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A Survey of Business Models for Agricultural Investment in Indonesia
The document examines agricultural investment in Indonesia, focusing on two primary business models: contract farming and land concessions. It notes that while agriculture remains a critical source of employment, its relative contribution to GDP has declined. The paper details various contract farming arrangements, such as the plasma-nucleus partnership, and land concession types, including cultivation rights (HGU). It finds that these models have produced mixed results, often hampered by poor governance, land disputes, and a lack of transparency. The author recommends enhancing farmer capacity, reforming land ownership regulations, and implementing a geographical information system to manage land use.
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Document type: Research paper