OECD Review of Agricultural Policies: Indonesia 2012
This Review,undertaken in close co-operation with the Indonesian Ministry of Agriculture, assesses the performance of Indonesian agriculture over the last two decades, evaluates Indonesian agricultural policy reforms and provides recommendations to address key challenges in the future. The evaluation is based on the OECD Committee for Agriculture’s approach that agriculture policy should be evidence-based and carefully designed and implemented to support productivity, competitiveness and sustainability, while avoiding unnecessary distortions to production decisions and to trade. Conducted in partnership with the OECD Investment Committee, the Review comprises a special chapter highlighting key challenges to be addressed to attract sustainable investment in agriculture, drawing from the OECD Policy Framework for Investment in Agriculture.
Executive Summary
Indonesia is the world’s 4th most populous country and the 10th largest agricultural producer, just behind Turkey and France and ahead of Germany and Argentina. It is the world’s most important palm oil producer, the second-largest natural rubber producer, and the third-largest rice producer and consumer after China and India. The country is scarce in agricultural land, at one-third of the world’s average when measured in per capita terms, but relatively abundant in water resources.