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
President Prabowo Subianto has reshuffled his cabinet for the fifth time just 18 months into his term. While the frequent adjustments may ostensibly reflect an effort to bolster effective governance, they also signal a state of perpetual political recalibration and unsteady organizational cohesion.
The cabinet is continually expanding through this constant reshuffling, primarily to accommodate various political allies, and therefore raises critical questions regarding the administrative efficiency and fiscal sustainability of such a large bureaucracy.
On April 27 at the Presidential Palace Complex in Central Jakarta, six high-ranking officials were installed in their new roles, including two newly created posts: Hanif Faisol Nurofiq as Deputy Coordinating Food Minister, Mohammad Jumhur Hidayat as Environment Minister, Dudung Abdurachman as Presidential Chief of Staff, Muhammad Qodari as head of the Government Communication Agency (Bakom), Hasan Nasbi as Special Presidential Adviser on Communications and Abdul Kadir Karding as head of the Quarantine Agency.
Following their inauguration, several indicated that they had been tasked with accelerating national priority programs to ensure effective policy delivery. Dudung, Qodari and Hasan, who have communication roles in the administration, emphasized the President’s directive to reinforce government communication channels. Environment Minister Jumhur has been tasked with addressing systemic challenges in waste management, while quarantine chief Abdul Kadir is to strengthen oversight of agricultural and livestock imports without disrupting international trade flows.
Beyond the official rhetoric, however, the latest reshuffle carries profound political and institutional implications. Following are some key takeaways.
First, political consolidation appears to supersede administrative efficiency. Five of the six appointees were integral members of Prabowo’s 2024 campaign team, suggesting that cabinet reshuffles serve as a mechanism for political patronage rather than meritocratic appointments based on performance.
It also comes amid global volatility that necessitates a streamlined, agile government. Instead, the cabinet has expanded to 48 ministers and 57 deputy ministers, nearly double those of former presidents Joko “Jokowi” Widodo (34 ministers, 31 deputy minister) and Susilo Bambang Yudhoyono (34 ministers, 19 deputies). Such expansion risks inflating coordination costs, diluting accountability and impeding interagency decision-making.
Second, there is a perceptible misalignment between appointees’ expertise and institutional mandates. Jumhur’s replacing Hanif as environment minister is a salient example.
Jumhur is known for his extensive labor activism background and his previous leadership role at the National Agency for the Placement and Protection of Indonesian Migrant Workers (BNP2TKI). But the environment portfolio demands high technocratic proficiency in climate governance, resource management and multilateral diplomacy.
This discrepancy risks a shift from evidence-based to politically motivated policy orientation, potentially undermining Indonesia’s credibility at international environmental forums.
Third, the government’s communication architecture remains fundamentally unstable. The roles of both presidential chief of staff and Bakom head have undergone frequent rotations since Prabowo took office in October 2024. The former has transitioned from AM Putranto to Qodari and now Dudung, vacillating between civilian and military leadership.
Simultaneously, the Bakom leadership has rotated from Hasan to Angga Raka Prabowo, who is also deputy communications and digital minister, and most recently to Qodari. It also underwent rebranding from the Presidential Communications Office (PCO).
The appointment of former Army chief Dudung as chief of staff is widely interpreted as an attempt to reinforce centralized, top-down control. As a strategic extension of presidential authority, this leadership role is positioned to "de-bottleneck" stalled programs. Thus, the return of a military figure suggests a move to tighten execution and accelerate policy implementation through a command-oriented approach.
Broadly, this fifth reshuffle reflects a shift toward a governance model where centralized coordination and loyalty-based appointments take precedence over decentralized, technocratic policymaking. While strengthening government communication channels may enhance short-term narrative control and political stability, it carries significant trade-offs, namely the erosion of institutional autonomy and the marginalization of rigorous policy deliberation.
As these officials assume their new roles, public expectations remain high for increased coordination that will eventually yield a more coherent and effective governance framework.
