Saturday, 14 December 2019

Agriculture Contribution to GDP Declines

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  • TEMPO.CO, Jakarta – The Central Statistics Agency (BPS) announced that the agricultural sector's contribution to gross domestic product (GDP) over the past 10 years is declining. BPS deputy for production statistics Adi Lumaksono said the decline was triggered by the import of agricultural products.

    "As a result, agriculture growth has always been lower compared to other sectors even though it has a high number of workers," he was quoted by Antara as saying. 

    According to Adi, in 2003, the agriculture sector contributed 15.19 percent to the national GDP. A decade later, the growth dropped to 14.43 per cent. This is worrying given the Indonesian population working in the agricultural sector, according to BPS data, reached 38.07 million people, or 34.6 percent of the total number of workers.

    The import value of agricultural products from 2003 to 2013 also experienced a significant increase from US$3.34 billion to US$14.9 billion. According to Adi, the large number of workers is still unable to keep up with the rapid population growth, which triggers an increase in food demand. As a result, local production continues to be insufficient to meet domestic needs. "The number [of import] jumped four times despite the increased prices," he said.