Agriculture Reference
In-Depth Information
TABLE 6.1 Harvested area, production, yield, and imports of rice, 1990-2003
Harvested area
Yield
Unhusked
Rice
Rice
(thousand
(tons per
rice production
production a
import b
Year
hectares)
hectare)
(thousand tons)
(thousand tons)
(thousand tons)
1990
10,502
4.30
45,179
29,366
29
1991
10,282
4.35
44,689
29,048
178
1992
11,103
4.34
48,240
31,356
634
1993
11,013
4.38
48,181
31,318
0
1994
10,734
4.35
46,641
30,317
876
1995
11,439
4.35
49,744
32,334
3,014
1996
11,569
4.41
51,101
33,215
1,090
1997
11,141
4.43
49,377
32,095
406
1998
11,613
4.17
48,472
30,537
5,765
1999
11,963
4.25
50,866
31,118
4,183
2000
11,793
4.40
51,898
32,345
1,513
2001
11,415
4.39
50,181
31,283
1,400
2002
11,521
4.47
51,379
32,369
3,100
2003
11,453
4.53
51,849
32,697
2,000
SOURCE : BPS (various years).
a Conversion factor is 0.65 before 1998 and 0.63 after 1998.
b Import data compiled from various sources.
just another sector that contributed to economic development, reinforced by the
declining share of agriculture in the economy, while manufacturing and industry
registered double-digit growth levels. Other sectors in the economy, such as the
banking, trade, and service sectors, also grew very rapidly, misleading many
economists and policymakers to conclude that the structural transformation has
been completed. Government policies tended to adopt the condition of “take-off”
(using Rostow's [1960] term); the development strategy emphasized high tech-
nology and capital-intensive industries, including aircraft and petrochemicals.
The welfare effects of agriculture growth performance decreased because
of reduced labor productivity growth. The slow rate of agricultural growth was
associated with policy priority shifting toward the industrial sector, which in-
cluded labor-intensive exportable commodities, starting in the mid-1980s. In
nominal terms, government expenditures in the form of fertilizer subsidies de-
clined from Rp 756 billion in 1987 to only Rp 175 billion in 1991. In real terms
(inflation adjusted), the reduction in subsidies is much more dramatic. The rice
subsidy was abolished in 1986 because of the presumption of full adequacy on
rice self-sufficiency, and the fertilizer subsidy was finally removed in 1998 dur-
ing the peak of the economic crisis. The promotion of industrial development
in Indonesia was heavily protected in that period at the expense of agricultural
sector growth (Mellor et al. 2003).
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