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
Beef Since Jan. 20, the House of Representatives has been gathering input from academics and civil society groups regarding the proposed revision of the 2017 General Elections Law, formally submitted on Nov. 19, 2024. A central pillar of these discussions is the adoption of a "codification" approach, specifically, the consolidation of disparate election-related regulations into a single, unified political law package.
This move toward codification is not merely a technical preference but a strategic policy direction outlined in the 2025–2045 National Long-Term Development Plan (RPJPN). The plan envisions strengthening democratic development by integrating the General Elections Law, the Regional Elections Law and the Political Parties Law into a cohesive framework.
The constitutional mandate for this integrated approach was further solidified by Constitutional Court ruling No. 135/2024, delivered on June 26, 2025. In its decision, the court mandated that elections be conducted in two distinct stages. The first involves a national election to elect members of the House, the Regional Representatives Council (DPD), and the president and vice president. The second stage, following a gap of roughly two to two-and-a-half years, consists of local elections for Regional Legislative Council (DPRD) members and regional heads. Crucially, the court affirmed that regional elections are an inseparable part of the broader electoral legal regime.
Consequently, deliberations on the election bill and the regional elections bill should ideally proceed in tandem. While both bills are listed in the medium-term National Legislation Program (Prolegnas), only the election bill was included in this year’s legislative priority list. The House has justified its decision to prioritize the General Elections Law while postponing the Regional Elections Law by citing procedural constraints and its current legislative agenda. Essentially, the House has chosen to adhere to a rigid framework, focusing on one bill at a time rather than addressing the system as a whole.
This piecemeal strategy has drawn criticism from experts who argue that codification must be discussed simultaneously. They contend that isolated reforms risk producing unsynchronized changes, potentially creating new friction between institutional design and actual political practice. Beyond the architecture of the law, substantive issues like the legislative threshold have come under intense scrutiny. The goal is to strike a delicate balance: safeguarding political representation while simplifying the party system to ensure effective governance.
As the legislative threshold has fluctuated across election cycles, the volume of "wasted votes", ballots cast for parties that fail to enter the legislature, has become a critical metric. This issue is paramount, as every vote that fails to translate into a seat represents more than just a political cost; it creates a deficit in the administrative legitimacy of the entire electoral process.
An analysis of trends across the past four elections suggests that the relationship between the threshold level and wasted votes is not linear. In the 2009 election, for instance, a 2.5 percent threshold resulted in a staggering 19.05 million wasted votes, or 18.3 percent of all valid ballots. That race featured 38 political parties, only nine of which secured seats. By 2014, when the threshold was raised to 3.5 percent, the number of wasted votes dropped sharply to 2.96 million, or 2.4 percent. This coincided with a decline in participating parties to 12, with 10 winning representation.
However, in the two most recent elections, which applied a 4 percent threshold, wasted votes rose again, reaching 9.7 percent in 2019 and 11.4 percent in 2024. During this period, the composition of the legislature remained largely stagnant. These findings indicate that the threshold is not the only factor at play. Party fragmentation, pre-election coalition patterns and voter behavior all dictate whether a citizen's choice actually results in representation.
Lawmakers must therefore distinguish between systemic flaws that require legal revision and problems driven by the conduct of political elites. Issues like vote buying often stem from the strategic incentives of political actors rather than legal loopholes alone. Furthermore, political education for the public remains dangerously narrow, focusing on the mechanics of how to vote rather than the substance of why it matters.
Without a voter base that understands the weight of representation and the consequences of its choices, electoral reforms risk becoming mere procedural adjustments. The House’s approach to these revisions will serve as a definitive measure of its commitment to a substantive, rather than a superficial, democratic transformation.
