A Survey of Business Models for Agricultural Investment in Indonesia

This paper surveys investment trends in the agricultural sector in Indonesia, and discusses the models used to structure these investments.

The paper gives concrete examples of business models that have been adopted in Indonesia, explains the policy and economic drivers behind these models, and discusses their impacts on agricultural productivity, economic growth, and rural livelihoods.The paper proposes several policy recommendations to help achieve positive outcomes from investment in agriculture in Indonesia. In addition to enhancing the capacity of farmers and ensuring clear and consistent regulations, major reforms are required around land ownership. The author also recommends better disclosure of land use in the country, given the significant power that provincial governments possess to issue land concession permits to investors, as well as the possible collusion between the private sector and local governments.