Indonesia Indoor Farming Market Size, Share, Opportunities, And Trends By Growing System (Hydroponics, Aeroponics, Aquaponics, Soil-based, Hybrid), By Component (Hardware, Software And Services), By Facility Type (Glass Or Poly Greenhouse, Indoor Vertical Farm, Container Farm, Indoor DWC System), And By Crop Type (Fruits And Vegetables, Herbs And Microgreens, Flowers And Ornamentals, Others) - Forecasts From 2023 To 2028

Indoor framing can be defined as the practice of growing plants in soilless environments, using technologies such as aquaponics, hydroponics, and aeroponics, or it be can be referred to as controlled-environment agriculture, which focuses on maximizing plant growth. An indoor farm commonly consists of shallow trays piled inside a structure and illuminated by LED lights on each level. These farms have to provide everything, including water, fertilizers, sunlight, and perhaps pollinators and pest control as well. Others may be constructed in enormous greenhouses to maximize the Sun's heat and light while also managing other inputs like fertilizer and water.

Growth will be spurred by a scarcity of resources, such as land and water.

Indoor farming approaches have arisen in recent years to meet the confluence of difficulties such as food production, community sustainability, and resource efficiency. Indoor farming allows for the production of nutrient-rich food near home while conserving resources. Such creative agricultural approaches that produce what we need where we need it might help to address some of Indonesia’s food production, storage, distribution, and loss concerns. Food production challenges due to land scarcity, a growing population, pressing food security problems, and climate change are boosting indoor farming approaches as governments in this country encourage farmers to grow more while using fewer resources to enhance food output. For instance, according to official data 48 million tons of food annually gets thrown away in Indonesia due to inefficient processing, storage of food crops.

The country's market is predicted to increase rapidly throughout the projection period because of the requirement for better output with fewer resources and land. World Bank figures indicate that Indonesia has 273.8 million people in 2021.  According to a report published by the Australian Bureau of Agriculture and Resource Economics, the demand for food in the biggest archipelago in the world is expected to double by 2050, Indonesia has to revamp the escalating production of its food crops to prevent a disaster of hunger and poverty over the next decades. This means that the ability to use space as effectively as possible is critical for the country's progress and self-sufficiency. Meanwhile, climate change is having an impact on agricultural productivity by raising temperatures and making rain more erratic. Simultaneously, significant soil erosion, acidification, pollution by chemicals and heavy metals, and extensive pesticide usage have all lowered soil quality during the previous 50 years. As a result, the country is embracing indoor agricultural methods.

In order to increase crop productivity, improved technologies like artificial intelligence, the internet of things, and data analytics are being used more frequently in indoor farming. Several Indonesian businesses are investing in research and development operations to integrate technology with food systems to increase efficiency and sustainability.

However, the high cost associated with indoor farming techniques, lack of standardised rules and regulations regarding indoor framing practices, lack of interest from youth are some of the factors that will hinder the growth of the indoor farming market in Indonesia.

Market Key Developments

• In February 2023, Helsinki-based agritech company iFarm announced that they are expanding their operations in Asia Pacific and planning on opening vertical indoor farms in countries like Indonesia, Singapore, etc. The farms will predominately grow berries and will be equipped with the latest technologies and smart devices to grow fruits with a minimum amount of resources. 
• In August 2022, GREENS a hyperlocal meta-framing company based in Jakarta created the fully integrated seed-to-meal dine-in platform with indoor growing chambers and farming as a service for anyone who wants to grow food in their community.

Segmentation:

• By Growing System
  • Hydroponics
  • Aeroponics
  • Aquaponics
  • Soil- based
  • Hybrid
• By Component
  • Hardware
  • Software
  • Services
• By Facility Type
  • Grass or Poly Greenhouse
  • Indoor Vertical farms
  • Container Farms
  • Indoor DWC System
• By Crop Type
  • Fruits and Vegetables
  • Herbs and Microgreens
  • Flowers and Ornamentals
  • Others