Agriculture, resources and the environment

The Indonesian economy remains dependent on agriculture, resources and the environment, which provide a livelihood for many Indonesians. Appropriate policies in these areas could effectively benefit millions of Indonesians, lift the poor out of poverty and generate overall economic growth. On the other hand, bad policy decisions in these areas could trap millions of Indonesians in poverty, diminish the opportunity for growth, and cause lasting damage to natural systems. Developing appropriate policies is not always straightforward. Complex issues often arise, such as the conflicting interests of agricultural (including estate crop) expansion and resource extraction, local communities, and environmental objectives; the illegal extraction of resources and the use of toxic chemicals in agricultural cultivation and mining; productivity and technological change, and the valuation and taxation of resources; and issues regarding trade and protectionism, foreign investment, and financing for action on climate change.

Research at the Indonesia Project on this theme looks at economic, political and social dimensions of Indonesia’s agricultural expansion, resource extraction, and environmental impacts and policies.

Research themes

  • Development and the environment
  • Energy, air pollution and climate change
  • Technological progress and agricultural development
  • Small islands economy
  • Economics of natural disasters

Current research projects

Economics of tobacco farming. Multiple papers are being prepared, including: off-farm participation of tobacco farmers’ households, indebtedness among tobacco farmers.

Firman Witoelar (ANU)

Assessing the impact of forest restoration projects on local communities’ livelihoods and wellbeing – an exploratory study on a large-scale peatland carbon-offset project in Kalimantan, Indonesia. We design a household survey that will take into account human-animal-ecology interactions, to be implemented in villages surrounding the conservation forest in Katingan, Central Kalimantan.

Sarah Dong (ANU) and Firman Witoelar (ANU)

Climate change policies in Indonesia: Challenges and economic consequences

Arianto Patunru (ANU) and Budy Resosudarmo (ANU)

For published research on agriculture, resources and the environment, see our online archive.

Updated:  19 April 2024/Responsible Officer:  Crawford Engagement/Page Contact:  CAP Web Services Team