Indonesia has a population of 275,501,339 million people.[1] The country has 42%[2] of its population living in rural areas, and 58% in urban settings. Agriculture employs 29% of the country’s population[3], and the sector represents 12.4% of the national GDP.[4]
The country is the largest economy in Southeast Asia, and while the agricultural sector's share of GDP has declined markedly during the last five decades, farming still plays an important role in it as this is the main source of income for one third of the population and 64%.[5]
The top produced commodities in Indonesia are palm oil, rice, sugar cane, maize and coconut.[6] In terms of top exported commodities, palm oil also leads in its different forms, followed by wheat bran and coconut oil.[7]
- ^ World Bank (2022). https://data.worldbank.org/indicator/SP.POP.TOTL?locations=ID
- ^ World Bank (2022). https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=ID
- ^ World bank (2021)
- ^ World bank (2022)
- ^ [5] IFAD. Indonesia profile. https://www.ifad.org/en/web/operations/w/country/indonesia
- ^ FAOSTAT (2022). http://www.fao.org/faostat/en/#rankings/commodities_by_country
- ^ FAOSTAT (2022). http://www.fao.org/faostat/en/#rankings/commodities_by_country_exports
Minimum wage
Minimum wages vary throughout the country since provincial governors have authority to set a minimum wage floor and district heads had authority to set a higher rate. In Central Sulawesi, the region benchmarked by the Global Living Wage Coalition, a minimum wage varies between 2,736,698.00 Indonesian Rupiah (160 EUR) and 3,489,319.00 Indonesian Rupiah (204 EUR) per month[1]. The minimum wage in 19 of 34 provinces was below the national poverty income level. Furthermore, workers in the informal sector correspond to an estimated 57% of the labour force and do not receive the same protections or benefits as workers in the formal sector.[2]
- ^ WageIndicator - Indonesia (2023). https://wageindicator.org/salary/minimum-wage/indonesia
- ^ U.S. Department of State. 2022 Country Reports on Human Rights Practices: Indonesia. https://www.state.gov/reports/2022-country-reports-on-human-rights-practices/indonesia/
Living wage
The Global Living Wage Coalition developed a Living Income Benchmark for Central Sulawesi, Rural Indonesia. The study focused in a region where cocoa production is important, and the living wage was also estimated at 3,359,717 Indonesian Rupiah (196 EUR) per month, 40% higher than the minimum wage.[1]
Living income
The Living Income benchmark estimated at 5,026,257.00 Indonesian Rupiah (293 EUR) the value a family of 4 with 1.6 workers would need per month to afford a basic but decent living. The cocoa bean is one of the most important agricultural exports of Indonesia., and this report estimates living income of farmers in Indonesia in rural Central Sulawesi where large concentrations of smallholders are located. The main locations of cocoa production are Sulawesi (Central, Southeast, West and South Sulawesi), and Sumatra (Lampung, North Sumatra and West Sumatra). The island of Sulawesi is, by far, the major producer of the cocoa bean and contributed 59.4% of total cocoa production in 2020.[2]
- ^ Global Living Wage Coalition (2022). Anker Living Wage reference value: Central Sulawesi, Rural Indonesia. 2022. https://www.globallivingwage.org/living-wage-benchmarks/living-income-for-rural-central-sulawesi-indonesia/
- ^ Global Living Wage Coalition (2022). Living Income Report: Central Sulawesi, Indonesia. 2022. https://www.globallivingwage.org/wp-content/uploads/2024/02/LI-Central-Sulawesi-final-report.pdf
Strategies for improved intervention design in Indonesia 
Wageningen University assesses the income situation of Indonesian cocoa-producing households across different regencies and consider the factors that enable or hinder them from earning a living income.
Verstegen: Towards a future of sustainable spices
Using Trace, Fairfood's blockchain technology, Vestergen achieved a fully transparent product chain of Indonesian nutmeg.
Living Income Reference Price for Coffee from Aceh, Indonesia
A LIRP indicates the price needed for a typical farmer household with a viable farm size and a sustainable productivity level to make a living income from the sales of their crop.
Living Income Benchmark, Central Sulawesi, Indonesia
Living income estimate (with a living wage annex) for a typical cocoa household in rural areas of Central Sulawesi Sur to cover the monthly cost of a basic but decent standard of living.