Agriculture
From The Report: Indonesia 2017
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In spite of a raft of strategic development plans laying out a path towards a more diversified, modern economy with greater contributions from high-value-added industries, agriculture remains a fundamental sector for the country in both financial and social terms. Indonesia’s expansive territory and favourable soil and climate have given rise to a host of homegrown agro-industrial giants as well as drawing the attention of some of the world’s largest international food processors. Valued at Rp1560trn ($113.9bn), the agriculture sector comprised 13.5% of Indonesia’s GDP in 2015, according to data from the Bank of Indonesia. Led by the palm oil segment, plantation crops accounted for the greatest percentage of this figure in 2015, being valued at Rp411.9trn ($30.1bn), and followed closely by food crops at Rp393.4trn ($28.7bn).

This chapter contains an interview with Arif Rachmat, CEO, Triputra Agro Persada.

Articles from this Chapter

Overview

Growth story: Palm oil and rubber products remain key economic drivers as the sector seeks to further diversify
OBG
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In spite of a raft of strategic development plans laying out a path towards a more diversified, modern economy with greater contributions from high-value-added industries, agriculture remains a fundamental sector for the country in both financial and social terms. Indonesia’s expansive territory and favourable soil and climate have given rise to a host of homegrown agro-industrial giants as well as drawn the attention of some of the world’s largest international food processors. Valued at Rp1560trn…

Interview

Palm of the hand: OBG talks to Arif Rachmat, CEO, Triputra Agro Persada
OBG
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Interview:Arif Rachmat How has the government encouraged downstream refinement of crude palm oil (CPO)? ARIF RACHMAT: The government has shown strong commitment in helping the industry ensure demand stays strong in Indonesia. To boost biofuel consumption, especially palm oil-based biofuel, the government provided 18 regulations that were passed within a six-month period in 2015, which is unheard-of. In support of the government, the CPO industry has taken initiatives to increase domestic…

Analysis

Challenging times: Rubber producers seek to counter dwindling global demand
OBG
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The rubber segment in Indonesia dates to the British colonial days of the 19th century, and the industry has remained a steady contributor to the economy and one of the largest employers in agriculture. In some ways rubber continues to be rooted in its history, and remains dominated by small, often family run, smallholder farms that make up roughly 85% of the industry in Indonesia. More recently lower global demand for the product has led to growing stockpiles and depressed prices. As a result of…