Technological and Institutional Changes in the Indonesian Rice Sector: From Intensification to Sustainable Revitalization

Abstract

Agricultural development in Indonesia has been changing dynamically since the country's independence. This paper reviews the rice sector as part of agricultural development in Indonesia. It is remarkable that the agricultural sector was ignored when the oil boom benefited Indonesian economy. As revenues from oil dropped significantly, the agricultural sector emerged as an engine of economic growth in the 1980s. As staple food, rice was posited as top priority. Various rice intensification programs coinciding with the Green Revolution were launched, and several institutions were established to support these programs. The result was so significant that Indonesia was able to achieve rice self-sufficiency by 1983. But with the growing critical awareness about sustainable development, the intensification programs lost their relevance. The programs were replaced with an environmentally sound policy. However, as the industrial sector grew, again, the agricultural sector was neglected until an economic crisis hit Indonesia in 1997 and rice self-sufficiency could not be sustained. Realizing the importance of the agricultural sector, it is now being developed in equal measure as other sectors. Under the current administration, an agricultural revitalization program has been implemented, and in 2008, Indonesia has achieved rice self- sufficiency for the second time.