Sector
Agriculture
Indonesia, with its archipelago of volcanic soil and plentiful rainfall, offers a natural abundance that sustains the nation and plays a crucial role in its economic prosperity. One of the country’s leading sectors is agriculture, supporting the livelihoods of millions and making a significant contribution to Indonesia’s Gross Domestic Product (GDP). From rice paddies to coffee plantations, this diverse range of crops reflects the country’s unique geography and climate, making it a powerhouse in the global agricultural market.
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Agriculture
Indonesia, with its archipelago of volcanic soil and plentiful rainfall, offers a natural abundance that sustains the nation and plays a crucial role in its economic prosperity. One of the country’s leading sectors is agriculture, supporting the livelihoods of millions and making a significant contribution to Indonesia’s Gross Domestic Product (GDP). From rice paddies to coffee plantations, this diverse range of crops reflects the country’s unique geography and climate, making it a powerhouse in the global agricultural market.
In 2022, Indonesia’s agricultural sector generated approximately Rp2.4 quadrillion in GDP. This sector alone accounts for 12.4 percent of the country’s GDP, underlining its importance to the national economy. The following year, the country experienced a steady growth rate of 1.3 percent in this sector.
Agriculture serves as a key sector for the national economy in various Indonesian provinces, including Aceh, North Sumatra, West Sumatra, Riau, Jambi, Bengkulu, and South Sumatra. Additionally, the provinces of Lampung, Bangka Belitung, West Java, Central Java, East Java, and West Kalimantan, among others, also consider agriculture as a key sector.
This sector offers a rich variety of commodities, including paddy, corn, soybean, sweet potato, and cassava – all staple commodities that play a vital role in sustaining Indonesia’s food supply. Additionally, crops such as cocoa, coconut, coffee, and palm oil are essential for export income and providing job opportunities. In terms of employment, the agriculture sector employs nearly 28 percent of the country’s workforce.
The country’s agricultural sector has also attracted significant foreign investment in 2023, with roughly US$2 billion in direct contributions. With this sector helping sustain Indonesia’s food supply, the country’s paddy production statistics that same year indicate that roughly 10.2 million hectares of land were harvested, yielding an estimated 56.63 million tons of dried unhusked rice (GKG). Once processed for consumption, this translates to approximately 30.9 million tons of rice available for the population.
In a move to strengthen its agricultural foothold within Southeast Asia, Indonesia seeks to expand cooperation with Vietnam in both agriculture and aquaculture. Indonesia and Vietnam are forging a partnership to modernize their agriculture and aquaculture industries. This collaboration will leverage digitalization for improved efficiency and invest in research and development to enhance the quality and global competitiveness of their agricultural and fishery products.
Latest News
The South Sulawesi Provincial Government, in collaboration with Bank Indonesia (BI) held the 2025 South Sulawesi Investment Challenge (SSIC) Finals at Novotel Makassar in Makassar City, South Sulawesi on August 4, 2025, as part of the South Sulawesi Investment, Trade, and Tourism Acceleration (PINISI SULTAN) Forum.
The event, which has "Accelerating South Sulawesi's Economic Growth through Green & Blue Economy-Based Investment and Downstreaming" as its theme, served as a platform to identify flagship investment projects ready to offer (IPRO) from each regency and city of South Sulawesi aligned with long-term development goals and oriented toward increasing local added value.
The SSIC 2025 Finals was opened by South Sulawesi Provincial Government Assistant III A. Darmawan Bintang, who represented South Sulawesi Governor Andi Sudirman Sulaiman.
He emphasized that the event is a competition as well as a platform to showcase the region's readiness to attract investment, encourage downstream industry development, and improve community welfare. SSIC 2025's theme is also considered to align with national and regional policy directions for sustainable economic development.
Meanwhile, BI South Sulawesi Province Representative Office Head Rizki Ernadi Wimanda reported that SSIC 2025 successfully amassed 18 clean and clear (CnC) projects from 16 regencies and cities. After a selection process, field verification, and technical assistance in preparing IPRO proposals, the six best projects were selected as finalists for the 2025 SSIC. These included:
- The Drinking Water Supply System project presented by Parepare Mayor Tasming Hamid;
- The Industrial Salt Factory project presented by Jeneponto Deputy Regent Islam Iskandar;
- The Makassar UNTIA Stadium project presented by Makassar Mayor Munafri Arifuddin;
- The Agricultural Waste-Based Bioethanol Industry project presented by Bone Deputy Regent Andi Akmal Pasluddin;
- The Seaweed Industry project presented by Luwu Deputy Regent Muh. Dhevy Bijak;
- The Rice Milling Industry project presented by East Luwu Regency Investment and One-Stop Integrated Services Office (DPMPTSP) Abd. Wahid Rahim Sangka.
They were evaluated by a panel of judges consisting of the of Promotion for the Investment and Downstream Ministry/Investment Coordinating Board (BKPM) Americas and Europe Region Promotion Director, the Embassy of the United Kingdom in Jakarta East Java Regional Outreach Manager, the Acting South Sulawesi Provincial Research and Development Planning Agency (Bappelitbangda) Head, a Universitas Hasanuddin Faculty of Economics & Business Professor, and a PT Sucofindo Indonesia Regional Planning Expert.
After the judging process, the three best proposals were selected for SSIC 2025. Bone Regency's Agricultural Waste-Based Bioethanol Industry project won first place, followed by the Makassar UNTIA Stadium project in second and Luwu Regency's Seaweed Industry project in third.
