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KEMENTERIAN PPN/
   BAPPENAS




                   INDONESIAN FOOD SECURITY
                     AND CLIMATE CHANGE :
                   LOOKING INTO THE FUTURES

                              NONO RUSONO & SETYAWATI
                          Ministry of National Development Planning/
                           National Development Planning Agency




                   International Conference on Climate Change and Food Security
                                  6-8 November 2011, Beijing China                1
KEMENTERIAN PPN/
   BAPPENAS
                    OUTLINE



                   1. Indonesian Development
                   2. Agriculture Overview
                   3. Climate Change Impacts on
                      Agriculture
                   4. Indonesia’s Policies on
                      Climate Change



                                             2
KEMENTERIAN PPN/
                       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
            o      Population density was 125 per people per km2 in 2007
KEMENTERIAN PPN/
                      INDONESIAN DEVELOPMENT
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                      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)
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                   AGRICULTURE OVERVIEW

                      Agriculture sector has a vital role in Indonesia’s
                       development in economic, social and
                       environmental aspects

                      In 2010, agriculture (including forestry and
                       fisheries) contributed 13.2 percent of  GDP
                       contribution of 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

                      43 million people employed in agricultural sector

                      Agricultural land-use has a function in maintaining
                       our life-support system
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   Per capita GDP (constant 2000 US$) and share of GDP
   from agriculture


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

                                                                                 Fisheries,
                                                                                    15.8
                                                                 Forestry, 6.2
                                                                                              Food crop,
                                                              Livestock,                         49.7
                                                                 12,6

                                                                           Tree crop,
                                                                             15.7




                                                              Food crop contributes almost 50 percent to
                                                                          agricultural GDP.
 Source: World Development Indicators (World Bank 2009)
                                                          Source: BPS

                                                                                                           6
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                              CONDITION AND CHALLENGES
   BAPPENAS




                                                                              CHALLENGES
                                                                     1. Increasing number of population
                                                                     2. World price  fluctuation
                                             2010           TARGET
                                                             2011    3. Climate change  decreased food
           COMPONENT                            REALIZATI
                                  TARGET                                production
                                                   ON
                                                                     4. Land conversion/Land use
  Main Food Production
                                                                        change, degradation, condition of
  • Paddy (million ton)             66,9            66,4     70,6       agricultural infrastructure
  • Maize (million ton)             19,8            18,40   22,00    5. Import (maize, soybean, meat,
  • Soybean (million ton)          1.300            908,1   1.600       sugar, wheat, milk)
  • Sugar (million ton)             3,0              2,7     3,9
  • Beef (thousand ton)             412             435,2    439
  • Fisheries (million ton)                         10,83   12,26
                                                                     •   FOOD SECURITY AS ONE OF
  GDP growth (%)                   3,6-3,7           2,9     3,7
                                                                         NATIONAL PRIORITIES
  Source: Annual Government Work Plan
                                                                     •   INCREASING FOOD PRODUCTION TO
                                                                         MEET DEMAND



                                                                                                      7
Source: FAOSTAT (FAO 2010)



 KEMENTERIAN PPN/
                                        AGRICULTURAL COMMODITIES
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  Harvest area of leading agricultural
  commodities, average of 2006-2008
                                                     Area
  Ran
                    Crop           % of total     harvested
   k
                                                (000 hectares)
  1       Rice, paddy                34.50%             12,081
  2       Oil palm fruit             13.00%              4,550
  3       Maize                      10.50%              3,660   Consumption of leading food commodities,
  4       Coconuts                    8.10%              2,833   average of 2003-2006
  5       Natural rubber              8.00%              2,800                                                   Food
  6       Cassava                     3.40%              1,207   Rank           Crop            % of total   consumption
  7       Coffee, green               2.80%                976                                                 (000 mt)
  8       Cocoa beans                 2.70%                940   1      Rice (Milled Eq.)        30.70%           27,889
  9       Groundnuts, with shell      1.90%                668   2      Cassava                  10.00%            9,056
  10      Soybeans                    1.60%                544   3      Vegetables, Other         7.10%            6,469
          Total                     100.00%             35,021   4      Fruits, Other             6.90%            6,255
                                                                 5      Maize                     6.60%            6,044
  Source: FAOSTAT (FAO 2010)                                     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
  8                                                                     Total                   100.00%           90,893
KEMENTERIAN PPN/
   BAPPENAS




              3. CLIMATE CHANGE IMPACTS



                                          9
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                                           SCENARIOS

                                        The IMPACT model
            Category               Pessimistic                    Baseline                  Optimistic
         GDP, constant   Lowest of the four GDP growth    Based on rates from World   Highest of the four GDP
         2000 US$        rate scenarios from the          Bank EACC study (Margulis   growth rates from the
                         Millennium Ecosystem             2010), updated for Sub-     Millennium Ecosystem
                         Assessment GDP scenarios         Saharan Africa and South    Assessment GDP
                         (Millennium Ecosystem            Asian countries             scenarios and the rate
                         Assessment 2005)and the rate                                 used in the baseline
                         used in the baseline (next                                   (previous column)
                         column)
         Population      UN High variant, 2008 revision
                                                      UN medium variant, 2008       UN low variant, 2008
                                                      revision                      revision
         Climate model the CSIRO and the MIROC GCMs with the A1B and the B1 scenarios




                                                                                                                10
Changes in Precipitation under Climate Model
Changes in Annual Maximum Temperature
          under Climate Model




                                        12
Production     Yield   Area




               Net export   Price




IFPRI’S calculation
SCENARIO OUTCOMES FOR MAIZE


             Production       Yield            Area




               Net export     Price




IFPRI’S calculation
Production   Yield   Area




              Net export   Price




IFPRI’S calculation
Production                     Yield   Area




Net export                     Price




             IFPRI’s calculation
Production                         Yield   Area




Net export                         Price




             IFPRI’s calculation
Production                     Yield   Area




Net export                     Price




             IFPRI’s calculation
SCENARIO OUTCOMES ON HUMAN BEING
KEMENTERIAN PPN/
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                                       INDICATORS

  Average daily kilocalories availability        Number of malnourished children
  (kilocalories per person per day)              under 5 years of age




  Source: Based on IMPACT results of July 2011




                                                                               19
IFPRI’s calculation
                      20
KEMENTERIAN PPN/
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                     4. INDONESIA’S POLICIES ON
                          CLIMATE CHANGE




                                                  21
http:// www.triplepundit.com
Source: Climate Analysis Indicators Tool (CAIT) Version 8.0. (World Resource Institute 2011)




  KEMENTERIAN PPN/
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                                             GHG Emission in Indonesia

                                                                                                  Climate change is give impacts on
                                                                                                   agriculture, agricultural sector also
                                                                                                   contributes to the increase of GHG
                                                                                                   emission

                                                                                                  The current GHG emissions are
                                                                                                   dominated by land-use change
                                                                                                   emissions, including forest degradation
                                                                                                   and peat fires


                                                                                                  Contribute to Emission from Land Use
                                                                                                   Change : Forest fires/deforestation,
                                                                                                   Agriculture (Especially estate crops), Ex:
                                                                                                   Oil Palm and sugar; Livestock

                                                         Source : WRI, 2011


                                                                                                                                             22
KEMENTERIAN PPN/
                         National Policies on Climate Change
   BAPPENAS




          THERE IS A NEED TO FILL THE GAP AND TO CALL FOR
                   SECTORAL POLICY INTEGRATION


           Mainstreaming Climate Change into Medium
           Term Development Planning


                   Formulate Indonesia Climate Change Sectoral
                   Roadmap (ICCSR)


                       Formulate NAP GHG emission reduction (RAN
                       GRK).

                           Established ICCTF to coordinate international
                           support on Indonesia’s climate change policy
                           and program.


                               Adaptation Policies (on progress)
                                                                           23
The Overall Framework
KEMENTERIAN PPN/
   BAPPENAS




              1. Indonesia Climate Change
                                                Nine Sectors of Climate
                  Sectoral Roadmap (ICCSR)
                  will support the GOI’s
                                                  Change Roadmap :
                  development vision
                  related to climate change
                  for the next 20 years        Mitigation                  Adaptation
                                               • Energy                    • Agriculture
                                               • Forestry                  • Marine and Fishery
                                               • Industry                  • Water Resources
                                               • Transportation            • Health
              2. The implementation of         • Waste Management
                 the Roadmap will be
                 through National
                 Development Plan: period
                 2010 – 2014.


                                                Process :
               3. RAN GRK elaborates
                  Indonesia’s commitment
                  to reduce carbon                                  Sectoral       Local (RAD
                  emission by 26 percent      RAN GRK
                  from business as usual by                          Plan            GRK)
                  2020


                                                                                                  24
The National Action Plan of
KEMENTERIAN PPN/
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                   GHG emission reduction (RAN GRK)
                                                GRK)

     1. Allocate reduction of emission in 5 main sectors by
        2020
                                   Reduction Target (Gton CO2e)
                    Sector
                                       26%              41%
     Forestry and Peatland            0.672             1.039
     Agriculture                      0.008             0.011
     Energy and Transportation        0.036             0.056
     Industry                         0.001             0.005
     Waste                            0.048             0.078
     Total                            0.767             1.189
     2. Identification of sectoral program and estimation of
        government budget
                                                                  25
Mitigation and Adaptation Actions for
KEMENTERIAN PPN/
   BAPPENAS                 Emission Reduction
  MITIGATION
  o      Introducing new crop varieties with low emission. This includes increasing research
         and technology to develop the varieties.
  o      Prevent land burning
  o      Improving fertilizer application techniques to reduce emission, such as utilizing
         organic fertilizer
  o      Improving crop land management to increase soil carbon storage

  ADAPTATION
 o     Increasing the production and productivity of main food and promoting
       diversification on commodity consumption.
 o     Developing new varieties that resist to a range of environment such as drought and
       heat
 o     Developing adaptive agriculture technology, including developing soil management
       technology
 o     Improving water management including irrigation system to reduce water usage and
       water leakage, Improving management of crop residue
 o     Building farmers and authorities capacity
 o     Developing crop weather insurance for farmers to increase farmer’s resilience from
       climate change effects                                                          26
KEMENTERIAN PPN/
   BAPPENAS
                              CONCLUSION

        o Based on the analysis, climate change puts stresses on
          agricultural state and effect food security. The results show
          that Indonesia’s crop yield, production and prices will be
          affected.
        o Adaptation and mitigation policy recommendation:
        o Promote integration and coordination among stakeholders to
          consistently implement the national climate change policies.
        o Build synergies of mitigation and adaptation measures into
          sustainable development plans.
        o Increase research, technology, infrastructure investment on
          agriculture to meet the future demand and maintain food
          security.
        o Build human resources capacity to deal with climate change.


                                                                          27
KEMENTERIAN PPN/
   BAPPENAS




                   THANK YOU




                               28

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Indonesian Agriculture and Climate Change Impacts

  • 1. KEMENTERIAN PPN/ BAPPENAS INDONESIAN FOOD SECURITY AND CLIMATE CHANGE : LOOKING INTO THE FUTURES NONO RUSONO & SETYAWATI Ministry of National Development Planning/ National Development Planning Agency International Conference on Climate Change and Food Security 6-8 November 2011, Beijing China 1
  • 2. KEMENTERIAN PPN/ BAPPENAS OUTLINE 1. Indonesian Development 2. Agriculture Overview 3. Climate Change Impacts on Agriculture 4. Indonesia’s Policies on Climate Change 2
  • 3. KEMENTERIAN PPN/ 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 o Population density was 125 per people per km2 in 2007
  • 4. KEMENTERIAN PPN/ 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$2 per day)
  • 5. KEMENTERIAN PPN/ BAPPENAS AGRICULTURE OVERVIEW  Agriculture sector has a vital role in Indonesia’s development in economic, social and environmental aspects  In 2010, agriculture (including forestry and fisheries) contributed 13.2 percent of  GDP contribution of agriculture to GDP tends to decline  Agriculture sector also has contributed to national exports, primarily through the export of palm oil, cocoa, coffee, and coconuts  43 million people employed in agricultural sector  Agricultural land-use has a function in maintaining our life-support system
  • 6. KEMENTERIAN PPN/ BAPPENAS Per capita GDP (constant 2000 US$) and share of GDP from agriculture Agriculture sector’s GDP, 2004-2010 (%) Fisheries, 15.8 Forestry, 6.2 Food crop, Livestock, 49.7 12,6 Tree crop, 15.7 Food crop contributes almost 50 percent to agricultural GDP. Source: World Development Indicators (World Bank 2009) Source: BPS 6
  • 7. KEMENTERIAN PPN/ CONDITION AND CHALLENGES BAPPENAS CHALLENGES 1. Increasing number of population 2. World price  fluctuation 2010 TARGET 2011 3. Climate change  decreased food COMPONENT REALIZATI TARGET production ON 4. Land conversion/Land use Main Food Production change, degradation, condition of • Paddy (million ton) 66,9 66,4 70,6 agricultural infrastructure • Maize (million ton) 19,8 18,40 22,00 5. Import (maize, soybean, meat, • Soybean (million ton) 1.300 908,1 1.600 sugar, wheat, milk) • Sugar (million ton) 3,0 2,7 3,9 • Beef (thousand ton) 412 435,2 439 • Fisheries (million ton) 10,83 12,26 • FOOD SECURITY AS ONE OF GDP growth (%) 3,6-3,7 2,9 3,7 NATIONAL PRIORITIES Source: Annual Government Work Plan • INCREASING FOOD PRODUCTION TO MEET DEMAND 7
  • 8. Source: FAOSTAT (FAO 2010) KEMENTERIAN PPN/ AGRICULTURAL COMMODITIES BAPPENAS Harvest area of leading agricultural commodities, average of 2006-2008 Area Ran Crop % of total harvested k (000 hectares) 1 Rice, paddy 34.50% 12,081 2 Oil palm fruit 13.00% 4,550 3 Maize 10.50% 3,660 Consumption of leading food commodities, 4 Coconuts 8.10% 2,833 average of 2003-2006 5 Natural rubber 8.00% 2,800 Food 6 Cassava 3.40% 1,207 Rank Crop % of total consumption 7 Coffee, green 2.80% 976 (000 mt) 8 Cocoa beans 2.70% 940 1 Rice (Milled Eq.) 30.70% 27,889 9 Groundnuts, with shell 1.90% 668 2 Cassava 10.00% 9,056 10 Soybeans 1.60% 544 3 Vegetables, Other 7.10% 6,469 Total 100.00% 35,021 4 Fruits, Other 6.90% 6,255 5 Maize 6.60% 6,044 Source: FAOSTAT (FAO 2010) 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 8 Total 100.00% 90,893
  • 9. KEMENTERIAN PPN/ BAPPENAS 3. CLIMATE CHANGE IMPACTS 9
  • 10. KEMENTERIAN PPN/ BAPPENAS SCENARIOS The IMPACT model Category Pessimistic Baseline Optimistic GDP, constant Lowest of the four GDP growth Based on rates from World Highest of the four GDP 2000 US$ rate scenarios from the Bank EACC study (Margulis growth rates from the Millennium Ecosystem 2010), updated for Sub- Millennium Ecosystem Assessment GDP scenarios Saharan Africa and South Assessment GDP (Millennium Ecosystem Asian countries scenarios and the rate Assessment 2005)and the rate used in the baseline used in the baseline (next (previous column) column) Population UN High variant, 2008 revision UN medium variant, 2008 UN low variant, 2008 revision revision Climate model the CSIRO and the MIROC GCMs with the A1B and the B1 scenarios 10
  • 11. Changes in Precipitation under Climate Model
  • 12. Changes in Annual Maximum Temperature under Climate Model 12
  • 13. Production Yield Area Net export Price IFPRI’S calculation
  • 14. SCENARIO OUTCOMES FOR MAIZE Production Yield Area Net export Price IFPRI’S calculation
  • 15. Production Yield Area Net export Price IFPRI’S calculation
  • 16. Production Yield Area Net export Price IFPRI’s calculation
  • 17. Production Yield Area Net export Price IFPRI’s calculation
  • 18. Production Yield Area Net export Price IFPRI’s calculation
  • 19. SCENARIO OUTCOMES ON HUMAN BEING KEMENTERIAN PPN/ BAPPENAS INDICATORS Average daily kilocalories availability Number of malnourished children (kilocalories per person per day) under 5 years of age Source: Based on IMPACT results of July 2011 19
  • 21. KEMENTERIAN PPN/ BAPPENAS 4. INDONESIA’S POLICIES ON CLIMATE CHANGE 21 http:// www.triplepundit.com
  • 22. Source: Climate Analysis Indicators Tool (CAIT) Version 8.0. (World Resource Institute 2011) KEMENTERIAN PPN/ BAPPENAS GHG Emission in Indonesia  Climate change is give impacts on agriculture, agricultural sector also contributes to the increase of GHG emission  The current GHG emissions are dominated by land-use change emissions, including forest degradation and peat fires  Contribute to Emission from Land Use Change : Forest fires/deforestation, Agriculture (Especially estate crops), Ex: Oil Palm and sugar; Livestock Source : WRI, 2011 22
  • 23. KEMENTERIAN PPN/ National Policies on Climate Change BAPPENAS THERE IS A NEED TO FILL THE GAP AND TO CALL FOR SECTORAL POLICY INTEGRATION Mainstreaming Climate Change into Medium Term Development Planning Formulate Indonesia Climate Change Sectoral Roadmap (ICCSR) Formulate NAP GHG emission reduction (RAN GRK). Established ICCTF to coordinate international support on Indonesia’s climate change policy and program. Adaptation Policies (on progress) 23
  • 24. The Overall Framework KEMENTERIAN PPN/ BAPPENAS 1. Indonesia Climate Change Nine Sectors of Climate Sectoral Roadmap (ICCSR) will support the GOI’s Change Roadmap : development vision related to climate change for the next 20 years Mitigation Adaptation • Energy • Agriculture • Forestry • Marine and Fishery • Industry • Water Resources • Transportation • Health 2. The implementation of • Waste Management the Roadmap will be through National Development Plan: period 2010 – 2014. Process : 3. RAN GRK elaborates Indonesia’s commitment to reduce carbon Sectoral Local (RAD emission by 26 percent RAN GRK from business as usual by Plan GRK) 2020 24
  • 25. The National Action Plan of KEMENTERIAN PPN/ BAPPENAS GHG emission reduction (RAN GRK) GRK) 1. Allocate reduction of emission in 5 main sectors by 2020 Reduction Target (Gton CO2e) Sector 26% 41% Forestry and Peatland 0.672 1.039 Agriculture 0.008 0.011 Energy and Transportation 0.036 0.056 Industry 0.001 0.005 Waste 0.048 0.078 Total 0.767 1.189 2. Identification of sectoral program and estimation of government budget 25
  • 26. Mitigation and Adaptation Actions for KEMENTERIAN PPN/ BAPPENAS Emission Reduction MITIGATION o Introducing new crop varieties with low emission. This includes increasing research and technology to develop the varieties. o Prevent land burning o Improving fertilizer application techniques to reduce emission, such as utilizing organic fertilizer o Improving crop land management to increase soil carbon storage ADAPTATION o Increasing the production and productivity of main food and promoting diversification on commodity consumption. o Developing new varieties that resist to a range of environment such as drought and heat o Developing adaptive agriculture technology, including developing soil management technology o Improving water management including irrigation system to reduce water usage and water leakage, Improving management of crop residue o Building farmers and authorities capacity o Developing crop weather insurance for farmers to increase farmer’s resilience from climate change effects 26
  • 27. KEMENTERIAN PPN/ BAPPENAS CONCLUSION o Based on the analysis, climate change puts stresses on agricultural state and effect food security. The results show that Indonesia’s crop yield, production and prices will be affected. o Adaptation and mitigation policy recommendation: o Promote integration and coordination among stakeholders to consistently implement the national climate change policies. o Build synergies of mitigation and adaptation measures into sustainable development plans. o Increase research, technology, infrastructure investment on agriculture to meet the future demand and maintain food security. o Build human resources capacity to deal with climate change. 27
  • 28. KEMENTERIAN PPN/ BAPPENAS THANK YOU 28