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Jakarta Post

Omnibus bill: Breakthrough for agriculture

  • Felippa Amanta


Jakarta   /   Thu, February 27, 2020   /  10:04 am
Omnibus bill: Breakthrough for agriculture A farmer tends to hydroponic crops in Semarang, Central Java. (Antara/Aditya Pradana Putra)

The food and agriculture industry is one of the most restricted sectors in Indonesia due to the politically sensitive nature of food. Instead of protecting the agricultural sector, protectionist policies have actually hindered much-needed investments and innovations, resulting in the sector’s relative decline. The agriculture sector’s contribution to Indonesia’s gross domestic product (GDP) has dropped from around 50 percent in the 1960s to just 12.72 percent in 2019, as is typical in the process of strong economic growth. Contributing to that decline is also a lack of investments in agriculture, particularly in research and development, as evidenced by a study from the Asian Development Bank. Most agriculture production still entails traditional, manual labor by smallholder farmers that are outdated, inefficient and expensive. This may soon change because of the ...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.