Why should the Indonesia government develop agricultural sector soon?
Assalamualaikum Warahmatullahi Wabarakatuh,
The tremendous monetary crisis that occurred in 1998 has provided awareness for the Indonesian people that the agricultural sector was able to reduce the crisis as well as the tool of the real sector in the facing the crisis and more quickly recover from the crisis than other sectors. Based on the calculation of real GDP, this sector has recovered from the monetary crisis since 1999 (one year after the crisis) while other sectors only recovered around 2003 or five years after the crisis.
According to the World Development Report (WDR) released by the World Bank, investment in agricultural sectors is the best way to reduce poverty in developing countries (especially in rural areas). The WDR also states that countries in the world will fail to reach the target of reducing by half the world’s population from extreme poverty and hunger by 2015, unless the agriculture and rural sectors are not disregarded so conditions will improve.
There are many roles or contributions of the agricultural sector in the Indonesian economy in particular and human life in general which should be developed by the government so that the sector is considered still urgent to be built and developed in Indonesia. Urgency and contribution of the agricultural sector are as follows.
First, the agricultural sector is a national food provider so that it has a strategic role, especially as a food producing sector so that it will always be a perspective for investment purposes. The reason of this urgency is the agricultural sector has been able to produce various food needs of Indonesian people from food crops, horticulture, plantations, livestock, fisheries, and forestry. As an illustration that this sector has provided food for the population of Indonesia year after year is the realization of food products from 2008 to 2011 is always increasing although not always reach the target. In 2008 the realization of food products was 59.93 million tons with 59 million tons targeted, in 2009 64.40 million tons with a target of 63.5 million tons, in 2010 66.47 million tons targeting 66 million tons, in 2011 68, 54 million tons premises targeted 70.6 million tons. In addition, increased demand for food in the future should encourage the government to commit to the main target in the agricultural sector. This fact is also expected to encourage the investor to participate in food production through the food estate so that food production process will be supported by various parties from upstream to downstream, which in the end food production will reach its target and may even surplus.
Second, the agricultural sector contributes greatly to the national GDP. This sector contributes 13% to 15.3%. Based on data from BPS, in 2005 the agricultural sector contributed 13.1% of GDP, 13% in 2006, 13.7% in 2007 to 15.3% in 2007, 15.3% in 2010 which is equivalent to Rp 1190 trillion. This means that agriculture still plays a very important role in the Indonesian economy so that the government and other concerned parties can not underestimate the sector for any reason. Based on the contribution figures also implies that if the handling of this sector is good then many parties will be victims because Indonesia is an agricultural country because many people of Indonesia who depend on this sector so this sector should be superior.
Third, the agricultural sector can employ the largest laborers in Indonesia. This sector is a very large sector accommodating the workforce in Indonesia and most of the Indonesian population depends. More specifically, the proportion or share of agricultural output to total GDP and the proportion of labor of this sector to the total from 1970 to 2011 fell from 64.16 million people in 1970 to 33.32 million in 2011 with a contribution of GDP 53,92% in 1970 to 14.72 in 2011. Although it is worth noting that the value of labor proportion to total in general continues to decline, but in general the sector still shows a significant contribution rate to the Indonesian economy. This condition requires the government to continue to develop the agricultural sector so as to increase its contribution to the economy and improve the welfare of Indonesian society.
The agricultural sector is considered to still play a significant role and contribution to the Indonesian economy. This can be seen from the contribution of this sector to workers who work as many as 33.32 million people in Indonesia or about 15% of the total and contribute to the national GDP formation to reach Rp 1.190 trillion. In addition, this sector also plays a strategic role in the provision of national food. Given this fact, the agricultural sector should remain urgent to be developed and built more seriously by governments and stakeholders so that this sector can still play an optimal role in the economic development of Indonesia.
Penulis : Hilmy Prilliadi
Blandford, David, 2011, The Contribution of Agriculture to Green Growth, Pennsylvania State University, University Park, United States, available online at http://www.oecd.org/tad/sustainable-agriculture/48258861.pdf;