Key insights and market outlook
Between 2019 and 2025, Indonesia has lost 554,000 hectares of rice fields to industrial and residential development. Minister of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), Nusron Wahid, highlighted that this land conversion threatens national food security. To address this, Nusron emphasized the need for strict spatial planning through Regional Spatial Plans (RTRW) that include protected agricultural areas.
Indonesia has experienced significant loss of agricultural land between 2019 and 2025, with 554,000 hectares of rice fields converted to industrial and residential use. This substantial change in land utilization has raised concerns about the country's ability to maintain food security.
Minister Nusron Wahid of ATR/BPN emphasized that this conversion threatens national food security and stressed the importance of proper spatial planning. The government is focusing on implementing Regional Spatial Plans (RTRW) that specifically include Sustainable Food and Agricultural Land (LP2B), Standard Rice Fields (LBS), and Protected Rice Fields (LSD) designations.
The minister has urged regional leaders to incorporate these protected land categories into their RTRW to prevent further conversion. The goal is to create a legal framework that safeguards agricultural land for future generations while balancing development needs.
This policy initiative represents a critical step in addressing Indonesia's food security challenges. By protecting agricultural land through comprehensive spatial planning, the government aims to maintain rice production levels and ensure long-term food sustainability.
Agricultural Land Conversion
Spatial Planning Policy Update