REGENERATING FARMER OR RURAL? Jarot Indarto Ministry of National Development Planning/BAPPENAS LIPI, Jakarta, 22 November 2016

INTRODUCTION (1) Who is farmer? What is rural? Owning land and doing cultivation. Renting for cultivation. Working for cultivation. What is rural? RURAL is what is not URBAN. INTRODUCTION (1) Who is farmer? What is rural?

INTRODUCTION (2) Who is our farmer?

INTRODUCTION (3) Is agriculture/ rural still important? Chronic problems of development Irreplaceable roles Food, feed and (bio)energy Income and employement Life-support system Amenity Poverty Backwardness Hunger Inefficiency and low productivity INTRODUCTION (3) Is agriculture/ rural still important?

INTRODUCTION (4) Will agriculture/ rural be still important? SDGs 2030: PERTANIAN Ending hunger Ending poverty Sustaining consumption and production Reducing income inequality Enhancing gender equality Sustaining economic growth Transform consumer services Retail services: food and beverages Finansical services Boost productivity in agriculture and fisheries Build a resource-smart economy Energy efficiensy Unconventional energy: biofuels, geothermal, biomass Invest in skill building INTRODUCTION (4) Will agriculture/ rural be still important? Source: MGI, 2012

DYNAMICS (1) Aging rural population? Source: UN Population, 2015 Source: Sensus Pertanian, 2013)

DYNAMICS (2) Urbanized rural society?

DYNAMICS (3) Urbanized rural society? Source: Susenas

DYNAMICS (4) Natural resources capacity? UN-FCCC Climatic change Natural disasters UN-CBD Biodiversity Bioresources UN-CCD Desertification Degradation Drought DYNAMICS (4) Natural resources capacity? Global enviromental regimes

DYNAMICS (5) Cost of production? Source: BPS

DYNAMICS (6) Agricultural involution? Internal intensification  NO CHANGE Output per area, output per capita/worker Adoption of technology DYNAMICS (6) Agricultural involution?

REGENERATING (1) BB-X-Y-Z Gen- Alpha: 2011-2025 Like Gen- Z Well-educated High income family Gen- Z: 1995-2010 < 16y i-Gen/net/digital Social network  verbal communication Tolerant Technology Instant life styles Gen- Y: 1981-1994 16-35y Generasi millenial atau milenium Multi-karakter Terbuka, media sosial Ketergantung-an thd teknologi/ gadget Gen- X: 1965-1980 > 35y PC/internet Adaptive Mandiri Baby Boomer: 1946-1964 > 70y: born after WW-II

Z Y X REGENERATING (2) X-Y-Z

REGENERATING (3) Long-term development planning 2005-2025 Primary Sector Strategy Enhance production basis Industrialization Added-value - Upper-middle income (USD/cap 4,000-12,000) - Unemployement - Poverty - Sustainability Efisiency Modernisation Robust economic structure REGENERATING (3) Long-term development planning 2005-2025 High-value crops Post-harvest and value-chain losses Agro-processing  downstream food and beverages industry Upstream activities, machinery, fertiliser and seeds Contract farming

REGENERATING (4) Modernizing rural? Urbanizing rural? REGENERATING (4) Modernizing rural?

REGENERATING (5) Modernizing rural: Public rural services? Make rural livable Food Education Health Housing Water and sanitation Transportation Information Finance REGENERATING (5) Modernizing rural: Public rural services?

REGENERATING (6) Modernizing rural: Capitalizing the death capital? Why does capitalism triumph in urban, but fails in rural? Property rights The death capital Cost of production REGENERATING (6) Modernizing rural: Capitalizing the death capital?

Education Agro-processing Value-chain management Vocational Updating curriculum Non-formal Technology-updating materials REGENERATING (7) Modernizing rural: Investing in human-resources? Linking to off-farm and urban?

REGENERATING (8) Modernizing rural: Climate-smart agriculture? Food security Productivity Farmer prosperity CC Adaptation Emission CC Mitigation Resilience REGENERATING (8) Modernizing rural: Climate-smart agriculture? CSA Rice-fish farming Biogas Conservation agriculture Value-chain management Agricultural insurance

THANK YOU j.indarto@gmail.com