Indonesia's Vegetable Business Value Estimated to Reach Rp120 Trillion, Food System as Main Challenge

JAKARTA, KOMPAS.com - The economic potential of the vegetable sector in Indonesia is considered very substantial, reaching Rp120 trillion. This was stated by agriculture expert Bayu Krisnamurthi in Jakarta on Wednesday (22/4/2026). Bayu said that this large opportunity is accompanied by complex challenges in managing the food system, which differs from other commodities. “The business potential is quite large, around Rp120 trillion per year. For the Free Nutritious Meals (MBG) programme alone, theoretically, it requires about Rp10 trillion just for the vegetables,” Bayu stated. He explained that the vegetable food system has unique characteristics because it relies on fresh products that cannot be stored for long like rice or meat. This means vegetable availability must be maintained daily, from production to distribution. “Vegetables cannot be stored for long. They must be available fresh every day. That means production, logistics, to retail must operate every day as well,” he clarified. Nevertheless, various major challenges still loom over this sector. Increasingly unpredictable climate change is one of the main factors affecting production. In addition, rising fertiliser and packaging material prices, limited land availability, and vegetable waste issues further complicate the situation on the ground. “Climate change is becoming more uncertain, rain can come unpredictably and that can damage crops. Not to mention fertiliser prices, plastic, and increasingly limited land,” he revealed. As a solution, Bayu emphasised the importance of applying technology in developing the vegetable sector, from innovations in climate-resilient seeds to urban farming developments like hydroponics and aeroponics. “Urban farming, hydroponics, aeroponics are alternatives that we can pursue and as a mainstay to face future challenges,” he asserted.