Indonesia Agriculture

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One of the world’s premier producers and exporters of rubber, Indonesia has been in the trade since the late 19th century when British colonialists distributed seedlings across South-east Asia. From these humble beginnings, Indonesia, Thailand and Malaysia now account for some 70% of global rubber production. Total domestic output for 2012 amounted...

Topping the global ranking in the palm oil sector, Indonesia continued to cement its position in 2011 by expanding its annual production to 23.9m tonnes compared to 22.2m tonnes in 2010, as well as its share of global production from 48.4% in 2010 to 48.79%, according to data from industry forecaster, Oil World. The country’s closest rival, Malaysia...

Stretching over 17,500 islands and home to around 245m people, Indonesia is a vast, diverse nation with a rapidly growing economy, extensive natural resources and a range of sectors ripe for investment. By far the largest country in ASEAN in terms of both population and area, Indonesia is responsible for one-third of the 10-nation bloc’s total GDP. 

Chapter | Agriculture from The Report: Indonesia 2013

The third-largest contributor to Indonesia’s national economy behind the oil and gas sector and industrial manufacturing, Indonesia’s agricultural sector maintains a crucial role in supplying the nation’s domestic market as well as providing an attractive supply of exports. As the country’s economy continues to expand and diversify, the agriculture industry is shifting away from being an exporter...
Predictions of rosy export figures in 2013 for Indonesia’s palm oil sector offer the country a chance to answer claims that it is not living up to its agricultural potential. However, critics say more innovation and private sector development are needed if self-sufficiency and agribusiness goals are to complement each other.
After topping Malaysia as the world’s primary producer and exporter of palm oil in 2007, Indonesia is now seeking to support its downstream refining operations and further expand this vital sector. The Indonesian government’s lowering of the export tax cap on crude palm oil (CPO) and refined products last August has seen local refiners moving ahead of their rivals.

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