Urban farming in Jakarta must be large-scale to be impactful

People in Jakarta have been focusing on growing fruits and vegetables in small spaces in and around their homes to alleviate inflationary pressures on their food expenses. On its part, the city’s authorities have been encouraging residents to cultivate fruits and vegetables in containers and pots. The initiative is part of the government’s response to the growing issue of food insecurity in Indonesia. However, the practice has to be taken up on a large scale to have a meaningful impact on vegetable and food prices, as well as to free up land for other crops, says GlobalData, a leading data and analytics company.

Neralla Rama Ravi Teja, Consumer Analyst at GlobalData, comments: “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 urbanisation. 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. The share of the urban population in Indonesia will increase from 57.9% in 2022 to 62.8% in 2030. 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.”

Tim Hill, Key Account Director, SE Asia, GlobalData, adds: “Along with shrinking agricultural land, the adverse impact of climate change, water scarcity, and increasing temperatures are hampering food production in Indonesia. 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). 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.”

Teja continues: “A large proportion of Indonesian consumers are conscious about the food they consume. According to GlobalData’s 2023 Q4 consumer survey, 56% of Indonesian consumers consider “organic” an essential feature of products they purchase; 70% consider “natural” essential^*. Through urban farming, these consumers can have better control over the vegetable and fruit output and be assured that the food they consume is organic.

“The cultivation of vegetables and fruits in their backyards is a cost-effective solution for many consumers. By reducing their reliance on markets for purchases, consumers can stay less affected by volatile price movements due to external factors. Specifically, low-income households will benefit from this shift, with sporadic bouts of steep inflation not destroying their finances. With the place of cultivation close to their homes, fuel consumption to bring farm produce to a consumer’s plate declines, impacting the environment positively.”

Hill concludes: “In addition to ensuring a fresh and cost-effective supply for vegetables and fruits, the practice will free up land for cultivating staples such as rice and cereals and help control food inflation. Moreover, to achieve this, cities will have to tackle the challenge of even more water requirement, which will be a strain on the already over-stretched supply infrastructure.”

*GlobalData Q4 2023 Consumer Survey – Indonesia, with 531 respondents, published in December 2023

(Thumbnail photo source: Dreamstime)