Workshop for Establishing an International Collaboration Platform for Smallholders, Family Farmers and Agricultural Producer Organisations in OIC Member Countries Country Presentation: INDONESIA

I. INTRODUCTION

1.Positioned to The North of Australia In far Southeast Asia, bordered By The Indian Ocean, Pacific Ocean, over a dozen regional seas, and the countries Of Malaysia, Papua New Guinea And East Timor, Comprising About Islands 2.34 Provinces, 508 District/City; Sub Districts ; Villages 3.Population People About 45 Percent Of The Country’s Work Force Engaged In Agricultural

GENERAL STATUS OF AGRICULTURE SECTOR 1.The average contribution of the agricultural sector to GDP reached 10,26% with growth of around 3,90% in 2014 the agricultural sector absorbed about million, or about 30,2% of the total workforce 2.Investment in primary agriculture sector domestic and foreign investment grew on average by 4,2% and 18,6% per year 3.Agricultural import-export ratio about 10 to 4, with the growth rate of exports reached 7,4% and import growth of 13,1% per year 4.Balance of trade with positive growth rate of 4,2% per year, 5.The number of households farming in Indonesia, million households, a decrease of 16,32 percent from the Census Agriculture, 2003 were recorded at 31,23 million households 6.Number the rural poor are mostly engaged in the agricultural sector decreased at a rate of 3,69% / year or decreases of approximately 19,93 million in 2010 to 17,14 million in 2014, Sources: MOA Strategic Plan

INDONESIA MAJOR COMMODITIES PRODUCTION Commodities Paddy66,46965,75969,05671,28070,832 Maize18,32817,64319,38718,51219,033 Soybean0, ( ton) Sources: MOA Strategic Plan Commodities Chilli807,160888,852954,3101,012,879926,000 Shallot1,048,934893,124964,1951,010,7731,201,900 meat436,5485,3508,9504,8540 cacao837,918712,231740,513777,539817,322 (ton)

LEGAL FRAMEWORK 1.The Constitution, The Law No 16, 2006 on System of Agricultural, Fishery, and Forestry Extension 3.The Law No 19, 2013 on Farmer Protection and Empowerment 4.The Law no 25, 1992 on Cooperatives 5.The Law no 6, 2014 on Villages 6.Decree of Minister of Agriculture No 82, 2013 on Developing Farmer Group and Farmer Group Association at Village level

II, PROFILE, PROBLEMS AND CHALLENGES

FARMER INSTITUTION NoTypeunit 1,Farmer Group460,227 2,Village Level Farmer Group Association 58,390 3,commodity based farmer association 1,365 4,Farmer Economic Institution (cooperative, enterprise, KUB) 13,322 Data : 12 November 2015 Source: Simluhtan

PROBLEMS Low quality and inefficiencies in farming management, networking with agribusiness and other rural economic institutions Weak of institutional capacity / not yet have legal status Limited access to financial/capital resources limited access to agriculture innovation and technology and information Most farmers have not been joined farmers organization (Tot FHH 26,7 million, total member Farmer group 10,38 million)

CHALLENGES ASEAN Economic Community Free Trade Zone Increasing population vs Productivity Decreasing the quality of Natural Resources

III, STRATEGIC AND POLICY PROGRAMME

INDONESIA AGRICULTURE EXTENSION SYSTEM

RURAL EXTENSION CENTER A BREAKTHROUGH IN SUPPORT FOR SMALL FARMERS Objectives of REC 1.Strengthening services to enhance food security of rural communities 2.Strengthening services to enhance sustainability and productivity of small farms 3.Improving the benefit of market engagement by small holders/farmer group/cooperatives 4.Improving farmers access resources and inputs Objectives of REC 1.Strengthening services to enhance food security of rural communities 2.Strengthening services to enhance sustainability and productivity of small farms 3.Improving the benefit of market engagement by small holders/farmer group/cooperatives 4.Improving farmers access resources and inputs Methods for REC 1.Facilitation of farmer learning 2.Facilitation of Farmer Organizations 3.Partnerships or market engagement Methods for REC 1.Facilitation of farmer learning 2.Facilitation of Farmer Organizations 3.Partnerships or market engagement 1.Government 2.Local Government 3.Farmer Organization: cooperatives, association 4.Private sectors 1.Government 2.Local Government 3.Farmer Organization: cooperatives, association 4.Private sectors 1.Local ownership 2.Inclusiveness 3.Accountability 4.Sustainability 1.Local ownership 2.Inclusiveness 3.Accountability 4.Sustainability Program of REC 1.National and Regional Commodities 2.The Government,Private and Farmer to Farmer Extension 3.Smallhoders engagement with agribusiness 4.Information network (cyber extension) Program of REC 1.National and Regional Commodities 2.The Government,Private and Farmer to Farmer Extension 3.Smallhoders engagement with agribusiness 4.Information network (cyber extension)

AGRICULTURE EXTENSION ICT TOOLS Cyber-extensionsimluhtan(agri ext mis)

Realtime data,up loaded from sub district database administrator in REC

STRATEGIES FOR FARMERS GROUP TRANSFORMATION FROM SMALL SCALE SUBSISTENCE TO FARMER ECONOMIC INSTITUTION FARMER GROUP FARMER GROUP ASSOCIATION AT VILLAGE LEVEL COOPERATIVES/RURAL AGRO ENTERPRISE Shifting of farmer organization to farmer economic institution intended to improve the capacity of its organization to increase economic of scale, agribusiness efficiency and bargaining position

STRENGTHENING ECONOMIC FARMER INSTITUTION FARMER COOPERATIVES FARMER AGRO ENTERPRISE BANK AGROINPUTS FIRM Seeds Fertilizer, etc BUSINESS PARTNER market credit FARMER FARMER GROUP VILLAGE FARMER GROUP ASSOCIATION RURAL MICRO FINANCE INSTITUTION

LESSON LEARNED

WAHYU UTAMA COOPERATIVE,TUBAN, EAST JAVA 1.Main activities in cattle agribusiness (breeding, fattening, selling, manure fertilizer producer, saving and loan) 2.In average every month sell cattle 3.Covered area 17 villages with 370 farmer members 4.Partnership with bank, trader and other private company

HEALTHY AND ORGANIC RICE, AL IKHWAN COOPERATIVE, CIANJUR- WEST JAVA

FOOD PROCESSING, MULYA JAYA COOPERATIVE, KULON PROGO- YOGYAKARTA

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