Country assessment

Indonesia

We assess Indonesia as Exposed (54.6). The country produces 80.2 per cent of the protein it supplies and 93.9 per cent of its animal protein, feeding 281 million people at 77.8 grams a day, and no lane carrying its food imports passes a chokepoint a third party can close.[1][2]

The binding structural constraint sits behind those ratios: the poultry and egg system delivering close to a fifth of national protein runs on 6.2 million tonnes of imported soybean meal, of which Indonesia produces none, and on grandparent breeding stock it cannot reproduce at all.[6][14][15]

The lowest-scoring pillar, however, is access and affordability: on the World Bank/FAO measure published in the July 2026 SOFI report, 68.6 per cent of Indonesians, 195.9 million people, could not afford a nutritionally adequate diet in 2025.[35] A system that produces and moves protein reliably still leaves most of the population unable to afford the diet it is capable of delivering.

The protein system

Indonesian protein rests on four comparable pillars. On the 2023 food balance sheet, rice supplies 29.9 per cent of protein in domestic supply, fish and seafood 16.7 per cent, poultry meat and eggs 17.6 per cent, and soybeans 11.2 per cent, with 29.97 of the 77.8 daily grams of animal origin.[1][3] The diet is poultry-led and fish-heavy, at 15.95 kilograms of poultry meat and 40.42 of fish and seafood per person against 3.01 of beef.[4][5]

The production base is large. Indonesia landed 7.74 million tonnes of wild aquatic animals in 2023, 8.5 per cent of world capture output, farmed 5.61 million more and grew 9.84 million tonnes of aquatic plants, a quarter of world seaweed, ranking third globally for aquatic animals.[9][10] It produced 4.49 million tonnes of poultry meat, 6.89 million of eggs and 34.1 million of milled rice in 2024/25.[1][7]

The gaps are absolute. Indonesia grows no wheat and imported 12.3 million tonnes in 2025/26.[7] It produced 320,000 tonnes of soybeans against 2.7 million tonnes of imports, a crop mattering beyond its tonnage because tempeh and tofu are the affordable protein of daily life.[6] Roughly 80 per cent of its milk is imported, and domestic beef covers about 65 per cent of consumption alongside 228,858 tonnes of imported beef and buffalo meat and 583,418 live Australian cattle in 2025.[16][22][23] Money flows the other way: food was 19.8 per cent of merchandise exports in 2024 against 11.9 per cent of imports, palm oil alone forecast at 24 million tonnes.[6][12]

Durable domestic capacity: 65

Quantitative score 68, adjusted down 3 points

Freshwater is abundant at 7,240 cubic metres per person per year, so the constraint that caps Middle Eastern production does not apply.[1][12] Durability is the weakness. Arable land runs to 0.063 hectares per person, and official figures put paddy losses at 60,000 to 80,000 hectares a year, concentrated on Java where 60 per cent of the population lives; late-2025 floods damaged a further 107,324 hectares.[7][12] Outcomes lag supply: measured household intake averaged 65.04 grams a day in September 2024 against a health ministry benchmark near 57, stunting affected 22 per cent of children under five in 2023, and Highland Papua managed 43.27 grams against 79.6 in West Nusa Tenggara.[12][20]

We applied a downward adjustment of 3 points. Capture output rose 43 per cent between 2010 and 2023, from 5.40 to 7.74 million tonnes, while the fisheries ministry's standing-stock estimate fell from 12.5 million tonnes in 2017 to 12.0 million in 2022 and the share of management areas classed fully exploited rose from 44 to 53 per cent.[9][13] A production series rising while the stock behind it falls measures extraction rather than capacity, and an eroding base justifies the downgrade.

Resource headroom: 57

Quantitative score 52, adjusted up 5 points

Rainfall supports multiple cropping cycles, which is why Indonesia registers 11.3 million hectares of paddy harvested area plus 3.54 million of corn from an arable base near 17.7 million hectares.[7][12] That intensity is backed by real infrastructure and real financing rather than aspiration. Land equipped for irrigation covers 38.0 per cent of arable land, a base of 6.72 million hectares that has held without measured change since 2005.[41] Agricultural credit carries a full ten-year run of official data and an orientation index, parity at 1.00, that rose from 0.483 in 2015 to 0.615 in 2024, a functioning and improving capital market rather than a near-vacuum.[42] Land itself is tight, with agricultural land already covering 29.1 per cent of the territory, so expansion means forest, and arable land per person fell 24.8 per cent between 2000 and 2024, from 0.083 to 0.062 hectares, even as national cropland grew 30.8 per cent, because that growth is tree-crop conversion, palm oil and rubber, not food-crop land.[12][41][43] The two national programmes built to expand the food-crop base directly have not done so. The Merauke food estate in South Papua, planned at 2.32 million hectares, had cleared roughly 41,000 for sugarcane, rice and roads by December 2025.[44] An October 2024 field assessment of the earlier Central Kalimantan peatland estate found only 1 per cent of its 243,216 hectares suited to food crops at all, with half the cleared rice paddy abandoned and realised yields of 3.5 tonnes a hectare against the 4 needed.[45]

The wild fishery has no headroom: the fisheries ministry's own standing-stock estimate fell from 12.5 million tonnes in 2017 to 12.0 million in 2022, and the share of the 11 fisheries management areas classed fully exploited rose from 44 to 53 per cent over the same period.[13] The mix is meanwhile becoming more feed-intensive: compound feed output of 22.5 million tonnes in 2025/26 rises to a forecast 23.6 million in 2026/27, poultry taking 85 to 90 per cent, and aquafeed at 1.6 million tonnes.[6][7] The aquafeed industry's own trade press has flagged the search for local, sustainable alternatives to imported fishmeal and soy as a live concern since at least 2021, without a quantified import share ever being published.[29] The weather agency put the probability of a weak to moderate El Niño from mid-2026 at 50 to 60 per cent,[7] and the 2023 event pushed rice imports to 4.92 million tonnes.[1]

We applied an upward adjustment of 5 points on grounds arable-land statistics cannot see: cropping intensity, since a static hectares-per-person measure treats a system harvesting two or three crops a year as though it harvested one and rests on a financed, irrigated base rather than an aspirational one, and operating scale in low-input aquatic biomass, 9.84 million tonnes of seaweed grown without land or feed.[9] The credit runs to the capability Indonesia already operates, not to the land base or the flagship programmes that have failed to expand it.

Import exposure: 65

Quantitative score 60, adjusted up 5 points

Net protein import dependency is 23.8 per cent of domestic supply, on gross imports of 2.62 million tonnes of protein in 2023.[1] That exposure is concentrated in few commodities, which cuts both ways: most of the system is insulated, and where dependence exists it is total. Wheat is well spread, with Australia at 37.8 per cent of the July 2025 to January 2026 programme, Ukraine 18.3, Canada 16.1 and the United States 12.5.[7][28] Corn splits between Brazil at 50.1 per cent, the United States 26.8 and Argentina 22.9;[7] beef between Australia at 49 per cent, India 36 and Brazil 10.[16] Soybeans are the exception that matters most, 86 per cent of 2024/25 volume being American, so the raw material of tempeh rests on one relationship.[6]

Chokepoint exposure is close to zero. The archipelago straddles the Malacca, Sunda and Lombok straits rather than depending on them, two being internal waters that substitute for one another, and import lanes reach ports on both ocean faces without transiting Hormuz, Suez, Bab el-Mandeb or Panama. We applied an upward adjustment of 5 points, since no dependency ratio captures the difference between sitting inside a chokepoint and sitting astride one. The offsetting concern is internal: moving protein across 17,000 islands is a problem trade statistics do not describe, and the 36-gram provincial intake gap measures how imperfectly it is solved.[20]

Upstream dependence: 38

Quantitative score 42, adjusted down 4 points

This is the binding structural constraint on Indonesian protein. Indonesia produces no soybean meal. It imported a record 6.179 million tonnes in 2024/25, with 6.2 million forecast for 2025/26, predominantly from Brazil and Argentina, entering poultry feed at 20 to 25 per cent inclusion and aquafeed at 30 to 40.[6] That volume carries roughly 2.7 to 3.0 million tonnes of feed protein a year, close to the same order as the approximately 2.9 million tonnes of animal protein the country produces (93.9 per cent of the 3.08 million tonnes of animal protein in domestic supply).[1][6] The 93.9 per cent animal protein self-sufficiency ratio describes a conversion service performed on imported protein.

Genetics are equally absolute. Indonesia imported 691,283 grandparent-stock day-old chicks in 2023, and in February 2026, contracting 580,000 further birds from the United States for about USD 20 million, the government confirmed it still has no grandparent-stock breeding facilities.[14][15] Roughly four-fifths of Indonesian poultry genetics are of United States origin, and the pipeline cannot be restarted domestically within a production cycle.

Fertiliser is split. Potash is wholly imported, 1.52 million tonnes of K2O in 2023 against zero production, and the 575,938 tonnes of P2O5 recorded as domestic phosphate output is made from imported rock, so true dependence exceeds the nominal 54 per cent.[11][30] Nitrogen is a genuine exception at 3.96 million tonnes of production against 2.98 million of use, on domestic gas.[11] Two offsets keep the score off the floor: feed corn, the bulk of the ration by volume, is overwhelmingly domestic at 13.3 million tonnes against 800,000 tonnes of imports,[7] and energy for milling and cold chain is sovereign.

We applied a downward adjustment of 4 points for a self-inflicted risk. After the December 2025 Commodity Balance meeting, the agriculture ministry assigned a subsidiary of state-owned ID Food 60 per cent of the 5 to 6 million tonne soybean meal requirement previously handled by the private sector, plus exclusive rights to 1.5 million tonnes of wheat for feed, atop a licensing regime extended to six commodities including soybean meal.[7][8] USDA records industry warnings that the company lacks importing experience, storage capacity and transparent trading mechanisms, and may hinder supply to smallholders and mills.[7]

Access and affordability: 27

Quantitative score 30, adjusted down 3 points

This is the weakest of Indonesia's six pillars and the reason the overall score falls once distribution is scored rather than headline self-sufficiency. On the World Bank/FAO Cost and Affordability of a Healthy Diet measure as published in the July 2026 SOFI report, 68.6 per cent of Indonesians, 195.9 million people, could not afford a diet meeting dietary guidelines in 2025, against a diet costing 5.09 international dollars per person per day.[35] That is a substantial improvement on the 74.4 per cent recorded in 2017, but it remains high because a diverse, nutrient-adequate basket of fruit, vegetables, dairy and animal protein is expensive relative to income even where staple calories are cheap and reliably supplied. The gap between this figure and Indonesia's other nutrition outcomes is the point: prevalence of undernourishment sits at 6.3 per cent on the 2023 to 2025 average and stunting at 22.0 per cent in 2023, both moderate rather than severe.[12][36] Calorie sufficiency is broadly secured; the dietary diversity a healthy diet requires remains unaffordable for most of the population.

Food price volatility compounds the affordability problem. Year-on-year food CPI inflation swung between minus 2.9 and plus 7.5 per cent across 2023 to 2025, a double-digit range within a single cycle, with a standard deviation of 2.9 percentage points across 36 months.[37] Physical access is uneven rather than absolute. Indonesia's Logistics Performance Index score of 3.0 out of 5 places it 61st of 139 countries in the 2023 assessment, mid-distribution globally rather than at either extreme.[38] The clearer signal sits in the provincial data already cited under capacity: household protein intake in September 2024 ranged from 79.6 grams a day in West Nusa Tenggara to 43.27 grams in Highland Papua, a 45 per cent gap the national averages used elsewhere in this assessment do not show.[20]

Indonesia's unaffordability share is 68.6 per cent, placing the pillar in the 15 to 32 point range, and compares with a world figure of 32.7 per cent on the same 2025 reading.[35] On the pillar's other four indicators undernourishment sits at 6.3 per cent,[36] stunting at 22.0 per cent,[12] food price volatility is the mildest, and physical access is the strongest.[37][38] Those four carry 60 per cent of the pillar's weight against the unaffordability share's 40, which puts the indicators at 30.

We deduct 3 points, taking the pillar from 30 to 27. The national unaffordability figure is a population average, and scoring must account for the distribution an average conceals. The Highland Papua to West Nusa Tenggara gap is demonstrated distributional evidence, not conjecture, and it justifies scoring on the bottom of the distribution rather than the average. It does not duplicate the indicators already scored, whose physical-access component measures national infrastructure and market reach rather than the intake distribution.

Shock endurance: 66

Quantitative score 61, adjusted up 5 points

Endurance comes from substitution breadth and physical reserves rather than purchasing power alone. Behind rice sit 17.2 million tonnes of cassava, sago in the eastern provinces, maize, an artisanal fishery of national reach and a soy-fermentation tradition that has survived every price shock of the past half-century.[1] Reserves are at a historical maximum: 5.37 million tonnes of government rice on 18 May 2026 against consumption near 35 million tonnes a year, plus a 1 million tonne corn reserve under Presidential Decree 10/2025 and machinery reaching 33.24 million rice-aid beneficiaries.[7][17]

Fiscal capacity looked, on GDP per capita alone, like the weakness: at USD 4,925 in 2024, Indonesia cannot outbid Japan or the Gulf on a tight market.[12] Crisis purchasing power tells a more mixed story once reserves, debt and social protection are added. Reserves of USD 145.6 billion covered 5.4 months of imports and government external debt servicing at end-June 2026 on Bank Indonesia's own accounting, close to the 5.51 months recorded for 2025 in the IMF-compiled World Bank series, but both are declining as the central bank defends a rupiah that lost 7 per cent in 2024/25, raising the landed cost of soybean meal.[6][12][21][33] General government gross debt is a moderate 40.2 per cent of GDP in 2024, below most regional peers at Malaysia's 69.8, Thailand's 62.9 and the Philippines' 56.6 though above Vietnam's 31.2, which preserves fiscal space and market access to borrow through a shock.[39] World Bank ASPIRE data show social safety net coverage at 54.6 per cent of the population in 2022, up from 26.7 per cent in 2020 and above the 43.7 per cent recorded in 2018, with benefit adequacy for the poorest quintile nearly tripling between 2018 and 2022, from 6.4 to 18.2 per cent of that quintile's consumption, evidence the system scaled rather than merely announced that it would.[40] That financial buffer offsets, without erasing, the low absolute GDP per capita: commercial soybean meal stocks of 585,000 tonnes still cover barely five weeks of feed use, and no strategic protein-feed reserve exists.[6]

Shock performance is mixed. The 2023 to 2024 El Niño was moderate, yet retail rice prices rose 19.28 per cent year on year and food prices 8.47 per cent in February 2024.[27] The Center for Indonesian Policy Studies argues state logistics is itself part of the friction, with distribution lagging absorption so record reserves failed to cut consumer prices in 2025.[19] The 2022 cooking oil crisis, in which the world's largest palm oil producer banned its own exports to control a domestic shortage, is the clearest case of administrative rather than physical failure.[32] Recovery was real: 34.71 million tonnes produced in 2025, consumer rice imports at zero and reserves past 4 million tonnes, the highest since 1969.[18][19]

We applied an upward adjustment of 5 points for a counter-cyclical hedge reserve disclosures do not register. Indonesia's export basket is food, so in the shocks that raise the cost of imported wheat and soybean meal, the earnings paying for them rise in the same movement, an offset available to very few net protein importers.

Trajectory

Demand is rising while upstream dependence deepens. The Free Nutritious Meals programme reached 61.62 million beneficiaries through more than 25,000 kitchens by March 2026 against a target of 82.9 million, generating demand for roughly 1 million tonnes of chicken meat, and full implementation would need an estimated 675,000 tonnes of soybeans a year for tempeh and tofu alone.[6][7][26] Every incremental chicken and egg it demands is produced with imported soybean meal from imported genetics. Delivery is insecure: the 2026 budget was cut from Rp335 trillion to Rp268 trillion, and the programme's former head was dismissed and then arrested on corruption charges on 3 June 2026.[24][25][34]

Policy pushes hardest where the domestic base can carry it. Rice self-sufficiency is claimed and exports contemplated, though USDA shows 2024/25 consumption of 35.5 million tonnes against 34.1 million of milled production, so the surplus is unproven.[7][18] Subsidised seed for 2.6 million hectares of paddy, 11,000 water pumps and engineered hybrid corn seed all target the feed-energy side, where Indonesia has room.[7] Dairy shows the limit: a 30,000-cow farm broke ground in July 2026 for 180,000 tonnes of milk a year, at least twenty such farms are needed to close an 80 per cent gap, and protective import conditions put roughly a billion dollars of trade in question.[22][31]

Three developments would improve this picture: domestic oilseed crushing or a funded alternative feed-protein route, a grandparent-stock breeding capability, and enforced effort control across the 88 stocks at or beyond their limit. Three would worsen it: further state monopolisation of feed imports, a South American drought coinciding with rupiah weakness, and a strong El Niño before reserves are rebuilt after the 2026 dry season.

The Indonesian case is distinctive: a country that feeds itself well through a system whose single most important input it does not make, cannot make quickly, and has just handed to an inexperienced monopolist.

Sources

  1. Food Balance Sheets, Asia data (Indonesia, 2023) · FAOSTAT, Food and Agriculture Organization (2025 (data 2023))
  2. Food Balance Sheets, Asia data (Indonesia, 2023): protein supply quantity, Grand Total · FAOSTAT, Food and Agriculture Organization (2025 (data 2023))
  3. Food Balance Sheets, Asia data (Indonesia, 2023): protein supply quantity, Animal Products and Vegetal Products · FAOSTAT, Food and Agriculture Organization (2025 (data 2023))
  4. Food Balance Sheets, Asia data (Indonesia, 2023): food supply quantity, Bovine Meat and Poultry Meat · FAOSTAT, Food and Agriculture Organization (2025 (data 2023))
  5. Food Balance Sheets, Asia data (Indonesia, 2023): food supply quantity, Fish and Seafood · FAOSTAT, Food and Agriculture Organization (2025 (data 2023))
  6. Oilseeds and Products Update, Jakarta, Indonesia (ID2025-0045) · USDA Foreign Agricultural Service (2025)
  7. Grain and Feed Annual, Jakarta, Indonesia (ID2026-0010) · USDA Foreign Agricultural Service (2026)
  8. Indonesia Adds Import Licensing Requirements for Feed Ingredients of Plant Origin · USDA Foreign Agricultural Service (2026)
  9. Global Production, FishStat data 2025.1.0 (Indonesia) · FAO Fisheries and Aquaculture Division (2025 (data 2023))
  10. The State of World Fisheries and Aquaculture 2024: total fisheries and aquaculture production · FAO (2024)
  11. Fertilizers by Nutrient, data (Indonesia) · FAOSTAT, Food and Agriculture Organization (2025 (data 2023))
  12. World Development Indicators (arable land, freshwater, agricultural land, GDP per capita, stunting, undernourishment, food trade shares, total reserves in months of imports) · World Bank (2026 (data 2022-2025))
  13. Data show decline in Indonesian fish stocks amid push for higher productivity · Mongabay (2022)
  14. Challenges and constraints to the sustainability of poultry farming in Indonesia · Animal Bioscience 38(4):802-817 (2025)
  15. Indonesia agrees to buy 580,000 US grandparent chickens under trade pact · Jakarta Globe (2026)
  16. Market Snapshot: Beef and Sheepmeat, Indonesia · Meat & Livestock Australia (2026)
  17. Indonesia rice reserves hit record ahead of dry season · ANTARA News (2026)
  18. Indonesia sets sights on rice exports this year · The Jakarta Post (2026)
  19. A record harvest, so why aren't rice prices falling? · Center for Indonesian Policy Studies (CIPS) (2025)
  20. Indonesian protein consumption levels in 2024 (Susenas) · BPS-Statistics Indonesia via Databoks (2025 (data September 2024))
  21. Indonesia's foreign exchange reserves rise in June · Xinhua, reporting Bank Indonesia (2026)
  22. Indonesia launches mega dairy farm in push for milk self-sufficiency · Dairy Business Middle East & Africa (2026)
  23. Indonesia imports 80 percent of milk for consumption, minister says domestic production inadequate · Tempo (2024)
  24. Indonesia allocates Rp335 trillion for free meals program in 2026 · ANTARA News (2026)
  25. Indonesia cuts MBG budget by Rp67 trillion in 2026 APBN · ANTARA News (2026)
  26. MBG program reaches more than 60 million beneficiaries · Cabinet Secretariat of the Republic of Indonesia (Setkab) (2026)
  27. Rice yet again largest driver of inflation in Indonesia · Asia News Network, reporting BPS (2024)
  28. Indonesian wheat imports on the rise · Grain Brokers Australia (2026)
  29. Trends and challenges in Indonesia's aquafeed industry · The Fish Site (2021)
  30. Optimalkan Produksi Pupuk Nasional, Petrokimia Gresik Bangun Komunikasi dengan Berbagai Negara untuk Amankan Suplai Bahan Baku · PT Petrokimia Gresik (Pupuk Indonesia) (2025)
  31. Indonesia's push for dairy self-sufficiency threatens $1bn trade with new import conditions · DairyNews.today (2025)
  32. Indonesia palm oil export ban prompts warnings over food price inflation · Global Trade Review (2022)
  33. Indonesia's foreign reserves increase despite interventions · Central Banking, reporting Bank Indonesia (2026)
  34. Indonesia opens corruption probe into large-scale free meals program (ex-free meal agency head arrested for graft after being sacked) · The Jakarta Post (2026)
  35. Cost and Affordability of a Healthy Diet (CoAHD) data (Indonesia): prevalence of unaffordability, number unable to afford, cost of a healthy diet · FAOSTAT, Food and Agriculture Organization, as published in FAO SOFI (2026 (data 2017-2025))
  36. Suite of Food Security Indicators data (Indonesia): prevalence of undernourishment, 3-year average · FAOSTAT, Food and Agriculture Organization, as published in FAO SOFI (2026 (data 2023-2025))
  37. Consumer Price Indices data (Indonesia): food price inflation, monthly year-on-year · FAOSTAT, Food and Agriculture Organization (2026 (data 2001-2026))
  38. Logistics Performance Index (Indonesia): overall score and global rank · World Bank (2023)
  39. World Economic Outlook Datamapper: general government gross debt (% of GDP), Indonesia and regional comparators · International Monetary Fund (2026 (data 2024))
  40. The Atlas of Social Protection: Indicators of Resilience and Equity (ASPIRE): coverage and adequacy of social safety net programmes, Indonesia · World Bank (2026 (data 2015-2022))
  41. Inputs: Land Use data (Indonesia): land area equipped for irrigation, arable land, cropland · FAOSTAT, Food and Agriculture Organization (2025 (data 2000-2024))
  42. Investment: Credit to Agriculture data (Indonesia): agriculture orientation index for credit, share of total credit · FAOSTAT, Food and Agriculture Organization (2025 (data 2015-2024))
  43. World Development Indicators: total population, Indonesia · World Bank (2026 (data 2000-2024))
  44. Inside Indonesia's Largest Agricultural Expansion Project: The 2.3 Million-Hectare Plan Transforming South Papua · Nusantara Atlas (2026)
  45. Indonesia: The New Old Strategy of Food Estates, citing Pantau Gambut's "Field of False" report (October 2024) · Reporting ASEAN (2025)

What we could not measure

Indonesia's stated 80.2 per cent protein self-sufficiency excludes feed use, so it misses the imported soybean meal that underwrites most poultry and egg output; the animal protein looks more domestic than the feed behind it really is. No dated breakdown of which provinces or income groups drive the 68.6 per cent unaffordability rate exists; the closest evidence is household protein intake, ranging from 43.3 grams a day in Highland Papua to 79.6 in West Nusa Tenggara, which measures intake, not affordability.

Published August 2026 ·How scores are produced