Fourth South-South Cooperation Workshop on Rural Development and Poverty Reduction - Dini Mangfirra

REPUBLIC OF INDONESIAMINISTRY OF NATIONAL DEVELOPMENT PLANNING/

NATIONAL DEVELOPMENT PLANNING AGENCY (BAPPENAS)

INDONESIAN AGRICULTURE POLICY

AND MODEL TO PROMOTE SMALLHOLDER FARMER

DINI MAGHFIRRADirectorate of Food and Agriculture

Deputy Minister for Natural Resources And Environment

Beijing, 4-12 July 20121

Ministry National Development Planning/

BAPPENAS

OUTLINE

I. INDONESIAN AGRICULTURE OVERVIEW

II. INDONESIA NATIONAL DEVELOPMENT PLAN AND POLICY

III. AGRICULTURE AND FOOD SECURITY POLICIES

IV. PREVIOUS AND ON GOING IFAD PROJECTS FOR SMALLHOLDERS FARMER

V. CONCLUSION

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MINISTRY NATIONAL DEVELOPMENT PLANNING/

BAPPENAS

1. AGRICULTURE OVERVIEW

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BAPPENAS

o Land area : 1.9 million km2 , Marine area : 5.8 million km2

o Population : 239 millions in 2010, with growth rate +1%o 58 percent people live in rural areas

INDONESIAN DEVELOPMENT

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BAPPENAS

Realized 2010 Realized 2011 Projection 2012 Projection 2013 Projection 2014

Economic growth 6,1% 6,4 % 6,5%-6,9% 6,7%-7,4% 7,0%-7,7%Unemployment 7,1% 7,0 % 6,4%-6,6% 6,0%-6,6% 5%-6%Poverty (National 13,3% 12,5% 10,5%-11.5% 9,5%-10,5% 8%-10% Poverty Line)

Source: Medium Term Development Plan

INDONESIAN DEVELOPMENT

Poverty (percent below US$2 per day)

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BAPPENAS

Roles of Agriculture

Agriculture sector has a vital role in Indonesia’s development, in terms of economic, socio-cultural, and environmental aspects;

In 2010, agriculture (including forestry and fisheries) contributed 13.2 percent of GDP with tends agriculture to GDP tends to decline

Agriculture sector also has contributed to national exports, primarily through the export of palm oil, cocoa, coffee, and coconuts;

Around 43 million people (or 44% of population) are employed in agricultural sector mostly smallholder group;

Agricultural land-use has a function in maintaining our life-support system;

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BAPPENAS

Agriculture and GDPFood crop contributes almost 50 percent to agricultural GDP.

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Food crop, 49.7

Tree crop, 15.7

Live-stock, 12,6

Forestry, 6.2

Fisheries, 15.8

Indonesia Agriculture sector’s GDP, 2004-2010 (%)

Source: World Development Indicators (World Bank 2009)Source: Statistical Beureau (BPS)

Indonesian Per capita GDP (constant 2000 US$) and share of GDP from agriculture


BAPPENAS

Future Challenges

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COMPONENT

2010 Realization

2011TARGET

REALIZATION

Main Food Production

• Paddy (million ton) 66.9 66.4 65.7

• Maize (million ton) 19,8 18.40 17.2

• Soybean (million ton)

1.300 908.1 870.1

• Sugar (million ton) 3,0 2.7 2.4

• Beef (thousand ton)

412 435.2 439.0

• Fisheries (million ton)

10,8 12.3

GDP growth (%) 3,6-3,7 2.9 3.1

CHALLENGES1. Increasing number of population2. World price fluctuation3. Climate change threatening food

production4. Land conversion/Land use change,

degradation, condition of agricultural infrastructure

5. Import (maize, soybean, meat, sugar, wheat, milk)

6. Low Farmer’s prosperity

• FOOD SECURITY AS ONE OF NATIONAL PRIORITIES

• INCREASING FOOD PRODUCTION TO MEET DOMESTIC DEMAND

Source: Annual Government Work Plan


BAPPENAS

Agricultural Commodities

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Rank Crop % of total

Area harvested

(000 hectares)

1 Rice, paddy 34.50% 12,081

2 Oil palm fruit 13.00% 4,550

3 Maize 10.50% 3,660

4 Coconuts 8.10% 2,833

5 Natural rubber

8.00% 2,800

6 Cassava 3.40% 1,207

7 Coffee, green 2.80% 976

8 Cocoa beans 2.70% 940

9 Groundnuts, with shell

1.90% 668

10 Soybeans 1.60% 544Total 100.00% 35,021

Source: FAOSTAT (FAO 2010)

Rank Crop % of total Food

consumption(000 mt)

1 Rice (Milled Eq.) 30.70% 27,889

2 Cassava 10.00% 9,056

3 Vegetables, Other 7.10% 6,469

4 Fruits, Other 6.90% 6,255

5 Maize 6.60% 6,044

6 Coconuts - Incl Copra 6.00% 5,466

7 Wheat 4.80% 4,340

8 Bananas 4.70% 4,233

9 Sugar (Raw Eq) 3.70% 3,355

Total 100.00% 90,893

Harvest area of leading agricultural commodities, average of 2006-2008

Consumption of leading food commodities, average of 2003-2006

Rank Crop % of total

Value of Production (million US$)

1 Rice, paddy 35.30% 13,261.102 Oil palm fruit 11.50% 4,322.103 Coconuts 5.90% 2,208.804 Maize 5.40% 2,034.605 Natural rubber 4.30% 1,631.306 Cassava 3.70% 1,400.707 Oranges 3.10% 1,154.308 Bananas 2.80% 1,055.409 Chilies and peppers,

green2.70% 1,009.90

10 Fruit, tropical fresh nes

2.60% 980.6

Total 100.00% 37,550.80

Value of production for leading agricultural commodities, average of 2006-2008


BAPPENAS

POVERTY REDUCITION TREND

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Note : Started in 1996, used different methode

Source : Social Economic Sensus, Indonesia Statistic Bureau

Ministry National Dev’ Planning/

BAPPENAS

RURAL VS URBAN WELFARE DISPARITY (INCREASE)

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0

5

10

15

20

25

2004 2005 2006 2007 2008 2009 2010 2011

Urban Rural

Note : Rural Area are dominated with small holder farmerSource : Social Economic Sensus 2011, Indonesia Statistic Bureau


BAPPENAS

POVERTY RATE PROJECTION (%)PER PROVINCE IN 2014

12Source: Indonesian National Action Plan in Poverty Alleviation 2012-2014 Moderate Projection


BAPPENAS

II. INDONESIA NATIONAL DEVELOPMENT PLAN AND

POLICY

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BAPPENAS

MID-TERM NATIONAL DEVELOPMENT PRIORITIES

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NATIONAL PRIORITIES

Administration & Governance Reform1

Education2

Health3

Poverty Alleviation4

Food Security5

Infrastructure6

Climate Investment7

Energy8

Environment & Disaster Management9

Remote and Post-Conflict Areas10

Culture, Creativity & Technology Innovation11


BAPPENAS

DEVELOPMENT PLANNING AND BUDGETING MECHANISM

Elected President Missions

Ministry Strategic Planning

Ministry Work Plan

Detailed Gov’t Budget

National Longterm Dev’t

Planning

National Midterm Dev’t

Planning

Annual Government Work Plan

Gov’t Budget Plan

Gov’t Budget

Local Midterm Dev’t Planning

Annual Local Government Work Plan

Local Gov’t Budget Plan

Local Go’t Budget

Elected Governor/Mayor’

Missions

Local Agency Strategic Planning

Local Agency Activity &

Budget Plan

Detailed Local Gov’t Budget

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DEV’T PLANNING LAW

STATE FINANCING LAW

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Synchronyzed through Musrenbangrefferencerefference


BAPPENAS

MUSRENBANG: DEVELOPMENT PLANNING WORKSHOP

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MUSRENBANG Village

MUSRENBANG Sub-district

MUSRENBANG District

MUSRENBANG Province

MUSRENBANG National

Form 1: National Priorities (Book I)

Form 2: Sectoral Priorities (Book II)

Form 3: Detail activities

National Agencies: Planning Agency, Finance

Ministry, & Technical Ministries

Local Agencies:Planning & Technical Agencies


BAPPENAS

III. AGRICULTURE AND FOOD SECURITY POLICIES

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Ministry National Dev’ Planning/

BAPPENAS

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FOOD SECURITY SYSTEM IN INDONESIA

KETAHANAN PANGAN

AVAILABILITYDOMESTIC FOOD PRODUCTION,

STOCK,IMPORT)

DISTRIBUTION

HANDLING OFFOOD INSECURITY

LACK OF FOODaccessibility

FOOD PRICE FLUCTUATION

MARGINALIZE/POOR PEOPLE

DISASTER

SUBSIDIZE RICEFOR POOR PEOPLE

GOVERNMENTRICE STOCK

INSENTIVE OF PRODUCTION:

GOVERNMENT FLOOR PRICE

INPUT SUBSIDY: FERTILIZER AND SEED

FOOD SECURITY

SUBSIDY FOR INTEREST RATE OF FARMER LOAN

CONSUMPTION


BAPPENAS

FUTURE CHALLENGES (Food Security)

I. Supply side:1. Making domestic food production stronger and

higher from 3% to 5% annual;2. Making food production comparatively

profitable HPP as a safety net for food producers;

3. Making food production more adaptive with climate change sustainable agriculture;

II. Demand side:4. Strengthening the food stock price volatility

and less access from world market;5. Lessening burden on food productions food

diversification, food processing;6. Increasing food accessibility efficient food

distributions & logistics, food safety net for the poor. 19

Call for more integrated and

stronger coordination and

commitment


BAPPENAS

INDONESIA FARMER EXCHANGE RATE

2009 2010 2011 201295

97

99

101

103

105

107

NTP

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NTP : Farmer Exchange Rate NTP-TP : Farmer Exchange Rate – Food CropsNTP-H : Farmer Exchange Rate - HorticultureNTP-K : Farmer Exchange Rate – Estate CropNTP-T : Farmer Exchange Rate - Livestock

Year Month NTP NTP-TP NTP-H NTP-K NTP-T

2012

JAN 105.73 105.76 108.31 106.61 101.20FEB 105.10 104.69 108.07 106.44 101.11MAR 104.68 103.60 108.60 106.49 101.16APR 104.71 103.59 108.91 106.37 101.14

2009 2010 2011 201290

95

100

105

110NTP-TP

2009 2010 2011 201290

95

100

105

110

115NTP-H

2009 2010 2011 201295

100

105

110NTP-K

2009 2010 2011 2012100101102103104105106107

NTP-T

Note :


BAPPENAS

SMALLHOLDER CHALLENGES

I. As Producer:1. Low access to input factors;2. Unpropriate capacity and information;3. Low productivity;4. Price uncertainty;5. Access to capital;6. Access to Information.

II. As Consumer:7. Low nutrition;8. Low exchange rate;9. Low access to food (variation of food).

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- Provide better access to input

factors- Government

regulation

- Social Safety Net- Market Information

Some Existing Programm in Supporting Small Holder Farmer :Government Floor Price, Fertilizer and Seed Subsidy, intereset subsidy (financial capital), subsidize rice

(to provide better consumption), capacity building, Specific Project/Grant


BAPPENAS

SAMPLE AGRICULTURE MODEL

o School Field – Integrated Crop Management :– Applied Good Seed (Seed Subsidy)

• Government of Indonesia (GoI) provide seed subsidy to the farmer cooperate with state own enterprises in producing the seed

– Applied Fertilizer corecctly (Fertilizer Subsidy)• Government of Indonesia (GoI) provide fertilizer subsidy

to the farmer cooperate with state own enterprises in producing the fertilizer

– Used Cropping calender • Ministry of Agriculture (Indonesia) already establish the

web based cropping calender right time / season / wheater 22


BAPPENAS

Cont …

o School Field – Integrated Crop Management :– Integrated Pest Management

• Using natural agents to control pests, or organic pesticide

– Harvest in right time• Transfer knowledge to farmer

– Financing accomodate interest rate subsidy• GoI provide the rate subsidy cooperate with the banks, in order to

give farmer easy access to capital

o School Field is design to produce better product with highest productivity

o For now Government is still concentrate in Paddy Field to achieve 10 million ton rice surplus

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BAPPENAS

Online Cropping Calender

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Cont ...

o Government beside School Field also promote other cooperation :– Promote cooperation between state own

enterprise to take a part in producing rice / paddy (Provide land, buy farmer product, provide inputs)

– Extend land area use the unused or not proper land

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BAPPENAS

IV. PREVIOUS AND ON GOING IFAD PROJECTS

FOR SMALLHOLDERS FARMER

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BAPPENAS

PIDRAParticipatory Integrated Development in Rainfed Areas (2001 – 2009)– The goal of the Projects are to improve the income, food security and living

conditions of low-income households and to promote the conservation and improvement of natural resources. Local NGOs are helping to develop self-help groups within the communities.

– In addition, the programme introduces integrated nutrient management to help farmers make the best use of organic and inorganic fertilizers.

– Investments in soil conservation promote development of the most appropriate systems for diverse environments.

– The self-help groups establish the priority of activities to be undertaken and are responsible for monitoring performance.

o The programme works in four major areas:– community and gender development– agriculture and livestock development– village infrastructure and land management– institutional support and programme management

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BAPPENAS

Cont ...– WHAT PIDRA DID ?

• Setting up new or strengthening existing farmers’ and women’ village self-help groups (SHGs), rendering them self-reliant and capable of undertaking their own development activitiesSelf-help groups of women or men and women are an effective instrument for enhancing the role of women. Although, increased income in the hands of women does have positive effects on their status, health and education (and that of their daughters) much depends on the intrahousehold distribution of power and income. Gender relations in Indonesia strongly favor men, so if women are to improve their status, more than the ability to earn extra income is required.

• Improving village infrastructure• Increase household food supply

The programme helped households to increase their food supply. Before the programme, the majority of local communities practiced shifting cultivation in a way that was damaging the environment. The programme encouraged the community to develop a permanent farming area with average land holdings of about 0.5 hectares per family for planting food crops, such as maize, nuts and rooted crops. It provided training on using agricultural technology with low inputs, such as organic fertilizer, to increase the productivity of food crops. By implementing the technology introduced by PIDRA, the villagers are no longer suffering food scarcity.

• Improve productivity and businessThe project also conducted technical training on the development of ‘on-farm, off farm and non farm’ microenterprises to farmers who were interested in improving the productivity of their enterprises or establish new businesses., even in dry area. One example includes improving food processing, such as making instant herb drinks. The implementation of these activities has improved poor people’s food purchasing power, thus increasing the availability of food for daily household needs.

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BAPPENAS

READRural Empowerment for Agricultural Development Programme in Central Sulawesi o Central Sulawesi Province is the fifth poorest province in Indonesia. Poverty is

widespread in the highland and coastal regions. Competition over natural resources has led to environmental degradation and the marginalization of indigenous groups.

o The goal of the programme is to raise incomes and provide livelihoods for rural poor people living in some of the most disadvantaged communities in the province.

o It introduces sustainable agricultural technologies and practices and provides for a revolving fund through which poor farmers can undertake a range of activities to generate income and create assets.

o The programme will work to:– help communities plan activities and manage their own development needs– improve agricultural production and develop rural enterprises and access to

markets– develop infrastructure such as roads, water supply and irrigation facilities

o Progress :– The farmer group now already establish the joint agreement with MARS in

profiding cocoa for chocolate material

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BAPPENAS

SOLID

Smallholder Livelihood Development Project in Eastern Indonesia (2011 – 2018)o The overall objective of the project is to reduce poverty and improve food

security and incomes in poor rural communities located in the two provinces of Maluku and North Maluku. Most of the targeted populations are engaged in tree and food crop production. The project builds on the positive experiences of the PIDRA.

o Project interventions focus on:– community empowerment– boosting productivity by introducing integrated farming systems– enhancing natural resource management– value chain development and marketing– investing in productive rural infrastructure– strengthening local institutions

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V. CONCLUSION

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CONCLUDING REMARKS

o Lessons-learned:– Agreed plan with very clear target, but still flexible

(negotiable) adjustable to the circumstances;– Strong commitment (National and local Government,

state own enterprise and private sector) ;– Leadership with consistent vision sustainable;– Detail does matter not only in conceptual framework,

but has to go in detail of its implementation;– Complexity in society provides forum for all

stakeholder to participate;– Capacity building management skill, data

measurement/valuation, monitoring/validation.

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Development Planning/BAPPENAS

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Ministry of National Development Planning/National Development Planning Agency (BAPPENAS)Republic of IndonesiaAddress : Jl. Taman Suropati No. 2, Jakarta, Indonesia 10310Phone : (62-21) 31934323Facs. : (62-21) 3915404Email : [email protected] and/or [email protected] : www.bappenas.go.id

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Fourth South-South Cooperation Workshop on Rural Development and Poverty Reduction - Dini Mangfirra

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Transcript of Fourth South-South Cooperation Workshop on Rural Development and Poverty Reduction - Dini Mangfirra