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'.
Indonesia’s dairy industry and dairy products industry is undergoing a boom with market demand rising by over 10% on an annual basis for the past ten years due to changing consumer habits and population growth. This section looks at some of the key consumer trends in the industry.
Indonesian per capita consumption of fresh fruit and vegetables is still below the recommended level leaving plenty of scope for the development of the horticulture sector. This section looks at the industry’s development in terms of imports as well as export potential.
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.
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.
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.
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.
Contribution to GDP: 14.9% (2011)
Contribution to Exports: 4% (2011)
Number Employed in the Sector: 40 million (2011)
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.