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Paper ID: 155

The Analysis of Agricultural Economic Sector Dynamics on Deforestation Reduction in Indonesia

H S Sriwiyanto1, D Rizki2, I Radjawali2 and D Nurrochmat3

1Department of Economics, Faculty of Economics and Business, Sebelas Maret University.

2Partnership for Governance Reform in Indonesia.

3Dept of Forest Management, IPB University (Bogor Agricultural Univ)


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Indonesian land is mainly forest, in which 120.6 million Hectares (Ha) (accounted for 63% of Its entire land) are designated as forest. However, Indonesia is a country with one of the highest rates of primary natural forest loss in the tropics, annually between 2001 and 2016. More than two-fifths of Indonesian deforestation during 2001-2016 has been caused by agricultural sector expansion. After the rise of deforestation, some researchers have confirmed that the rate of deforestation in Indonesia during 2017-2019. The paper examines the links between Indonesian agriculture economic dynamics and deforestation reduction in Indonesia during 2017-2019. By using political economic framework as its methodology, the paper has identified that deforestation reduction is influenced by structural shift of primary sector including agriculture sector. The structural shift consists of investment and trade aspect on primary sector including agriculture.

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