To alleviate inflationary pressures on their food expenses, Jakartans are moving towards home-growing practices. Authorities have encouraged residents to cultivate fruits and vegetables in containers and pots in response to the growing issue of food insecurity in Indonesia.
However, the practice must be adopted on a large scale to have a meaningful impact on vegetable and food prices and free up land for other crops.
Urban farming has been gaining momentum worldwide.
“Countries with large, growing populations, such as Indonesia, will see their urban population increase by huge numbers yearly, necessitating the rapid expansion of cities,” said Neralla Rama Ravi Teja, Consumer Analyst at GlobalData.
“Amid such a scenario, Indonesia has no option but to depend on urban farming to meet its growing food needs.”
Indonesia's urban population share will increase from 57.9 percent in 2022 to 62.8 percent in 2030, while its agricultural land will shrink considerably.
Along with shrinking agricultural land, the adverse impacts of climate change, water scarcity, and increasing temperatures are hampering food production in Indonesia. High food inflation has threatened food security.
“For instance, in February 2024, prices of premium-quality rice increased by 22.9 percent annually, according to the Central Statistics Agency (BPS). The El Niño phenomenon resulted in lower-than-usual rainfall in 2023, hampering rice harvest,” said Tim Hill, Key Account Director, SE Asia, GlobalData.
“While the El Niño effect is expected to ease by mid-2024, water scarcity and higher-than-usual temperatures will remain serious issues for the agriculture sector.”
Cultivating vegetables and fruits in their backyards is cost-effective for many consumers. By reducing their reliance on markets for purchases, consumers can stay less affected by volatile price movements due to external factors.
“Low-income households will benefit from this shift, with sporadic bouts of steep inflation not destroying their finances.”
Besides ensuring a fresh and cost-effective supply of vegetables and fruits, the practice will free up land for cultivating staples and help control food inflation.
According to GlobalData’s 2023 Q4 consumer survey, 56 percent of Indonesian consumers consider “organic” an essential feature of products they purchase; 70 percent consider “natural” essential.
