Agriculture in Indonesia

Agriculture in Indonesia is one of the key sectors of Indonesian economy. Although the share of agriculture sector contribution to the national gross domestic product has declined significantly in the last half century, today it still provides income for the majority of Indonesian households. In 2013, the agricultural sector contributed to 14.43 percent of national GDP, a slight decline compared to a decade earlier (2003) which reached 15.19 percent. In 2012, this sector provides jobs for around 49 million Indonesians, which represents 41 percent of the total labour force in the country.

Currently around 30 percent of Indonesian land area is used for agriculture purposes. Indonesian agriculture sector is overviewed and regulated by Indonesian Ministry of Agriculture.

Generally, the agricultural sector of Indonesia comprises two types which corresponds scale:

The large plantations tend to focus on export commodities; such as palm oil and rubber, while the small scale farmers focus on horticultural commodities to supply the food consumption of local and regional population, such as rice, soybeans, corn, fruits and vegetables.

Located in the tropical region, Indonesia enjoys abundant rain and sunshine most of the time, which are important elements for agriculture. Most of global agricultural commodities thrive in Indonesia. The country possesses vast and abundant arable fertile soils. Indonesia is a world's major key producer of a wide variety of agricultural tropical products. Indonesia's important agricultural commodities include palm oil, natural rubber, cocoa, coffee, tea, cassava, rice and tropical spices.

Currently Indonesia is the world's largest producer of palm oil, cloves, and cinnamon, the 2nd largest producer of nutmegnatural rubbercassavavanilla and coconut oil, the 3rd largest producer of rice and cocoa, the 4th largest producer of coffee. the 5th largest tobacco producer. and the 6th largest tea producer.

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