Indonesia's Agricultural Workforce Shrinks, Shifting to Industry and Services

Employment

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Adi Ahdiat 01/10/2024 14:50 WIB

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According to BPS data, the proportion of Indonesia's agricultural workforce shrank during the 2013-2023 period, while the proportion of workers in the industrial and service sectors increased.

Proportion of Indonesian Workforce by Main Business Field (2013-2023)

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Proportion of Indonesian Workforce by Main Business Field (2013-2023)

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According to data from the Central Bureau of Statistics (BPS), the proportion of Indonesia's agricultural workforce has shrunk over the past decade.

In 2013, workers in the agricultural sector accounted for 34.8% of the total national workforce. However, by 2023, this proportion had fallen to 28.2%.

During the 2013-2023 period, the proportion of workers in the industrial sector increased from 21% to 22.2%. The proportion of workers in the service sector also increased from 44.2% to 49.6%.

According to the BPS, this reflects a shift of workers from the agricultural sector to the non-agricultural sector, influenced in part by changes in Indonesia's economic structure.

"Along with structural transformation and modernization, Indonesia's agriculture-based economic structure has undergone changes, impacting the transition of agricultural labor," wrote the BPS in its report *Indonesia's Agricultural Potential* (September 2024).

"Agriculture, which was once the backbone of the economy, is increasingly lagging behind amidst the rapid use of technology in efforts to improve production efficiency," it continued.

The BPS also assesses that this shift is influenced by low productivity and income in the agricultural sector, leading workers to switch to other sectors.

"Low agricultural productivity indicates inefficiency in resource use and high production costs, which result in low farmer income," said the BPS.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."