Investment into the domestic food industry is considered to be able to save Indonesia from a contraction in economic growth that has the potential to occur in 2023. Next Policy Executive Director Fithra Faisal Hastiadi said Indonesia has the potential to experience a contraction in economic growth starting in the second quarter of 2023 if it fails to maintain food commodity inventories. One of the things that are worried about is the excessive aggressiveness of the Republic of Indonesia in exporting food commodities. "Without control, domestic production will be depleted and domestic food supplies will become scarce. This will trigger a contraction in economic growth in the range of 0.7 0.8 percent," fithra said to Bisnis, Tuesday (26/7/2022).
Instead of being too enthusiastic about reaping profits from export activities, Fithra considered that it would be more profitable for Indonesia when it was able to bring investors in so that there was development in terms of production capacity. In other developments, the Japan Bank for International Cooperation (JBIC) has given a positive signal for investment in Indonesia's food and fertilizer industry. In a recent meeting with the Indonesian government in Tokyo, JBIC Governor Nobumitsu Hayashi welcomed the offer of investment in food and fertilizer from the Coordinating Ministry for Economic Affairs Airlangga Hartarto.
"JBIC supports investment offers in food and fertilizer, as the population of the population increases, the need for food will continue to increase," Hayashi said. JBIC's support for new investment potential in the food and fertilizer industry is motivated by Japan's urgency in maintaining supply chain conditions in both sectors
