Indonesia Indoor Farming Market - Forecasts from 2025 to 2030

The Indonesia indoor farming market is estimated to attain a market size of US$82.561 million by 2030, growing at a 5.66% CAGR from a valuation of US$62.682 million in 2025, during the forecast period of 2025 to 2030.

Indonesia’s indoor farming market is expanding steadily as the country confronts shrinking arable land, rapid urbanization, and rising demand for high-quality, sustainable food. Increasing migration to megacities and the continuing reduction of cultivable land, falling from 14% of total land area in 2020 to 13.9% in 2021, have accelerated the adoption of controlled-environment agriculture. Hydroponic, aeroponic, aquaponic, and hybrid growing systems, alongside glass and poly greenhouses, vertical farms, and container-based facilities, are becoming central to Indonesia’s agricultural modernization. Hydroponics has gained prominence for its efficiency in land-scarce environments, while vertical farming is emerging as a preferred model in urban centers such as Jakarta and Surabaya, where year-round production and high yields are essential to meet local consumption needs.

Demand-side dynamics further reinforce market growth. Indonesian consumers, especially within the expanding middle- and upper-income segments, are increasingly prioritizing pesticide-free, traceable, and nutrient-rich produce. This trend is amplifying the market for indoor-grown fruits, vegetables, herbs, and microgreens. Rising consumption levels of key produce categories, such as potatoes and tomatoes, which recorded production increases of 10.43% and 1.34% respectively in 2023, underscore the pressure on the agricultural system to diversify supply sources. Indoor farming provides a reliable solution by enabling high-quality output independent of weather patterns, land availability, or environmental volatility.

Technology adoption is one of the most significant enablers of Indonesia’s indoor farming evolution. Smart farming tools, including IoT sensors, artificial intelligence, real-time climate control, and data analytics, allow producers to optimize lighting, irrigation, and nutrient delivery with precision. These technologies improve operational efficiency, reduce waste, and enhance scalability, making indoor agriculture an increasingly viable and sustainable business model. Partnerships and innovation initiatives further support the sector’s development. Notable examples include the construction of a high-tech eco-architectural indoor farm in Bali through a collaboration between the Nuanu community and iFarm in 2023, and GREENS’ innovative seed-to-meal platform in Jakarta, launched in 2022 to support hyperlocal production for communities and non-farmers.

Government policy is also catalyzing market growth. Indonesia’s national agenda emphasizes food security, reduced reliance on imports, and the promotion of sustainable agriculture. Incentives for agritech startups, R&D programs, and campaigns supporting urban farming are creating a favorable environment for private sector investment. As indoor farming becomes more aligned with national food resilience objectives, it is increasingly viewed as a strategic pillar of Indonesia’s long-term agricultural transformation.

Nonetheless, the sector faces notable constraints. High initial capital requirements for controlled-environment facilities and substantial energy consumption, driven by lighting and cooling needs, remain key barriers to mass adoption, particularly for smallholder farmers. Ensuring access to financing, developing renewable energy integration, and improving operational efficiency will be critical to unlocking the full potential of Indonesia’s indoor farming sector.

Indonesia Indoor Farming Market Segmentation:

By Growing System

Hydroponics
Aeroponics
Aquaponics
Soil-based
Hybrid

By Facility Type

Glass or Poly Greenhouse
Indoor Vertical Farm
Container Farm
Indoor DWC System

By Crop Type

Fruits and Vegetables
Herbs and Microgreens
Flowers and Ornamentals
Others Show more