Development of Agribusiness Enterprises - Asian Productivity ...

CONCLUSION
Agriculture remains the most important sector of the Indonesian economy. In 1999,
the sector contributed 19.4 percent to GDP and absorbed more than 40 million people from
the workforce. The other essential roles of the sector are: (a) to provide food, foreign
exchange earnings and raw materials for industry; and (b) to meet domestic demand. Many
agricultural commodities have good prospects for the future.
In order to deal with the challenges resulting from globalization, the production of
agricultural products must be more efficient and be based on market demand. Thus,
competitiveness is the key to success. Supporting this concept, therefore, enables the focus
to switch from “product oriented” to “market oriented”.
The various issues involved should be anticipated in order to enter the global arena
with improved product quality, packaging and labeling, marketing, promotion, productivity
and production, and provision of adequate capital.
Ensuring the success of the transformation process from a comparative advantage to
a competitive advantage will involve both macro- and micro-economic policies. The scope
of macro-economic policy covers the exchange rate, domestic interest rate, fiscal policy and
government budget, and banking policy. Micro-economic policy involves developing
superior commodities, increasing production and productivity, improving promotion and
providing investment incentives.
BIBLIOGRAPHY
Central Bureau of Statistics, 1999. International Trade Statistics – Exports, Vol. I
----------, 1999. International Trade Statistics – Imports, Vol. I.
----------. Indonesia Statistical Yearbook 1999.
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