Indonesia’s domestic cotton production is forecast at 2,000 480-lb. bales, less than 1 percent of total national demand. The cotton sector continues to receive minimal support or incentives from the Government of Indonesia (GOI), so over the past few years production has been either stagnant or in decline (see ID2021-0016).
What is Indonesia’s cotton production like in 2021/22?
Indonesia’s domestic cotton production remains limited, meeting less than one percent of industry demand. Production for 2021/22 is forecast to remain stable at 2,000 bales as farmers continue to prefer more lucrative crops and area for expansion remains limited due to land conversion to non-agricultural use.
Where is Indonesian cotton grown?
The Ministry of Agriculture (MOA) reported that in 2020/21, most Indonesian cotton was grown on a total area of 1,281 hectares of marginal land, primarily in South Sulawesi (75.5 percent), East Nusa Tenggara (12.6 percent), Central Java (10.2 percent), and West Nusa Tenggara (1.6 percent).
Why is Indonesia’s cotton production declining?
Production Cotton cultivation has become increasingly less attractive to Indonesian farmers due to lower margins and a lack of government incentives compared to other crops. Consequently, Indonesia’s domestic cotton production is on the decline, meeting less than one percent of local industry demand.