Environmental Aspect of Food Trade: Indonesian Cases taufiq alimi

Objective of the Research To identify important food commodities exported from Indonesia To identify important food commodities exported from Indonesia To identify the (social and physical) environmental impacts of the food trade To identify the (social and physical) environmental impacts of the food trade To identify experiences of the government and other stakeholders in improving environmental performance of the food production and trade To identify experiences of the government and other stakeholders in improving environmental performance of the food production and trade

Research Findings…1 Key commodities exported from Indonesia are palm oil, marine/coastal products, coffee and cocoa. Key commodities exported from Indonesia are palm oil, marine/coastal products, coffee and cocoa. Coffee and cocoa represent similar ecological and economic entity and therefore analysis in this research group them together under one category Coffee and cocoa represent similar ecological and economic entity and therefore analysis in this research group them together under one category The research studied three group of commodities: palm oil, marine and coffee/cocoa. The research studied three group of commodities: palm oil, marine and coffee/cocoa.

Research Findings: Palm Oil Environmental Impact 1.Forest conversion for palm plantation is irreversible 2.Threat to Biodiversity 3.Ecosystem alteration 4.Watershed alteration; increasing flood and drought threat 5.Pecuniary externalities impact (not specific to palm oil only) 6.Unfairness in distribution of the stream of benefits (not specific to palm oil). Experiences 1.Using high conservation value (HCVF) principles to limit conversion 2.Introduction to sustainable palm oil 3.Land and spatial planning 4.Environmental Impact Assessment Lesson Learned 1.Careful planning, integrated and well coordinated development of palm oil may reduce the environmental impacts 2.Oil palm plantation can be alternative to abandonment of deforested areas. 3.Improvement on benefit distribution may reduced social and economic impacts

Research Findings: Marine and Coastal Products Environmental Impact 1.Contamination of chloramphenicol, heavy metal, bacteri, and other toxic matters 2.No exclusion of by- catch 3.Mangrove forest conversion 4.Conglomeration of marine/fisheries business Experiences 1.Capacity building for small fishers 2.Ice cube (refrigerant) provision 3.Assistance for transportation of products 4.Limiting mangrove conversion and replanting of mangrove 5.Business assistance for small and medium fishers. Lesson Learned 1.Education to fishers, farmers and fishing fleets operators on health and sanitation standards is essentials and still need a lot of improvement 2.Need better enforcement on spatial planning to prevent excessive mangrove deforestation 3.Cooperation of parties are instrumental in enforcement, education and improvement of poor fishers families’ economies

Research Finding: Cocoa/Coffee Environmental Impact 1.Macro and micro contamination 2.Excessive use of pesticides and fertilizers 3.Unfair distribution of benefits due to the long trade chain and too powerful middlemen Experiences 1.Capacity development of farmers 2.Introduction of organic farming 3.Shorten the trade chain 4.Selective marketing Lesson Learned 1.

Recomendation: Fiscal incentive and regulatory waiver for green businesses and fair promoting businesses Fiscal incentive and regulatory waiver for green businesses and fair promoting businesses Capacity development for small growers to meet international standards Capacity development for small growers to meet international standards Rearrangement of economic institution to lessen exploitative indudstries and to promote fair and just businesses Rearrangement of economic institution to lessen exploitative indudstries and to promote fair and just businesses Networking with other producing countries to strengthen bargaining position Networking with other producing countries to strengthen bargaining position Increasing imported production factor is found to be less important, and therefore is not recommended to be increased. Instead reliance to local factors are encouraged, especially if the volatility of Indonesian currency is taken into account Increasing imported production factor is found to be less important, and therefore is not recommended to be increased. Instead reliance to local factors are encouraged, especially if the volatility of Indonesian currency is taken into account

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