Executive Summary
- Indonesia’s Plant Cultivation sector (KBLI 011) represents a core component of the country’s agricultural and resource-based economy, supported by Indonesia’s structural advantages in tropical crop production, large-scale plantation activities, and strong export across commodities such as palm oil, rubber, and horticultural products.
- Between 2022 and 2024, the sector recorded modest revenue growth, with total industry Revenue reaching USD 31.81B in 2024, corresponding to Revenue CAGR 2.1% (2022-2024). The relatively stable topline trajectory reflects the defensive characteristics of agricultural production, where demand fundamentals are generally resilient but sensitive to commodity price cycles and yield variability.
- Cost structures remained broadly stable over the same period. Cost of Goods Sold (COGS) exhibited minimal growth (COGS CAGR 0.3%), indicating relatively contained input cost pressures despite fluctuations in global agricultural markets.
- Profitability indicators, however, reveal a contrasting dynamic. Operating Profit declined (CAGR -14.0%), while Net Profit contracted sharply (CAGR -75.7%), highlighting margin compression effects and potential non-operational pressures influencing bottom-line performance. This divergence underscores the sector’s sensitivity to price volatility, weather conditions, and cost absorption dynamics.
- Overall, sector performance reflects revenue stability amid profitability pressures, rather than aggressive growth expansion.
Industry Snapshot 2024
Indonesia’s KBLI 011 sector encompasses enterprises engaged in the cultivation of food crops, plantation commodities, horticulture, and related agricultural outputs forming the backbone of the country’s crop production ecosystem.
In 2024, companies operating within KBLI 011 generated total industry Revenue of approximately USD 31.81B. The revenue trajectory over recent years reflects relative stability consistent with the structurally defensive nature of agricultural production, where output levels and pricing are influenced by both domestic demand and global commodity markets.
Over the same period, Cost of Goods Sold reached approximately USD 8.96B, illustrating limited cost escalation. Agricultural cost structures are typically shaped by fertilizer inputs, labor intensity, logistics constraints, and climate variability, rather than industrial-scale fixed assets.
Despite stable revenue and cost dynamics, the sector recorded Operating Profit of approximately USD 1.53B, representing a moderation compared with earlier years. Profitability variability in crop production industries often arises from commodity price movements, yield fluctuations, and biological production cycles, rather than purely operational efficiency factors.
At the bottom line, Net Profit reached approximately USD 74.24M, marking a significant decline relative to prior periods. This sharp compression highlights the sector’s exposure to earnings volatility, financing structures, and non-operational cost factors, which can materially influence reported net outcomes.
As of 2024, 361 companies were active under KBLI 011, indicating the sector’s scale and competitive breadth within Indonesia’s agricultural economy.
Industry Characteristics & Operating Landscape
Where do companies typically operate?
Plant cultivation activities in Indonesia are geographically aligned with resource-rich agricultural regions and plantation-intensive provinces, rather than urban commercial centers.
Key production concentrations include:
- Sumatra – Major palm oil and plantation crop base
- Kalimantan – Large-scale estate cultivation and resource-linked agriculture
- Java – High-density food crop and horticulture production
- Sulawesi – Expanding plantation and specialty crop activities
Geographic distribution is therefore determined by land availability, climatic suitability, and commodity specialization, reflecting the resource-dependent nature of agricultural production.
What drives demand in this sector?
Geographic distribution is therefore determined by land availability, climatic suitability, and commodity specialization, reflecting the resource-dependent nature of agricultural production.
Core drivers include:
- Export demand for plantation commodities
- Domestic food consumption patterns
- Population growth and dietary demand
- Commodity price cycles
- Government agricultural policies
Unlike manufacturing sectors, revenue dynamics are strongly influenced by global agricultural pricing and yield conditions.
What defines the operational model?
Plant cultivation industries operate under a biological production and commodity-linked economic structure, characterized by:
- Yield and weather dependency
- Exposure to commodity price volatility
- Labor and input cost sensitivity
- Seasonal production cycles
- Limited operating leverage compared with industrial sectors
Profitability variability is therefore driven more by external pricing and biological factors than by scale efficiencies alone.
Interpreting 2022-2024 Performance
The observed Revenue CAGR 2.1% signals relative topline stability, consistent with defensive demand fundamentals across agricultural commodities. However, stable revenue growth does not necessarily translate into earnings expansion within commodity-driven sectors.
The minimal COGS CAGR 0.3% suggests contained input cost pressures, yet declining profitability metrics indicate that margin compression effects were likely driven by pricing dynamics, yield variability, or non-operational cost factors.
The contraction of Operating Profit (CAGR -14.0%) highlights earnings sensitivity to commodity cycles, while the pronounced decline in Net Profit (CAGR -75.7%) underscores the sector’s inherent bottom-line volatility.
Overall, sector performance reflects revenue resilience alongside profitability normalization pressures.
What This Means for Investors
- For investors, Indonesia’s KBLI 011 sector provides exposure to a commodity-linked, resource-dependent industry with performance dynamics shaped by agricultural cycles and global pricing environments.
- Key considerations include:
- Commodity price volatility
- Yield and climate dependency
- Cost management and input efficiency
- Export market sensitivity
- Earnings variability across cycles
- Value creation within plant cultivation industries is closely tied to operational efficiency, cost discipline, and commodity cycle positioning, rather than linear growth assumptions.
- Indonesia’s crop production sector therefore reflects the economics of a resource-driven industry, where revenue stability may coexist with substantial profitability fluctuations.
About Datagent
Datagent is the trusted intelligence partner for company data and insights across Southeast Asia and beyond. We combine firmographics, financials, macro and micro economics into one integrated dataset — helping organizations uncover opportunities, assess markets, and make smarter, data-backed decisions across 11 dynamic economies.
Datagent provides a total of 61 firmographic data fields, comprising 22 non-financial, and 39 financial indicators with coverage spanning 2022–2024.
This report is for informational purposes only and does not constitute financial advice or an invitation to invest. Decisions should be based on independent research and professional consultation to avoid any unintended liabilities.