The first twenty-five-year Long-Term Development Plan(PJP I) which
was conducted in stages was directed to increase the standard of living and
promote the welfare of the people as well as lay down a strong base for the
following development program.
Since Repelita I (the First Five-Year Development Plan) until Repelita
V the development of the economic sector has been mainly focused on
agriculture in order to achieve a balanced economic structure supported by
the agricultural sector to meet the people’s principal needs.
The Guidelines of State Policy underline that development priority is
based on the economic development with the agricultural sector as the focus
to stabilize self-sufficiency in foodstuffs and improve other agricultural
products. Besides, it is also directed towards the realization of an economic
structure which is balanced between the industrial and agricultural sectors
both pertaining to the added value and manpower absorption.
During PJP I, the average growth of the agricultural sector reached
3.6% annually. A big contribution from the agricultural development was the
successful achievement of self-sufficiency in rice since 1984 until today.
During RepelitaV, the development of agriculture besides maintaining
self-sufficiency in rice, was also designed to improve the yields of the second
crops, horticulture, fishery, animal husbandry, plantation and forestry.
The agricultural development policies were implemented through
various programs for production improvement of foodcrops, plantations,
animal husbandry, fishery as well as forestry. These programs were directed
towards the advancement of agricultural sector to enable it to improve the
farmers’ welfare and produce sufficient foodstuffs as well as raw materials
for the people.
In the framework of enhancing the capability as well as efficiency of
the agricultural sector, the development of agriculture has been supported by
efforts in the economic development as well as research on agriculture
technology. Researchers have been directed towards higher efficiency of the
agricultural production system and the development of the right technology to
be practiced in the less developed regions and on certain commodities which
have good marketing prospect.
The above-mentioned policies and programs have in fact supported the
improvement of production and national income. They have also improved
the quality of public nutrition, reduced poverty, expanded business as well as
job opportunities, helped regional development and transmigration as well.
Being the most important section of the country’s economy, it is not
surprising that agricultural development has always been placed on top of the
priority list, and by government policy is integrated with regional and rural
The production of important crops during PJP l increased in general,
except that of sweet potato. The production of rice grew by 4.2%, corn 3.2%,
soybean 6.1%, peanut 3.4%, sea-fish 5.6%, inland-fish 3.0%, meat 6.1%,
eggs 10.4%, milk 11.4%, rubber 27%, oil-palm kernels 12,5%, copra 3.2%,
coffee 4.5%, tea 3.1%, cacao 23.9%, cane-sugar 4.9%, log 7.1% and
processed timber by 20.5% per annum.
In 1993, the production of milk, cacao and cotton increased by more
than 10% compared with that in the previous year and these products reached
the highest among the agricultural produce. During PJP l, the export volume
of agricultural produce generally experienced an increase, except that of
cattle-hide which was much in demand by the domestic market.
The export rubber rose by 2.3%, palm-oil 9.6%, tea 7.6%, coffee
6.3%,hide/dried cassava 14.2% and processed timber by 15.0% annually.
It is obvious that the increase in exports of palm-oil, coffee and
tobacco by 33.2%, 31.9% and 23.5% respectively was a good sign in the
economic development. In 1993, the export of rubber, pepper, shrimps,
cattle-hide and corn experienced a decrease due to the increasing demand as
well as the tight competition in the domestic market.
During PJP l, the improvement of paddy/rice production took an
important role in the national economy for the people’s consumption.
Therefore, the Government paid greater attention to the improvement or rice
production by among other things introducing new and more pest-resistant
paddy and by encouraging the farmers to use a more suitable pest control
which together have made it possible for the farmers to have three crop
planting and harvests instead of two. During PJP l, the production of rice
through the intensification program had increased by 3.1% annually per
hectare, while the production of non-intensification rose only by 0.4%. In the
meantime, the total area of rice fields under the intensification program
during PJP l increased by 7.6% per annum. With the improvement of rice
production averagely per hectare and that of the total area of rice fields under
the intensification program during PJP l, the production of rice also showed
an increase of 4.1% per year.
Because the flow of paddy production growth was higher than that of
the population, self-sufficiency in rice has been able to be maintained.
SECOND CROPS AND HORTICULTURE
During PJP l, besides increasing rice production, efforts to increase
that of second crops and horticulture were also made through intensification
as well as diversification programs with priority to increase production of
commodities that have good prospect in the domestic market.
The above-mentioned efforts have indeed brought positive effects
mainly towards the productivity and income of the farmers. The average
production of the second crops per hectare during PJP l had in general
experienced an increase, such as corn grew by 3.3%, cassava 2.0%, sweet
potato 1.9%, soybean 2.6% and ground peanut by 1.4% annually. The total
harvest area of the second crops and horticulture has also increased. With the
increase of the second crops and horticultural production as well as the
expansion of harvest area, their production in general had also improved. The
production of soybean presented the highest increase namely 6.1% per
annum, followed by corn, ground peanut and cassava with 3.2%, 3.4%, and
1.8% respectively per year.
The average yield of vegetables per hectare in 1993 was 3.2% higher
than that in 1992, while of fruit grew by 20.2% compared with that in the
The total harvest area of vegetables in 1993 showed an increased of
5.8%, while that of fruit decreased by 19.6% compared with that in 1992.
Thus the overall production of vegetables in 1993 rose by 9.2%, while that of
fruits dropped by 3.4%.
During PJP l, emphasis was put on the development of smallholders’
animal husbandry through intensification as well as extensification programs.
In the framework of meeting the growing demand of meat at home, during
PJP l, the population of cattle were intensified by the improvement of
smallholders’ animal husbandry productivity.
The highest production increase was achieved by the egg-layer
chickens with 25.3%, the foreign-breed broilers 19.7%, the local-breed
chicken 6.0% and ducks 5.6% per annum. In the same period water buffaloes
rose by 8.2% and slaughter cows increased by 2.2% per year. Goats, sheep
and pigs grew averagely by 1.9%, 2.6%, and 4.8% respectively per
During Repelita V, the population of egg-layer chickens, water
buffaloes and slaughter cows rose by 7.4%, 3.7% and 3.0% respectively per
annum. The population of goats, sheep and pigs increased by 1.7%, 2.9%,
and 5.9% respectively, while that of foreign-breed broilers grew from
227,044 thousand in 1988 to 526,960 thousand in 1993 or increased by
18.4%. Egg-layer chicken and local-breed chickens grew by 7.4% and 7.3%
respectively per year.
In 1993, the population of livestock in general experienced and
increase, except that of goats and horses which decreased by 4.6% and 3.7%
respectively per annum. In order to improve and enhance the farmer’s
income, the productivity as well as quality of smallhoders’ livestock and
proven sires distribution were continuously developed and expanded.
In the meantime, the production of meat and eggs during PJP l
achieved successful increase, namely from 305 thousand tons, 51 thousand
tons, and 29 million litters in 1968 to 1,328 thousand tons 593 thousand tons
and 413 million litters in 1993, a grew by 6.1%, 10.4% and 11.4%
respectively per annum.
The highest increase was obtained by the production of milk and meat
namely by 9.7% and 7.3% respectively. With the improvement of milk
production, the total amount of imported milk dropped, while on the other
hand the farmers’ income increased. The increase of livestock products
improved the people’s consumption of animal protein and made them more
healthy, while job productivity also rose.
From 1968 until 1993, the export volume of livestock production such
as hide and bones/horn suffered a decline due chiefly toe the growing
demand of domestic market. Even during RepelitaV, the export volume of
hide decreased by 13.9%, while that of bones/horn dropped by 4.5% per
annum. In 1993, the export volume of hide and bones/horn decreased by
13.0% and 13.1% respectively compared with that in 1992.
Fishery products represent one of the country’s potential natural
resources. During PJP l, the development of fishery was directed towards the
development of the smallholders’ fishery, improvement of the quality of
people’s nutrition and the creation of job opportunity. To reach the goal, the
production improvement of inland-fishery and sea-fishery obtained a priority,
because most people of the low-income bracket earn their living from these
sectors. This developments has been supported by the improvement of
technology, fishery seeding and intensified guidance on family nutrition.
During PJP l, production of fishery grew from 1.16 million tons in
1968 to 3.74 million tons in 1993. A part fishery products was exported to
overseas countries while the rest was to meet the domestic needs. During PJP
l, export of fishery products experienced a rapid increase from 21,652 tons in
1968 to 465,718 tons in 1993.
In 1993, the production of sea-fishery was 2,837 thousand tons which
grew by 5.4% compared to that of 2,692 thousand tons in 1992. During
RepelitaV, the number of boats/motorized vessels owned by the fishermen
increased by 3.2% per year. In 1993, it showed an increase of 2.8% from
129,523 in 1992 to 133,200 in 1993.
Meanwhile the number of non-motorized vessels in 1993 only grew by
0,7% compared to that in 1992, from 229,383 in 1992 to 230,900 in 1993.
The increase of motorized vessels was bigger than that of non-motorized
vessels, proving that the fishermen preferred boats/motorized vessels to the
In 1993, the production of inland-fishery showed an increase of 6.6%
compared to that of the previous year. Export of fresh fish and ornamental
fish in the same year grew by 2.1% and 9.3% respectively, while that of
fresh/frozen shrimps and frogs legs decreased by 1.9% and 18.8%
respectively due to increasing demand of the domestic market.
The plantation development policy is stressed on the improvement of
productivity of smallholders estates since the greater part of estate production
comes from the smallholders through rehabilitation and intensification.
In order to drive the growth of estate production and elevate the export
of those commodities, the expansion of plantation area has been conducted
by stepping up the role of state-owned companies (BUMN) as “foster
parents” companies for the nucleus estate companies through the “Nucleus
Smallholders Establishment Scheme” (PIR). As a result of the efforts
conducted since 1968, the total estate area of perennial and seasonal crops
owned by smallholders and the state-owned enterprises roses from 3,947 ha
and 374,000 ha respectively in 1968 to 10,066 thousand ha and 837,000 ha
in 1993. During RepelitaV, it roses respectively from 8,756 thousand ha and
823,000 ha in 1988 to 10,066 thousand ha and 837,00 in 1993, or an increase
of 2.9% and 0.4%.
Cotton achieved the highest production increase namely from none in
1968 to 14 thousand tons in 1993, followed by cacao which grew from 500
tons and sugar-cane 203 thousand tons in 1968 to 174 thousand and 1,669
tons thousand respectively.
During Repelita V, the products of the smallholders estates noted and
encouraging increase, except that of cotton. The highest increase was
recorded by cacao namely 35.6% per annum, followed by tobacco, tea,
rubber and copra by 8.2%, 4.7%, 4.5% and 3.0% respectively.
Since the beginning Repelita l, production of the privately owned
companies experienced a relatively high increase such as that of cacao, palm
oil, palm-kernel and sugar-cane which rose from 1,00,59 thousand, 11
thousand and 23 thousand tons in 1968 to 28 thousand, 1,370 thousand, 209
thousand and 281 thousand tons in 1993 respectively. During RepelitaV,
sugar-cane reached the highest increase of 28.3% per anumm, followed by
palm-oil, palm-kernel and cacao by 26.1%, 21.0% and 13.0% respectively
In 1993, sugar-cane, palm-oil, palm-kernel and coffee increased by
57.9%, 27.2%, 21.7% and 23.2% respectively compared to the production in
1992. In the same year the export of pepper and rubber declined by 66.8%
and 0.4% respectively due to the drop of price in the international
Indonesia has 144 million ha of tropical forest which is about 10% of
the entire rain forest canopy in the world. Of the total forest area 20.9% or
about 30 million ha are designated for protection forest, 13.2% or 19 million
ha for park and forest reserve, 44.5% or 64 million ha for production forest
and 21.5% or 31 million ha for convertible forest.
In order to maintained this total forest area, the management of forest
area has been continuously and efficiently conducted through the systems of
Forest Concession Right (HPH) and Industrial Plantation Forest (HTI). It is
also practiced through the smallholders Forest and Communal Forest activity,
while the practice of regulations concerning the Indonesian Selective Felling
and Planting System (TPTI) was intensified.
During Repelita V, development of forestry production was aimed at
meeting the need of industrial demand at home, increasing the export of
processed timber as well as other forest products and intensifying guidance
on the importance of forest area to the people living in the surrounding
As the result of those policies, the production of forest-log and teak
which in fiscal year 1968/69 reached only 5.7 million m3 rose to 28,5 million
m3 in the last year of Repelita IV. This was an increase of 400% compared to
that of the first year of PJP I.
The production of log during Repelita V dropped by 1.8% per annum.
In 1993/94, processed-timber production reached 12.5 million m3, consisting
2.2 million m3 of sawn-timber, 9.9 million m3 of plywood and 307 thousand
m3 of pulp. When compared to that in 1992/93, it has decreased by 10.4%
from 3.5 million m3 of sawn-timber, 9,9 million m3 of plywood and 520
thousand m3 of pulp due to the little-supply of raw materials from the natural
forest. In fiscal year 1993/94, the export volume of processed teak amounted
to 25.5 million m3 worth US$6.2 billion. During Repelita V, the export
volume of processed timber increased averagely by 0.5% per annum.
On the contrary, the export of sawn-timber in the same period
decreased by 8.1% due to the growing demand of the domestic market, the
hike of sawn-timber tax and the decrease of processed-timber
The export of plywood in fiscal year 1988/89 showed a promising
increase, namely 7.3 million m3 worth US$2.4 billion, which was sent to 14
destination countries in Europe, Asia and America. The export of plywood in
fiscal year 1993/94 reached 9.6 million m3 which decreased by 1.4%
compared to 9.8 million m3 in 1992/93.
The export of non-timber forest products has been showing good
prospect since fiscal year 1973/74. In that year the export volume amounted
to 126.3 thousand tons worth US$17.1 million and in 1988l/89 it reached
174.2 thousand tons worth US$262 million.
The first year of RepelitaV, the export volume of non timber forest
products such as rattan, cinnamon, damar, kopal, tengkawang etc. reached
80.9 thousand tons worth US$157.7 million. In fiscal year 1993/94, the
production of non-timber forest products exported abroad reached 265.6
thousand tons worth US$370.8 million which means an increase of 34.8 in
volume and 131.4% in value compared with that in 1992/93.
In order to meet the need in raw materials which could not be supplied
by the limited natural forest production, the development of Industrial Timber
Estate (HTI) and smallholders forest is intensified as an alternative for raw
The programs of HTI aims to produce raw materials needed by the
industrial sector. It is established in the area of permanent production forest
or in the other forests that has been decided as production forest. In 1988\89,
a total of 83.4 thousand ha of HTI was established, an increase of 9.9%
compared with that in 1987/88 which only amounted to 76.4 thousand
In fiscal year 1993/94, the total area of HTI established by the
Government reached around one million ha, consisting of Pulp-HTI 339
thousand ha, Transmigrant-HTI 51 thousand ha and Non-Pulp HTI 610
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