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
East Java Deputy Governor Emil Elestianto Dardak received a courtesy call from Finnish Ambassador to Indonesia H.E. Jukka-Pekka Kaihilahti at the Shangri-La Hotel in Surabaya City, East Java. The visit on Apr. 29, 2025, is a strategic moment to strengthen Finnish-Indonesian bilateral cooperation, especially in the fields of investment, trade, forestry, and sustainable industrial development.
In the meeting, Emil offered the Java Integrated Industrial and Ports Estate (JIIPE) Special Economic Zone (SEZ) in Gresik Regency as a leading investment destination for Finland. The SEZ is a modern integrated industrial area equipped with a seaport and designed to support an environmentally friendly industrial ecosystem.
"The JIIPE SEZ is a symbol of East Java's commitment to creating a globally competitive investment environment. We invite Finland to participate in its development," said Emil.
East Java recorded deficits for its balance of trade (BoT) with Finland from 2020 to 2023 based on data from the Indonesian ministries of Industry and Trade. But the province succeeded in recording US$11.91 million BoT surplus with the Nordic country, as exports from East Java to Finland reached US$31.7 million while imports reached US$19.79 million.
East Java's main export commodities to Finland include copper, paper and cardboard, electrical machinery and equipment, vehicles and their components, as well as rubber and wood products. Meanwhile, imported goods from Finland include mechanical machinery, pulp, plastic, adhesives, enzymes, and pharmaceutical products.
Finland is recorded as the 56th largest investor into East Java, with a total investment value of US$250,000, spread across three companies in the chemical, pharmaceutical, as well as the trade and repair sectors. Emil conveyed the readiness of the East Java Provincial Government to facilitate further exploration on cooperation between the province and Finland, including in a follow-up visit to the Finnish Embassy in Jakarta.
In response, Kaihilahti welcomed East Java's invitation to cooperate and expressed Finland's deep interest in the forestry and forest product manufacturing sectors, including in their technology, marketing, and sustainability. He also mentioned the energy, agriculture, and mineral processing sectors as having promising potential for bilateral collaboration.
"We see great opportunities in East Java for collaboration in the fields of sustainable forestry and smart cities, including education and digitalization," said Kaihilahti.
He added that on a delegation of Finnish companies planned to visit the JIIPE SEZ, which has collaborated with several industrial partners such as PT Freeport Indonesia (PTFI).
"We want to explore the collaborations that has been executed through large Finnish companies such as Konecranes, Wärtsilä, and Metso, as well as explore new potential [cooperations]," he explained.
Examples of cooperation between Finnish and Indonesian parties is the use of Finnish technology in the Freeport smelter project and various industrial facilities in the JIIPE SEZ.
