1

Programme of Vredeseilanden in Indonesia

(VECO-Indonesia)

“Sustainable Agriculture Chain Development (SACD) for organized family farmers in Eastern Indonesia in partnership with civil

society”

CONTEXT INDONESIA

Facts and figures

Rice Indonesia

• Third largest Rice producer worldwide• Rice produced by 20 Million small-holder farmers (77

% of total). Average farm size predominantly 0,1-0,5 ha.

Rice Indonesia

2005

2006

2007

2008

2009

2010

11

11.5

12

12.5

13

13.5

Area of Rice Cultivation in Million Hectares

2005

2006

2007

2008

2009

2010

0

10

20

30

40

50

60

70

Production of Rice Cultivation Millions of

Metric Tonnes

Cocoa Indonesia

• Third largest Cocoa producer • 1,3 Million ha in production with 93% of total area

grown by 1,4 Million small-holder farmers (2011)• Production has increased during 2000-2010 with 3,5%

year/average. Production 600,000 tonnes in 2011

Coffee Indonesia

• Fourth largest producer of coffee• 1,3 Million ha in production with 90% of total area

grown by small-holder farmers (2011)• Production 560,000 tonnes in 2010/2011 but 470,00

tonnes is projected 2011/2012 due to adverse climatological effects.

Poverty/Food Security in Indonesia

• 13,0% of population lives below poverty line (<1 US$/day) but between 45-50% close to poverty line (2010). 60% of poor living in rural areas.

• In many eastern provinces around 30% is poor (2011)• Recent food studies in eastern Indonesia revealed that the

households engaged in subsistence farming and agricultural wage labour are more vulnerable to food insecurity than other groups (WFP 2012)

• Climatological factors had adverse effects on the Food Security situation for many small-holder farmers throughout Indonesia during the last 10 years.

Interviews External Stakeholders

Results

Interviews in Indonesia

Methodology:

• Interviewed persons (Total: 3). Vice-Minister of Trade (Ex Vice-Minister of Agriculture), Rainforest Alliance Representative Southeast Asia, Private sector (Rice Exporter).

• Focus group discussion with NGO partners of VECO-Indonesia

• Same questions used as for this Regional Forum

Interviews in Indonesia; Results

1) Major changes/issues in agriculture until 2020:• Agriculture land conversion affecting the livelihoods and

economy of millions of small-holder farmers in Indonesia• Climate change is an urgent issue for smallholders farmers. It is

very important to incorporate into agriculture development policies.

• Demand for good quality food from consumers is increasing but small-holder farmers are slow in providing these products to the market.

• Few young people are willing to take in their hands the future of agriculture development

• Farmers follow crops that give highest economic benefit (Oil Palm) and are less interested in crops grown in Agroforestry systems (Cocoa, Coffee).

Interviews in Indonesia; Results

1) Major changes/issues in agriculture until 2020:• Market demand for certified product is growing, e.g. coffee,

cocoa, tea, vegetables …• An increasing number of smallholder farmers South East Asia

requests assistance in building strong farmer organizations• Market driven development era open for farmer products (good

quality only, guaranteed, continued supply and traceability)• More companies are open to cooperate with small-holder

agriculture producers (professional business organizations)• Consumers want to purchase more guaranteed healthy/ethical

products and for this they are willing to pay more

Interviews in Indonesia; Results

1) Major changes/issues in agriculture until 2020:• Renewed focus on Food Security and Food Sovereignty with

increased attention within ASEAN policies and increased funding from donors

Interviews in Indonesia; Results

2) Changes needed for small-holder farmers:• Traditional (small-holder) farming system are more sustainable

(environmental friendly) compared with other farming systems and should be promoted through government policies and development programmes. Smallholder farming should produce valuable products for the market and increase revenues

• Building trust among farmers and support them to form farmer organizations

• Improve capacity of farmer organizations on farming, management and negotiation skills, access to financial institutions, financial management and build networking

Interviews in Indonesia; Results

2) Changes needed for small-holder farmers:• Develop an environment in which agro ecotourism can

develop itself• Small-holder farmers have to develop system based on

“landscape ecosystem”, including waste management, sanitation, best farming practices and forest conservation to get long term & sustainable benefits including health, clean water and a sustainable micro-climate

• Small-holder farmers need to work in competitive chains. For this success farmers need to invest in skills and knowledge of these chains. Farming is a business

• Good education for society and farmers in a fast changing world (Government has an important role)

Interviews in Indonesia; Results

2) Changes needed for small-holder farmers:• Incorporating Gender perspective in development of farmer

organizations (participation, leadership, roles in value chain)• National Farmer organizations should be able to influence

government policies on agriculture

Interviews in Indonesia; Results

3a) Small-holder farmers adaptations:• Small-holder farmers need to strategize and become successful

farmers to cope with rapid changes in the context. “Do not try to be number one but try you be the only one; try to be competitive but no need to compete with others” e.g. tradition/culture, beautiful environment, unique selling point

• Improve land productivity on existing agroforestry or farming models through implementation of good agriculture practices instead of opening up new land

• Small-holder farmers should organize themselves to be more powerful in the marketplace

Interviews in Indonesia; Results

3b) Small-holder farmers adaptations value chains:• Improve productivity and man power effectiveness in agriculture:

farmers should be able to feed >50% of population in urban areas. Farmers should be able to develop innovative agriculture systems, grow fast , sustainable and competitive crops

• Information center needed for agriculture chains. In this center that farmers/producers group can get/ asks information needed for their business

• Take the opportunities if there is market demand/benefit for incentives like certification. Be sure to follow market demand for certification, do not invest in certification unless the return of investment is guaranteed

• Governments should provide better enabling environment for supporting farmer led business development, e.g. tax exemption, processing of agriculture products

Interviews in Indonesia; Results

4) Other stakeholders adaptations & roles:• Scientific research has to be closely connected with farmer

realities and identify the risk farmers are facing both environmentally and economically.

• The government should identify where currently public services or basic infrastructure is not provided for and where law enforcement is lacking in practice. Anticipate demographic growth and plan for a sustainable future at the landscape level.

• The private sector should read long term market demands, support farmers to become more professional and develop long term partnerships with farmer organizations to meet these demands.

• NGOS have to identify where the scientific sector, government and private sectore fail to provide the services society demands and have a vision, which services are important in the long term, even if not articulated

Interviews in Indonesia; Results

4d) Other stakeholders adaptations & roles:• The government and also other institutions have a clear role to

support farmer organizations, but its implementation is not optimal and lacks focus.

Interviews in Indonesia; Results

5) Role of VECO:• Keep track of global role of NGO’s in society• Continue closeness/good relation with farmers and facilitate links

with “good” institutions and companies• Further strengthen networks especially in the field of sustainable

agriculture• Continue providing training to farmers and strengthen farmer

organizations (access to finance, business skills)• Raise awareness among stakeholders on the different benefits of

protecting ecosystems (sustainability)• Increase capacity building for farmer organization on post-harvest

issues.