- Higher prices for tropical crops continue to fuel growth in the domestic agriculture sector. However, such growth is limited to nominal terms as production continue to stagnate.
- Stagnant domestic agriculture production will expose Indonesia to the increasingly volatile global food prices, with its effect on inflation may outweigh the positive impact on trade.
- Stagnant agriculture production highlights the urgency to expand the food estate programme, which may also help to improve output in less-productive regions.
