Indonesia’s agriculture sector performance during the COVID-19 pandemic: Towards a resilient agrifood system

Indonesia’s agriculture sector performance during the COVID-19 pandemic: Towards a resilient agrifood system
Author: Food and Agriculture Organization of the United Nations
Publisher: Food & Agriculture Org.
Total Pages: 60
Release: 2023-10-24
Genre: Political Science
ISBN: 9251379750

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The COVID-19 pandemic has had a huge impact on food security in Indonesia. Ensuring food production and availability is a major concern for policymakers. The Indonesian government has historically made various efforts in this regard, encouraging and providing facilitation to farmers as the main producers of food, such as through the supply of agricultural inputs. In responding to the pandemic, the Indonesian government designed several programmes to protect farmers as food producers. The government was already carrying out these programmes before COVID-19 broke out but it increased their number and frequency during the pandemic. This paper examines the situation for several agricultural commodities as a result of the travel restrictions implemented under COVID-19. These restrictions affected the flow of goods, including of agricultural inputs and outputs. In addition, the paper compares conditions before and during the pandemic, assessing this within the broader context of government actions to address the challenges posed by COVID-19. It employs descriptive analysis, trend analysis and comparative analysis. The paper ends with an analysis of the adequacy of food consumption and food security in Indonesia and of the Social Safety Net (Jaring Pengaman Sosial – JPS) programme. As a result, the agriculture sector in Indonesia has withstood the shocks of the COVID-19 pandemic and its early restrictions relatively well. This can be seen in the economic growth (year on year) of the Indonesian agriculture sector, which was consistently positive for eight quarters (from the first quarter of 2020 to the fourth quarter of 2021) while at the same time total GDP growth in 2020 was negative. Specifically, the performance and relative resilience of the agriculture sector during the pandemic can be observed on several indicators, such as production, productivity, prices and trade in a number of main commodities, described below. During the COVID-19 pandemic, for all six commodities studied, no major shocks were observed on several indicators, including production, productivity, prices and trade. There were also no major shocks to food resilience. Responsive policies and assured provision of inputs were very important in facing the threat of food stock uncertainty. Indonesia’s government implemented several social safety net programmes, which suppressed the negative impacts of the COVID-19 pandemic on food security. Policy recommendations for the government, to ensure the continued stability and resilience of agriculture and the food system.

The cost of COVID-19 on the Indonesian economy: A Social Accounting Matrix (SAM) multiplier approach

The cost of COVID-19 on the Indonesian economy: A Social Accounting Matrix (SAM) multiplier approach
Author: Pradesha, Angga
Publisher: Intl Food Policy Res Inst
Total Pages: 11
Release: 2020-07-30
Genre: Political Science
ISBN:

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Sustained economic growth and a declining trend in poverty over the years in Indonesia potentially will come to a halt this year. This development cost comes as a result of the COVID-19 pandemic outbreak that recently hit the country. Like in many other countries, one of the largest costs of COVID-19 comes from the social distancing policy, which is a proven public health measure to reduce the spread of the virus by limiting people’s movements and interactions for a certain period of time. The government of Indonesia adopted this approach by gradually introducing in certain regions the Large-scale Social Restriction (PSBB) policy from early April 2020. PSBB restricts non-essential economic activities and people’s movement in order to contain the virus. IFPRI, the National Development Planning Agency of Indonesia (BAPPENAS), and IPB University used a SAM multiplier model to measure the economic impact of PSBB if restrictions were to be in place for four weeks and to explore potential recovery processes after the policy ends. Some of the key findings were: • National GDP is estimated to fall by 24 percent during the four-week PSBB period, • External sector shocks – reduced export demand, lower remittances, and lower foreign investments – contribute around one-third of total GDP losses; • The GDP of Indonesia’s agri-food system falls by 13 percent despite agriculture activities being excluded from restrictive measures; • National poverty is expected to jump by 13 percentage points – an additional 36 million people will fall into poverty during the four-week PSBB period; and • By the end of 2020, due to COVID-19 the annual GDP growth is expected to be between 5.3 and 7.3 percent lower than under a baseline scenario without COVID-19.

Modernizing Indonesia’s Agriculture

Modernizing Indonesia’s Agriculture
Author: Aditya Alta
Publisher: PT. RajaGrafindo Persada - Murai Kencana
Total Pages: 292
Release: 2023-08-29
Genre: Social Science
ISBN: 6238144068

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With both achievements and persistent challenges over the last few decades, ensuring food security remains a priority for policymakers and development efforts in Indonesia. Setting aside some backsliding resulting from the Covid-19 pandemic, Indonesia’s poverty reduction journey has come a long way since the Asian financial crisis to less than 10% by 2019. Likewise, meaningful progress has been seen in daily calorie consumption and a declining stunting rate. But despite these gains, many challenges are evident. On the production side, agriculture struggles to promote productivity, community livelihood, and sustainability—a challenge made more pronounced by increased extreme weather events, climate change, and emissions . Meanwhile, on the consumption side, not everyone enjoys access to food and nutrition security equally. Modernizing agriculture is seen as a potential response to challenges in agriculture. Increased investment in agricultural mechanization and digital technologies provides a critical avenue to transform the sector into a more inclusive, efficient, and sustainable system. With the expected increase in productivity and income—including for smallholder farmers—agricultural modernization will help Indonesia’s economy structurally transform and finally shift off-farm toward higher-paying, higher-productivity sectors outside of agriculture. The challenges facing Indonesia's food security and modernization efforts in agriculture set the broad context for this book. While solutions to food insecurity are complicated and involve many stakeholders, this book focuses on optimizing the private sector’s role in improving food security. The Center for Indonesian Policy Studies (CIPS) has gathered expertise on a range of topics related to improving Indonesian agriculture and food security and the private sector’s contribution. CIPS is an independent, non-profit, non-partisan think tank advocating for practical policy reforms informed by evidence-based policy research and analysis. CIPS presents this book as part of its commitment to empowering Indonesians to lead prosperous and peaceful lives by supporting open food trade and agriculture markets to ensure food security and sustainable livelihoods. This publication was made possible through the support of a grant from the John Templeton Foundation. The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the John Templeton Foundation. Aditya Alta is the Head of Agriculture and Food Security Research at the Center for Indonesian Policy Studies, Jakarta, Indonesia. Dr. Risti Permani is a senior lecturer in agribusiness at the School of Agriculture and Food Sciences at the University of Queensland, Brisbane, Australia, and a member of the board of directors at the Center for Indonesian Policy Studies, Jakarta, Indonesia. Dr. Maria Monica Wihardja is a visiting fellow at the ISEAS-Yusof Ishak Institute in Singapore and a member of the board of directors at the Center for Indonesian Policy Studies, Jakarta, Indonesia.

Implications of the COVID-19 Pandemic and the Russia-Ukraine Crisis on the Agricultural Sector

Implications of the COVID-19 Pandemic and the Russia-Ukraine Crisis on the Agricultural Sector
Author: Martinho, Vítor João Pereira Domingues
Publisher: IGI Global
Total Pages: 526
Release: 2023-04-24
Genre: Social Science
ISBN: 1668489252

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The agricultural sector has undergone significant changes in response to both the COVID-19 pandemic and the Russia-Ukraine turmoil. These changes have significantly affected markets and distribution chains due to lockdowns and rising energy prices within the global food production economy. Some of these issues stemmed from a lack of available labor due to pandemic shutdowns, a lowered demand for certain commodities, and the Ukraine regional crisis has led to a 25% decrease in agricultural production and output. A thorough evaluation of the real impacts of these events is necessary to identify the main factors and provide concepts for future adjustments that may create a more resilient agriculture industry. Implications of the COVID-19 Pandemic and the Russia-Ukraine Crisis on the Agricultural Sector offers a novel and valuable contribution to the scientific community by examining the true effects of compounded crises on the global agricultural sector. The author, Vítor João Pereira Domingues Martinho, draws on over 20 years of experience in agriculture and economics, with expertise in areas such as agricultural policy, European Union food markets, and more. This book is an ideal resource for students, professors, researchers, farmers, and policymakers from national and international organizations. Its methodologies and insights provide crucial information for stakeholders seeking to understand the implications of these crises on the agricultural sector.

Economic Dimensions of Covid-19 in Indonesia

Economic Dimensions of Covid-19 in Indonesia
Author: Blane D. Lewis
Publisher: ISEAS-Yusof Ishak Institute
Total Pages: 236
Release: 2021-04-19
Genre: Business & Economics
ISBN: 9814951463

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Beginning in December 2019, the coronavirus swept quickly through all regions of the world. COVID 19 has wreaked social, political and economic havoc everywhere and has shown few signs of entirely abating. The recent development and approval of new vaccines against the virus, however, now provides some hope that we may be coming to the beginning of the end of the pandemic. This volume collects papers from a conference titled Economic Dimensions of COVID 19 in Indonesia: Responding to the Crisis, organised by the Australian National University’s Indonesia Project and held online 7–10 September 2020. Collectively, the chapters in this volume focus for the most part on the economic elements of COVID 19 in Indonesia. The volume considers both macro- and micro-economic effects across a variety of dimensions, and short- and long-term impacts as well. It constitutes the first comprehensive analysis of Indonesia’s initial response to the crisis from an economic perspective.

State Intervention, Agricultural Sector Resilience and Sustainable Development

State Intervention, Agricultural Sector Resilience and Sustainable Development
Author: Muyanja-ssenyonga Jameaba
Publisher: Createspace Independent Publishing Platform
Total Pages: 204
Release: 2016-05-19
Genre:
ISBN: 9781533336019

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The book delves into some of the key issues that have influenced the growth and development of agriculture, which have included but not limited to state intervention that has encompassed putting in place legal framework that laid the foundation, principles, and practices on which operators in agricultural sector operate; direct involvement in the disbursement of directed credit programs to priority sectors; liberalization of trade and financial services while leaving key sub sectors of agriculture such as food crops off limits to any investment that is not allowed by the stated, which has impacted on the agricultural sector by making it relatively unattractive compared with other sector. The agricultural sector has been susceptible to policy change and shifts from highly supportive, import substitution strategy from 1960s to mid-late 1980s to partly liberalized and partly state controlled export-promotion strategy that has characterized the thrust of Indonesian government development policy since 1990s. State involvement has played a pivotal role in increasing the importance of agricultural sector in the economy as reflected in gains in productivity, farmer incomes, household and national food security, employment, poverty incidence, industrial sector performance and foreign exchange earnings. However, agricultural growth and development has come at high financial and ecological costs. Agricultural production has in part been responsible for deforestation, land and forest fires that continue to cause enormous health, financial, weather, and ecological problems and attendant costs to the local population as well as in neighboring countries; man-made disasters that include floods, floods and landslides, rising ferocity and frequency of destructive winds (trees that serve as breakers of high speed winds are cut to give way to farming. The shift from growing and consuming traditional food crops to rice, state intervention in agricultural development in Indonesia has unwittingly contributed to aggravating food insecurity at the household, regional level, and therefore. The partial removal of subsidies in place since 1998, led to high rice prices, and higher expenditure for all Indonesians, rich and poor. Consequently, underemployment and open employment rates remain high, as is income disparity across income groups and regions. Nonetheless, state intervention in agriculture can help to eliminate lingering poverty incidence in suburban areas, most rural areas on Java and Outer Java areas, and Eastern Indonesia in general. Going forward, effectiveness of agricultural policy will hinge on the degree to which it promotes direct investment in improving and enhancing human resource capacity of farmers and rural population as this important resource still constitutes a major drag on any efforts toward not only improving and increasing agricultural productivity and production but also orienting the agricultural sector from inefficient and ineffective resource use to sustainable frugality. This sets the stage for Indonesian policy makers, citizenry, civil society, and other stakeholders to take the necessary steps to nudge back the country's development path from growth at any cost to one that that is both economically, ecologically, and 'social-culturally' sustainable. It is a challenge that while daunting is not only imperative but also very important for the country to take as it joins other United Nations members in charting a new development course of sustainable development in 2015.

The State of Food and Agriculture 2021

The State of Food and Agriculture 2021
Author: Food and Agriculture Organization of the United Nations
Publisher: Food & Agriculture Org.
Total Pages: 182
Release: 2021-11-23
Genre: Political Science
ISBN: 9251343292

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The COVID-19 pandemic exposed the vulnerability of agrifood systems to shocks and stresses and led to increased global food insecurity and malnutrition. Action is needed to make agrifood systems more resilient, efficient, sustainable and inclusive. The State of Food and Agriculture 2021 presents country-level indicators of the resilience of agrifood systems. The indicators measure the robustness of primary production and food availability, as well as physical and economic access to food. They can thus help assess the capacity of national agrifood systems to absorb shocks and stresses, a key aspect of resilience. The report analyses the vulnerabilities of food supply chains and how rural households cope with risks and shocks. It discusses options to minimize trade-offs that building resilience may have with efficiency and inclusivity. The aim is to offer guidance on policies to enhance food supply chain resilience, support livelihoods in the agrifood system and, in the face of disruption, ensure sustainable access to sufficient, safe and nutritious food to all.

OECD-FAO Agricultural Outlook 2021–2030

OECD-FAO Agricultural Outlook 2021–2030
Author: Food and Agriculture Organization of the United Nations
Publisher: Food & Agriculture Org.
Total Pages: 337
Release: 2021-07-05
Genre: Political Science
ISBN: 9251346089

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The Agricultural Outlook 2021-2030 is a collaborative effort of the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO) of the United Nations. It brings together the commodity, policy and country expertise of both organisations as well as input from collaborating member countries to provide an annual assessment of the prospects for the coming decade of national, regional and global agricultural commodity markets. The publication consists of 11 Chapters; Chapter 1 covers agricultural and food markets; Chapter 2 provides regional outlooks and the remaining chapters are dedicated to individual commodities.

The impact of disasters and crises on agriculture and food security: 2021

The impact of disasters and crises on agriculture and food security: 2021
Author: Food and Agriculture Organization of the United Nations
Publisher: Food & Agriculture Org.
Total Pages: 245
Release: 2021-03-17
Genre: Nature
ISBN: 9251340714

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On top of a decade of exacerbated disaster loss, exceptional global heat, retreating ice and rising sea levels, humanity and our food security face a range of new and unprecedented hazards, such as megafires, extreme weather events, desert locust swarms of magnitudes previously unseen, and the COVID-19 pandemic. Agriculture underpins the livelihoods of over 2.5 billion people – most of them in low-income developing countries – and remains a key driver of development. At no other point in history has agriculture been faced with such an array of familiar and unfamiliar risks, interacting in a hyperconnected world and a precipitously changing landscape. And agriculture continues to absorb a disproportionate share of the damage and loss wrought by disasters. Their growing frequency and intensity, along with the systemic nature of risk, are upending people’s lives, devastating livelihoods, and jeopardizing our entire food system. This report makes a powerful case for investing in resilience and disaster risk reduction – especially data gathering and analysis for evidence informed action – to ensure agriculture’s crucial role in achieving the future we want.