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

March 17, 2026

The Agriculture Ministry is targeting investment in large-scale cattle farms with a population of up to 200,000 heads of cattle in Central Kalimantan Province, which would bedeveloped within an integrated business ecosystem to strengthen the national meat supply sustainably.

"This is part of the national strategy to accelerate self-sufficiency in meat and milk while also developing modern, partnership-based livestock centers," stated Agriculture Minister and National Food Agency Head Andi Amran Sulaiman in Jakarta on Feb. 18, 2025.

He explained that the program is part of the government's long-term agenda to strengthen animal protein sovereignty toward the Indonesia Gold 2045. The development is focused on integrated livestock farms in Sukamara Regency, Central Kalimantan, as a large-scale integrated cattle farming cente that would span about 40,006 hectares (ha) of land with an initial population of less than 1,000 head.

"And the target is to develop up to 200,000 productive breeding stock," Amran added.

The Integrated Cattle Industry concept is implemented by combining beef cattle, dairy cattle, and the relevant industrial processing facilities in one area. This model would be reinforced by integrated cattle-oil palm farming, where grazing is carried out in plantation areas to ensure feed efficiency while simultaneously producing organic fertilizer, thereby increasing added value and business sustainability.

The development would be carried out using a modern grazing system based on research on grasses adapted to marginal land, supported by processing facilities for products such as processed meat and dairy products, as well as regional infrastructure designed to ensure efficient and sustainable operations.

Amran emphasized that as an agricultural country with extensive natural resources, Indonesia must be able to optimize the potential of livestock farming independently and sustainably.

"Indonesia is an agricultural country. The land is vast, the grass grows [verdant], and the resources are there. The important thing is how we manage it well and make it comfortable for investors to act quickly. I expect 100,000 [heads] will be allocated for development [by the nucleus estate], plus an additional 100,000 for smallholders, bringing the total to 200,000," he said.

Amran noted that the key to the program's acceleration lies in simplifying regulations and ensuring business certainty. The government is committed to creating a welcominginvestment climate so that businesses can focus on building industry, expanding livestock populations, and strengthening product downstreaming.

"Indonesia is a large agricultural country. The land is fertile, and the natural resources are vast. But we tend to slow things down by overcomplicating something which could be simplified. Raising cattle is simple, [just] plant the grass, the cows drink and live, and it's done. Sometimes, what makes it complicated is the permits," he continued.

Amran also encouraged the development of large-scale, integrated livestock businesses to significantly impact the national cattle population. He believes that collaboration between the government and the private sector must be directed towards the development of modern, efficient, and long-term production areas.

"If investors are comfortable, they will invest more. But if they're not comfortable, they'll take two steps forward, two steps back. Ten years are wasted on permits. This is what we must fix," he stressed.

To expand economic benefits, the government has prepared a nucleus estate and smallholder (NES) partnership scheme. This scheme allows large companies to become the nucleus estate in partnership with smallholder livestock herders. Financing support is given through the microcredit loan program (KUR) for the agricultural sector, and insurance protection is provided to ensure business sustainability and minimize risk.

"If managed together by a strong nucleus and growing smallholders, the economy will be stimulated. The state will be there to support financing and protection. Entrepreneurs will thrive, and the community will prosper," Amran emphasized.

The development targets for the integrated cattle industry program encompass increasing the productive cattle breeding stock population, strengthening national meat and milk production, creating local jobs, as well as stimulating economic growth in the surrounding region.

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