Testing the Resilience of the Agricultural Sector as the Backbone of Indonesia's Economy The agricultural sector continues to contribute as an economic support. Red: Dwi Murdaningsih

By: Prima Gandhi, Agricultural Economic Observer IPB REPUBLIKA.CO.ID, The agricultural sector has once again demonstrated its capacity as one of the key pillars of Indonesia's economy. Amidst global uncertainties and inflation threats, 2025 BPS data underscores the role of the agricultural sector in supporting Gross Domestic Product (GDP), employment, and exports. However, behind these achievements, there are a number of challenges that demand more adaptive and sustainable policies. GDP Stability: Achievements and Risks The agricultural sector's GDP growth of 10.52% in Q1 2025 is indeed commendable. The increase in contribution from 12.66% in Q1 to 13.83% in Q2 has been an economic support and inflation suppressor, particularly thanks to the projected bumper harvest reaching 33.19 million tons of rice by November 2025. Nevertheless, most of this growth is still reliant on short-term policies such as accelerated planting, mechanization, and fertilizer subsidies. To ensure ...