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
The North Maluku Province economy soared 32.09 percent year-on-year (yoy) in the second quarter (Q2) of 2025, the highest in Indonesia for the period. The highest economic growth rate achieved by its regencies and cities reached 70 percent yoy. North Maluku Governor Sherly Tjoanda Laos stated that the high growth proves the provincial government's seriousness about creating a favorable investment climate so investors could grow their ventures optimally.
"North Maluku has the highest economic growth in Indonesia, and perhaps in the world, though I do not know the exact data [for comparison]. In comparison to the national growth target was 8 percent, [and] the current [national economic growth rate] of only 5 percent, our economic growth in North Maluku Province was 32 percent," Sherly stated at the Landbank Strategic Partnership Forum at Wisma BNI 46 in Jakarta Special Capital Region (DKI) on Oct. 23, 2025.
Based on data from Statistics Indonesia (BPS) as of the end of 2024, Sherly continued, the total value of investments in North Maluku Province reached about Rp 60 trillion. Sherly stated that the North Maluku Provincial Government is currently focusing on improving land utilization to optimize coconut cultivation, a leading commodity in the province.
She added that coconuts and their derived products are in very high demand, including for the fruit itself, coconut milk, and coconut cream. The demand for coconut milk alone reaches 1 million liters per day, and the world is currently experiencing a coconut shortage.
Meanwhile, North Maluku currently produces around 6 million coconuts per day. There are at present two coconut-derived product factories in the province, with two more under construction. Sherly believes that the region still has significant potential for development.
Of the total 273,000 hectares (ha) of Other Use Areas (APL), only 70,000 ha have been utilized for agricultural commoditties. The remaining 220,000 ha of idle land could be mapped and used to grow commodities such as coconuts.
"North Maluku has idle land ready to be optimized for coconut cultivation. In addition, there are corn, cloves, nutmeg, and cocoa. Through a partnership with the Land Bank Agency, legal certainty and land legality is expected be more secure and [confirmed] faster," said Sherly.
"Direct access to strategic areas can also be synchronized with spatial planning according to data from us, the provincial government, and we will provide thorough assistance and services to ensure optimal investment for investors," she continued.
