In an ambitious effort to ramp up national rice production, Indonesia’s newly established state farm company, Agrinas Pangan Nusantara, plans to invest around IDR 8 trillion (approximately USD 479 million) through the end of 2026. The investment will fund the acquisition of modern agricultural machinery, drones, satellite monitoring systems, and the construction of 20 “food production centres” across the country—each outfitted with rice mills, silos, dryers, and feed mills. The firm expects to receive around 225,000 hectares of land from the Ministry of Agriculture and may either lease equipment to small farmers or run operations directly to reach an output capacity of 4 million metric tons annually.
This move is part of President Prabowo Subianto’s broader vision of Indonesia achieving rice self-sufficiency. The company has already begun developing one production centre in South Sumatra on 12,000 hectares of military-owned land, employing more advanced technology than commonly used in the country. With an initial capital injection of IDR 700 billion (≈ USD 42 million) from its parent, Danantra Indonesia, Agrinas plans to leverage bank financing and public funds to cover the rest. Over time, officials expect mechanization to reduce labor costs and increase yields, helping close the gap between current production and national demand.
