TEMPO.CO, Jakarta - Content creator Benny Batara Hutabarat claimed that the United States (US) is facing a food emergency because it lacks a "food estate" program like Indonesia's. He made this statement in a solo podcast episode titled "US Food Emergency: Food Prices Up 20 Percent," aired on his YouTube channel on August 3, 2026.
According to Benny, the United States is envious of Indonesia's success in achieving food self-sufficiency. He stated that the U.S. is grappling with a food crisis, with prices of staple goods rising by 20 to 100 percent between 2019 and 2026—increases described as the highest in the last 50 years.
"The richest country in the world is currently crying in the corner because they don't have food estates like the ones in Indonesia," said the founder of Bennix Investor Group in the podcast, which has garnered over 300,000 views.
A video clip featuring Benny was subsequently reshared by various accounts on Instagram [archived], Facebook, and TikTok. Is the United States facing a food emergency because it lacks "food estate" projects like Indonesia's?
FACT CHECK
The Tempo Fact Check Team verified Benny Batara Hutabarat's statement by interviewing economic researchers and comparing the claim against US government data and reports from credible sources. The findings indicate that food prices in the United States have indeed risen over the past six years due to various factors.
However, there is no evidence that the absence of "food estate" projects is the cause of the country's food crisis, nor that such projects are the most effective way to ensure food security. Conversely, the implementation of food estate programs in Indonesia has faced various issues and, in several locations, has been linked to forest and environmental degradation.
Causes of Rising Food Prices in the United States
According to the Associated Press, food prices in the United States have risen by an average of 33 percent since 2019. This increase marks the highest rise in half a century.
Specifically, for the period from June 2025 to June 2026, the Consumer Price Index for All Urban Consumers (CPI-U) rose by 3.5 percent. This index increase was driven in part by food prices—covering both food consumed at home and away from home. Energy prices also rose by 15.7 percent, fueled by a 26.7 percent increase in gasoline prices and a 4 percent rise in electricity costs.
These price increases were influenced by various external factors. According to the Associated Press, the 2020 COVID-19 pandemic disrupted supply chains and drove up labor and transportation costs. Droughts, storms, and diseases such as bird flu also reduced the production of certain food commodities.
Russia's invasion of Ukraine, ongoing since 2022, has disrupted global oil and fertilizer supplies. New conflicts in the Middle East involving the United States, Israel, and Iran have also contributed to food-related inflation this year. These economic conditions have resulted in higher levels of food insecurity in the United States compared to six years ago. Citing NPR, a recent Federal Reserve Bank of New York survey released in May 2026 revealed that 10 percent of respondents experienced food shortages, while 16 percent relied on assistance.
These figures are more than double those recorded in 2020; during the COVID-19 pandemic, only 4 percent of respondents reported experiencing food shortages.
Unrelated to the Food Estate
The "food estate" is a large-scale agricultural project initiated during President Joko Widodo's administration and continued under President Prabowo Subianto. The project encompasses the development of rice and corn cultivation areas, as well as the provision of infrastructure such as dams and irrigation networks. Target regions include South Papua, Central Kalimantan, South Kalimantan, and South Sumatra.
Teuku Riefky, a researcher at the Institute for Economic and Social Research (LPEM) at the University of Indonesia, stated that it is inaccurate to link rising food prices in the United States to the absence of a food estate project. This is because U.S. agricultural policy focuses on supporting private farming enterprises through various insurance and price guarantee schemes.
Isnawati Hidayah, a researcher at the Center of Economic and Law Studies (CELIOS), noted that the U.S. government does not engage in massive land clearing to meet domestic food needs in the manner of Indonesia's food estate projects.
The U.S. government supports private agriculture through research, crop failure insurance, price protection, and market access. "Additional food needs are met through imports," Isnawati said in a WhatsApp message to *Tempo* on Thursday, August 6, 2026.
The US food and agriculture sector is almost entirely privately owned, comprising approximately 1.9 million farming operations. The sector contributes 5.6 percent to the gross domestic product and accounts for 10.4 percent of employment in the United States.
According to the US Department of Agriculture, farmers receive support to manage risks and protect their businesses from the impacts of natural disasters—such as through crop insurance. Additionally, the government provides support during periods of market price volatility.
Under the American Relief Act of 2025, the Department of Agriculture is providing over US$30 billion in disaster recovery assistance to farmers and ranchers.
Food Estate Has Yet to Impact Food Prices
Isnawati Hidayah stated that Indonesia's "food estate" project, underway since 2020, has not yet contributed significantly to curbing food prices. This is reflected in the inflation rate for the "volatile food" category, which reached 5.58 percent in June 2026 compared to the same period the previous year.
According to Bank Indonesia's analysis, the increase was primarily driven by the prices of shallots, rice, and garlic. Inflation in these three commodities coincided with a decline in their production. Isnawati noted that this situation indicates the food estate project has had little impact on controlling food prices. Its implementation, she said, focuses too heavily on production, while other issues—such as distribution to consumers—remain neglected.
Thus far, she added, food price control in Indonesia has relied largely on reactive measures, such as subsidized markets. "The government must be more serious about building a sustainable food system," Isnawati said.
Evaluation Notes on the Food Estate Project
A Tempo report dated June 10, 2026, revealed findings by the Audit Board of Indonesia (BPK) regarding the Ministry of Agriculture's efforts to boost rice, corn, and soybean production between 2020 and the first half of 2025. The BPK found that, as of October 31, 2025, the realization of the new paddy field development program had reached only 10,368.83 hectares, or 4.61 percent of the target.
The BPK deemed the government's plan to open 3 million hectares of land excessively ambitious. Based on BPK simulations, the actual land requirement for the 2025–2029 period is only 665,417 hectares. The target for creating new paddy fields is also considered unlikely to be met by 2029 due to the top-down, directive nature of the Ministry of Agriculture's policies imposed on regional agricultural agencies.
In September 2025, Tempo investigated the implementation of the paddy field development project in several target regions. In Merauke, South Papua, for instance, the Ministry of Agriculture encountered issues regarding inadequate land conditions and quality.
The paddy field development project continues to be aggressively pursued despite the failure of previous programs. During President Joko Widodo's tenure, for example, the food estate project in Central Kalimantan—launched in 2020—did not proceed as planned. Observations by Pantau Gambut in Kapuas and Pulang Pisau Regencies between 2020 and 2023 indicated that, out of a total of 243,216 hectares, only 1 percent of the land was truly suitable for agriculture. Some of the land was abandoned or converted into oil palm plantations.
A food estate program involving a cassava plantation in Gunung Mas Regency, Central Kalimantan, also failed because the crops could not grow on the land. That project, undertaken while Prabowo Subianto served as Minister of Defense, resulted in forest degradation and triggered flooding. A similar failure occurred during the administration of President Susilo Bambang Yudhoyono with the Merauke Integrated Food and Energy Estate program in 2010. The project involved clearing 1.2 million hectares of land for food and bioenergy reserves; however, the land clearing actually destroyed sago forests belonging to local communities.
CONCLUSION
Tempo’s verification concludes that the narrative claiming the United States is facing a food emergency due to the absence of "food estates" is misleading.
The United States government does not develop large-scale agricultural estates in the manner Indonesia does. Instead, the government focuses on supporting private agriculture to manage risks and protect businesses from the impact of natural disasters—such as through crop insurance—and provides support during market price volatility.
Meanwhile, food estate projects in Indonesia have not yet proven capable of controlling food prices or strengthening national food security. According to findings by the Supreme Audit Agency (BPK) in 2026, the realization of the new paddy field development program reached only 4.61 percent of the target.
Tempo sought a response from Benny Batara Hutabarat via messages sent to his Instagram account and the listed WhatsApp number. However, as of Sunday, August 9, 2026, he had not provided a response.
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