Indonesia's agricultural sector accounted for 12.4% of GDP and 29.0% of the employed population in 2022. The favorable climate, as well as extensive fertile lands allow the country to maintain the status of a net exporter of agricultural products.
The main principle of the Indonesian Government's policy is self-sufficiency in basic foodstuffs, which puts local goods in an advantageous position over imported ones and stimulates the development of domestic production. Despite this, in 2022, the country ranked only 63rd in the Global Food Security Index, with Indonesia ranked 83rd in terms of sustainability and adaptation, and 84th in terms of accessibility. Such low indicators reflect two main problems of the country's agricultural sector: insufficient production efficiency and vulnerability to climate change. In conditions of population growth and concomitant increase in demand, the available food resources are distributed unevenly, which leads to a significant gap between the availability of goods in urban and rural areas. The situation is aggravated by natural disasters, which have become increasingly frequent in recent years due to climate change, as well as insufficient investment in the agricultural sector and the infrastructure necessary to maintain agricultural efficiency.
Indonesia is a world leader in the production of oil palm fruits and palm oil. In 2021, the volume of production amounted to 256.6 million tons of oil palm fruits, which is 2.6% more than in 2020, while the volume of palm oil production in 2021 reached 49.7 million tons, an increase of 2.9%.
This industry is the main one in the country's agriculture, making a significant contribution to the country's GDP, as well as generating significant income due to the high demand for palm oil both in the domestic market and abroad. However, its production is associated with the problem of deforestation due to the need to expand the area of oil palm plantations.
The production of grain crops in 2021 amounted to 74,425.3 thousand tons, which is 6.2% less than 2020. Most of it falls on rice, the volume of cultivation of which in 2021 amounted to 54,415.3 thousand tons (-0.4% by 2020). The remaining part falls on corn, the production of which in 2021 was 20 million tons, having decreased by 18.9% compared to the previous year. In addition, vegetable crops are grown in Indonesia, among which cassava is the most common, the production of which in 2021 amounted to 17.7 million tons (-3.0% by 2020). In the commodity category of fruits and berries, most of the production falls on bananas, the volume of grown products of which increased by 6.8% in 2021, amounting to 8,741,1 thousand tons.
According to the Statistical Office of Indonesia, in 2021, the volume of raw milk production in the country amounted to 962.7 thousand tons, most of which falls on cow's milk. More than 70% of milk in Indonesia is traditionally produced by small farmers, and industrial production is partly limited by the insufficient amount of feed for livestock in the dry season, as well as by the fact that the priority in the country is not dairy, but beef cattle breeding. Thus, in 2021, the production of meat and offal amounted to 4 986.7 thousand tons, which is 5.0% more than in 2020. Average annual growth rates for 2017-2021 there were about 3.2%. The most developed branch of animal husbandry is poultry farming. On average, in 2017-2021, poultry meat production increased by 4.9% per year, amounting to 3,844.3 thousand tons in 2021, which is 5.6% more than in 2020. Beef and pork are also produced in the country, the production of which in 2021 amounted to 437.8 and 323.7 thousand tons, respectively.
Indonesia is one of the world's largest producers of fish and seafood. In 2021, the total volume of products produced amounted to 22,155.7 thousand tons, most of which is provided by the developed aquaculture sector.
Import of agricultural products
In 2022, imports of agricultural products in Indonesia amounted to 26.7 billion US dollars, an increase of 15.5% (+3.6 billion US dollars) compared to 2021. The volume of imports of agricultural products for 2018-2022 increased annually by an average of 7.8%.
The main share of imports of agricultural products of the country was cereals, which accounted for 16.7% of imports in value terms in 2022. By the end of 2022, wheat (14.3% of value imports), soybean meal and meal (12.0%), beet and cane sugar (11.2%) dominated the import structure. In total, the top 10 commodity items accounted for 62.1% of imports of agricultural products of Indonesia in value terms.
In 2022, the largest increase was observed in the import of milk powder — its purchases increased by 53.0% (+434.1 million US dollars), as well as beet and cane sugar (by 25.9% or +616.0 million US dollars). At the same time, the import of cocoa beans decreased by 11.3% (-69.6 million US dollars).
The largest suppliers of agricultural products to Indonesia in 2022 were Australia (13.1% of value imports), the USA (12.3%), China (11.6%), Brazil (11.3%) and India (9.1%). Collectively, the top 10 countries accounted for 83.4% of the value of imports of agricultural products of Indonesia.
For 2018-2022 Indonesia has significantly increased the volume of supplies from Brazil (by 3.0 times or by 2.0 billion US dollars), India (by 2.7 times or by 1.5 billion US dollars) and Australia (by 51.5% or by 1.2 billion US dollars).
Grain imports
The main grain crop in Indonesia is rice. The country ranks fourth in the world in terms of its production, growing more than 54 million tons of rice annually and at the same time practically does not supply this product abroad (in 2022 exports amounted to less than 3.0 thousand tons), purchasing additional volumes in other countries. At the same time, Indonesia is actively importing other grains, primarily wheat, since 2021 being the world's largest importer of this grain crop in value terms. Wheat flour is used in the cooking of both traditional Indonesian noodles and bakery and confectionery products that are gaining popularity in the country.
In 2022, Indonesia imported 11.07 million tons of grain crops worth 4.45 billion US dollars, which is 14.7% less than the level of 2021 in volume, but 9.3% more in value. The volume of Indonesia's grain imports decreased annually by an average of 4.5% by weight, while imports increased by 4.3% in value.
In the structure of Indonesia's grain imports, the largest share in 2022 fell on wheat - 85.5% (or 3.8 billion US dollars). The country also imported corn (8.9% of the value of grain imports), rice (4.5%) and millet (0.9%).
The most significant increase in corn imports in 2022 was 9.9% (+98.2 thousand tons) in volume and 32.7% (+97.2 million US dollars) in value. At the same time, wheat imports, despite an increase in value by 7.4% (+262.9 million US dollars), decreased in volume by 17.6% (-2.0 million tons).
Among the largest grain exporting countries to Indonesia in 2022, Australia took the leading position, accounting for 38.6% of import in value. Australia's main export product was wheat. The second largest grain supplier was Argentina, which in 2022 supplied 2.4 million tons of grain to the Indonesian market for US$ 833.7 million (mainly wheat and corn). Canada exported a significant amount of grain crops — 1.3 million tons worth 640.8 million US dollars, mainly - wheat.
In total, the top 10 countries accounted for 98.1% of the value of Indonesia's grain imports. The largest increase in 2022 was observed in deliveries from Argentina (by 93.1% in volume and 2.3 times in value) and India (by 2.1 times and 2.4 times, respectively). At the same time, supplies from Ukraine have practically stopped.
Import of legumes
In 2022, Indonesia imported 132.0 thousand tons of legumes worth 126.8 million US dollars. Imports of this category decreased relative to 2021 by 7.1% (-10.1 thousand tons) in volume and by 15.9% (-24.0 million US dollars) in value.
Beans account for the largest share in the structure of value imports of legumes in Indonesia — 84.0% (US$ 106.5 million). Dried fodder beans (9.2%) and peas (5.3%) also accounted for significant volumes of imports. In total, the share of the above items amounted to 98.5% of the value of imports of legumes.
The most significant increase was in imports of other fodder beans (by 27.6% in volume and by 41.0% in value), as well as peas (by 32.3% and 63.4%, respectively). Purchases of beans decreased the most — by 14.6% (-17.3 thousand tons) by weight and by 22.5% (-30.8 million US dollars) by value.
The largest exporter of legumes to Indonesia in 2022 was Myanmar, which accounted for 48.6% of import in value. The country mainly supplied beans to Indonesia. The second largest supplier of legumes was Australia, which in 2022 supplied 21.5 thousand tons of products worth $ 16.7 million and which mainly supplied dried fodder beans. Also, significant volumes of supplies came from Ethiopia — 9.6 thousand tons of products worth $ 16.6 million (mainly beans). In total, the top 10 countries accounted for 98.6% of Indonesia's imports of legumes in value.
The most significant increase in supplies in 2022 was from China (3.9 times in volume and 3.7 times in value) and Thailand (4.7 times and 4.2 times, respectively). At the same time, there was a decline in supplies from Myanmar — by 29.9% by weight and by 39.0% by value.
Import of vegetable oils
Indonesia is the world's main producer and exporter of palm oil. The production volume is about 50 million tons per year. Palm oil accounted for about 10% of the country's export revenue in 2022. In the structure of the country's total exports, it took second place in value terms, second only to coal.
In 2022, Indonesia imported 118.6 thousand tons of vegetable oils worth 248.3 million US dollars, which is 15.4% less than 2021 in volume, but 5.0% more in value. Indonesia's vegetable oil imports grew annually by an average of 11.7% by weight and 23.0% by value.
In terms of value, coconut oil (41.5% of supplies) and soybean oil (25.8%) occupied the largest share in the structure of imports of vegetable oils of Indonesia.
In total, the above products accounted for 67.3% of the value imports of vegetable oils in Indonesia, and the top 10 accounted for 99.4%.
Almost all major categories showed a decrease in imports in volume, with the exception of olive and sesame oils. In value terms, the largest increase in imports was noticed in soybean oil — 21.5% (+11.3 million US dollars) and rapeseed — 35.7% (+5.3 million US dollars). There was a decrease in imports of coconut oil (copra) by 19.8% (-13.9 thousand tons) in volume and by 3.6% (-3.9 million US dollars) in value.
Among the largest vegetable oil exporting countries to Indonesia in 2022, the Philippines took the leading position, accounting for 39.6% of value imports. The country supplied coconut oil (copra). Malaysia became the second largest supplier of oils to Indonesia, which in 2022 supplied 23.4 thousand tons of products worth 49.6 million US dollars. The main share of the supplied products fell on soybean oil. Thailand also supplied significant volumes of vegetable oils — 16.6 thousand tons of products worth 29.9 million US dollars (mainly soybean oil). In total, the top 10 countries accounted for 92.4% of the value of Indonesia's vegetable oil imports.
The most significant increase in 2022 was in supplies from India (by 2 times in volume and 2.1 times in value). At the same time, imports of vegetable oils from the Philippines experienced a decline of 23.5% by weight and 7.7% by value.
Import of meat and meat products
The main type of meat consumed in Indonesia is poultry, primarily chicken. The country is one of the world's largest producers of chicken meat and almost completely provides its own population with them. In 2022, Indonesia ranked seventh in the world in terms of imports of frozen beef. Despite the predominant share of the Muslim population, Indonesia imports and consumes pork and pork products, the bulk of which is supplied to the regions of residence of Indonesians professing Hinduism and Christianity, as well as to tourism centers.
In 2022, Indonesia imported 296.8 thousand tons of meat and meat products worth 1.1 billion US dollars. Compared to 2021, imports increased by 5.4% (+15.2 thousand tons) in volume and by 11.2% (+111.3 million US dollars) in value. On average, imports of meat products in Indonesia for 2018-2022 grew annually by 8.2% by weight and 10.1% by value. In the structure of imports of meat and meat products in Indonesia in value terms, the largest share in 2022 fell on beef and edible offal of cattle — 93.6% (1.0 billion US dollars). Also, insignificant volumes of cattle meat products were imported, except sausages (2.2% of imports), lamb (2.0%), pork and pig by-products (1.4%). In total, the above ptuducts accounted for 99.3% of imports of meat and meat products in value terms.
The largest increase in 2022 was in imports of beef and by—products of cattle - by 4.0% (+10.9 thousand tons) in volume and 8.9% (+84.5 million US dollars) in value.
Among the exporting countries of meat and meat products to Indonesia in 2022, Australia was the leader (41.8% of value imports), which mainly supplied beef and edible offal of cattle. The second largest supplier of meat was India, which in 2022 exported 105.8 thousand tons of products worth 321.7 million US dollars (29.2% of imports) to the Indonesian market, mainly beef and edible offal of cattle. Also, a significant share of supplies fell on the USA and Brazil — 11.1% and 10.2% of the value of meat imports, respectively. In total, the top 10 countries accounted for 99.9% of the value of imports of meat and meat products of Indonesia.
In 2022, India (by 24.5% in volume and 11.5% in value) and Brazil (by 26.4% and 30.2%, respectively) significantly increased meat supplies. Imports from New Zealand decreased the most — by 19.4% (-3.5 thousand tons) by weight and by 13.2% (-7.4 million US dollars) by value.
Import of milk and dairy products
The production of its own dairy products in Indonesia is insufficient to meet the needs of the domestic market. In this regard, the country is increasing purchases of these products on foreign markets, taking 11th place in the world in terms of imports in 2022. The highest demand for dairy products is observed in large urban agglomerations.
In 2022, Indonesia imported 553.0 thousand tons of milk and dairy products worth 2.0 billion US dollars, which is 9.7% more than 2021 in volume and 42.6% in value. Imports of this commodity category in Indonesia increased annually by an average of 4.6% by weight and 17.2% by value.
In the structure of the import in value of milk and dairy products of Indonesia, the largest share was taken by the supply of milk powder — 63.5% (1.3 billion US dollars). Whey ingredients (12.4%) and butter and other milk fats (10.5%) were also among the main imported dairy products. In total, the above positions accounted for 86.5% of the value of Indonesia's dairy imports.
In 2022, the largest increase was noticed in the supply of milk powder (by 18.2% in volume and by 53.0% in value) and butter and other milk fats (by 43.4% and 72.7%, respectively). At the same time, the import of ice cream decreased significantly — by 69.5% (-11.7 thousand tons) by weight and by 44.9% (-14.7 million US dollars) by value.
The largest supplier of milk and dairy products to Indonesia in 2022 was New Zealand, which accounted for 43.0% of import in value, the country mainly supplies powdered milk. The second largest supplier was the United States, which supplied 124.4 thousand tons of products (mainly milk powder and whey ingredients) to the Indonesian market for 409.2 million US dollars. In total, the top 10 countries accounted for 95.2% of the value of imports of milk and dairy products of Indonesia.
The largest increase in deliveries of this product category was observed in New Zealand (by 59.1% in volume and by 91.0% in value) and the United States (by 14.1% and 47.1%, respectively).
Import of fish and seafood
Indonesia is the world's largest island nation located between the Indian and Pacific Oceans, with a coastline stretching over 54.7 thousand km. In this regard, and also taking into account the complexity of economic development of the predominantly jungle-occupied interior of the islands, navigation and fishing have historically played a key role in the life of the local population.
Indonesia is one of the largest fish producers and in 2022 ranked 13th in terms of its exports. At the same time, the country also imports significant amounts of aquatic biological resources.
In 2022, Indonesia imported 196.6 thousand tons of fish and seafood worth 490.6 million US dollars, which is 53.6% (+68.6 thousand tons) in volume and 49.8% (+163.1 million US dollars) in value more than 2021. On average, Indonesia's fish imports decreased annually by 7.3% by weight and by 14.9% by value.
In terms of value, frozen fish had the largest share in the structure of imports of fish and seafood to Indonesia (51.5%). Also among the main imported products were crustaceans (27.4%), as well as fresh and chilled fish (10.3%). In total, the above products accounted for 89.2% of the value of Indonesia's fish and seafood imports.
The most significant increase in 2022 was in the import of frozen fish (by 66.2% in volume and by 74.1% in value terms), as well as fillets of fish and other fish meat (by 63.0% and 2 times, respectively).
The main supplier of fish and seafood to the Indonesian market in 2022 was China (21.2% of import in value), which mainly exported frozen fish to Indonesia. Also, significant volumes of fish imports fell on Canada (9.4%), the country supplied crustaceans, as well as fillets and other fish meat.
In total, the top 10 countries-suppliers of fish and seafood accounted for 72.8% of import in value.
The most significant increase in value terms was for supplies from China (by 88.6% in volume and by 84.0% in value terms) and the Republic of Korea (by 3.6 times and 4.1 times, respectively). At the same time, purchases of fish from Argentina decreased markedly — by 30.3% (-1.0 thousand tons) by weight and by 22.4% (-5.8 million US dollars) in value.
Import of confectionery products
Indonesia is in the top 3 world producers of cocoa beans, second only to Ivory Coast and Ghana, as well as in the top 10 world leaders in the production of sugar cane. These factors ensure the high investment attractiveness of the country as a center of confectionery production.
In 2022, Indonesia imported 109.7 thousand tons of confectionery worth 418.0 million US dollars, which is 39.2% in volume and 42.6% in value more than 2021. Indonesia's confectionery imports grew annually by an average of 12.9% by weight and 11.5% by value.
Flour confectionery products accounted for the largest share in the structure of confectionery imports in Indonesia (42.0%). Chocolate and sugary confectionery accounted for 29.6% and 28.4% of import in value, respectively. In 2022, all three categories showed growth.
The largest suppliers of confectionery products to Indonesia in 2022 was Malaysia, which accounted for 27.7% of the value of confectionery imports (mainly flour products). The second largest supplier of this category was China, which in 2022 delivered 45.8 thousand tons worth 111.6 million US dollars. Also, a significant volume of imports fell on Thailand — 11.8 thousand tons in the amount of 43.6 million US dollars, mainly flour confectionery products.
In total, the top 10 countries accounted for 90.4% of the value of Indonesia's confectionery imports.
The largest increase in the supply of confectionery products to Indonesia was made by China (by 69.6% in volume and 68.6% in value) and Vietnam (by 56.4% and 76.3%, respectively).
Import of soft drinks and juices
Indonesia is located in the equatorial climate zone, where the average annual temperature is 23 °C, the country is characterized by hot weather with high humidity, and therefore the daily fluid intake by local residents is higher than the usual norm of about 2 liters per day.
In 2022, Indonesia purchased 187.3 thousand tons of soft drinks and juices worth 175.8 million US dollars, which is 16.2% in volume and 22.6% in value above 2021. Indonesia's soft drinks imports increased annually by 3.1% by weight and 6.9% by value on average.
In the structure of imports of soft drinks and juices of Indonesia, the largest share was occupied by the supply of soft drinks except water and juices (83.3%). The country also bought fruit and vegetable juices (15.9%), as well as water without sugar and additives (0.9%). The largest increase was in the supply of non—alcoholic beverages, except water and juices - 16.7% in volume and 25.4% in value.
Among the exporting countries of soft drinks and juices to Indonesia in 2022, Malaysia was the leader, accounting for 39.6% of import in value. The country mainly supplied non-alcoholic beverages, except for water and juices. Thailand (23.7% of imports) and the Republic of Korea (11.8%) were also major suppliers of this product category. In total, the top 10 countries accounted for 93.4% of Indonesia's imports of soft drinks and juices in value.
In 2022, Malaysia (by 23.2% in weight and 38.6% in value) and Thailand (by 7.7% and 19.8%, respectively) showed the largest increase. At the same time, imports of soft drinks from Brazil decreased by 14.1% in volume and by 2.1% in value.
Export of agricultural products
The total volume of exports of agricultural products of Indonesia in 2022 amounted to 56.0 billion US dollars, which is 8.9% (+4.6 billion US dollars) higher than in 2021. For 2018-2022, exports grew by an average of 12.5% annually.
The basis of the export of agricultural products from Indonesia is palm oil, which accounted for 50.7% of exports in 2022 in value. Palm kernel oil and babassu oil (3.7%) and margarine (3.5%) also entered the top 3 exported products.
In total, the top 10 exported products accounted for 73.2% of the value of exports of agricultural products of Indonesia. The highest growth rates among the main products of Indonesian exports in value terms in 2022 relative to 2021 were made by oilcakes and meal (by 8.8 times), as well as butter and vegetable oils, fats (by 67.6%). There was a decrease in exports of products and canned crustaceans — by 11.3% (132.3 million US dollars) in 2022.
The main importing countries of agricultural products from Indonesia in 2022 were China (17.5% of export in value), the USA (10.8%) and India (10.5%). Malaysia (6.2%) and Pakistan (5.8%) also entered the top 5. In total, the top 10 countries accounted for 66.8% of Indonesia's agricultural exports in 2022.
