indonesia agriculture

Agriculture

Agriculture Overview of Indonesia

Agriculture is a central pillar of the Indonesian economy by providing employment for millions and in terms of global exports. This section looks at some of the challenges being faced by the industry and how the government is addressing the need to establish self sufficiency for 'food security'.

Overview of Palm Oil in Indonesia

Crude Palm Oil is one of Indonesia’s most strategically important sectors, being the leading CPO exporter worldwide. This section provides an overview of the development of the industry and the plans ahead to double production and increase productivity.

Opportunities in Palm Oil Derivatives

As the global leader in crude palm oil production, Indonesia has plenty of feedstock at its disposal to build upon its downstream industry. This section looks specifically at the oleo chemical industry where Indonesia can play an increasingly significant role.

Overview of the Rubber Sector

With the largest rubber plantations in the world by area covered, Indonesia holds the potential to be the world’s largest rubber exporter. This section looks at the changes taking place in Indonesia’s rubber industry to improve competitiveness as world rubber prices steadily rebound.

Opportunities in the Rubber Sector

Having previously been mired in ambiguity regarding foreign ownership rights in the sector, the 2010 Negative Investment List clarified international investor status. This section looks at the opportunities within the rubber sector as it moves towards modernisation and higher productivity.

Agriculture: Moving Downstream in Cocoa

While being the world’s third largest exporter of raw cocoa beans, Indonesia has yet to take full advantage of the value added processes in the downstream industry. This section covers the opportunities within the sector and government plans to encourage further foreign investment.

Opportunities in Indonesia’s Sugar Industry

Once a major exporter of sugar, Indonesia now faces the challenge of being heavily reliant on imports for its domestic consumption and industrial needs. The government is targeting self sufficiency by 2014 and this section looks at the part that foreign investors can play in achieving this goal.

Indonesia’s Budding Silk Industry

While being a relatively small producer of silk to date, Indonesia has the necessary attributes in terms of climate and land availability for a thriving silk industry. This section looks at how demand for the commodity is developing both in Indonesia and globally.

Sector Snapshot

Contribution to GDP: 15.3% (2010)
Contribution to Exports: 3.17%
Number Employed: 41 million (2010)
Main Products: Palm Oil, Rubber, Cocoa, Cassava, Coffee, Tea, Tobacco, Rice.
Main Export Markets: China, USA, Japan, Singapore, Korea, EU.
Relevant Law: Presidential Decree No. 28/2008 prioritising investment in key sectors including agriculture such as CPO, rubber and wood. Ministry of Finance Regulation No.67/2010 on the establishment of export duties and tariffs.