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 development programs.


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.


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 previous year.

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 annum.

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 non-motorized.

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 per annum.

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 market.


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 areas.

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 production.

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 material supply.

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 ha.

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 thousand ha.

Back to Top

Zurück zur Begrüßungsseite (Back to the Welcome Site)

© 1996 - 2002 Webmaster
Last Update on 19.05.2002