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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.
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
Indonesia’s official response to the attack on Iran by Israel and the United States is unusual to say the least. The Foreign Ministry in a statement said Indonesia deeply regretted the breakdown of the negotiations between the US and Iran, offered to mediate to break the impasse between the two countries, and added that President Prabowo Subianto Prabowo Subianto Djojohadikusumo, 72, is a retired Army lieutenant general, a businessman and the incumbent Defense Minister (2019-present). Due to his proximity to power throughout his military career, he entered politics in 2004 to pursue his dream of becoming the nation’s president. had “stated his readiness to launch diplomatic visits straight to the heart of the conflict, if necessary”.
While Prabowo may be genuine in his intentions for peace, the more pertinent question is would the US and Iran take him seriously? Would Israel?
Iranian Ambassador to Indonesia Mohammad Boroujerdi poured cold water on the proposal, saying Iran would not launch any new negotiations “with the enemy”. Out of diplomatic courtesy, the ambassador said his government appreciated Prabowo’s gesture.
There has not been any official response from the US. Israel, which is a party to the conflict, has not responded, but that is probably because the Indonesian statement makes no reference to Israel, with which Jakarta has no diplomatic relations.
The statement also fell short of condemning the attack as an act of aggression in violation of international law, just as Indonesia also refrained from condemning the US bombing of Venezuela and the abduction of its president, Nicolas Maduro, in January.
This time, the statement expressed deep regret at the breakdown of the negotiations and the ensuing escalation of the conflict. There was not even any recognition of the attacks.
At any rate, President Prabowo may lack the qualifications or credentials to be a peacemaker.
His decision to sign up to the Board of Peace set up in January by US President Donald Trump has undermined his claim to be an honest broker, especially given widespread criticism of the board, which was set up to enforce Trump’s peace initiative in Gaza.
At home, critics are still not convinced that joining the board will afford Indonesia the voice to convince Israel and the US to work toward the creation of an independent Palestinian state under the two-state solution. Nevertheless, they were willing to give him the benefit of the doubt on his claim that this was the only option available to stop Israel’s killing of Palestinians in Gaza.
Prabowo may appear to have the attention of Trump through their encounters in the lead up to the formation of the Board of Peace, but he has no direct link with Israel, and has not established a rapport with the Iranian leadership, or what is left of it following the death of Supreme Leader Ali Khamenei and several other top leaders by Israel-US bombing.
Prabowo has visited just about every country that matters in the Middle East, with the exception of Iran. If his Middle East campaign was played out as part of his strategy to get Indonesia involved in the peace process in the region, Iran should have been on his itinerary.
Prabowo, a former Army general, also lacks the personal credentials as peacemaker, at home or abroad. Former vice president Jusuf Kalla built his peace-making track record in resolving conflicts in Indonesia’s Maluku and Aceh regions, and he had been sent on missions to Myanmar and several other hot spots in the region to help find peace.
Critics say tackling the dispute between US and Iran, and presumably Israel, is almost an impossibility or certainly beyond Indonesia’s or Prabowo’s capability.
If he wants to build his peace-making credentials, he may want to start small and on something closer to home, for example the border dispute between Cambodia and Thailand, India and Pakistan over Kashmir, or now between Pakistan and Afghanistan.
The suggestion for Prabowo to mediate the peace between the US-Israel and Iran nevertheless prompted a debate at home.
Former deputy foreign minister Dino Pati Djalal questioned Indonesia’s effectiveness now that it has become clear that the intention of the attacks is to bring about regime change in Tehran and no longer about dismantling Iran’s nuclear and weapons’ capability.
Describing the proposal as unrealistic, Dino said Trump is not likely to allow anyone to intervene in his campaign against Iran. He also said Indonesia may not have gained the trust of Iran given the minimum contacts between Prabowo and Iranian leaders in Tehran, while the idea of Prabowo meeting with Israel’s Prime Minister Benjamin Netanyahu, should that happen, could be a “political suicide” for him at home.
Some politicians, however, support Prabowo’s peace initiative.
Sukamta, the deputy chair of the House of Representatives Commission I on foreign affairs, said the proposal was consistent with Indonesia’s free and active foreign policy principle and the constitutional mandate for Indonesia to promote global peace.
But unlike the Prabowo administration, Sukamto of the Prosperous Justice Party (PKS) condemned the US-Israel attack on Iran as military aggression that threatens regional stability.
