Agriculture
From The Report: Indonesia 2014
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In 2013 the agriculture sector accounted for 14.4% of total GDP. Food crops represented the largest segment, with more than half of the industry’s value. Tasked with providing sustenance for the country’s nearly 250m citizens while contributing a steady stream of export revenue, the Indonesian agriculture sector remains an indispensable industry with an influence that extends across a broad spectrum of the social, political and economic landscape. Rice, maize, and soybean are among the most widely grown crops and are cultivated primarily for domestic consumption. With a total output of 70.86 tonnes in 2013, rice is the dominant staple food. The government is focusing on food price volatility and increasing the contribution of domestic production to consumption in the country. Although the days of double-digit expansions for plantation crop acreage are now in all likelihood a thing of the past, continued demand should be enough to sustain profits for large agro-industrial exporters.

This chapter contains interviews with Franky Oesman Widjaja, President Commissioner, Sinar Mas Agribusiness and Food; and Franciscus Welirang, Director, Indofood.

Articles from this Chapter

Overview

Keeping the ball rolling: Efforts to boost efficiency and sustainability are under way
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Tasked with providing sustenance for the country’s nearly 250m citizens while contributing a steady stream of export revenue, the Indonesian agriculture sector remains an indispensable industry with an influence that extends across a broad spectrum of the social, economic and political landscape. The country’s vast territory combined with favourable soil and climactic conditions have given rise to a host of homegrown agro-industrial giants, as well as drawing the attention of some of the world’s…

Analysis

A full plate: The government is working to maintain reliable supplies of rice
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As the primary food staple for the vast majority of Indonesians, maintaining a reliable supply of rice remains a social and economic priority for the government as a growing domestic population continues to drive demand. In spite of being one of the world’s leading rice producers, the country has been forced to rely on imports to make up the shortfall from domestic production. In 2011 and 2012 the country imported 2.75m tonnes and 1.38m tonnes, respectively, in order to stabilise reserves, according…

Interview

Franky Oesman Widjaja, President Commissioner, Sinar Mas Agribusiness and Food: Interview
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Interview:Franky Oesman Widjaja How can balance be maintained between agricultural productivity and sustainable farming? FRANKY OESMAN WIDJAJA: Sustainability isn’t just about caring for the land; it is also about conducting business without compromising the future generation’s ability to meet its own needs. It is, therefore, a balancing act between the needs of the environment, the economy and the people. While palm oil failed to achieve a place on APEC’s list of environmentally friendly…

Interview

Franciscus Welirang, Director, Indofood: Interview
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Interview:Franciscus Welirang How can Indonesia make further progress in meeting its food security goals? FRANCISCUS WELIRANG: Indonesia’s ultimate ambition is to become the breadbasket of Asia. However, it has unfortunately not made sufficient progress in the short term in meeting its own national food security targets. Put simply, the basic system is not there yet as outlined in the government’s Master Plan for the Acceleration and Expansion of Indonesian Economic Development. To successfully…