Indonesia - Agriculture



In 1998 agriculture accounted for 19.5 percent of Indonesia's GDP. The agricultural sector is crucial to the economy not just for the portion of the GDP it produces, but also because it employs almost half the total work-force. Agriculture was hit hard by drought in 1997-98 but has recovered somewhat since then. Although the drop in the value of the rupiah resulted in much higher prices for fertilizer, pesticides, and other inputs, it did benefit some producers of export commodities, who could now get a higher price for their goods in the international markets. In January 2000, Indonesia told the IMF that the focus of its policy would be "to maintain food security and promote efficient production, processing, and marketing of agricultural products."

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