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
Despite the rise in graft scandals over the past year, a recent sting operation by the Corruption Eradication Committee (KPK) in Riau signals that systemic corruption in the country is showing no sign of slowing down.
On Nov. 3, KPK investigators arrested Riau Governor Abdul Wahid along with his confidant Tata Maulana at a cafe in provincial capital Pekanbaru. The graft probe was initiated in May 2025 after the antigraft body received a tip from local residents alleging potential foul play between Abdul and the province's Public Works and Spatial Planning Agency.
Investigators uncovered an illicit kickback scheme in which the governor, who hails from the National Awakening Party (PKB), demanded 5 percent of the agency's Rp 177 billion (US$11 million) budget allocation, or around Rp 7 billion, threatening the removal or transfer of officials who refused to meet his demand.
Coming after only nine months in office, the probe found that at least Rp 4.05 billion of the Rp 7 billion demanded had been given to Abdul via close aides and confidants, and were reportedly used for lavish trips to countries like the United Kingdom and Brazil.
The KPK also arrested several others, including agency head Muhammad Arief Setiawan and the governor's expert staffer Dani M. Nursalam.
The Riau governor's case represents a familiar rather than an anomalous pattern, and one that feels old-fashioned. While the scandal centers on infrastructure kickbacks, the country's corruption trend has shifted, according to Indonesia Corruption Watch (ICW). The watchdog noted a major change in 2024 when, for the first time, the biggest financial losses no longer came from infrastructure and procurement projects, but from fictitious reporting related to mining permits.
While infrastructure-related cases like Abdul's accounted for 35 percent of all 364 corruption cases recorded last year, non-infrastructure cases dominated with 65 percent. The Riau case fits the general nationwide pattern, however, with the KPK stating that over 51 percent of all graft cases occurred at the regional level, at both local administrations and legislatures. While most graft schemes today involve document fraud related to licensing and reporting, the Riau case presents a throwback to under-the-table thuggery by those in power.
A similar case emerged few days later in Ponorogo, East Java, where the KPK uncovered a corruption network centered on regent Sugiri Sancoko, from the Indonesian Democratic Party of Struggle (PDI-P). Investigators found that a private contractor had paid a 10 percent project fee of around Rp 1.4 billion to Yunus Mahatma, director of the Harjono Ponorogo Regional General Hospital, who then handed a portion of the money to Sugiri via an aide and his brother.
Abdul is the fourth governor of the oil-rich province to be arrested for corruption in the last two decades. Saleh Djasit (1998-2003), Rusli Zainal (2008-2013) and Annas Maamun (2014) were nabbed for a range of graft scandals, from illegal procurements to bribery, with Annas arrested the same year he assumed office, just like Abdul. When it comes to Riau governors, power and greed appear to go hand in hand.
Meanwhile, the incumbent governor has yet to receive a final decision on his party membership from PKB chairman and coordinating social empowerment minister Muhaimin Iskandar, who has warned other members against emulating Abdul.
The contrast between graft styles is stark. Abdul's alleged corruption presents a clearly defined method, unlike the high-profile, politically charged corruption trial early this year of Thomas Lembong, a former trade minister in 2015-2016. Before he was pardoned by President Prabowo Subianto, Thomas was convicted on charges related to incurring Rp 578 billion in state losses for a sugar import scheme he implemented during his tenure as minister.
However, activists and experts noted during his trial that Thomas's actions lacked any mens rea (criminal intent). In comparison, Abdul's actions appeared to have been explicit, according to officials in the Riau public works agency, who described the scheme as nothing more than "a cut for the local thug".
While President Prabowo has pledged to root out endemic corruption, it seems his antigraft efforts have yet to resonate at the regional level.
