Indonesia's agri-food sector has expanded steadily over the past two decades, supported by rising domestic demand, diversification of exports, and continued investment in production capacity. Yet the environment that has underpinned this growth is shifting. The global trading system is becoming more fragmented, with new tariffs, subsidies, and industrial policies reshaping long-established flows of goods, capital, and technology. For a sector that depends on both imported inputs and open access to export markets, these developments pose material risks to competitiveness and growth. While Indonesia's agricultural base remains resilient, it is not immune to global turbulence. Supply chain reconfiguration, rising input costs and currency fluctuations are among the of the economy, but also a stabilising force domestic forces in detail, assessing how evolving trade patterns, policy choices and market for employment, fiscal revenues, and regional impact on Indonesia's agri-food sector through exports and production costs. investments. The extensive value chain linkages conditions are set to test the sector's resilience, and influence its prospects in the years ahead. affecting agriculture, manufacturing, and services are deeply connected. The evidence presented global economic shifts, the costs of trade, and
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2026-07-29
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