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

January 15, 2026

After decades of relying on Dutch colonial regulations, Indonesia finally has its own Criminal Code (KUHP), which came into effect on Jan. 2. While the government claims the new KUHP reflects modern legal standards, critics say it retains significant gaps, particularly regarding potential conflict between law enforcement practices and human rights protections.

One article that has drawn intense scrutiny concerns insulting the president and vice president as well as the government and state agencies. Critics fear this provision could shield officials from legitimate criticism, resembling past offenses frequently used to silence opposition against the colonial regime. There is a palpable concern this could create a climate of fear among activists and journalists.

However, the drafters of the new KUHP, primarily the Law Ministry and House of Representatives Commission III, which oversees law enforcement, argue that Article 218 is a substantial improvement over Article 134 in the previous code. The latest KUHP reclassifies this as "delik aduan" (complaint-based offense) rather than an ordinary offense, meaning that legal proceedings can only be initiated upon a formal complaint from the affected party. The maximum penalty has also been reduced from six to three years.

Deputy Law Minister Edward "Eddy" O.S. Hiariej has emphasized that only specific officials could file complaints, such as the president, the vice president and the heads of major state institutions. He also clarified that the offense applied to insults directed at institutions, not individual officeholders.

Further, Article 218(2) explicitly states that criticisms, protests and views intended to evaluate government policies are legitimate forms of expression and may not be criminalized. In a similar vein, the new KUHP treats violations related to public demonstrations as "material offenses", meaning they are punishable only if they result in tangible harm, such as public disorder, rioting or property damage.

The new code also introduces major changes to capital punishment. The death penalty is no longer categorized as a primary punishment but as a sanction of last resort. Article 100 stipulates a 10-year probationary period for death sentences and if a convict demonstrates exemplary conduct during this time, their sentence may be commuted to life imprisonment or a maximum 20 years in prison.

Lawmakers acknowledge that the new KUHP does not formally abolish the death penalty, but say this mechanism moves the judicial system away from the death penalty as a form of criminal punishment.

On offenses related to the state ideology, the KUHP maintains that spreading communism or Marxism-Leninism is incompatible with Pancasila. However, Article 188(6) exempts academic activities such as teaching and research, provided they are not intended to promote these political doctrines and socioeconomic systems. Nevertheless, concerns remain that law enforcement could misinterpret the thin line between "teaching" and "disseminating" ideas.

House Commission III chair Habiburokhman, who hails from the ruling Gerindra Party, has defended the new KUHP. In particular, he has pointed out that concerns about the criminalization of journalists and academics are addressed by a requirement for proof of criminal intent (mens rea). He argues the new code has shifted focus from the content of the information spread to the consequences it generates, reinforcing the principle that criminal law should serve as ultimum remedium (last remedy) and not a primary tool of repression.

Legal scholar Romli Atmasasmita says the true test of the KUHP will be its implementation. The challenge lays in balancing legal certainty with social justice, ensuring that authorities translate the spirit of the new code into practice without neglecting the rights of vulnerable groups, including indigenous communities who have long been marginalized.

Amid the ongoing democratic decline, however, the new KUHP looks set to exacerbate the setback to Indonesian democracy.

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