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Food and Agriculture Team

Indonesia’s agricultural sector is a major producer of agricultural products, in addition to being a major contributor to local household income and a major source of export revenue. Indeed, the sector has historically served as a vital pillar of the Indonesian economy. According to the Strategic Plan of the Ministry of Agriculture 2015-2019, the primary focus of agricultural development is to achieve food and farming sovereignty. During the 2015 - 2017 period, agriculture accounted for 10.1% of national GDP and posted an average growth of 3.3% per annum.

The proportion of Indonesia’s GDP generated through agricultural industry increased to IDR 84,578 billion (USD 6.1 billion) in the first quarter of 2018, a significant increase over the IDR 43,801 billion (USD 3.2 billion) posted during the fourth quarter of 2017. GDP growth in Indonesian agriculture for 2019 has been estimated at a 4% increase over the figure for 2018.

However, in order for the sector to reach its full potential, the Indonesian Government has introduced a number of business-friendly initiatives in order to boost both domestic and foreign contributions. In a manner similar to the agricultural sector, recent growth within the food and beverage sector has also proved significant. Indonesia, with its population of at least 258 million people, represents a highly promising market for the food and beverage industry. The important role that the food and beverage industry plays in the national economy can be seen in the large contribution that it makes to the country's non-oil-related gross domestic product (GDP), which totals 35.73% of the GDP for non-oil-andgas industries or 6.31% of total national GDP for the third quarter of 2018. Export growth within the food industry during the January - September 2018 period grew by 3.22% and within the beverage industry it grew by 13.00%

 

Food and Agriculture Team Leader
Andre Pandean
Commercial Advisor
Andpan@um.dk
+62 878 0005 9778