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Jakarta Post

Analysis: Rice farming: Financing scheme requirements

  • Bobby Hermanus


Jakarta   /   Wed, February 14 2018   /  12:35 am

Agriculture is an important sector in Indonesia’s economy because of its relatively high added value. Contributing Rp 1.78 quadrillion (US$125 billion), it accounts for 13.7 percent of the gross domestic product (GDP).However, the average annual growth rate of the agriculture sector was 4 percent between 2010 and 2016, lower than the 5.4 percent recorded at the national level. During that period, the average contribution of agriculture to the national GDP was about 13.9 percent, second only to manufacturing at 21.8 percent and ahead of the sectors of trade and construction at 13.7 percent and 9.9 percent, respectively.Despite the significant role of agriculture in the GDP, Indonesian farmers are generally not prosperous. Based on data of farmers’ terms of trade, the prices of goods consumed by farmers have generally increased faster than farmers’ income.For example, the price of fo...