Changes in Food Crop Diversification in Indonesia

Masdjidin Siregar • Muhammad Suryadi
Monograph Pusat Sosial Ekonomi Dan Kebijakan Pertanian • 2006 Indonesia


After Indonesia's economy was hit by the monetary crisis, the GDP's growth rate was around 3.5 percent per year in 1999-2002. In 2002, unemployment rate was 9 percent with high growth rate of 19 percent in the period of 1992-2002. The proportion of population under poverty line was 18 percent in 2003; about 65 percent of them lived in rural areas. The present situation must be worse after the increase of oil prices since March 2005. Yet, agriculture is contributing 16 percent and 45 percent to the nation's GDP and employment for labour force, respectively. The roles of agriculture in income generation, employment creation, and poverty alleviation would be significant for the near future. During Indonesia's 5th Year Plan (Pelita V) in 1989-1994, agricultural development put high priority on food crop diversification as an instrument for food and nutrition security, income growth, poverty alleviation, employment generation, cautious use of natural resources and sustainable development. In spite of the advantages of crop diversification, Karama et al. (1992) pointed out that there was no clear guideline for its implementation in Indonesia. Instead of diversifying food crops, the government has been enormously prioritising rice production to achieve rice self-sufficiency at the highest level. Consequently, development of CGPRT crops received low priority and food security in Indonesia relied on rice.


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