Agricultural Transformation, Economic Growth, and Poverty in Indonesia

Media Wahyu Askar

This paper investigates the linkage between agricultural transformation, economic growth, and poverty reduction in Indonesia. The author argues that while agricultural transformation is crucial for structural economic change, Indonesia’s progress remains uneven due to limited land ownership and inefficient sharecropping systems. These constraints reduce productivity and discourage innovation among small farmers. Land concentration also hinders access to credit and modernization, further entrenching rural poverty.

The study concludes that although agriculture continues to support Indonesia’s economy, its role in poverty alleviation is declining relative to the service sector. Without structural reform in land tenure and investment in rural infrastructure, growth in non-agricultural sectors could exacerbate inequality. The author recommends transitioning from sharecropping to fixed-rent systems and strengthening agricultural institutions to ensure more inclusive rural development.

 

Reference:

Askar, M. W. (2015). Agricultural transformation, economic growth, and poverty in Indonesia. Jurnal Ilmiah Administrasi Publik (JIAP, 1(1), 17–21.

Link:

https://media.neliti.com/media/publications/80996-EN-agricultural-transformation-economic-gro.pdf 

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