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

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  • 1 KomponenCommunity Empowerment 2 KomponenProductivity Improvement of Integrated Farming Systems Focus on increasing productivity and integrated agriculture system in targeted area. This activity will base on ecological suitability, profitability, marketing, experience and knowledge of farmers dan availability of labour.3 KomponenNatural Resource Management Land and water conservation, sustainable biodiversity for production system at beneficiary’s level.4. KomponenValue Chain Development support the development of value chain and facilitate the formaulating distric fand province forum in promoting export5. KomponenProductive Rural Infrastructure Investment develop village infrastructure under village community proposal.6. KomponenInstitutional Strengthening and Project Management
  • Fourth South-South Cooperation Workshop on Rural Development and Poverty Reduction - Dini Mangfirra

    1. 1. REPUBLIC OF INDONESIA MINISTRY OF NATIONAL DEVELOPMENT PLANNING/ NATIONAL DEVELOPMENT PLANNING AGENCY (BAPPENAS)INDONESIAN AGRICULTURE POLICY AND MODEL TO PROMOTE SMALLHOLDER FARMER DINI MAGHFIRRA Directorate of Food and Agriculture Deputy Minister for Natural Resources And Environment Beijing, 4-12 July 2012 1
    2. 2. Ministry NationalDevelopment 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 2
    3. 3. MINISTRY NATIONAL DEVELOPMENT PLANNING/ BAPPENAS1. AGRICULTURE OVERVIEW 3
    4. 4. Ministry NationalDevelopment Planning/ INDONESIAN DEVELOPMENT 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 4
    5. 5. Ministry NationalDevelopment Planning/ INDONESIAN DEVELOPMENT 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 Poverty (percent below US$2 per day) 5
    6. 6. Ministry NationalDevelopment Planning/ BAPPENAS Roles of Agriculture  Agriculture sector has a vital role in Indonesia’s development, in terms of economic, socio-cultural, and environmental aspects;  In 2010, agriculture (including forestry and fisheries) contributed 13.2 percent of GDP  with tends agriculture to GDP tends to decline  Agriculture sector also has contributed to national exports, primarily through the export of palm oil, cocoa, coffee, and coconuts;  Around 43 million people (or 44% of population) are employed in agricultural sector  mostly smallholder group;  Agricultural land-use has a function in maintaining our life-support system; 6
    7. 7. Ministry NationalDevelopment Planning/ BAPPENAS Agriculture and GDP Food crop contributes almost 50 percent to agricultural GDP. Indonesian Per capita GDP (constant 2000 US$) and share of GDP from agriculture Indonesia Agriculture sector’s GDP, 2004-2010 (%) Fisheries, 15. 8 Forestry, 6.2 Food Livestock, 12 crop, 49.7 ,6 Tree crop, 15.7Source: World Development Indicators (World Bank 2009) Source: Statistical Beureau (BPS) 7
    8. 8. Ministry National Future Challenges Development Planning/ BAPPENAS 2010 Realiza CHALLENGES COMPONENT TARGE REALIZATIO tion 1. Increasing number of population T N 2011 2. World price  fluctuation 3. Climate change  threatening foodMain Food productionProduction 4. Land conversion/Land use change,• Paddy (million ton) 66.9 66.4 65.7 degradation, condition of agricultural infrastructure• Maize (million ton) 19,8 18.40 17.2 5. Import (maize, soybean, meat, sugar,• Soybean (million 1.300 908.1 870.1 wheat, milk) ton) 6. Low Farmer’s prosperity• Sugar (million ton) 3,0 2.7 2.4• Beef (thousand 412 435.2 439.0 ton) • FOOD SECURITY AS ONE OF NATIONAL• Fisheries (million 10,8 12.3 PRIORITIES ton) • INCREASING FOOD PRODUCTION TOGDP growth (%) 3,6-3,7 2.9 3.1 MEET DOMESTIC DEMAND Source: Annual Government Work Plan 8
    9. 9. Value of production for leading agricultural commodities, Agricultural average of 2006-2008 Rank Crop % of Value of Production Ministry NationalDevelopment Planning/ BAPPENAS Commodities 1 Rice, paddy total 35.30% (million US$) 13,261.10 2 Oil palm fruit 11.50% 4,322.10 3 Coconuts 5.90% 2,208.80Harvest area of leading agricultural 4 Maize 5.40% 2,034.60commodities, average of 2006-2008 5 Natural rubber 4.30% 1,631.30 Area 6 Cassava 3.70% 1,400.70 7 Oranges 3.10% 1,154.30 % of harvestedRank Crop 8 Bananas 2.80% 1,055.40 total (000 9 Chilies and peppers, 2.70% 1,009.90 hectares) green1 Rice, paddy 34.50% 12,081 10 Fruit, tropical fresh 2.60% 980.62 Oil palm fruit 13.00% 4,550 nes3 Maize 10.50% 3,660 Total 100.00% 37,550.80 Consumption of leading food commodities, average of4 Coconuts 8.10% 2,833 2003-20065 Natural 8.00% 2,800 Food rubber Rank Crop % of total consumption6 Cassava 3.40% 1,207 (000 mt)7 Coffee, green 2.80% 976 1 Rice (Milled Eq.) 30.70% 27,8898 Cocoa beans 2.70% 940 2 Cassava 10.00% 9,0569 Groundnuts, 1.90% 668 3 Vegetables, Other 7.10% 6,469 with shell 4 Fruits, Other 6.90% 6,25510 Soybeans 1.60% 544 5 Maize 6.60% 6,044 Total 100.00% 35,021 6 Coconuts - Incl Copra 6.00% 5,466 7 Wheat 4.80% 4,340 8 Bananas 4.70% 4,2339 9 Sugar (Raw Eq) 3.70% 3,355 Source: FAOSTAT (FAO 2010) Total 100.00% 90,893
    10. 10. Ministry National POVERTY REDUCITION TRENDDevelopment Planning/ BAPPENAS Note : Started in 1996, used different methode Source : Social Economic Sensus, Indonesia Statistic Bureau 10
    11. 11. RURAL VS URBAN WELFARE DISPARITYMinistry National Dev’ Planning/ BAPPENAS (INCREASE) 25 Urban Rural 20 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 2011 Note : Rural Area are dominated with small holder farmer Source : Social Economic Sensus 2011, Indonesia Statistic Bureau 11
    12. 12. POVERTY RATE PROJECTION (%) Ministry NationalDevelopment Planning/ BAPPENAS PER PROVINCE IN 2014 Source: Indonesian National Action Plan in Poverty Alleviation 2012-2014  Moderate Projection 12
    13. 13. MINISTRY NATIONAL DEVELOPMENT PLANNING/ BAPPENAS II. INDONESIA NATIONALDEVELOPMENT PLAN AND POLICY 13
    14. 14. Ministry National MID-TERM NATIONALDevelopment Planning/ BAPPENAS DEVELOPMENT PRIORITIES NATIONAL PRIORITIES 14 1 Administration & Governance Reform 6 Infrastructure 2 Education 7 Climate Investment 3 Health 8 Energy 4 Poverty Alleviation 9 Environment & Disaster Management 5 Food Security 10 Remote and Post-Conflict Areas 11 Culture, Creativity & Technology Innovation
    15. 15. DEVELOPMENT PLANNING AND Ministry NationalDevelopment Planning/ BAPPENAS 15 BUDGETING MECHANISM guidance guidanceCENTRAL GOVERNMENT Elected President Ministry Strategic Ministry Work Ministry Activity & Detailed Gov’t Missions Planning Plan Budget Plan Budget elaboration guidance refference Annual elaboration guidance guidance National Longterm National Midterm Government Gov’t Budget Plan Gov’t Budget Dev’t Planning Dev’t Planning Work Plan refference refference Synchronyzed through Musrenbang Annual Local elaboration guidance guidance Local Longterm Local Midterm Local Gov’t BudgetLOCAL GOVERNMENT Government Work Local Go’t Budget Dev’t Planning Dev’t Planning Plan Plan elaboration guidance refference Elected Local Agency guidance Local Agency Local Agency guidance Detailed Local Governor/Mayor’ Activity & Budget Strategic Planning Work Plan Gov’t Budget Missions Plan DEV’T PLANNING LAW STATE FINANCING LAW
    16. 16. MUSRENBANG: DEVELOPMENT Ministry NationalDevelopment Planning/ BAPPENAS PLANNING WORKSHOP National MUSRENBANG Agencies: National Planning Form 1: Agency, Finan National ce Ministry, & MUSRENBANG Priorities (Book Technical Province I) Ministries Form 2: Sectoral MUSRENBANG Priorities (Book District II) Local Agencies: Planning & Technical MUSRENBANG Form 3: Detail Agencies Sub-district activities MUSRENBANG Village 16
    17. 17. MINISTRY NATIONAL DEVELOPMENT PLANNING/ BAPPENAS III. AGRICULTURE ANDFOOD SECURITY POLICIES 17
    18. 18. FOOD SECURITY SYSTEM IN INDONESIAMinistry National Dev’ Planning/ BAPPENAS KETAHANAN PANGAN FOOD SECURITY AVAILABILITY HANDLING OF DISTRI CONSU DOMESTIC FOOD PRODUCTION, FOOD INSECURITY STOCK,IMPORT) BUTION MPTION LACK OF FOOD FOOD PRICE accessibility FLUCTUATION MARGINALIZE/ DISASTER POOR PEOPLE INSENTIVE OF PRODUCTION: GOVERNMENT FLOOR PRICE SUBSIDIZE RICE GOVERNMENT INPUT SUBSIDY: FERTILIZER AND SEED FOR POOR PEOPLE RICE STOCK SUBSIDY FOR INTEREST RATE OF FARMER LOAN 18
    19. 19. Ministry National FUTURE CHALLENGES (FoodDevelopment Planning/ BAPPENAS Security) I. Supply side: 1. Making domestic food production stronger and higher  from 3% to 5% annual; 2. Making food production comparatively Call for more profitable  HPP as a safety net for food integrated and stronger producers; coordination and 3. Making food production more adaptive with commitment 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
    20. 20. Ministry National Development Planning/ INDONESIA FARMER EXCHANGE RATE BAPPENAS 107 110 NTP-TP 105 NTP 105 103 101 100 99 95 97 95 90 2 2 2 2 2 2 2 2115 108 NTP-H 110 NTP-T110 NTP-K 106105 105 104100 100 102 95 90 95 100 2012 2009 2010 2011 2009 2010 2011 2012 2009 2010 2011 2012 Year Month NTP NTP-TP NTP-H NTP-K NTP-T Note : NTP : Farmer Exchange Rate NTP-TP : Farmer Exchange Rate – Food Crops JAN 105.73 105.76 108.31 106.61 101.20 NTP-H : Farmer Exchange Rate - Horticulture FEB 105.10 104.69 108.07 106.44 101.11 NTP-K : Farmer Exchange Rate – Estate Crop 2012 NTP-T : Farmer Exchange Rate - Livestock MAR 104.68 103.60 108.60 106.49 101.16 20 APR 104.71 103.59 108.91 106.37 101.14
    21. 21. Ministry NationalDevelopment Planning/ BAPPENAS SMALLHOLDER CHALLENGES I. As Producer: -Provide better access to input 1. Low access to input factors; factors 2. Unpropriate capacity and information; -Government 3. Low productivity; regulation 4. Price uncertainty; 5. Access to capital; 6. Access to Information. -Social Safety Net II. As Consumer: -Market 1. Low nutrition; Information 2. Low exchange rate; 3. Low access to food (variation of food). 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 21
    22. 22. SAMPLE AGRICULTURE Ministry NationalDevelopment Planning/ BAPPENAS MODELo 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
    23. 23. Ministry NationalDevelopment Planning/ 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 capitalo School Field is design to produce better product with highest productivityo For now Government is still concentrate in Paddy Field  to achieve 10 million ton rice surplus 23
    24. 24. Ministry NationalDevelopment Planning/ BAPPENAS Online Cropping Calender 24
    25. 25. Ministry NationalDevelopment Planning/ BAPPENAS 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 25
    26. 26. MINISTRY NATIONAL DEVELOPMENT PLANNING/ BAPPENASIV. PREVIOUS AND ON GOING IFAD PROJECTS FOR SMALLHOLDERS FARMER 26
    27. 27. Ministry NationalDevelopment Planning/ 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 27
    28. 28. Ministry NationalDevelopment Planning/ 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 activities Self-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 business The 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. 28
    29. 29. Ministry NationalDevelopment Planning/ BAPPENAS READRural Empowerment for Agricultural Development Programme in CentralSulawesio 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 facilitieso Progress : – The farmer group now already establish the joint agreement with MARS in profiding cocoa for chocolate material 29
    30. 30. Ministry NationalDevelopment Planning/ 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 30
    31. 31. MINISTRY NATIONAL DEVELOPMENT PLANNING/ BAPPENASV. CONCLUSION 31
    32. 32. Ministry NationalDevelopment Planning/ BAPPENAS 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. 32
    33. 33. Ministry NationalDevelopment Planning/ Click to edit Master title style BAPPENAS THANK YOU Ministry of National Development Planning/ National Development Planning Agency (BAPPENAS) Republic of Indonesia Address : Jl. Taman Suropati No. 2, Jakarta, Indonesia 10310 Phone : (62-21) 31934323 Facs. : (62-21) 3915404 Email : pertanian@bappenas.go.id and/or dini.maghfirra@bappenas.go.id Website : www.bappenas.go.id 33

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