Indonesia Agriculture - Industry - Market, Share and Trends 2023-2028

Summary of Agriculture

The agriculture industry in Indonesia from 2024 to 2029 remains a vital contributor to the country’s economy, employment, and food security. With a diverse range of climates and geographical features across its vast archipelago, Indonesia boasts a rich agricultural landscape capable of producing a wide variety of crops, livestock, and seafood. Currently, the agriculture industry in Indonesia has 4.25% globally.

Key agricultural products in Indonesia include rice, palm oil, rubber, coffee, cocoa, and spices, among others. Rice cultivation is of particular significance, as rice serves as a staple food for the majority of the population. Palm oil production plays a crucial role in the economy, making Indonesia one of the world’s leading producers of this commodity.

Additionally, the country’s tropical climate supports the cultivation of tropical fruits, vegetables, and spices, contributing to both domestic consumption and export markets.

As per our estimates, we can say that the advanced manufacturing industry in Indonesia is forecasted to be a $ 128.69 Billion industry in 2029 from $ 98.82 Billion in 2023 with a CAGR of 4.50%.

Challenges facing the agriculture industry in Indonesia include land degradation, deforestation, climate change impacts, and limited access to modern inputs and technology for smallholder farmers.

Government policies aimed at promoting sustainable agriculture, increasing productivity, and enhancing market access for smallholders are critical for addressing these challenges and fostering growth in the sector.

The agriculture industry in Indonesia continues to evolve, driven by a combination of traditional practices, technological advancements, and government support, with a focus on enhancing productivity, sustainability, and resilience in the face of changing environmental and market conditions.

Recent Trends and Insights

One significant trend is the increasing adoption of sustainable and climate-smart farming practices. With growing concerns about environmental degradation and climate change impacts, Indonesian farmers are exploring techniques such as agroforestry, organic farming, and integrated pest management to improve resilience and reduce their carbon footprint.

Another notable trend is the rising demand for organic and specialty agricultural products. As consumer awareness of health and sustainability issues grows, there is a growing preference for organic fruits, vegetables, and coffee among Indonesian consumers.

Additionally, specialty crops such as avocados, dragon fruit, and quinoa are gaining popularity in both domestic and international markets, driven by changing dietary preferences and lifestyle trends.

Furthermore, digitalization and technology adoption are transforming the agriculture value chain in Indonesia. Mobile applications, drones, and satellite imagery are being utilized for crop monitoring, pest management, and weather forecasting, enabling farmers to make more informed decisions and optimize resource use.

E-commerce platforms are also facilitating direct marketing and sales of agricultural products, connecting farmers with consumers and reducing the reliance on traditional middlemen.

There is a growing emphasis on value addition and agro-processing in Indonesia’s agriculture industry. Farmers and entrepreneurs are investing in post-harvest facilities, food processing plants, and packaging innovations to extend the shelf life of perishable products, reduce food waste, and capture higher value along the supply chain.

These trends and insights reflect a dynamic and evolving agriculture industry in Indonesia, characterized by innovation, sustainability, and adaptation to changing consumer preferences and market dynamics.

Product Insights

In the period from 2024 to 2029, Indonesia’s agriculture industry offers a diverse array of products catering to both domestic consumption and export markets. One of the key products is rice, which serves as a staple food for the majority of the population. Indonesia is one of the world’s largest producers of rice, with various rice varieties cultivated across different regions of the archipelago.

Palm oil is another significant product in Indonesia’s agriculture sector, with the country being the largest producer globally. Palm oil is used extensively in food processing, cosmetics, and biofuel production, contributing significantly to Indonesia’s economy and export earnings.

However, the industry has faced criticism for its environmental impact, leading to efforts to promote sustainable palm oil production practices.

Additionally, Indonesia produces a wide range of tropical fruits, including bananas, pineapples, mangos, and papayas. These fruits thrive in Indonesia’s tropical climate and are consumed domestically as well as exported to international markets. Other important agricultural products include coffee, cocoa, rubber, spices and tea.

The Indonesian government has placed self-sufficiency in key agricultural products high on the agenda. Efforts are focused on achieving self-sufficiency in rice, soybeans, corn, and sugar through various programs and initiatives to enhance domestic production and reduce dependency on imports

Furthermore, Indonesia’s agriculture industry encompasses livestock farming, with poultry, cattle, and goats being raised for meat, eggs, and dairy products. Aquaculture is also significant, with Indonesia being a major producer of fish, shrimp, and other seafood products.

Indonesia’s agriculture industry offers a diverse range of products reflecting the country’s rich natural resources, cultural diversity, and geographical uniqueness.
Key Companies

Some major players within this vast domain of industry are:

• DokterFresh
• Akar Farm, Antler Indonesia
• Elevarm
• Assistani Indonesia Agri
• Farmland Rover
• Ceritech Indonesia

Country Analysis

Indonesia’s agriculture industry is a significant contributor to the country’s economy, providing livelihoods for millions of people and ensuring food security for its population. With vast land areas and diverse climates across its archipelago, Indonesia boasts a rich agricultural landscape that supports the production of a wide variety of crops, livestock, and seafood products.

The agriculture industry plays a pivotal role in Indonesia’s economy, employing a large portion of the workforce and contributing significantly to GDP. While the sector’s share of GDP has declined over the years due to industrialization and urbanization, agriculture remains a vital source of income for rural communities and contributes to poverty reduction and rural development.

Indonesia’s agriculture sector produces a diverse range of products, including staple crops such as rice, corn, and cassava, which form the foundation of the country’s food security. Additionally, Indonesia is one of the world’s largest producers of palm oil, rubber, cocoa, and coffee, with these commodities being major exports that generate foreign exchange earnings for the country.

The agriculture industry in Indonesia faces various challenges, including land degradation, deforestation, climate change impacts, and limited access to modern inputs and technology for smallholder farmers. However, these challenges also present opportunities for innovation, sustainable practices, and value addition along the agricultural value chain.

The country’s rich biodiversity and tropical ecosystems are vulnerable to deforestation, land degradation, and biodiversity loss associated with agricultural expansion. Efforts to promote sustainable land use practices, conservation agriculture, and forest protection are essential for mitigating environmental impacts and ensuring the long-term viability of the agriculture sector.

Indonesia’s agriculture industry is a dynamic and multifaceted sector that faces various challenges and opportunities. By leveraging its rich natural resources, promoting sustainable practices, and harnessing technological innovations, Indonesia can further strengthen its agriculture industry to support economic growth, food security, and rural development in the years to come.

Market segmentation

By Type:

• Crop Farming
• Plantation Agriculture
• Livestock Farming
• Fisheries and Aquaculture

By End User:

• Domestic Consumers
• Export Markets

By Enterprise Size:

• Smallholder Farmers
• Medium and Large-scale Enterprises
• Agribusiness and Processing Companies

Our Methodology

We have offered a well-founded review of Indonesia’s advanced manufacturing market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any prospects, challenges, competitors or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.