Organic agriculture in Indonesia: challenges and opportunities

Abstract

Indonesia is one of the emerging economy countries with approximately 252 million in population in 2015 and an economic growth of 5.2 % per annum. According to the Indonesian government’s estimation, between 2020 and 2030 Indonesia will experience a demographic bonus and become one of the countries with a high demand for agricultural products. As a consequence, the number of working-age adults is increasing rapidly. This leads to an increasing per capita income among middle class households. The expansion of the organic food market depends on the rise of income and the level of education. Indonesia’s current organic food consumer characteristic is made up of highly educated middle class households. Indonesia’s organic food market has been captured by consumers outside the country; therefore, the increase in the country’s population and the resulting economic growth has not necessarily led to increased consumption of organic products among Indonesians. Non-perishable organic products (coffee, tea, rice, etc.) are exported but have faced issues relating to organic certification. Perishable organic products (raw horticultural products) are over-supplied but have faced export challenges due to their perishable nature. The use of social media to promote organic consumption by young Indonesians is crucial and should be investigated in the light of 3.0 initiatives. This will create local demand and ensure sustainable organic agriculture in the country.