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Abstract
Excerpts: The unmistakable agricultural character of Indonesia is shown by the fact that more than 70 percent of the indigenous working population are peasant farmers. Undoubtedly the number of people dependent on agriculture for their livelihood is greater than this percentage would indicate. Although efforts have been directed in recent years toward increasing industrialization, they have not been successful enough to change the basically agrarian character of the economy. Approximately three-quarters of the national income is derived from agriculture. The outstanding feature of Indonesia's agrarian economy is its dual nature: on the one hand, small-scale native farming carried on by most of the indigenous population, and, on the other hand, large-scale scientifically managed European plantations--agricultural estates as they are usually called. Estate production is almost entirely for export, while smallholders' cultivation is undertaken both for domestic consumption and for export, though the greater part of it is organized on a simple subsistence basis. The European-owned and operated agricultural estates utilized only 7 percent of the cultivated area just before the war, yet they supplied 60 percent of total agricultural exports. In contrast to the other countries of Southeast Asia that are to large degree rice monocultures, Indonesia has a highly diversified agricultural economy. Both estate and native growers produce a great variety of commercial export crops, which eventually find their way to the far corners of the globe. Total agricultural exports accounted for 64 percent of the value of all Indonesian exports in 1938, while in 1950 the share from agriculture had risen to 69 percent.