 and reflecting the impact of agricultural land and infrastructure development, as well as support for agricultural tools, facilities, and infrastructure.

Furthermore, as a response to the impact of rising food prices, the government is also distributing food assistance to low-income communities sourced from the Government Food Reserve (CPP) stock. Previously, government investment support for the procurement of CPP stocks had been received starting in 2025.

The 2026 food security budget is directed towards three major segments: production, distribution & food reserves, and consumption. On the production side, Sri Mulyani has budgeted Rp114.1 trillion, with the following details:

● Fertilizer subsidies of 9.62 million tons, valued at Rp46.9 trillion;

● Rice paddy development and land optimization covering 550,000 hectares with a budget of Rp19.7 trillion;

● Assistance with 37,000 units of pre-harvest agricultural equipment and machinery for food crops;

● Construction of 15 dams and irrigation units covering 104,000 hectares with a budget of Rp12.0 trillion; Development of 2.1 million hectares of rice paddy fields; Assistance with 63.4 million broodstock seeds and 70 units of fishing gear;

● The Red and White Fishermen's Village Program covers 250 villages and a national salt program covering 1,000 hectares worth Rp6.6 trillion;

● Special Allocation Funds (DAK); and

● Village Funds for food security worth Rp12.2 trillion.

Second, food distribution and reserves worth Rp29.9 trillion:

● Construction of 103 km of farm roads;

● Improvement of facilities and infrastructure at fishing ports;

● Procurement of food reserves through the State Logistics Agency (Bulog) for rice and unhusked rice totals 3 million tons with a budget of Rp22.7 trillion.

Third, consumption of Rp6.4 trillion:

● Food insecurity assistance for 64.8 thousand people;

● Affordable food programs for 39 community groups;

● Stabilization of Food Supply and Prices (SPHP) with a budget of Rp5.8 trillion.

President Prabowo Subianto has earlier stated that there are three priority food programs that will utilize the 2026 State Budget.

The three programs are part of strengthening the function of Bulog worth Rp22.7 trillion, the construction of food barns worth Rp53.3 trillion, and fertilizer subsidies worth Rp46.9 trillion for 9.62 million tons.

"We must achieve food self-sufficiency, especially in rice and corn, maintain price stability, ensure the prosperity of farmers, fishermen, and ensure consumer security. Indonesia must be sovereign in food matters," Prabowo said during his Financial Note speech at the House of Representatives (DPR) on Friday, August 15, 2025.

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