TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Omnibus bill: Breakthrough for agriculture

  • Felippa Amanta

Jakarta   /   Thu, February 27 2020   /  01:30 am

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 Most agriculture production still entails traditional, manual labor by smallholder farmers that are outdated, inefficient and expensive.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 omnibus bill on jo...