Indonesia Agricultural Policy Analysis


April-August 2015



Centre Bureau of Statistics


Brief description

Agricultural sector only contributes about 14.4 percent to Indonesia’s GDP in 2013 with employment for 38 million workers mostly with low level of education (CBS, 2014).

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The economic welfare in the agricultural sector is only 0.42 percent of the national welfare level. The indicators of farmers’ welfare are (1) income structure, (2) food expenditure, (3) household purchasing power, (4) food security, and (5) Farmers Exchange Value (Achsani, 2014).

Therefore a study by CSBC and Centre Bureau of Statistics is conducted to calculate the level of farmers’ welfare using the welfare perceptions provided by Economic Improvement Variable and Revenue Adequacy of data contained in the Census of Agriculture, conducted by CBS in 2013. For comparison, an approach of Farmers Exchange Value method is also used. This study will be conducted from April-August 2015. The purpose of this study is to analyze the effectiveness of government policy to increase the welfare of farmers and formulate policy implications for farmers’ welfare improvement. The study will be publicized in a book that will help agricultural policy makers to developing and realizing a comprehensive agriculture system in Indonesia.