Indonesian Political, Business & Finance News

Agriculture: The Largest Contributor to the Economy But These Problems Persist

| Source: CNBC Translated from Indonesian | Agriculture
Agriculture: The Largest Contributor to the Economy But These Problems Persist
Image: CNBC

Jakarta, CNBC Indonesia - Throughout the first quarter of 2026, the Central Statistics Agency (BPS) recorded the agriculture sector’s role at 12.65% of Indonesia’s GDP. This figure positions agriculture as the main pillar supporting the Indonesian economy, followed by the industry and trade sectors. Analysing BPS data, Agrifood Analyst and Researcher at CNBC Indonesia Research, Emanuella Bungasmara Ega Tirta, stated that the agriculture sector’s contribution is supported by the peak rice harvest with production reaching 10.50%, bolstered by the livestock subsector. Nevertheless, efforts to improve the performance of the agriculture sector, particularly rice, still face challenges related to certainty in the absorption of farmers’ production as well as equitable distribution of capital assistance and supporting construction facilities.

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