The Impact of International Trade Policies on the Agricultural Sector in Indonesia

Abstract

This study aims to analyze the impact of international trade policies on Indonesia's agricultural sector in the 2020–2024 period, considering the importance of the agricultural sector in the national economy. Based on data from the Central Statistics Agency (BPS), the agricultural sector contributed approximately 13.2% to Gross Domestic Product (GDP) in 2024, becoming a key pillar of the economy in the primary sector. The research methodology uses a mixed methods approach, combining quantitative analysis of export-import, production, and policy data from BPS, the Ministry of Agriculture, UN Comtrade, and the WTO, as well as qualitative analysis through a review of trade agreement documents (such as RCEP and IK-CEPA) and expert interviews. The results show that international trade agreements have a dual impact: on the one hand, they open export opportunities for leading commodities such as palm oil, coffee, cocoa, and rubber, increasing export value by 18.7% annually; on the other hand, lax import policies lead to dependence on imported rice and sugar, threatening food security and reducing the income of smallholder farmers. In conclusion, international trade policies need to be complemented by pro-farmer and sustainable domestic policies to maximize export benefits while protecting domestic production and the sustainability of food security