World Grain - November 2010 - 23

COUNTRYFOCUS

Focus on
Indonesia
Southeast Asian country remains
a major global force in rice
by Chris Lyddon

Indonesia is the world's fourth most populous country, with
one of the biggest agricultural sectors. It is among the most important players in production of two agricultural products - rice
and palm oil. The government has ambitious plans to expand production of palm oil in particular, but has come up against objections from environmentalists, keen to insist on the preservation of
Indonesia's forests.
The International Grains Council (IGC) puts Indonesia's total grain production (not including rice) at 8.4 million tonnes
in 2010-11, compared with 8.3 million in 2009-10. All of it is
maize (corn).
The IGC predicts total grain imports of 6 million tonnes (mostly wheat), down from 6.5 million. Indonesia is expected to import
500,000 tonnes of maize, down from 1 million.
Indonesia is also expected to import 1.5 million tonnes of soybeans (1.6 million in the previous year) as well as 2.6 million
tonnes of soy meal (2.5 million last year.).
It is in rice production and consumption that Indonesia is a
major player. According to
the IGC, it is second only
to India and China in rice
output, with a predicted
2010-11 crop of 38.5 million tonnes, up from 37.5
million last year. It is also
expected to import 500,000 tonnes of rice, up from
300,000 tonnes.
The official national statistics body, Badan Pusat
Statistik (BPS-Statistics Indonesia), puts paddy rice
production in 2009 at 64.4 million tonnes on just under 13 million hectares. It puts maize production at 17.6 million tonnes on 4.2 million hectares.
Rice is hugely important to the food supply of the average
Indonesian. According to the United Nations Food and AgriculBRUNEI

MALAYSIA

INDONESIA

IN D O N ES I A

East Timor

Key Facts
Capital: Jakarta
Population: 240,271,522 (July 2010 est.)
Religions: Muslim 86.1%, Protestant 5.7%, Roman Catholic
3%, Hindu 1.8%, other or unspecified 3.4% (2000 census).
Location: Southeastern Asia, archipelago between the Indian Ocean and the Pacific Ocean.
Government: Republic. Chief of state and head of government: President Susilo Bambang Yudhoyono (since Oct. 20,
2004).
Economy: Indonesia, a vast polyglot nation, has weathered the global financial crisis relatively smoothly because
of its heavy reliance on domestic consumption as the driver
of economic growth. Although the economy slowed significantly from the 6%-plus growth rate recorded in 2007 and
2008, expanding at 4% in the first half of 2009, Indonesia
outperformed its regional neighbors and joined China and
India as the only G20 members posting growth during the
crisis. The government used fiscal stimulus measures and
monetary policy to counter the effects of the crisis and offered cash transfers to poor families. In addition, campaign
spending in advance of legislative and presidential elections
in April and July helped buoy consumption. The government
made economic advances under the first administration of
President Yudhoyono, introducing significant reforms in the
financial sector, including tax and customs reforms, the use
of treasury bills, and capital market development and supervision. Indonesia's debt-to-GDP ratio in recent years has
declined steadily because of increasingly robust GDP growth
and sound fiscal stewardship. Indonesia still struggles with
poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. Yudhoyono's re-election,
with respected economist Boediono as his vice-president,
suggests broad continuity of economic policy, although the
start of their term has been marred by corruption scandals.
The government in 2010 faces the ongoing challenge of
improving Indonesia's insufficient infrastructure to remove
impediments to economic growth, while addressing climate
change mitigation and adaptation needs, particularly with
regard to conserving Indonesia's forests and peatlands.
GDP per capita: $4,000 (2009 est.); Inflation: 4.8% (2009
est.); Unemployment 7.7% (2009 est.).
Currency: Indonesian rupiah (IDR); 8,395 rupiahs equal 1
U.S. dollar (Oct. 18, 2010).
Exports: $119.5 billion (2009 est.): oil and gas, electrical
appliances, plywood, textiles, rubber.
Imports: $84.32 billion (2009 est.): machinery and equipment, chemicals, fuels, foodstuffs.
Major crops/agricultural products: Rice, cassava (tapioca), peanuts, rubber, cocoa, coffee, palm oil, copra; poultry,
beef, pork, eggs
Agriculture: 15.3% of GDP and 42.1% of the labor force.
Internet: Code. .id; 1.269 million (2010) hosts and 30 million (2008) users.
Source: CIA World Factbook

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