The Road to the SDGs

X Targets for Indonesia include: – The achievement of locally produced high quality raw materials for the automotive industry – Strengthened local production of key automotive components – Regional leadership in EV production – Establishment of a regional automotive export hub. ACHIEVEMENTS X Preliminary recommendations of IsDB analysis in the agricultural sector include the following: – Improved access to finance is a crucial factor for the future of the sector – Access to quality seeds will help Indonesian producers to enter high-value markets, while better understanding of modern cultivation and post-harvest techniques will allow for the production of high-quality, high- yield products – Infrastructure is crucial to increased competitiveness. In addition to roads, rail and ports, medical facilities are needed to allow older farmers to remain healthy and hold on to their farms longer, as 80% of farmers in Indonesia are aged 45 and above – The agriculture industry suffers from constraints in access to finance, which limits opportunities for farmers to increase their income and leaves them vulnerable to natural disasters and volatile commodity prices – A deeper GVC analysis will help to identify the required interventions to address all these bottlenecks. X Findings in the mining and automotive sectors are as follows: – Although Indonesia has introduced EV policies, it should develop an EV battery policy, starting by gaining an understanding of the global electric battery value chain – To ensure cost and value-add competitiveness, Indonesia needs to secure a battery manufacturing facility, although domestic targeted volume and access to raw material could be challenging – As demand for EVs booms, Indonesia should leverage its nickel and copper resources to expand into processing, thus increasing value addition. INVESTMENT X Future investment will be needed to address the challenges facing Indonesia’s main industries. The preliminary GVC analysis reveals the need to build resilient and agile value chains by: – Creating efficient storage infrastructure to generate a more resilient value chain and allow for perishable commodities such as fruit, vegetables, eggs, dairy products and fish to be preserved for a longer period in order to mitigate the effects of supply chain shocks – Implementing redistribution infrastructure as a mitigation tool against food insecurity, with continuous monitoring of supply, distribution and storage built into the food system, and investment in digital solutions – Initiating further in-depth GVC analysis to confirm and identify the appropriate interventions needed to address bottlenecks and capacity gaps in all selected industries. T H E A G R I - F O O D I N D U S T R Y The agri-food industry is indispensable for Indonesia’s economy, contributing nearly 13% of GDP and employing 30% of the workforce 80% of farmers in Indonesia are aged 45 and above [ 249 ] T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S