Agriculture
From The Report: Indonesia 2019
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With an estimated 57m ha of agricultural lands, farming has long been the backbone of Indonesia’s economy. From small-scale farming to large commercial plantations, the sector employs around one-third of the workforce, is an important source of income for local households and has contributed much-needed export revenue. Partly as a result of adopting business-friendly initiatives, the sector has been able to attract necessary investment, which in turn is helping to bridge structural gaps. However, there remain a number of challenges, including slow adoption of mechanisation and vulnerability to climate change.

Rural income is predominately generated by small-scale growers who lack access to finance and technology, which limits their commercial viability. Nevertheless, the country’s vast areas of arable land and extensive marine resources, combined with a thriving tech innovation ecosystem, offer significant potential for long-term, value-added expansion.

This chapter also contains an interview with Amran Sulaiman, Minister of Agriculture.

Articles from this Chapter

Overview

Fertile ground: Increasing demand for staple crops and the government’s self- sufficiency goals remain primary growth drivers
OBG
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With an estimated 57m ha of agricultural lands, farming has long been the backbone of Indonesia’s economy. From small-scale farming to large commercial plantations, the sector employs around one-third of the workforce, is an important source of income for local households and has contributed much-needed export revenue. Partly as a result of adopting business-friendly initiatives, the sector has been able to attract necessary investment, which in turn is helping to bridge structural gaps.…

Interview

Innovative and modern: Amran Sulaiman, Minister of Agriculture, on increasing efficiency and developing the palm oil industry
OBG
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Interview:Amran Sulaiman What policy measures are needed to further improve the welfare of farmers in Indonesia? AMRAN SULAIMAN: Farmers have always been the driving force of Indonesia’s agricultural sector. Aside from the support we have provided in terms of innovation and modernisation, we have also made improvements to value chain management. This has generated value, made our products more competitive and, most importantly, improved farmers’ incomes and overall welfare. Furthermore,…

Analysis

Public providers: Officials continue to promote self-sufficiency in rice production
OBG
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Providing around 50% of Indonesians’ daily caloric needs, rice remains by far the most important staple crop across the country. The average Indonesian consumed 114.6 kg of rice in 2017, with total consumption reaching 33.5m tonnes that year. With the adoption of modern techniques on the rise, as well as new regulations and improved infrastructure, officials continue to promote rice self-sufficiency as a key policy goal. In addition to increasing national production, the rice self-sufficiency…

Overview

Seeking sustainability: Digital and precision farming practices are poised to bolster global agriculture resiliency
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Against a backdrop of increasingly severe and financially straining climate events and natural disasters, technology is poised to play an important role in maintaining and improving global agricultural output. The adoption of digital and precision farming practices has been shown to improve crop resiliency, and boost productivity and incomes, particularly in emerging markets where small-scale farmers are often more vulnerable to climatic impacts. With increasing support from international aid organisations, as well as the public and private sectors, precision farming should help emerging market economies maintain production levels through…

Overview

Seeking sustainability: Digital and precision farming practices are poised to bolster global agriculture resiliency
OBG
plus

Against a backdrop of increasingly severe and financially straining climate events and natural disasters, technology is poised to play an important role in maintaining and improving global agricultural output. The adoption of digital and precision farming practices has been shown to improve crop resiliency, and boost productivity and incomes, particularly in emerging markets where small-scale farmers are often more vulnerable to climatic impacts. With increasing support from international aid organisations, as well as the public and private sectors, precision farming should help emerging market economies maintain production levels through…