Apindo Magelang: Agriculture is the Key to Regional Economic Resilience Amid Global Turmoil
Thursday, 19 June 2025
MAGELANG — Food security and the agricultural sector have emerged as the only strategic production fields amid ongoing global geopolitical crises.
This was stated by Eddy Sutrisno, Chairman of the Indonesian Employers’ Association (APINDO) of Magelang City, during an interview with reporters on Thursday, June 19, 2025.
According to Sutrisno, various indicators show that current global conditions are having negative impacts on local economies, including in Magelang.
"Especially with the Israel-Iran conflict involving the global superpower, the United States, we are seeing major shifts in the global economic order, and these are being felt all the way down to the local level," he said.
Amid these global uncertainties, both the public and investors are adopting a “wait and see” approach, holding back on spending and investment.
Sutrisno further noted that government austerity measures such as the ban on MICE (Meetings, Incentives, Conferences, and Exhibitions) activities for officials—have severely affected the tourism sector.
"Hotels are empty, and massive layoffs have occurred," he added.
"As a result, people's purchasing power is declining. With that drop, coupled with global economic tightening and worsening security marked by rising crime and rampant thuggery economic activity is grinding to a halt," he explained.
This situation is exacerbated by banks' cautious stance in issuing credit, due to signs of a broader economic downturn.
Despite these challenges, Sutrisno acknowledged that, on a macroeconomic level, Indonesia’s economy remains relatively strong, with growth between 4.8% and 5.4%.
"However, the effects are still highly volatile at the regional level. Fortunately, Magelang City has not experienced mass layoffs to the same extent. Still, the tourism sector and hotel occupancy rates have taken a significant hit," he said.
Amidst all these challenges, Sutrisno sees the agriculture sector as the most promising area for business development.
He predicted rapid growth in the agricultural and plantation sectors.
"While manufacturing, property, and service sectors are in decline, agriculture and food production are gaining strength. One of the global crises we face today is a food crisis," he stated.
Sutrisno also praised the food estate policy initiated by President Joko Widodo and continued by President Prabowo Subianto.
"At a time when countries like Japan, Malaysia, Kenya, and even parts of Europe are facing food shortages, Indonesia is enjoying a surplus. One key reason is the successful implementation of the food estate program," he noted.
He expressed hope that food estates would be developed in every region going forward.
Beyond achieving food self-sufficiency, Sutrisno emphasized that this would serve as a strategic measure to anticipate future food crises in the event of further global escalation.
Source: MAGELANGEKSPRES.ID
