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 more

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

September 22, 2026

Agus Harimurti Yudhoyono's recent political messaging can be interpreted as an attempt to achieve a delicate balancing act: positioning himself and the Democratic Party as a critical voice within government without crossing the line into outright opposition. It is a strategy born from both opportunity and necessity. For Agus, the political challenge is obvious. While he remains one of Indonesia's most recognizable younger politicians, he has not consistently appeared among the top-tier contenders in most discussions about the 2029 presidential election.

The dominant attention has largely been focused on figures with stronger executive credentials, deeper political machines or higher public popularity. If Agus hopes to become a serious presidential contender, maintaining the status quo is not enough. He needs greater visibility, a more distinct political identity and a narrative that separates him from the many parties supporting the government.

This helps explain the significance of his speech. Rather than offering unconditional praise for the administration, Agus appeared to emphasize themes of accountability, governance and the need for those in power to remain responsive to public concerns. The message was notable not because it represented a complete break from the government, but because it subtly challenged the perception that coalition parties must always defend the administration's every move.

The strategy serves multiple purposes. First, it allows the Democrats to reclaim part of their traditional identity as a centrist reformist party. Since joining the governing coalition, the party has enjoyed access to government but has also risked losing its distinctiveness. In a broad coalition dominated by larger political forces, smaller parties can easily become politically invisible. By adopting a more critical tone, the Democrats can remind voters that it possesses an independent voice.

Second, it helps 48-year old Agus personally. Indonesian presidential politics tends to reward leaders who appear decisive and independent rather than excessively dependent on existing power structures. If Agus is perceived merely as another coalition politician benefiting from office, his appeal may remain limited. If he can present himself as a leader willing to speak uncomfortable truths while still acting responsibly, his profile could improve significantly ahead of 2029.

The danger for Agus is that repeated efforts to distinguish himself could eventually be interpreted by coalition partners as positioning for a future campaign at their expense. If that perception grows, the Democratic Party could find itself marginalized in decision-making, deprived of influence or ultimately pushed toward the political sidelines. Even without formal expulsion from the coalition, a party can become isolated and lose much of the practical advantage that comes from being part of government.

Yet political history suggests that such an outcome may not necessarily be disastrous. The most relevant example comes from Agus’ own father, Susilo Bambang Yudhoyono (SBY). During the administration of President Megawati Soekarnoputri, SBY served as coordinating minister for political and security affairs. As tensions emerged between him and elements within the government, he increasingly appeared marginalized. His resignation and departure from the cabinet were widely interpreted as signs of political isolation.

At the time, many viewed that isolation as a setback. Instead, it became a turning point. SBY successfully transformed himself into an alternative to the incumbent establishment. By portraying himself as a capable insider who was nevertheless willing to challenge the status quo, he appealed to voters seeking change without revolutionary disruption. In the 2004 presidential election, he defeated Megawati and became Indonesia's first directly elected president.

The parallel is not exact. The political environment of 2029 will differ significantly from that of 2004. SBY entered the race with substantial public popularity, military credentials and a national profile developed through years of government service. Agus has yet to achieve a similar level of political strength. Furthermore, Indonesia's party system today is more fragmented and coalition-based than it was two decades ago.

Nevertheless, the historical lesson remains relevant. Being pushed away from power is not always politically damaging. In some circumstances, it can become a political asset if it allows a leader to embody both experience and independence. This may ultimately be the calculation behind Agus’ approach. The ideal scenario is to gain the benefits of both worlds: remain inside the governing coalition, enjoy access to executive power and simultaneously cultivate an image as a principled critic. That would increase his visibility without sacrificing influence.

The problem is that such a balance is extremely difficult to maintain. For Agus, the coming years may therefore be defined by a central political question: can he successfully become Indonesia's most prominent "critical insider," or will his attempt to create distance from power eventually force him to choose between government influence and opposition credibility?

Read more
Load more