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
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2. 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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3. MINISTRY NATIONAL
DEVELOPMENT PLANNING/
BAPPENAS
1. AGRICULTURE OVERVIEW
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4. Ministry National
Development 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
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5. Ministry National
Development 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)
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6. Ministry National
Development 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. Ministry National
Development Planning/
BAPPENAS
Agriculture and GDP
Food crop contributes almost 50 percent to agricultural GDP.
Indonesian Per capita GDP (constant 2000 US$) and
share of GDP from agriculture
Indonesia Agriculture sector’s GDP,
2004-2010 (%)
Fisheries, 15.
8
Forestry, 6.2
Food
Livestock, 12
crop, 49.7
,6
Tree
crop, 15.7
Source: World Development Indicators (World Bank 2009)
Source: Statistical Beureau (BPS)
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8. Ministry National
Future Challenges
Development Planning/
BAPPENAS
2010 Realiza CHALLENGES
COMPONENT TARGE REALIZATIO tion 1. Increasing number of population
T N 2011 2. World price  fluctuation
3. Climate change  threatening food
Main Food production
Production 4. Land conversion/Land use change,
• Paddy (million ton) 66.9 66.4 65.7 degradation, condition of agricultural
infrastructure
• Maize (million ton) 19,8 18.40 17.2
5. Import (maize, soybean, meat, sugar,
• Soybean (million 1.300 908.1 870.1 wheat, milk)
ton) 6. Low Farmer’s prosperity
• Sugar (million ton) 3,0 2.7 2.4
• Beef (thousand 412 435.2 439.0
ton)
• FOOD SECURITY AS ONE OF NATIONAL
• Fisheries (million 10,8 12.3 PRIORITIES
ton)
• INCREASING FOOD PRODUCTION TO
GDP growth (%) 3,6-3,7 2.9 3.1 MEET DOMESTIC DEMAND
Source: Annual Government Work Plan
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9. Value of production for leading agricultural commodities,
Agricultural average of 2006-2008
Rank Crop % of Value of Production
Ministry National
Development Planning/
BAPPENAS Commodities 1 Rice, paddy
total
35.30%
(million US$)
13,261.10
2 Oil palm fruit 11.50% 4,322.10
3 Coconuts 5.90% 2,208.80
Harvest area of leading agricultural
4 Maize 5.40% 2,034.60
commodities, 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 harvested
Rank Crop 8 Bananas 2.80% 1,055.40
total (000
9 Chilies and peppers, 2.70% 1,009.90
hectares) green
1 Rice, paddy 34.50% 12,081 10 Fruit, tropical fresh 2.60% 980.6
2 Oil palm fruit 13.00% 4,550 nes
3 Maize 10.50% 3,660 Total 100.00% 37,550.80
Consumption of leading food commodities, average of
4 Coconuts 8.10% 2,833
2003-2006
5 Natural 8.00% 2,800 Food
rubber Rank Crop % of total consumption
6 Cassava 3.40% 1,207 (000 mt)
7 Coffee, green 2.80% 976 1 Rice (Milled Eq.) 30.70% 27,889
8 Cocoa beans 2.70% 940 2 Cassava 10.00% 9,056
9 Groundnuts, 1.90% 668 3 Vegetables, Other 7.10% 6,469
with shell 4 Fruits, Other 6.90% 6,255
10 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% 4,233
9 9 Sugar (Raw Eq) 3.70% 3,355
Source: FAOSTAT (FAO 2010)
Total 100.00% 90,893

10. Ministry National
POVERTY REDUCITION TREND
Development Planning/
BAPPENAS
Note : Started in 1996, used different methode
Source : Social Economic Sensus, Indonesia Statistic Bureau
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11. RURAL VS URBAN WELFARE DISPARITY
Ministry 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
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12. POVERTY RATE PROJECTION (%)
Ministry National
Development Planning/
BAPPENAS
PER PROVINCE IN 2014
Source: Indonesian National Action Plan in Poverty Alleviation 2012-2014  Moderate Projection
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13. MINISTRY NATIONAL
DEVELOPMENT PLANNING/
BAPPENAS
II. INDONESIA NATIONAL
DEVELOPMENT PLAN AND
POLICY
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14. Ministry National
MID-TERM NATIONAL
Development Planning/
BAPPENAS
DEVELOPMENT PRIORITIES
NATIONAL PRIORITIES
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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. DEVELOPMENT PLANNING AND
Ministry National
Development Planning/
BAPPENAS
15
BUDGETING MECHANISM
guidance
guidance
CENTRAL 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 Budget
LOCAL 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. MUSRENBANG: DEVELOPMENT
Ministry National
Development 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
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17. MINISTRY NATIONAL
DEVELOPMENT PLANNING/
BAPPENAS
III. AGRICULTURE AND
FOOD SECURITY POLICIES
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18. FOOD SECURITY SYSTEM IN INDONESIA
Ministry 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. Ministry National
FUTURE CHALLENGES (Food
Development 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. 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
2
115 108
NTP-H 110 NTP-T
110 NTP-K 106
105 105
104
100
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. Ministry National
Development 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
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22. SAMPLE AGRICULTURE
Ministry National
Development Planning/
BAPPENAS
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

23. Ministry National
Development 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 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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24. Ministry National
Development Planning/
BAPPENAS
Online Cropping Calender
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25. Ministry National
Development 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
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26. MINISTRY NATIONAL
DEVELOPMENT PLANNING/
BAPPENAS
IV. PREVIOUS AND ON GOING
IFAD PROJECTS
FOR
SMALLHOLDERS FARMER
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27. Ministry National
Development Planning/
BAPPENAS
PIDRA
Participatory 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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28. Ministry National
Development 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.
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29. Ministry National
Development Planning/
BAPPENAS
READ
Rural 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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30. Ministry National
Development 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
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31. MINISTRY NATIONAL
DEVELOPMENT PLANNING/
BAPPENAS
V. CONCLUSION
31

32. Ministry National
Development 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.
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33. Ministry National
Development 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
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