Agricultural Situation and Investment Condition of Indonesia
2011
Yang, W.H., National Institute of Crop Science, RDA, Suwon, Republic of Korea | Ahn, J.W., National Institute of Crop Science, RDA, Suwon, Republic of Korea | Kwak, C.K., National Institute of Crop Science, RDA, Suwon, Republic of Korea | Han, H.S., National Institute of Crop Science, RDA, Suwon, Republic of Korea | Lee, C.K., National Institute of Crop Science, RDA, Suwon, Republic of Korea | Shon, J.Y., National Institute of Crop Science, RDA, Suwon, Republic of Korea | Kim, J.W., National Institute of Crop Science, RDA, Suwon, Republic of Korea | Kim, Y.G., National Institute of Crop Science, RDA, Suwon, Republic of Korea
Indonesia is a home to the majority of populations. With its tropical climate, Indonesia has abundant natural resources and plants and animals biodiversity. The Agricultural sector, which accounts for 13-15% of the gross domestic product (GDP) of the country, has recently increased. Meanwhile, the number of farmers is half of the total households. Agricultural productivity has generally recorded low levels. Indonesia's agricultural production has steadily increased since 1980. Despite the East Asian financial crisis in the late 1990s, agricultural production in 2000 recovered to the level of previous years. From 2003 to 2005, the production of cereals, bulbous plant, vegetables, sugar and meat in Indonesia were 47.24, 22.4, 14.7, 2.3, and 2.2 million tons, respectively. The supplies of cereals, bulbous plant, vegetables, sugar, and meat recorded 38.3, 12.0, 1.5, 3.6 and 2.3 million tons respectively. These records show that cereal is relatively sufficient while vegetables and bulbous plants are leading export products and sugar and milk are major imported items. Promising investment sectors in Indonesian agriculture include agro-industrial cereal farming and food processing, farm development, irrigation and water conservation technologies, agricultural science and technology and human resources development. If we consider investment in the Indonesian agricultural sector, we shall review Indonesia's investment conditions, as well as relevant laws and practices in advance by analyzing strengths and weaknesses in the agriculture.
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