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.
View moreAgriculture
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
President Prabowo Subianto 's flagship free nutritious meal program has hit a critical juncture. Launched with the ambition of feeding millions and cementing his populist image, the program is now marred by reports of food poisoning, poor governance and slow budget absorption. In response, Prabowo has formed a high-level coordinating team to rescue the initiative before it collapses under its own weight.
The new team is designed to tighten oversight and restore public confidence after a string of incidents, including more than 8,000 reported food poisoning cases and allegations of mismanagement in the field. Without swift reform, the government risks missing its ambitious target of reaching 82.9 million beneficiaries next year, despite allocating a massive Rp 268 trillion (US$16.06 billion) in the 2026 budget.
The coordinating team is chaired by Coordinating Food Minister Zulkifli “Zulhas” Hasan and includes representatives from 17 ministries and agencies. Yet, the daily operations will be led by Nanik S. Deang, one of Prabowo's closest confidants, who serves as executive director. Nanik is also deputy chair of the National Nutrition Agency (BGN), the main implementing body for the free meals program.
A former journalist and longtime member of Prabowo's campaign team, Nanik has no formal background in nutrition or food security. Her rapid rise from serving as deputy head of the Poverty Eradication Agency and independent commissioner at Pertamina to her current position underscores how political loyalty continues to shape key appointments in Prabowo's administration.
Under the new structure, the coordinating team will oversee the synchronization, monitoring and evaluation of 7,477 nutrition food supply centers (SPPG) operating across 38 provinces and 509 regencies. These centers form the backbone of the program's food logistics system, linking local farmers and food suppliers to schools and communities.
Prabowo recently touted the program's progress, claiming the government had distributed 1.4 billion meal portions to 36.2 million recipients. He downplayed the food poisoning reports, noting that the incidents represented "only 0.00017 percent" of total distributions. Critics, however, quickly pushed back. Reducing a public health issue to fractions, they argued, trivializes what should be treated as a serious failure of oversight. Each sick child reflects a breakdown in quality control and accountability. The creation of the coordinating team may be an acknowledgment of those concerns.
The coordination team lacks representatives from the military and the National Police. This stands out given Prabowo's reliance on security institutions to execute many of his policies, including the free meals program. Many SPPGs are owned by military and police-linked entities, raising long-standing suspicions that the program has doubled as a tool for distributing political and financial rewards to different factions.
Governance shortcomings have been a recurring theme in the program's rollout. The free meals program currently lacks a solid regulatory foundation, making coordination between ministries and local governments uneven at best. Zulhas said one of the team's first tasks will be to draft a presidential decree to clearly define responsibilities and strengthen governance mechanisms. Critics have long warned that the program's top-down management style has alienated local governments that are essential to on-the-ground implementation.
The government appears to have taken that criticism to heart. The revised plan will involve local administrations more directly, alongside the newly established "Red and White" village cooperatives, an ambitious network that could reach up to 80,000 cooperatives nationwide. Greater decentralization of the program could improve both efficiency and accountability as the program scales up.
For now, though, the challenge remains enormous. Despite a Rp 71 trillion allocation for this year, the BGN managed to spend only about 30 percent of its budget by September. Poor coordination, weak local capacity and bureaucratic bottlenecks continue to hamper delivery, and all while public expectations soar.
Prabowo's free meal program was meant to embody his promise of a strong, caring state. But unless the new coordinating team can turn rhetoric into real reform, the initiative risks becoming yet a potentially case study of failure to deliver.
