The role of agriculture in indonesia

The Role of Agriculture in Development

Deforestation and air quality issues prompted environmentalists to urge the Indonesian government to curtail clear-cutting of trees, to control burning, and to implement reforestation programs. To ensure food security, the government fills the gap by importing from neighboring countries like Thailand, Vietnam and Cambodia.

The products prices are highly dependent on seasonal availability and proximity to production centers, due to transportation and cargo infrastructure restrictions. However, surprisingly nutmeg, mace and cloves are seldomly used in Indonesian cuisine. The cultivation system was enforced in Java and other parts of Indonesia by the Dutch colonial government between and Less than one-fifth of the total land surface, however, is devoted to crop cultivation.

However, scarcity of these essential commodities prevailed and resulted to famine and clothing shortage. Although production of batik remains a major cottage industry, there are a number of larger-scale operations.

Spinning mills are largely state owned or in the hands of foreign companies, while weaving and finishing factories, which are centred in Bandungare generally small-scale and privately owned by local entrepreneurs. Although refinery production since has been in the hands of the government-owned petroleum company Pertamina, foreign oil companies operate under a production-sharing formula.

The Jakarta Stock Exchange also experienced explosive growth. Export of cultivated shrimp from sizable farms in western Java and southern Sumatra has been a boon to middle-sized businesses.

Political repression under the Suharto presidency —98 also discouraged politically motivated associations of workers.

Nonbanking financial institutions are restricted. Although the country is self-sufficient in rice production, there has been a persistent tendency since the late s to import additional rice. The mining industry employs only a tiny fraction of the workforce, however. Certain endemic Indonesian spices such as nutmeg which is indigenous to the Banda Islands and cloves were highly sought in the West, and prompted the European Age of Exploration.

Agricultural commodities are known for its economic resilience and are among the first to recover from the impacts of global financial meltdown. Bring fact-checked results to the top of your browser search. In Java much of the land of the northern coastal and central plains is planted with rice.

Scad, tuna, and mackerel are the primary products of open-sea fishing. Irrigated rice terraces, Bali, Indonesia. A new development strategy involving liberalization in some areas and limitation of foreign ownership in others has aimed to establish Indonesia as a fully self-sufficient swasembada country in the 21st century.

In the late 20th century, the emphasis in the public sector tended increasingly toward independent, self-financing state enterprises. Widespread exploration for deposits of oil and other minerals has resulted in a number of large-scale projects that have contributed substantially to general development funds.

Indonesian historians refer to it as Tanam Paksa "Enforcement Planting". Celebes, Halmahera and other islands of the Moluccasand Papua are sources of nickel.

Much of the remaining paved mileage is on Madura, Lombok, and Celebes.

Agricultural Sector of Indonesia

For traveling shorter distances, especially in the urban and semiurban areas, smaller buses and minivans are popular. As a result, prices of horticulture products vary greatly throughout Indonesia.

Teak is extracted mainly from Java. Agriculture, forestry, and fishing The consistent monsoon climate and almost even distribution of rainfall in Indonesia make it possible for the same types of crops to be grown throughout the country.

History[ edit ] In Indonesian history, agricultural pursuits spanned for some millennia with some traces still observable in some parts of the archipelago. The irrigation system was managed by priests and created around " water temples ".

With a large number of its population still working in the agriculture segment, Indonesia has great potentials of attracting foreign investments.

Finance Bank Indonesia, the central bankis responsible for issuing the rupiahthe national currency. The demand for train services has remained strong, although geographic features limit the expansion of the railroads.

Ports of Sunda and Banten were important centers of pepper trade back in the 14th to 17th centuries. The hunter-gatherer society still exist in interior Kalimantan Indonesian Borneo and Papua Indonesian New Guinea such as the Kombai people[18] while they were a sophisticated rice-cultivating community, the remnants of Hindu-Buddhist polity can still be observed in Bali through their subak irrigation system.

There are several small areas of deciduous forest and plantations mostly teakbut most of the trees are evergreen tropical hardwoods.

Subsidized credit and interest rates were used in accordance with general government priorities, and a credit ceiling was imposed to ensure monetary stability. Manufacturing In the early s import substitution replacement of foreign-produced goods and services with those produced domestically and support for the agricultural sector were the two major aims of industrial policy.

Establishment of sugarcane, coffee, teatobacco, quinine, rubber and palm oil plantations was also expanded in the colony. Rice has remained the cornerstone of small-scale agriculture, however, and increased production of it has been an important aim of every economic development plan.

The Dutch introduced numbers of cash crops and commodities to create and establish an economic engine in its colony.Symbol Title From to Total Budget; OSRO/INS//USA: Strengthening National Capacity to Prevent and Control Emerging and Re-Emerging Pandemic Threats Including Influenza A in Indonesia (EPT-2).

Economy. Indonesia has played a modest role in the world economy since the midth century, and its importance has been considerably less than its size, resources, and geographic position would seem to warrant.

In Indonesia, the agricultural sector has a crucial role for the economy because of its significant contribution to economic growth, foreign exchange earnings, and in achieving food security.

Agriculture. 1 summary of indonesia’s agriculture, natural resources, and environment sector assessment eric quincieu adb papers on indonesia no. 08 october Regularly updated interviews and analysis on Indonesia's agriculture sector covering sector developments, business and investment opportunities.

As countries develop, their labor force shifts from agriculture to industry and services, and in the process, the well-being of the people improves.

This essay sheds some light on the economic logic that drives the process and on the important role that agricultural productivity plays in it.

Agriculture in Indonesia

It argues that agricultural productivity growth is the key to .

The role of agriculture in indonesia
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