Lecture 12-15
Structural Transformation Institutional Transformation Technology Transfer
Presentation
Structural Transformation
The Structural Change of the Indonesian Economy
GDP From Agriculture, 14.33%
GDP From Construction, 11.00%
GDP From Industry, 23.71%
GDP From Mining, 13.00%
GDP From Services, 18.96%
GDP From Utilities, 19.00%
Figure 1. GDP Contribution by Resource Sector (%) Source: BPS, 2016
Figure 2. GDP Contribution by Agricultural Sector Source: BPS, 2016
0 10000 20000 30000 40000 50000 60000 70000 80000
Food Crops Horticulture Commercial Crops
Livestock Agricultural Service
Forestry and logging
Fishery
(million IDR)
Figure 3. The Income Gap between the Agricultural and Non-agricultural Sector Source: BPS, 2016
0 50000 100000 150000 200000 250000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Agricultural GDP/Labor Non Agricultural GDP/Labor Total GDP/Labor
Thousand IDR
Table 2.2. Employment in the Agricultural Sector by Level Age (2008-2012)
Year Age (years old)
15-29 30-44 45-59 > 60 Total
2008 9,312,562 13,009,636 10,706,534 5,246,159 38,364,981 2009 9,273,128 13,062,569 10,871,778 5,402,522 38,609,997 2010 8,421,813 13,353,185 11,381,631 5,542,414 38,699,043 2011 8,416,895 12,782,136 10,484,742 4,858,199 36,541,972 2012 8,081,531 12,848,562 10,402,542 5,096,615 36,429,250
Growth rate -3.41 -0.45 -0.61 -0.47 -1.25
Source: PPSDMP, 2015
Overview
Importance of Agriculture
Historical Changes in Agriculture
Tractor
Technical Irrigation
Transplanting Machine
Thrasher
Harvesting machine
Economic Impact of Agricultural Production
What technology has changed agriculture the most?
Tractor Electricity
Technical Irrigation
Rice milling
US Agriculture
Number of U.S. Farms
Source: USDA-NASS
Number of U.S. Tractors
Source: USDA-NASS
Number of U.S. Farms with Electricity
Note: The use of electricity on farms after 1954 was so widespread throughout the states that there seemed no need to obtain further information
Source: USDA-NASS
Number of U.S. Tractors, Farms and Farms with Electricity
Tho usan ds of F arm s
Trailer Trucks
One Trailer of Market Hogs
53,000 lbs. live weight
200 hogs
10,000 pork chops
One Trailer of Milk
50,000 lbs. of milk
5,813 gallons of milk
93,000 8 oz. glasses of milk
5,000 lbs. of cheese
600 Sow Farrow to Finish
(25-ton Truck Lots)
Weekly Annual
Market Hogs 2 104
Corn 3.7 194
Soybean Meal 1.1 58
Supplement 0.12 6
Total 6.9 362
700-cow Dairy
(25-ton Truck Lots)
Weekly Annual
Milk 7 365
Feedstuffs
(includes Corn Silage,
Alfalfa Silage, Alfalfa Hay, Grass Hay, Corn, Soybean Meal, Cotton Seed and Mineral/Vitamins
10.5 507
Total 17.5 872
700-cow Dairy Operation
Farm Level Annual Economic Impact
$2.4 million in gross revenue to dairy
$6.0 million in economic activity (multiplier effect)
$10,000 spent on real estate and property taxes
$60,000 spent on utilities, fuel and oil
11 full-time positions created ($260,000 in labor expenses)
1,466 acres needed for feed (corn silage, alfalfa, etc.)
At least 1,626 acres needed for nutrient management
$32 to $56 per acre fertilizer value
Conclusions
Why agriculture has changed
Agriculture is an important economic contributor to national economy
Agriculture faces new opportunities and challenges with the growing
industry
