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

August 31, 2026

Imagine a corrupt official who has stolen billions of rupiah from state coffers. Under a proposal floated by President Prabowo Subianto , that official could walk free, no conviction, no prison, simply by handing the money back. It sounds like restitution; critics say it looks a lot like a pardon with a price tag. The proposal, outlined in Prabowo's Aug. 14 State of the Nation Address, would offer amnesty to corruptors who return stolen state funds. It has reignited a debate that cuts to the heart of his presidency: Is Indonesia's war on corruption for real, or is it starting to look negotiable?

The plan was framed as pragmatic: recover the money first, worry about punishment later. But it raises an uncomfortable question. If corrupt officials can buy their way out of consequences by returning even part of what they stole, what does that say about the government's actual commitment to accountability?

The stakes are high precisely because Prabowo built his political brand on the opposite promise. He came to office vowing an uncompromising fight against graft, calling corruption one of Indonesia's greatest obstacles to prosperity and warning state officials to clean up their act or face consequences. But rhetoric and policy are not always the same thing.

Forgiving corruptors in exchange for asset restitution marks a real departure from a long-standing principle: that corruption is a punishable crime, regardless of whether the money is eventually returned. Indonesia Corruption Watch (ICW) has pointed out that the Corruption Law explicitly says returning state losses does not erase criminal liability.

Critics warn the proposal risks sending a dangerous signal: that corruption could become a crime that perpetrators can simply pay their way out of rather than one with unavoidable legal consequences.

Defenders counter that recovering stolen assets should be the priority. Returning trillions of rupiah to state coffers, they argue, may benefit the public more than locking up offenders. But that argument invites its own follow-up question: If asset recovery really is the priority, why has the government shown so little urgency in advancing the long-stalled asset forfeiture bill (RUU Perampasan Aset), a reform that many anticorruption experts consider one of the most important tools Indonesia could adopt?

Enacting that bill would strengthen the state's power to seize illicitly acquired wealth.

For years, activists have argued that corrupt actors should lose not just their freedom but the financial fruits of their crimes. Yet the legislation remains stuck. While the delay can't be pinned on the President alone, critics note that a leader's true priorities tend to show up in what they spend political capital on, and the absence of a genuine push for this bill undermines the claim that asset recovery sits at the center of Prabowo’s anticorruption strategy.

Doubts about the President 's commitment extend beyond this one proposal. His administration has supported or approved clemency and amnesty measures for those convicted in high-profile corruption cases. ICW and Transparency International Indonesia have both warned that such interventions risk weakening the principle of equal treatment under the law and could create the impression that political considerations are shaping judicial outcomes.

Just as telling is the limited attention paid to strengthening anticorruption institutions. Since the 2019 revision of the KPK Law, many experts argue the country's premier antigraft agency has been weakened significantly. A president genuinely committed to structural reform might be expected to prioritize restoring the KPK's independence and authority. So far, though, there's little sign that's happening. Observers increasingly note that the government talks often about corruption but shows far less enthusiasm for rebuilding the institutions needed to fight it systematically.

To be fair, anticorruption law enforcement hasn't disappeared under Prabowo. Major investigations have continued, including high-profile cases involving senior executives at state-owned enterprises, such as Pertamina. Supporters cite these cases as proof the government is serious and willing to pursue powerful figures. But anticorruption success can't be measured by case count alone. Individual prosecutions matter, but lasting progress depends on strong institutions, robust laws and credible deterrents. And on that front, the concerns keep piling up.

Taken together, the proposed amnesty for restitution, the stalled asset forfeiture bill, the use of clemency in corruption cases and the lack of momentum on KPK reform form a pattern that's hard to dismiss as coincidence. No single one of these developments proves Prabowo has abandoned the fight against corruption. But together, they raise a legitimate question: Is his administration pursuing deep structural reform or merely practicing selective enforcement?

The issue isn't whether the President opposes corruption; his public statements leave little doubt that he does. The more consequential question is whether he's willing to pursue the institutional and legal reforms needed to eradicate it, even when doing so threatens powerful interests. Until there's stronger evidence of that, doubts about the depth of his commitment aren't going away.

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