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.
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Indonesian popular culture is gaining global traction, with Joko Anwar’s Ghost in the Cell (2026) set to screen in 86 countries and music artists like NIKI, Anggun, Rossa and Voice of Baceprot touring internationally. Yet these successes remain largely driven by individual efforts, leaving the country’s creative industries with a fragmented and under-institutionalized global presence, highlighting the need to position the sector as a strategic industry.
Unlike South Korea, which has treated its culture as a strategic pillar of its creative economy as early as the 1990s, Indonesia is yet to place the sector at the center of its development strategy. Instead, the national economy remains heavily reliant on natural resource, particularly coal and palm oil as well as manufacturing industries. Without a well-defined policy framework and stronger government support, Indonesia risks underutilizing its creative industries, leaving their potential unfulfilled.
In 1994, South Korean president Kim Young-sam reportedly watched the Hollywood hit Jurassic Park and came away with a striking realization: the movie generated revenue equivalent to exporting 1.5 million cars, more than twice that country’s annual automobile exports at the time. That moment helped shift the policy mindset to position culture not merely as art but as a high-value industry.
Today, the Korean Wave is a global phenomenon and a core pillar of South Korea’s economic strategy. Its impact extends far beyond screens and stages and by 2025, cultural exports including music, games and film, alongside related sectors such as K-beauty and K-food, had reached an estimated US$37.94 billion, making culture the country’s fourth-largest export sector.
In Indonesia, the spillover effects of the creative economy are already visible, particularly in film. One notable example is Laskar Pelangi (The Rainbow Troops, 2008), which significantly boosted local tourism for Belitung Island with a surge in visitor arrivals following its release, contributing to a 20 percent increase in hotel occupancy between 2008 until 2009.
More recently, Ngeri-Ngeri Sedap (Missing Home, 2022) showcased the landscapes of North Sumatra, particularly around Lake Toba, while highlighting Batak culture. The film received strong institutional backing, including promotion by former tourism minister Sandiaga Uno. Although official data remain limited, early indications suggest a similar boost in tourism following its release in 2022. These cases demonstrate that, much like South Korea, Indonesia’s cultural products can generate meaningful economic spillovers.
Investment in the creative economy is gaining momentum and reached Rp 183.01 trillion ($10.68 billion) last year, or 9.48 percent of total investment. This reflects growing interest from both domestic and foreign investors, particularly in digital subsectors such as mobile applications and content development. Further, the sector is projected to absorb 27.4 million workers, underscoring its expanding role in job creation. Indonesia’s creative capacity, therefore, is no longer in question.
However, despite its vast potential, the culture sector remains constrained by structural weaknesses, including unclear definitions, limited skills, inadequate infrastructure and weak enforcement of intellectual property rights. The absence of a reliable, integrated data system also complicates policymaking and deters investment, as both government and investors lack the tools to assess either performance or risks.
While other countries have strategically leveraged creative industries, particularly the film industry, to drive tourism, exports and broader economic growth, Indonesia still lacks a coherent, long-term national strategy. Without a clear road map supported by stronger institutions, better data governance and targeted policy interventions, the creative economy will remain fragmented, unable to scale into a competitive and sustainable engine of growth.
As one of the most populous and culturally diverse countries in the world, Indonesia’s creative economy holds significant untapped potential. In the digital era, Indonesians are not only consuming content but also increasingly creating music, film and digital products, which are rising in quality as they gain wider global relevance.
To move forward, the country must begin treating its creative economy not as a complementary sector but as a strategic pillar of national development. This requires more than rhetoric: It demands coordinated policies to strengthen data systems, improve intellectual property protection, expand funding access and invest in talent and infrastructure.
Equally important is a clear strategy for positioning Indonesia’s cultural exports in global markets. The success stories and demand growth are already evident. What remains is the political will to scale them. Without this, Indonesia risks remaining a consumer market for global content instead of emerging as a producer of value in the global creative economy.
