This document summarizes the organic agriculture industry in Indonesia. It outlines the country's major organic exports including coffee, spices and coconut sugar. While the domestic organic market is growing, it is dominated by fresh products and imported processed foods. The certification landscape and national organic authorities are described. Challenges facing the industry include high certification costs and developing the domestic processed food market and export market. The government aims to triple certified farmland by 2020 and further promote organic agriculture through training, research and market support.

1. Country Case Study:
ORGANIC DEVELOPMENT
IN INDONESIA
Prepared by:
Agung Prawoto – BIOCert
Sitti Noorjanah – Ministry of Agriculture The Republic of Indonesia
Presented to APO Training on Organic Product Certification and Auditing in Colombo Sri Lanka, 18-23 June 2012

2. Organic Industry
• Organic market is growing fastly
• Domestic market:
– Dominated by fresh products
– Imported processed food
– Organic communities
• Export product:
– Coffee, spices, cashew, coconut sugar, shrimps
• No data on organic market value, but estimated up to USD20-
25millions per year.
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3. Organic Product of Indonesia
Coffee Cashew
Cocoa Coconut sugar
Forest honey Rice
Shrimps Spices
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4. Certified Land in 2009
[IFOAM, 2011]
Main Land Use Main Crop Type Ha
Agricultural land and crops, Agricultural land and crops, no details 9.013
no details
Arable crops Cereal 560
Medicinal and aromatic plants 2.913
Mushroom 1
Vegetables 92,3
Arable crops total 12.579
Permanent crop Cocoa 2.386
Coconut 936
Coffee 31.580
Fruit, tropical and subtropical 18
Medicinal and aromatic plants, permanent 849
Nuts 3.574
tea 206
Permanent crop total 39.549
Sub Total 52.128
Aquaculture 94
wild collection 32.000
PAMOR [PGS initiatives] 16,3
Total 84.239
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5. National Organic Authorities
• Organic Authority under MoA [OKPO]: fresh
and semi processed products
• Indonesia FDA [BPOM] for controlling
processed food
• National Accreditation Body of Indonesia
[KAN]: ISO 65 + organic criteria
• National Standardization Body of Indonesia
[BSN]: standard setting body
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6. Regulation & Standard
PP69/1999: Food Labelling and Advertisement
SNI6729-2010: Organic Food System
• production, labelling, import,
inspection/certification, national list
• Scope: plant and plant product, livestock and
livestock product, processing for plant and
livestock product.
Indonesia FDA [SK Badan POM HK00.06.52.0100]:
Controlling Organic Processed Food.
KAN Guidance 901/902/904:2006 on
accreditation requirements
 MoA decree of Organic Agriculture [in near
future]
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7. CBs operate in Indonesia
• 8 local CBs and 11 int’l CBs
Local CBs Int’l CBs
1. BIOCert 1. IMO*** 9. Ceres***
2. MAL 2. Control Union* 10. GOCA
3. Sucofindo 3. ACT** 11. ACO
4. Inofice 4. ICEA**
5. SDS 5. Bio.inspecta** * Office in Indonesia
6. Lesos 6. Ecocert ** cooperation with local
CBs
7. LSPO West Sumatra 7. NASAA ***has national
representative
8. Persada 8. Naturland
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8. Organic Integrity
Fresh products [voluntary]:
- Certified by KAN accredited CBs
- Using logo “ORGANIK Indonesia”
Constraint:
Self claimed product.
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9. Imported processed product is registered to Indonesia FDA
[mandatory]:
 Certified organic by KAN accredited CBs
 Recommendation from MoA to confirm the product is processed
organically
– Valid organic certificate
– Certified by KAN accredited CBs or recognized accreditation body
– equivalency on organic assessment system
– Valid transaction certificate
• Using logo “ORGANIK Indonesia” and words in Bahasa on packaging.
• Market survey regularly: withdrawing the products, administration
sanction
Constraint: various organic logo and using foreign language on packaging, FDA
unregistered since various items and small quantity of processed product
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10. Organic Inputs
• SNI on organic inputs
• Registered by MoA as commercial inputs: quality and product
effectiveness test
- No registered as illegal inputs
Constraint:
• Misintepretation on “organic” as input for organic agriculture
or containing organic materials.
• Registering to MoA: unafforable for organic input producers.
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11. Challenges
Domestic market
• New middle up and educated community class: 56% of population
– Increasing awareness increasing demand of organic products
– Providing organic product: fresh processed products
– Increasing imported products
– Sometimes need organic fish
• Regulation on organic products: research, training, certification, market,
fund, etc.
• Reliable logo “ORGANIK Indonesia”.
Export market
• Certification cost: expensive  foreign based CB
• Exporting raw product to processed products
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12. Government Policy To Support AO
MoA:
• Socialization on OA: Training and fund for local facilitator on
OA and ICS
• Fund support for smallholder group certification scheme
• Promoting organic product: national events and facilitating to
follow BIOFach.
• Researches on OA
• Promoting logo “ORGANIK Indonesia” to supermarket.
BSN:
• Facilitating local CBs for ISO65, ROCB [Japan]
Ministry of Trade
• Trade promotion
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13. Future Outlook in 2020
As Organic Kitchen in the World
• Increasing certified farms: triple from 2009
• Producing processed products
• Integrated regulation to support organic
agriculture: research, training, certification,
market, fund, etc.
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