In-Depth Analysis of Food Sovereignty Amid Global Uncertainties
Global uncertainties caused by geopolitical conflicts, monetary policy dynamics, and climate change have underscored the importance of comprehensive strategies to maintain national food sovereignty. Collaboration between the government, businesses, and financial institutions is essential to achieve the goal of food sovereignty.
As is well known, geopolitical conflicts in the Middle East have had a significant impact on the global food sector, including Indonesia. The International Monetary Fund (IMF) states that these conflicts have caused energy prices to surge, leading to a domino effect of rising fertiliser prices.
Most nitrogen fertilisers use natural gas as a raw material. When gas prices rise, planting costs increase accordingly. Projection data shows the global food index rising from 93.3 in Q4-2025 to 99.2 in Q1-2026, then to 103.6 in Q2-2026.
Annually, global food prices are projected to rise by 6% in 2026, directly affecting many countries as prices for wheat, corn, vegetable oils, and rice are heavily influenced by transportation costs and agricultural input expenses.
In addition to geopolitics, developments in monetary policy, such as benchmark interest rates, can also impact the food sector. High interest rates typically lead to higher bank loan rates, affecting cost burdens for players in agriculture, livestock, and food logistics.
Climate change also brings significant impacts to the food sector. The Food and Agriculture Organization (FAO) in a report released on 22 April 2026 states that more than 1 billion people worldwide are currently exposed to the threat of extreme heat.
The agricultural sector bears a heavy burden from this extreme heat, as most activities take place in open spaces under the sun with limited protection. Prolonged extreme heat will trigger physical damage to crops, livestock, fish, trees, and even humans.
Amid the unpredictable uncertainties, Bank DBS Indonesia provides clarity, stability, and trusted guidance so that customers and clients can move forward with confidence. As a trusted partner for business growth, Bank DBS Indonesia serves as a bridge between global capital and the real economy, helping corporations interpret market signals, manage risks, and make sound long-term decisions.
Bank DBS has been recognised as the safest bank in Asia for 17 consecutive years. During this period, stability has always been a priority for Bank DBS Indonesia, even as the world faces uncertainties.
The strength of Bank DBS Indonesia lies not only in financing but also in supporting clients with deep insights, enabling every client to make decisions with confidence. Through Asian connectivity and deep sectoral expertise, Bank DBS Indonesia supports customers in optimising capital allocation, restructuring supply chains, and managing cross-border exposures amid volatility.
Bank DBS Indonesia also connects individuals and corporations with integrated solutions across Asia. DBS’s ambition is to be the Best Bank for a Better World by creating sustainable and inclusive growth.
Furthermore, Bank DBS Indonesia has several key expertise areas to play a strategic role in addressing disruptions and building food resilience. In this regard, Bank DBS Indonesia has effective risk management and adaptability, while navigating the complexities inherent in dynamic markets and providing tailored solutions to meet evolving client needs.
Additionally, Bank DBS Indonesia has the expertise to empower clients to reconfigure their supply networks, build stronger resilience, and ensure business continuity amid uncertainties.
By leveraging data-based insights, Bank DBS Indonesia facilitates efficient decision-making and helps manage an increasingly complex financial landscape. The goal of Bank DBS Indonesia is to ensure clients can face tough challenges with confidence, keeping the future secure and enabling them to contribute to a stable and prosperous economy.
Despite the existing challenges, the Bank recognises the vast potential and the need for innovative financing solutions that drive growth and sustainability. Bank DBS Indonesia sees significant potential in financing for business development. Evolving banking requirements allow Bank DBS Indonesia to proactively support the expansion and strategic investments of corporate customers.
In line with global market diversification, new financing flows are emerging along these new trade corridors, creating promising opportunities. Bank DBS Indonesia offers a range of comprehensive solutions, including working capital, capex financing, strategic consulting services, global financial market services, and global transaction services.
As the “Best Bank for ESG”, Bank DBS Indonesia is committed to supporting sustainable agribusiness, including the implementation of low-carbon farming practices. For Bank DBS Indonesia, sustainability is no longer an option but a primary focus in the food and agribusiness industry.
Bank DBS is supported by a strong presence in 19 global markets with a deep focus on the Asia region. This extensive network drives cross-border connectivity and collaboration, which is crucial for navigating today’s interconnected world.
To delve deeper into the challenges in the food sector and the contributions of business and finance in realising food sovereignty, CNBC Indonesia is holding a Coffee Morning with the theme “Securing Indonesia Food Sovereignty through Value Chain and Financing Amid Global Uncertainties”.