Jakarta needs to scale up urban farming amidst growing urban population: report

The urban population is expected to increase to 62.8% in 2030, GlobalData estimated.

Jakarta needs to scale up its urban farming amidst its rapidly growing urban population, GlobalData reported. 

The urban population in Indonesia is expected to increase to 62.8% in 2030, up from 57.9% in 2022, which will likely lead to a “considerable shrinkage” of agricultural land.

“The concept of urban farming has been gaining momentum around the world. Urban areas have been growing rapidly, encroaching on agricultural land to accommodate rapid urbanization. Countries with large, growing populations, such as Indonesia, will see their urban population increase by huge numbers every year, necessitating the rapid expansion of cities,” Neralla Rama Ravi Teja, Consumer Analyst at GlobalData, said.

“Concurrently, the country will see a considerable shrinkage in its agricultural land in the future. Amid such a scenario, Indonesia has no option but to depend on urban farming to meet its growing food needs.”

Apart from the shrinking agricultural land, Indonesia will also have to face the impact of climate change, water scarcity, and increasing temperatures challenging food production. 

“Subsequently, high food inflation has been threatening food security for many low- and middle-income consumers. For instance, in February 2024, prices of premium-quality rice increased by 22.9% annually, according to the Central Statistics Agency (BPS),” Tim Hill, Key Account Director, SE Asia, GlobalData, said.

“The El Niño phenomenon resulted in lower-than-usual rainfall in 2023, hampering rice harvest. 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.”