Govt to Increase Agriculture Sector's Contribution to GDP Growth

    Desi Angriani - 05 November 2019 16:45 WIB
    Govt to Increase Agriculture Sector's Contribution to GDP Growth
    Illustration ( Rizal)
    Jakarta: The Government hopes the agriculture sector can contribute 2.5 percentage points to the country's gross domestic product (GDP) growth in the future. 

    At the moment, the sector usually only contributes around a percentage point to the country's economic growth.

    Coordinating Ministry for Economic Affairs deputy for food and agriculture Musdalifah said that agriculture sector has been the second biggest contributor.

    “If we can increase by 1-1.5 percentage points, it will become the biggest contributor," she said here on Tuesday, November 5, 2019.

    According to the government data, the agriculture, forestry and fishery sector currently provides jobs for around 29 pecent of the country's total workforce.

    Indonesia Chambers of Commerce and Industry (Kadin) Vice-Chairman Franky O. Widjaja added that agriculture sector can the Indonesian economic growth to reach 6-7 percent within the next five years.

    “Our GDP will increase higher if the agriculture sector's constribution increases," he said.

    The Kadin official believes investment and incentives are needed to boost the productivity of the country's agriculture sector. In addition, regulations concerning seeds and food commodities must be enacted increase competitiveness. If investment is increased, the country can focus on the upstream and the downstream of the agriculture sector and food industry. (Translator: Muhammad Gestinev)


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