This document summarizes Indonesia's agricultural development targets and status from 2014-2015. Key points: 1) Indonesia aims to achieve self-sufficiency in key commodities like rice, maize, soybeans, sugar and beef by 2019 through improving irrigation, adopting new seed varieties, fertilizer use, and mechanization. 2) Production of rice, maize, soybeans and sugar increased in 2015 compared to previous years, though beef production remained a deficit. 3) Challenges to future agricultural development include narrowing land availability, weak seed systems, high irrigation costs, lack of financing and technology adoption by farmers. 4) The government is promoting strategies like developing bioindustry and empowering

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Embassy of DPRK Jakarta, 6 January 2016
CURRENT STATUS AND FUTURE PERSPECTIVES OF AGRICULTURAL
DEVELOPMENT: THE CASE OF INDONESIA
Indonesian Center for Agricultural Socio Economics and Policy Studies
Indonesian Agency for Agricultural Research and Development
Ministry of Agriculture
ž Self - sufficiency and
sustainable self sufficiency
in priori9zed commodi9es
(Rice, Maize, Soy Beans,
Sugar and Beef)
ž Improve farmers’ welfare
Improving irriga9on system and
other infrastructure, u9liza9on
of high yielding new plant
variety and fer9lizer,
Mechaniza9on and Extension
Agricultural
Development
Targets
How to increase Index of
plan9ng and produc9vity level,
OUR MAIN EFFORT
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PRODUCTION TARGETS TO BE SELF-
SUFFICIENT OF 5 MAIN COMODITIES
COMODITY PRODUCTION 2014
(Million TON)
TARGETED PRODUCTION
2019
(Million TON)
Paddy 70.80 82.10
Corn 19.0 24.7
Soybean 0.95 3.00
Sugar 2,63 3.82
Beef 0,460 0.755
3
Sources: Indonesian Ministry of Agriculture
II
CURRENT STATUS OF
AGRICULTURAL DEVELOPMENT

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8,220
3,087
21,145
6,292 12,036
62,629
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2010 2011 2012 2013 2014 2015*)
Unit
*) un9l October 2015 : 47 thousand unit (75%)
102,298 212,126
531,129 489,888
443,836
2,600,000
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2010 2011 2012 2013 2014 2015*)
Hektar
*) un9l 1 Oktober 2015 (80%)
33,352 48,813
196,694 253,321
142,773
1,030,000
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2010 2011 2012 2013 2014 2015*)
Hektar
*) Un9l 1 Oktober (55,51%)
INFRASTRUCTURES REHAB AND MACHINERIES FOR POOR FARMERS
ACTIVITIES IN 2015:
1. Rehabilitations of tertiary irrigation 2.1
million ha
2. Land optimation 570 thousand ha
3. The water pump 21 953 units
4. Tractor 26,100 unit
5. Rice transplanter 5563 units
6. Power weeder
7. Combine harvester 2,790 units
RESULTS:
• Extended areas & increase
Planting Index (2.5-3 times/year)
• Labor-saving:70%
• Prod cost-effective : 30%
• increase rice production 10-20%Cost-effective for tillage 30%
• three 9mes speed from manual
ways
• Cost effec9ve for weeding 30%
• Reduced losses until 2%
• Cosy effective for harvesting 30 %
Paten Number: S-00201500614Paten Number: S-00201500619
Cost –effective for planting
30%
Up 730 %
Up 763 %
Up 617 %
Realization of rehabilitation irrigation networks
Realization of optimizing land
Realization of agricultural machinery
EXTENTION ACTIVITIES AND INPUTS SUPPORTS
RESULTS:
• The increase in planting area
380.87 thousand Ha
• Productivity of paddy 5.29 tons/ha
• Reduced Losses from 10% to 2%
ON-FARM & POST-HARVEST
ACTIVITIES
• Fertilizer subsidy: 9.55 million tons
• Seed subsidy: 116 500 tons
• Applied “Legowo” row pattern
• 1000 Villages of “seed self sufficient”
• 1000 Organic Villages
• Combine harvester 2,790 units
• Power Thresher 1,500 units
• Rice Milling Unit 666 units
• Rendemen up 9%
Rice Processing Complex
• Seed Superior
• Legowo Row Pattern
260,597
259,307 258,503
136,887 144,177
572,000
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2010 2011 2012 2013 2014 2015*)
(Ton)
*) un9l September 2015 : 58.604 Ton
Realization of Rice Seed Production for the type of
extension seed

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-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Million tons
Production of paddy 2000-2015
The highest rice production
(2015) over the last 10
years (up 5,85 %)
Sources: BPS, 2015
Note: 2015 Data is Second Forecast Figures
(ARAM II)
-
5.00
10.00
15.00
20.00
25.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Million tons
Production of Maize 2000-2015
Production of maize in
2015 is 19,83 million
tons, up 0,82 million tons
(4,34%)
Sources: BPS, 2015
Note: 2015 Data is Second Forecast Figures
(ARAM II)

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-
0.20
0.40
0.60
0.80
1.00
1.20
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Million tons
982,97 thousand
tons, up 27,97
thousand tons
(2,93%).
Sources: BPS, 2015
Note: 2015 Data is Second Forecast Figures
(ARAM II)
Production of Soybeans 2000-2015
ACTIVITIES ON-FARM & POST-HARVEST
• Optimization of 11 Private companies
• Revitalization of 52 state companies
• Wheel tractor-4: 2,100 units (1 tractors /150 ha)
• The expansion of land sugarcane 315,000 ha
• Improvement of road production 31,500 km (0.1
km / ha)
• Improvement and maintenance of road
production (1 grader = 1500 ha
• Unloading ratoon 68,000 ha (25%)
• Maintenance of ratoon 270,000 ha
• Superior seeds for 63 800 ha
• Tool harvest of sugarcane: 3250 unit (1 whole-
cutting tool stock / 180 ha / per harvest)
• Improvement of yield quality (rendemen):
10-15%.
RESULTS:
• Sugarcane harvest: 585,000 ha
• Productivity: 80 tons/ha
• Production of sugarcane = 2.72 million tons, up
3.65% compared to 2014 (2.63 million tons)
• Production of sugar: 4.29 million tons
• Increase of yield quality: 9 %
2.29 2.27
2.59 2.55 2.63
4.93
-
1.00
2.00
3.00
4.00
5.00
6.00
2010 2011 2012 2013 2014 2015
Million tons
Production of Sugar 2010-2015
Sources: BPS, 2015
Note: 2015 Data is Second Forecast Figures
SUGAR PRODUCTION

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RESULTS 2015:
• Cattle Breeding Centers (SPR):
388 unit @ 1000 sapi
• Perennial pasture: 1,950 ha
• Breeders of beef cattle in SPR:
500.000 tails
• Compost production: 9,500 ton
• Private company: 3.300 tails
• Production of beef carcass
cattle/buffaloes in 2015 is
estimated 409 thousand tons
increased by 5.23% compared
to 2014
• Production has not been able to
meet the needs of 454
thousand tons of meat
consumption, so the balance
was a deficit of beef 45
thousand tons.
ACTIVITIES ON-FARM & POST-
HARVEST:
• Cattle Breeding Centers (SPR)
• Technology transfer / mentoring
• Feed processed 14 thousand
tons
• Guarantee of animal products
• Application of animal welfare
• Control of Zoonoses /vaccine
• Land for animal feed 15,000 ha
• Organic Fertilizer Processing
Unit (UPP)): 897 units
• Investment of state company and
private company 13, 000 tails
BEEF AND BUFFALO PRODUCTION
Palm Oil
33,500,000
20,350,000
2,250,000 1,025,000 930,000
Palm Oil Production in 2014
(in metric ton)
0
5
10
15
20
25
30
2008 2009 2010 2011 2012
Production (million metric tons) 19.2 19.4 21.8 23.5 26.5
Export (million metric tons) 14.2 15.5 15.6 16.5 18.1
Export Value (USD billion) 15.6 10 16.4 20.2 21.6
INDONESIAN PALM OIL PRODUCTION AND
EXPORT:
Source:UnitedStatesDepartmentofAgriculture
Sources: Food and Agriculture Organization of the United Nations, Indonesian Palm Oil Producers
Association (Gapki) and Indonesian Ministry of Agriculture

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Rubber (Natural)
3,348,900
3,088,400
996,673 891,344 811,600
Thailand Indonesia Malaysia India Vietnam
TOP FIVE NATURAL RUBBER PRODUCERS 2011
( in tonnes)
2008 2009 2010 2011 2012 2013
Produc9on 2.75 2.44 2.73 3.09 3.04 3.2
Export 0 1.99 2.2 2.55 2.8 2.7
0
0.5
1
1.5
2
2.5
3
3.5
in million tonnes
Source:FoodandAgriculture
OrganizationoftheUnitedNations
Sources: Association of Natural Rubber Producing Countries, Indonesian Rubber Association (Gapkindo), and
Food and Agriculture Organization of the United Nations
Rubber in Indonesia
COCOA AND COFFEE
0
200000
400000
600000
800000
1000000
1200000
1400000
2010 2011 2012 2013
in tonnes
Cocoa Coffee
Sources: Indonesia Cocoa Association and Indonesian Coffee and Cocoa Research
Institute and Asosiasi Eksportir dan Industri Kopi Indonesia (AEKI)

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FARMERS’ WELFARE
Terms of Trade for Farm Households Business per
Subsector (2012=100)
Food crops Hor9culture
Smallholders
Planta9on
Animal Husbandry Fishery Na9onal
September 2014 101.51 108.14 106.16 113.26 108.06 106.71
September 2015 106.60 109.06 103.20 116.88 108.22 108.66
October 2015 107.69 109.16 103.27 115.31 108.22 108.69
90.00
95.00
100.00
105.00
110.00
115.00
120.00
Index of Term of Trade
FUTURE PERSPECTIVES OF
AGRICULTURAL DEVELOPMENTIII

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Seed
Infra-
structure
Human
Resource
Financing
Farmers’
insXtuXon
Technology &
downstream
industries
Land
AGRICULTURAL DEVELOPMENT ISSUES
17
• Uncontrolled land
conversion
• Narrow land ownership
• A decrease in land
quality
• Weakness in seed
production and
distribution
system
• The obstacle to
developing
transgenic seed
• High damage of
irrigation
network
• High production
and
transfortation
cost
• Silting of
reservoirs
• The difficulty farmers’ access
to financing
• Farming was handled by most
peasants
• High bad debts in agriculture
sector
• Using tradisional
technology
• Industry
underdeveloped
• Weakness in farmers’
institutions
• Limited capacities of
farmers’ organisations • Limited human
resource
• The low quality of
human resources
• Declining interest
of young people to
engage in
agricultue
Developm
ent
programs
AGRICULTURAL
DEVELOPMENT
AGENDA
IAARD’s Keywords :
Innovative green technology
Local wisdom
Global Mindset
Bioindustrial
Agriculture
Transformation to Agricultural Bio-Industry
Bioscience
Bioengineering
Social engineering
Bioinforma4cs
Automatization
21st century:
new Socioeconomic &
Resources challenges
• Improving production
efficiency and coping with
climate change
• Providing ecosystem
services and public goods
• Empowering rural areas
and supporting policies
and rural innovation
• Developing a sustainable
and competitive agri-food
industry
• Supporting market
development for bio-
based products and
processes
Medium Term Development
Plan: 2015-2019
1 Strategic Plan Ministry of
Agriculture, 2015-2019
2. Grand Strategy of
Agricultural Development
(GSAD) 2015-2045
Strategic Plan IAARD
2015-2019
1. Food and Nutrition
Security
2. Sustainable Agricultural
Intensification

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Using renewable
resources for
industry
Developing
biomass-based
energy carriers
Technology-
transfer
International
Cooperation
Producing
healthy
and safe foods
Securing global nutrition
High value-added
products, min or zero
waste, min negative
impact, & max
economic benefits
PERSPECTIVE OF AGRICULTURAL BIO-INDUSTRY
Ensuring
sustainable
agricultural
production
q Stabilize self-sufficiency in rice, corn,
chicken meat, eggs, and consumed sugar
through increasing sustainable growth of
production.
q Achieve self-sufficiency in soybeans,
beef, and sugar industry.
q Increase production of fresh milk, local
fruits, and substitute imported commodity.
Focus Program: Self Sufficient on Production of
Priority Commodity
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q Continue improve and develop
of agricultural infrastructures
such as irrigation, artificial water
ponds, rural roads and farming
roads.
q Protect shifting of productive
agriculture land.
Focus Program: Agriculture Infrastructures and
Land
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Focus Program: Rural Institutions and
Partnership
q Strengthen national seed industry.
q Empowerment of poor farmer’s community
through subsidy of tools, training, and mentoring.
q Strengthen farmer’s access to science and
technology, markets, and low-interest capital.
q Encourage interest in agricultural investment and
business partnerships through intensive
promotion and support by conducive business
climate.
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q Develop renewable local resource-based
bio-energy to fulfill community’s energy
needs, especially in rural areas and
substitute dependency on fossil fuel.
Focus Program: Renewable Energy
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IV PERSPECTIVES FOR
AGRICULTURAL COOPERATION

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PERSPECTIVES FOR AGRICULTURAL COOPERATION
• Strengthen the market access of
agricultural products
• Promotion of agricultural trade and
industrial products
• Increasing the quality of agricultural
products, especially for future export
product
• Research collaboration, capacity building
and exchange of experts to assist in the
development of certain fields
PERSPECTIVES FOR AGRICULTURAL COOPERATION
• The development of organic farming;
• Integrated farming system;
• Urban farming, (vertical farming and Controlled
Environmental Farming (CEF) ;
• The development of micro irrigation;
• The development of technology in up land cultivation
• Agricultural technology transfer;
• The development of investment (agricultural
infrastructure); and
• Capacity building.

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CLOSING
• Food Security and farmers’ welfare are
among the important issues for Indonesia.
• This country needs to modernize its
agricultural production systems
• Infrastructure rehabilitation especially for
assuring water supplies, mechanizations,
and extention services are the main
government activities to help the poor
farmers in the villages
• Another important keys issues for the future
Indonesian agriculture: bio-industry, zero
waste, processed products and effective
supply-chains