8.3 Sectors in Indonesia that make up Indonesia’s Bioeconomy
Agricultural sector
Agriculture is a significant contributor to Indonesia’s bioeconomy, accounting for a substantial portion of the national GDP. This sector involves the cultivation of various crops, livestock farming, and related agri-food activities. The agricultural sector latest value from 2022 is 12.4 percent Indonesia’s GDP.
Figure 2: Indonesia GDP share of agriculture
Due to the expansion of the service sector and industrialization over the past 50 years, the sector’s contribution to the national gross domestic product has significantly decreased. However, for the vast majority of Indonesian households, farming and plantation work continue to be important sources of income. The agricultural share of the national GDP decreased slightly from 15.19% in 2003 to 14.43% in 2013. About 49 million Indonesians, or 41% of the labor force, were employed in the agricultural sector in 2012.
Indonesia has a vibrant fishery and aquaculture sector, with its extensive coastline and abundant marine resources. This sector contributes to both food security and economic growth.
The fishing industry and fisheries in Indonesia accounted for 2.77 percent of the country’s GDP in 2021. After China, Indonesia is the second-largest fish producer in the world, and it has some of the biggest and most productive tuna fisheries in the world.
Figure 3: Share of gross Domestic Product of Fishery
Timber and non-timber forest products can be obtained from Indonesia’s abundant forests. This industry is essential for both export and domestic consumption. The GDP of Indonesia is derived 2% from forestry. Preliminary data for 2022 indicated that Indonesia’s forestry and logging industry generated a gross domestic product (GDP) of about 118.39 trillion Indonesian rupiah. Since 2014, Indonesia’s forestry and logging sector’s GDP has progressively increased.
Figure 4: Gross domestic product (GDP) from forestry and logging in Indonesia from 2014 to 2022(in trillion Indonesian rupiah)
Pharmaceuticals and Biotechnology
Indonesia’s pharmaceutical and biotechnology industries play an essential role in the bioeconomy. This sector is responsible for the development and production of medicines, vaccines, and other biotech products. The pharmaceutical and biotechnology sector contributes around 3% to Indonesia’s GDP.
Bioenergy and Biofuels
Bioenergy and biofuels are on the rise in Indonesia, contributing to reducing the country’s reliance on fossil fuels and addressing climate change. The bioenergy and biofuels sector makes up approximately 1% of Indonesia’s GDP.
These sectors are integral to Indonesia’s bioeconomy, and the country is actively working to further develop and promote sustainable practices within these industries. The growth of these sectors not only contributes to economic development but also supports environmental sustainability and innovation in the country’s bio-based industries.