Traditionally, a major role of agriculture in Asia was to produce enough staple foods for food security through intensification of farming system. Today, however, agriculture is expected to contribute to multiple development goals. First, since wage rate has been increasing in high-performing Asian countries, including Indonesia, farm size expansion to introduce labor-saving mechanization must be promoted to reduce production cost, particularly in rice farming. Second, considering increasing demand for palm oil and global concern with decreasing forest environment, achieving intensification of oil palm production without extensification is an urgent issue. Third, responding to increasing demand for high-value agricultural products (HVPs), such as fresh fruits and vegetables, for better nutrition and health, agricultural resources must be shifted to the production of these products. Fourth, considering that urban areas are excessively congested, rural areas must provide increased employment opportunities by promoting rural industrialization. Based on the literature review, this article proposes strategies (1) to maintain comparative advantage in rice farming, (2) to intensify oil palm production in a sustainable fashion, (3) to increase production of HVPs, and (4) to promote rural industrialization simultaneously in the context of Indonesia.

Keynote remarks: Indonesian Minister of Finance HE Dr Sri Mulyani Indrawati
Sadli Lecture speaker: Professor Keijiro Otsuka (Kobe University and Institute of Developing Economies, Tokyo)
Discussant: Dr M. Dian Revindo (LPEM FEB UI)

Tuesday, 25 May 2021 at 10.00-112.00pm WIB (13.00-15.00 AEST)

Participate on Zoom (registration needed):http://bit.ly/SadliLecture
or on YouTube: http://bit.ly/fkp-live

Thumbnail photo by defika hendri on Unsplash