January 14, 2026 | 10:32 am
TEMPO.CO, Jakarta - Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto compared the quality of land for the food estate in Merauke, Papua province, Indonesia, with land conditions in Australia for the development of a national food barn area based on large-scale production.
"Various Australian experts say the land in Merauke is better than in Australia, so they also believe that Merauke can be developed into an agricultural barn," Airlangga said in Jakarta on Tuesday, January 13, 2026, as quoted by Antara.
Airlangga made this statement at the Road to Jakarta Food Security Summit (JFSS) entitled "Food Security to Maintain National Sovereignty." The government also continues to promote various strategic food programs, including the development of food estates, as part of efforts to strengthen food security and reduce dependence on imports of strategic commodities.
He also emphasized that in the context of food estate development, the implementation of modern farming is increasingly important to increase the productivity, efficiency, and competitiveness of national agriculture amidst the challenges of climate change and global dynamics.
One focus of the food estate development in Merauke is sugarcane, integrated with ethanol production, in line with the energy transition agenda and the downstreaming of the national agricultural sector.
Furthermore, Airlangga said, Australian experts are optimistic that Merauke's land has great potential because sugarcane is believed to be an indigenous Papuan crop with good environmental adaptation and high productivity.
Based on this study, they assessed that with the same cultivation methods, yields in Merauke could potentially be higher than in Australia. "They saw that with the same methods, Merauke could produce better yields and other things than Australia. So, this is our challenge going forward," Airlangga said.
This enormous potential presents both a challenge and an opportunity for Indonesia to build an integrated food system from upstream to downstream based on food estate areas. In addition to biodiesel, the government is also encouraging the development of sugarcane-based ethanol for gasoline blends, such as E5 (5 percent ethanol) and E10 (10 percent ethanol) to support national energy security.
The ethanol demand for these blends is estimated at two to three million kiloliters, which is considered ideally met through integrated production from the Merauke food estate area.
To support intensification, the government is strengthening fertilizer, irrigation, mechanization, and the provision of superior seeds as a foundation for increasing modern agricultural productivity. Airlangga also emphasized that genome-based seed research is a game-changer that must be encouraged, as it determines the long-term, sustainable competitiveness of Indonesia's food and energy production.
The Public Works (PU) signed a contract for the construction of the 80.5-kilometer Wanam-Muting Road Segment II in South Papua Province. This Rp4.8 trillion project is being undertaken through an Operational Cooperation (KSO) involving PT Hutama Karya (Persero), PT Nindya Karya, PT Batulicin Beton Asphalt, and PT Modern Widya Tehnical.
Public Works Minister Dody Hanggodo stated that the construction of the KSPP Wanam-Muting Road Segment II is the first step in accelerating infrastructure in the National Food, Energy, and Water Self-Sufficiency Area, which targets Merauke as a new food barn in Eastern Indonesia.
"The Ministry of Public Works fully supports the development of water resources infrastructure and road connectivity so that this area can produce year-round and provide direct benefits to the community," Dody said in a written statement on Tuesday, November 5, 2025.
He said this project is expected to accelerate infrastructure connectivity in the Wanam-Muting Food Production Center Area (KSPP), as mandated by Presidential Instruction Number 14 of 2025. He added that this development is expected to serve as a model for how road development in eastern Indonesia can be carried out transparently, accountably, and oriented towards tangible results.
Read: Indonesia Publishes 2026 State Budget; Here's the Details
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