EWINDO FOUNDATION A Proposal for 5 Years Plan

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EWINDO FOUNDATION A Proposal for 5 Years Plan
Vegetable production situation in Indonesia
Prepared by Yayasan Bina Tani Sejahtera
Contents
List of Tables
List of Graphs
List of Figures
Abbreviations
1.
2.
Country Description
1.1 Geographic & climatic ……………………………………………………………………………….
1.2 Demographic …………………………………………………………………………………………….
1.3 Political ……………………………………………………………………………………………………..
1.4 Policy and Regulatory Issues in Agricultural Sector…………………………………….
1.5 Economic and Agriculture Share ………………………………………………………………
Institutional Framework Conditions
2.1 Background to Vegetable Sector in Indonesia ……………………………………………
2.2 Institutional Framework
2.2.1 The Ministry of Agriculture ……………………………………………………………
2.2.2 Extension ………………………………………………………………………………………
2.2.3 R & D …………………………………………………………………………………………….
2.2.4 Education ……………………………………………………………………………………..
2.2.5 Associations ………………………………………………………………………………….
2.2.6 NGOs and International Development Organization ……………………..
2.3 Seed Industry …………………………………………………………………………………………….
2.4 Cultivated Area by Crop and Season
2.4.1 Main Vegetable Crops and Production Areas ………………………………..
2.4.2 Production Trends of Vegetable Crops ………………………………………….
2.5 Market description
2.5.1 Imports of Fresh/Chilled Vegetables ……………………………………………..
2.5.2 Impact of Imports on Local Production of Vegetables ……………………
2.5.3 Exports of Fresh/Chilled Vegetables ………………………………………………
2.5.4 Volume of Horticulture Seeds Exports and Imports ……………………….
2.5.5 Domestic ……………………………………………………………………………………….
2.6 Producers ………………………………………………………………………………………………….
2.7 Consumers ………………………………………………………………………………………………..
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List of Tables
1. Table 1: Agricultural Production by Commodity Groups
2. Table 2: Harvested Area, Production, and Yield per Hectare of Seasonal Vegetables Plants in
2010 and 2011, and Potential Yield of Some Crops
3. Table 3: Total of Indonesia's Imports of Selected Fresh Vegetables by Volume (Tonnes) and
Value (US $ ‘000) 2000 - 2011
4. Table 4: Impact change of imports on vegetable production 2000 - 2011
5. Table 5: Exports Production of Shallots, Cauliflowers and Potatoes by Country of Destination
2010-2011
6. Table 6: Volume of Horticulture Seeds Exports and Imports years 2008 - 2010
7. Table 7: Volume of Vegetable Seeds Exports and Imports 2011 - 2012
8. Table 8: Calculated consumption of some vegetable for Indonesia big cities (tonnes/day)
(Source: PASKOMNAS, 2013)
9. Table 9: Daily intakes of a PASKOMNAS commodity market, example of Tanah Tinggi market
10. Table 10: General category of vegetable cultivation related with potential profite generated
by grouped crops
11. Table 11: Crop and number of varieties produced and marketed by EWINDO
List of Graphs
1. Graph 1: Distribution of production (%) for five main vegetable commodities by main
provinces in year 2011 (BPS, 2012)
2. Graph 2: Production pattern of shallot, bunching onion and garlic during 1997 - 2011
3. Graph 3: Production pattern of potato, cabbage, and carrot during 1997 – 2011
4. Graph 4: Production pattern of chili, tomato, and eggplant during 1997 – 2011
List of Figures
1. Figure 1: Map of Indonesia
2. Figure 2: PASKOMNAS commodity market in Tanah Tinggi, Tangerang
3. Figure 3: Domestic variation of cabbage and garlic market retail price in some cities (August
2013)
4. Figure 4: Farmers planting pattern in Majalengka area (Basuki and Adiyoga, 2012)
5. Figure 5: Sketch of chili varietal adoption during a decade in Suniabaru village, Majalengka
(Basuki and Adiyoga, 2012)
6. Figure 6: Value ladder of vegetable cultivation – potential profit generated on a 1 hectare
land base
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Abbreviations
ASEAN
Association of Southeast Asian Nations
MPR
Majelis Permusyawaratan Rakyat (People Consultative Assembly) of the
Republic of Indonesia
DPR
Dewan Perwakilan Rakyat (People Representative Council) of the Republic of
Indonesia
DPD
Dewan Perwakilan Daerah (Regional Respresentative Council) of the
Republic of Indonesia
GDP
Gross Domestic Product
HDI
Human Development Index
NTB
Nusa Tenggara Barat province
NTT
Nusa Tenggara Timur province
BPS
Badan Pusat Statistik (Central Statistic Agency) of the Republic of Indonesia
PSEKP
Pusat Study Sosial Ekonomi dan Kebijakan Pertanian (Center for Agriculture
Socio Economic and Policy Study)
AARD
Agency for Agriculture Research and Development, the Ministry of
Agriculture, Republic of Indonesia
DGH
Directorate General of Horticulture, the Ministry of Agriculture, Republic of
Indonesia
BPPSDMP
Badan Penyuluhan dan Pengembangan Sumber Daya Manusia Pertanian
(Agency of Extension and Human Resources Development), the Ministry of
Agriculture, Republic of Indonesia
IVEGRI
Indonesia Vegetable Research Institute
AUSAID-AIPD The Australia Agency for International Development – Australia-Indonesia
Partnership Development
PASKOMNAS Pasar Komoditas Nasional (National Commodity Market)
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1. Country Description
Indonesia, officially the Republic of Indonesia, is a sovereign state in Southeast Asia and
Oceania. Indonesia is an archipelago comprising approximately 17,504 islands. It now
encompasses 34 provinces with over 238 million people, making it the world's fourth most
populous country. Indonesia's republic form of government comprises an elected legislature
and president. The nation's capital city is Jakarta. The country shares land borders with
Papua New Guinea, East Timor, and Malaysia. Other neighboring countries include
Singapore, Philippines, Australia, Palau, and the Indian territory of the Andaman and
Nicobar islands. Indonesia is a founding member of ASEAN and a member of the G-20 major
economies. The Indonesian economy is the world's 16th largest by nominal GDP and 15th
largest by purchasing power parity (http://en.wikipedia.org/wiki/Indonesia; BPS, 2013).
Country Profile in Brief:
Official languages
Indonesian

Ethnic groups (2000)
40.6% Javanese; 15.0% Sundanese; 3.3% Madurese; 2.7%
Minangkabau; 2.4% Betawi; 2.4% Bugis; 2.0% Bantenese; 1.7% Banjar;
29.9% other / unspecified
Government
Unitary presidential constitutional republic
Legislature
People's Consultative Assembly (MPR)
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Upper house
Regional Representative Council (DPD)
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Lower house
People’s Representative Council (DPR)
Independence from the Netherlands: Declared 17 August 1945, Acknowledged 27 December
1949
Area: Land 1,904,569 km2 (15th)
Population: 2011 census 237,424,363; density 124.66/km2
GDP (PPP)
2013 estimate: US$1.314 trillion (15th); US$5,302 (117th)
GDP (nominal)
2013 estimate: US$946.391 billion (16th); US$3,816 (105th)
Gini (2010)
35.6 medium
HDI (2012)
0.629 medium (121st)
Currency
Rupiah (Rp) (IDR)
Time zone
1.1.
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time zones (UTC+7 to +9)
Geographic & Climatic
Indonesia is strategically positioned along major sea lanes between the Indian Ocean and
the Pacific Ocean, and between mainland Asia and Australia continents. Of the 17,504
islands, 6,000 islands are inhabited. National Survey and Mapping Agency grouped 6 (six)
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big islands: Bali-NTB-NTT, Java, Kalimantan, Maluku-Papua, Sulawesi and Sumatra. These
larger islands groups cover coastal lowlands and peneplains but also have interior
mountains. Total coastline length stretches 104,000 km. Total land area is 1,910,931.32 km2.
Indonesia has land boundaries with bordering countries: Timor-Leste 269 km, Malaysia
2,004 km, and Papua New Guinea 820 km (http://www.indonesia.go.id/in/sekilasindonesia/geografi-indonesia; BPS, 2013).
Indonesia is blessed with equatorial tropical climate which is hot and humid. In interior
medium and high lands, it is more moderate or sub-tropical. Indonesia is rich in natural
resources and minerals such as: petroleum, tin, natural gas, nickel, timber, bauxite, copper,
coal, gold and silver. Flora and fauna flourish on fertile soils.
Natural hazards are common in Indonesia: occasional floods; severe droughts; landslides,
earthquakes; volcanoes; forest fires. In year 2004, Aceh was the closest point of land to the
epicenter of the 2004 Indian Ocean earthquake and tsunami, which devastated much of the western
coast of the province. Approximately 170,000 Indonesians were killed or went missing in the
disaster. Indonesia contains the most volcanoes of any country in the world - some are
historically active; significant volcanic activity occurs on Java, western Sumatra, the Sunda
Islands, Halmahera Island, Sulawesi Island, Sangihe Island, and in the Banda Sea. Merapi in
Central Java is Indonesia's most active volcano. Other notable historically active volcanoes
include Agung, Awu, Karangetang, Krakatau (Krakatoa), Makian, Raung, Tambora, and
Rokatenda. These volcanoes are part of the Ring of Fire in the Pacific Rim.
Figure 1: Map of Indonesia
Scale [ca. 1:25,000,000]: Mercator proj. (E 1040--E 1430/N 170--S 150).
Source: http://en.wikipedia.org/wiki/File:Indonesia_2002_CIA_map.png
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1.2.
Demographic
Indonesia is the world’s fourth most populated nation, and being the largest country in the
world with Moslem believers. The population grew at 1.49 percent per annum between
2000 and 2010 (BPS, 2012). The average population density in Indonesia in 2011 was 124
people per km2 (up from 107 people per km2 in 2010) with large variations between
provinces. The average size of household in the country is 3.9 (BPS, 2012).
The adult literacy rate in Indonesia in 2010 was 92.91 percent. This was 95.35 for men and
90.52 for women (BPS, 2012), with important differences between provinces. In Indonesia
life expectancy at birth (largely an outcome of health and nutrition) has been increasing in
recent years, but important differences persist between provinces and between urban and
rural areas. In 2010, life expectancy in the country was 70.9 years, compared to 70.4 in 2007
(BPS, 2010).
1.3.
Political
Indonesia is now the world's third most populous democracy, the world's largest
archipelagic state, and the world's largest Muslim-majority nation. Current issues include:
alleviating poverty, improving education, preventing terrorism, consolidating democracy
after four decades of authoritarianism, implementing economic and financial reforms,
stemming corruption, reforming the criminal justice system, holding the military and police
accountable for human rights violations, addressing climate change, and controlling
infectious diseases, particularly those of global and regional importance. In 2005, Indonesia
reached a historic peace agreement with armed separatists in Aceh, which led to democratic
elections in Aceh in December 2006. Indonesia continues to face low intensity armed
resistance in Papua by the separatist Free Papua Movement (https://www.cia.gov/library/
publications/the-world-factbook/geos/id.html; accessed on June 26, 2013).
As a democratic country, Indonesia set a multi-parties system in representative body (House
of Representative i.e. the law makers) and regional council (it is like Senate). President,
governors and regents are elected through direct voting every 5 (five) years. The same
applies to member of parliament/representative members. General election in every 5
years selects president, governors, mayor and regents, and member of Houses from party’s
candidates at national, province and district level. Currently top five parties are: PD (Partai
Demokrat), PDIP (Partai Demokrasi Indonesia Perjuangan), Partai GOLKAR (Golongan Karya),
PKS (Partai Keadilan Sejahtera), and PAN (Partai Amanat Nasional).
This multi-parties system runs in a pseudo-opposition process. The ruling party (President
Yudhoyono’s PD) builds a coalition with GOLKAR, PKS, PAN, PKB and other parties leaving
PDIP as an ‘opposition’ in parliament and towards current regime policies on many aspects.
At provincial and district levels, landscape of local government (governors, regents and local
Houses of representatives) are more diverse. There are numbers of provinces and districts
levels as well as city majors where ruling government are party leaders and elites from
parties other than PD party. It seems that party coalition at the national level does not
necessarily to be reflected and followed by party ranks at regional levels.
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Even though presidential system is notoriously dominant, since regional autonomy
regulation was set in early 2000s, then roles of governors and especially districts heads to
direct and manage development activities became more significant locally. In many
provinces and districts, we observed an effective and efficient public apparatus in deploying
development; however many other regions yet struggled in putting public funds to
appropriate needs of community.
1.4.
Policy and Regulatory Issues in Agricultural Sector
Agricultural policy in Indonesia focused for decades on achieving food self-sufficiency and
price stability, especially in rice. The government used a wide variety of policy instruments
in pursuing those goals, but mainly subsidies to purchased inputs. A typical example is a
large subsidy for fertilizer, but water (irrigation systems), fuel, credit, tree planting
materials, and pesticides were also subsidized. Indonesia’s largest farm input subsidy was
for many years a fertilizer subsidy. Recently during the last 5-7 years, seeds subsidies take
places using money from national as well as local government budget (CHCG, 2012).
Agricultural credit has also received subsidies from time to time in Indonesia. In the credit
scheme for small-holder farmers, subsidy for interest was a common approach either
through scheme required collateral or not. Through such scheme government (MOA)
usually provide technological package recommendation in order to encourage farmers to
adopt high-yielding seeds and other agro-input packages.
With regards specific to horticulture sub-sector, it is interesting to note recent government
policy with the enactment of Law No.13 of 2010 about Horticulture. Article 100 of this Law
regulates investment in horticultural business. It states the maximum proportionally
allowed between foreign and domestic investment. The amount of foreign investment is
restricted to 30% maximum. In Article 131 sub-article 2, it is stated that the law about
restriction of foreign investment in horticulture will be enacted in 2014. This law will
certainly affect on the performance of seed industries particularly the one that has the
foreign investment more than 30%, such as some of vegetable seeds companies are fully
owned by foreign investor.
A focus group discussion within HORTINDO (association of horticulture seeds companiesboth local and foreign investors) recently organized by Basuki and Adiyoga (2012) revealed
that the government had ignored efforts of private companies owned by foreign investor
who has made significant investment for years in developing seed-production systems and
market share of their seed company in the country. They perceived the government was
unfair to the foreign investors who have done a lot to develop vegetable seeds industry, and
heavily took a side to the local investor.
We have yet to see further development of this regulatory hurdle. However, Basuki and
Adiyoga recommended the seed companies owned by foreign investor to propose a judicial
review on the article 100 in as soon as possible before it is enacted by October 2014 as
stipulated in the Law.
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There are rumors that Nunhems (Bayer) had closed down their business anticipating the
implementation of this law and Seminis, Syngenta and Takii will soon follow suit. It is also
likely that all other major foreign seed companies will close down their seed business in
Indonesia as they would not like to be minor share holders. Sources also revealed that in
case any company refused to follow the law BKPM (Investment Coordination Bureau) and
Tax office-Ministry of Finance will not issue any permit and check the detail on fund flow
companies very tight for those companies but are not likely to face any direct penalty.
The seed companies are getting together to apply for a judicial review to fight against the
implementation of this law. In the coming days a clearer picture is expected to unfold and
many significant changes are to be seen with respect to the seed industry (http://www.
hortidaily.com/article/2660/Indonesia-Major-seed-companies-likely-to-close-down-theirbusiness; 18 June 2013).
1.5.
Economic and Agriculture Share
Indonesia’s economy is well diversified and market-based, with a GNI per capita of USD
3,005 in year 2010 (BPS, 2011). Growth in GDP in 2011 is estimated at 6.46 % and averaged
around 5.8 % (5.7 – 6.5 %) per annum between 2005 and 2011. In 2010, industry generated
approximately 48% of GDP; agriculture around 15%, and services around 37%.
Manufacturing dominates exports, with oil and gas accounting for around 20% of exports in
2011 (BPS, 2011). Indonesia’s agriculture sector is forecasted to continue growing (2.9 – 4.0
%), albeit at a lower paced compared to other sectors and total GDP growth.
The government made economic advances under the first administration of President
Yudhoyono (2004-09), introducing significant reforms in the financial sector, including tax
and customs reforms, the use of Treasury bills, and capital market development and
supervision. During the global financial crisis, Indonesia outperformed its regional neighbors
and joined China and India as the only G20 members posting growth in 2009. Indonesia still
struggles with poverty and unemployment, inadequate infrastructure, corruption, a
complex regulatory environment, and unequal resource distribution among regions. The
government in 2013 faces the ongoing challenge of improving Indonesia's insufficient
infrastructure to remove impediments to economic growth, labor unrest over wages, and
reducing its fuel subsidy program in the face of high oil prices.
Although the Indonesian agricultural sector has continued to grow, its share in the overall
economy declined from 41 percent of GDP in 1970 to around 15 percent of GDP in 2011.
However, agriculture still contributes significantly to Indonesia’s economic growth. For
instance, it accounted for around 14 percent of GDP between 2007 and 2010 (BPS, 2012). It
also employed 43 percent of the total work force in 2006, 43.03 percent in 2009 and 42.47
percent in 2011 (BPS, 2012), making it the largest sector by employment in the economy.
These figures also reflect the relatively low agricultural labor productivity in the country.
Table 1 below shows the significant shift in agricultural production share by commodity
groups. Horticulture and estate crops grew shares to national agricultural production. In
year 2005, horticulture share was 12.7% of total agriculture production. The decrease in
contribution from the food crops sub-sector to agriculture can be attributed to a number of
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factors, including limited land availability and poor land quality. According to Agricultural
Census 2003 data, the percentage of small farms (holding < 0.5 ha) has increased from
48.5% in 1993 to 56.5% in 2003. In rice farming region of Java, average farm size narrowed
from 0.49 ha in 1995 to 0.36 ha in 2007 while outside Java, average farm size declined from
1.49 ha in 1995 to 1.35 ha in 2007. Other constraints to food crop production include
deteriorating infrastructure, poor water management, inadequate knowledge sharing and
extension services, poor post-harvest handling and processing, poor governance and rural
institutional support and inappropriate decentralisation policies (Sudaryanto, et al., 2009).
Table 1: Agricultural Production by Commodity Groups
Revenue Share (%)
Food Crops
Horticulture
Estate Crops
Livestock
Fish
1985
61.6
9.7
17.0
9.9
4.5
1999
62.5
7.3
18.1
9.1
3.0
2005
51.8
12.7
21.2
11.8
2.6
2. Institutional Framework Conditions
2.1.
Background to Vegetable Sector in Indonesia
There are around 2.29 million people working (employement) in horticulture field sector in
Indonesia (Population census, 2010 by BPS). This figure includes 44,850 people as employer
and 132,601 employees (workers and staffs in horticulture companies and business).
Compared this figure to those of paddy, maize and roots/tubers combined there are 25.88
million people working in these commodities; and of estate/plantation crops there are 9.89
million farmers. Total employment in agriculture sector is 42.5 million in year 2010 (BPS,
2012).
Total area planted with horticulture crops (vegetable, ornamental, perennial fruits and spice
crops) is 1.92 million hectares. Out of 1.92 million ha, 1.1 million ha is of vegetables
(including melon and watermelon). Using BPS figures for total of horticulture crops, average
farm size is 0.84 ha. For vegetable, average farm size is lower less than 0.5 ha. Most farms
are small-holding and farmers are generally with limited technical skill to perform good
agriculture practices in order to get optimum yield and with quality required by markets.
Calculated on per capita base, vegetable area in Indonesia is 44 m2 per capita (based on year
2010 data). While those of other crops are 530 m2 for paddy, 165 m2 for maize, 26 m2 for
soybean, and 300-400 m2 for estate crops. According to an estimate (PSEKP Seminar, 2012),
there is 22.4 million hectares potential land available in Indonesia e.g. as un-utilized dryland
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& lowland, ‘sleeping land’, homestead yard, etc. This is equivalent to around 1,000 m2 per
capita. If only 10% of such land could be cultivated into vegetable in next 10 years, then a 3fold increase of vegetable area could be reached from existing 44 m 2 to 150 m2. In other
words, Indonesia vegetable area would potentially reach 3 million ha in year 2022.
On supply side, based on FAOSTAT data, vegetable supply in Indonesia was 39.5 and 42.8
kg/capita/yr in year 2009 and 2010 respectively. It was lower than those of China (321.5),
India (68.5), the Philippines (62.2), Thailand (47.2), and Vietnam (82.2) if we compare based
on 2009 data. Vegetable consumption in Indonesia tends to increase as income per capita
also increases. Average income per capita in Indonesia in 2012 was US $ 3,542 increased
17.9% from US $ 3,005 in 2010. Fruits and vegetable consumption is very elastic to income
increase. According to McKinsey Global Institute (2012), there will be additional 40 million
people in Indonesia in 2020 as new consuming class due to income increase from year 2010
(45 million people), and by 2030 total consuming class will reach 135 million people with the
GDP growth assumption of 5-6%.
Vegetable production in Indonesia in year 2011 was 10,871,224 tonnes and grew at 6.43%
to 10,939,752 tonnes in year 2012.
2.2.
Institutional Framework
2.2.1. The Ministry of Agriculture
The structure of the Ministry of Agriculture (MOA) comprises of a Minister and a Vice
Minister and there are 6 (six) directorate generals (DG) and 4 (four) agencies as direct
reports to the Minister. Among DGs are DG of Horticulture, DG of Food Crops, DG of Estate
Crops, DG of Processing and Marketing, and DG of Infrastructure and Agricultural Inputs.
Among agencies are AARD (Agency for Agriculture Research and Development) and agency
for extension (BPPSDMP). Within AARD, there is Research Center for Horticulture
subordinating several research institutions and stations on commodity sub-groups such as
IVEGRI (Indonesia Vegetable Research Institute) in Lembang, West Java.
Directorate General of Horticulture (DGH) has a mandate to sustainably increase
production, productivity and quality of horticulture crops. Horticulture crops as defined by
DGH include vegetable, fruits, ornamental and herb (bio-pharma) crops. To achieve the
mandate, DGH set programs for commodity sub-groups like: establishing model farm,
promoting adoption of GAP and GHP, organizing farmers’ field school, facilitating supply
chain management, strengthening institutions framework, facilitating business partnership
and access to market and finance, promoting domestic consumption and export, etc.
(http://hortikultura.deptan.go.id/index.php?option=com_content&view=article
&id=288&Itemid=336; accessed August 14, 2013).
With regards to seed system development, it promotes local government owned seed
producers/suppliers (BBI, BBH), strengthens function of seed quality and certification
bodies; provides production inputs, facilitates commercialization of local variety, and
facilitates investment in seed businesses.
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Crop protection system is also becoming an important focus of the DGH with main programs
like: observation and reporting of pest and diseases, synergizing horticulture crop protection
in compliance with SPS-WTO, promoting IPM and introduction of bio-control agent, etc.
The DGH also takes side of protecting domestic horticultural products and its
competitiveness against commodity imports. As it is described, the DGH develop policies
and regulations to support business actors, provide a conducive investment by simplifying
permit process, promote export, annihilate high-economy cost, provide capital access, etc.
2.2.2. Extension
BPPSDMP is responsible for setting agriculture extension program policy and direction in
Indonesia. It functions to develop extension officers’ capacity. It supports functions of
numerous extension officers with a polyvalent competency meaning a field extension officer
covers knowledge and skills over various commodity crops. There is doubtful opinion as to
effectiveness of such personnel in the field when dealing with more knowledgeable and
technical farmers. Recent approach tries to position one extension personnel in one village
focusing on one commodity.
Those village extension officers are coordinated within Extension Office Station (BPP = Balai
Penyuluh Pertanian) at Sub-district (Kecamatan) level. Every BPP reports to Bapelluh (Badan
Pelaksana Penyuluhan Pertanian) at District (Kabupaten) level. At Provincial level, all
Bapelluh from Districts level are coordinated within a body named Bakorluh (Badan
Koordinasi Penyuluhan) that covers extension beyond agriculture sector, it also cover
sectors or programs like education, community health, family planning, etc..
Apart from directing agriculture extension to be implemented by local government,
BPPSDMP also runs higher education institutions to produce under-graduate degrees who
will work as field extension officer.
2.2.3. R & D
Reporting to DGH, Puslitbanghorti (R & D Center for Horticulture) leads 4 (four) research
institution based on commodity sub-groups like BALITSA (IVEGRI) in Lembang. IVEGRI
actively promote its owned bred lines/varieties of lowland and highland vegetable seeds.
Currently within its website: http://balitsa.litbang.deptan.go.id/ind/index.php/layanankami/upbs-pemesanan-benih-sayuran.html?showall=&start=2, it displays various varieties
with price lists that anybody like researchers, farmers, etc. could purchase directly from
Lembang facility.
IVEGRI is actively conducting research and action research at farms level to introduce and
develop GAP adoption in line with DGH program. IVEGRI’s approach of recommending best
vegetables crops varieties grown in an area based on four general “Agroclimate” areas,
namely (interview with Dr Leferdi Lukman, IVEGRI Director):
(1) Lowland Dry
(2) Highland Dry
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(3) Lowland Wet
(4) Highland Wet
They observed that farmers are not aware whether the seeds they bought are appropriate
for the Agroclimate of their farmlands. Wrong selection leads to a lower yield/hectare. The
Research Institute has branded their researched-developed-seeds for sale and is actively
looking for Business-partners to help them market and sell their brands. They are
considering, using the Agroclimate labelling to assist farmers to select the right kind of seeds
for their farms (Khomasurya and Morey, 2013)
2.2.4. Education
Based on data available from VEDCA (Vocational Education Development Center for
Agriculture) a center under the Ministry of Education, there are 1,104 agricultural vocational
shools across Indonesia (http://vedca.siap.web.id/), but there is no detail information on
how many schools focus on horticulture. These schools train students to become ready
work-force in agriculture sector like oilpalm, rubber, and coffee plantations, horticulture
sectors as field work-force, etc.
There are more than 100 higher education institutions (tertiary education) in agriculture
field in Indonesia in forms of faculty (university), college (Sekolah Tinggi), and Polytehcnic.
Several noted and well-known institutions are IPB in Bogor, Faculty of Agriculture at USU in
Medan, UNILA in Lampung, UNPAD in Bandung, UGM in Yogyakarta, UNDIP in Semarang,
UNSOED in Purwokerto, UNIBRAW in Malang, UNUD in Bali, UNRAM in Lombok, UNHAS in
Makassar, UNSRAT in Manado repscetively and few others.
At IPB, a unit called University Farm has established technical guidance to farmers on
vegetable cultivation and created market links by facilitating packing house and
transportation vehicle from production areas to market oulets especially modern markets in
Gretaer Jakarta cities. There are now 2 (two) locations where UF-IPB has packing house
facility: Cikarawang, Bogor (lowland) and Sarongge, Cipanas (highland) both in West Java
province. Faculty of Agriculture and the Department of Agronomy and Horticulture of IPB
are very active in promoting horticulture program through learning and research activities.
VCC (Value Chain Center) UNPAD (University of Padjadjaran Bandung) is also well noted for
its activities on developing and facilitating linkages and synergies among producers, traders,
cooperatives, financial institutions, agro-input and technology providers in order to add
value to relevant chain actors of horticulture. An example of VCC project is building farmers
and a farm cooperative capacity in Garut district (West Java) to supply hot chili fresh to
industrial buyer (ABC Heinz). An USAID project called AMARTA-2 funded the project
implementation in collaboration partnership with VCC UNPAD. They developed a model
covering relevant entire value chain with a very significant emphasis on harvest and postharvest handling as required by the buyer. There are various parties involved in supporting
the capacity building by providing technical assistance for instance Ewindo staff trained
farmers on chili GAP including good nursery establishment, Syngenta trained farmers on
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crop protection, PT Meroke Jaya (Yara distributor) trained farmers on plan nutrition and
fertilizers application.
2.2.5. Associations
DHN (Dewan Hortikultura Nasional = National Horticulture Council):
DHN was established in 2007 driven by Dr. Ahmad Dimyati then DG of Horticulture. It meant
to group all horticulture stakeholders join efforts to contribute sector development.
ASBENINDO (Asosiasi Benih Indonesia):
It is an old association of companies producing, propagating and selling seeds and planting
materials in agriculture sector. However, it is long been considered as not effective in
advocating members and seed industry position.
HORTINDO (Hortikultura Indonesia):
It is established in 2011 as the chamber to host/unify horticulture seed producers in
Indonesia. It aims: a). to be a link of for collaboration among the members and the stake
holders; b). to become the source of information, and provide advise and training of
horticuture seed industry; c). at participating and contributing on the development and
research and production of horticulture seed; and d). to become a partner of GOI in unveil
and launch the regulation. Currently HORTINDO has 13 members: Agrosid (Primasid), East
West Seed Indonesia, Koreana Seed, Takii Indonesia, Oriental Seed, Nunhems, Clause
Indonesia, Surya Mentari, Syngenta, Namdhari, Winon Indonesia, Branita Sandhini, and
Strawberindo. HORTINDO is active in advocating members’ interest on various issues
among others seed export-import including quarantine aspect and issues of limitation of
foreign ownership.
ASBINDO (Asosiasi Bunga Indonesia):
This is an association of companies and individuals that focus on flowers/ornamentals.
Floriculture is a term commonly used to refer to ornamental crops. It is very recently, DGH
established a directorate having mandat to develop floriculture in Indonesia.
DEBNAS (Dewan Bawang Nasional):
This is a group interests for shallot and garlic comprises of farmers, traders (exporters and
importers).
There are more than a dozen of other associations related to horticulture, vegetable, fruits
or specific commodity.
2.2.6. NGOs and International Development Organizations
There are various NGOs and international development agencies working on development
and promoting value added in horticulture sector through designated programs and projects
in Indonesia. In this section only few NGOs/agencies are described.
10
AusAID-AIPD Rural (AusAID- Australia Indonesia Partnership on Decentralization- Rural
Program): This program was AusAID (Australian government) initiative component to
increase income of 300,000 poor farmers in eastern Indonesia framed for period of 2012 –
2017. Five provinces were selected NTB, NTT, East Java, Papua and Papua Barat. The
program approach is to develop market-led intervention activities to provide TA, market
access, financial access and better infrastructure. In this program horticulture crops is an
important intervention subject as it relates to many small-scale poor farmers/household in
eastern Indonesia provinces.
USAID AMARTA: From 2006 through 2011, the first Agribusiness Markets and Support
Activity (AMARTA I) project addressed the development of selected high‐value crops
(coffee, cocoa and horticulture crops). The main activities were technology transfer, farmer
training, training extension workers, facilitating the formation of farmers groups and
agribusiness alliances and linking producers with domestic and export marketing agencies.
AMARTA I was implemented in selected districts in five regions (South Sulawesi, North
Sumatra, West Java, Bali and Papua). Over 200 active farmer associations were established
and/or supported by the AMARTA I project. AMARTA II is a follow on to the AMARTA I.
AMARTA II also received support from the USAID‐funded agricultural research projects for
pest management, vegetable research and development and the biosafety project. The
solutions under AMARTA II will be demand driven based on small farmer needs and
contribute to the results and outcomes of USAID’s Strategy. However, in early 2013 USAID
made decision to discontinue the AMARTA II project.
Swisscontact: Swisscontact currently delivers several project related to agribusiness and
value chain development in Indonesia. IMDI (Introducing Market Development Initiative) a
project agreement with AusAID is currently focusing on selected districts in eastern
Indonesia working on interventions to increase poor farmers’ income. The approach of
market-led intervention necessitates involvement of private comoanies/individuals to mark
generating sustained benefits.
HKI (Hellen Keller International): HKI now operates a project called Homestead nutrition in
Timor Tengah Selatan (TTS) district in NTT province. It aims at reaching 4,000 poor
households to grow crops in his/her backyard or frontyard plots. Crops selected include
vegetable. The project is promoting households grow nutritious crops for own consumption
with family members. Later on, part of the project is to enhance potential commercial
production with additional land size for selected farmers/households.
Bina Swadaya: A national NGO long established since 1970s. Bina Swadaya promotes
agribusiness and gardening to larger audiences (other than farmers) by pubslihing monthly
magazine, farmers and hobbyists training, workshops, seedling and seeds store, etc.
2.3.
Seed Industry
With a total national vegetable seeds market valued at Rp 800 billion (US $90 million), East
West Seed Indonesia is the leading company in the Indonesian horticulture seed industry
with 50% market share (Novianto, 2012). Other multi-national companies selling and
marketing vegetable seeds in Indonesia are: Seminis (Monsanto), Syngenta, Bayer, Tanindo
11
(CP), KnownYou seeds, Koreana Seeds; some local companies: Primasid, Pertiwi, and Bintang
Citra Asia. Vegetable production value is Rp 27 trillion; intermediate and traders add value
of Rp 38 trillion, and retailers/sellers add value of Rp 15 trillion. So the total value of
vegetable sector is around Rp 80 trillion. Import value of vegetable is Rp 6 trillion and
resellers price add value to become Rp 18 trillion (Gindow, 2012). With the seed market
value of Rp 0.8 trillion is only 1% of the total vegetable value of Rp 80 trillion, one can
imagine larger value enjoyed by other value chain actors with the vegetable value chain.
Common approach in generating demand is by establishing demonstration plots and
providing seed samples to key farmers. Field technician or product promoters of seed
companies use such demplot as powerfull promotion tool linked with push approaches to
create demand. These field forces work and relate with farmers/farmers groups in helping
them technically on cultivation, and very often provide information on market access. It is
also interesting to note a knowledge network of field force from various agri-input providers
(seeds, fertilizers, crop protection, etc.). Role of agri-shops at village and sub-district level
are significant especially in pushing products on the ground by embedded relation or
service. There is common practice for some shop owners giving in-kind credits (seeds,
fertilizers) to their loyal customers who will pay in due time after crops harvest and sale.
Currently Ewindo commercialize 22 crops with more than 120 varieties across key markets
in Indonesia. Real competition for Ewindo products come from growing local companies
such as Bunga Matahari, Benih Citra Asia (BCA), Agrimakmur Pertiwi, Primasid, and other
MNCs like Tanindo, Syngenta, Seminis, and Bayer. In general, the competitors also conduct
similar marketing /promotion program as Ewindo does. Some of Competitors’ product
watchout in key market areas are:
- Bunga Matahari: Tiffany tomato,
- Benih Citra Asia: Katrina yardlong bean; Mawar tomato, 244F1 tomato, Jenggo chili
- Tanindo –BISI: Royal tomato, Imperial tomato, Master sweetcorn, Super yardlong
bean, Hercules cucumber
- Syngenta: Saviro tomato
- Agrimakmur Pertiwi: Talenta sweetcorn, Jambore cucumber
2.4.
Cultivated area by crop and season
2.4.1. Main vegetable crops and production areas
The main vegetables grown in Indonesia in 2011 were as follows: cabbages (1.36 million
tonnes), potatoes (955,488 tonnes), tomatoes (954,046 tonnes), shallot/onions (893,124
tonnes) and chillies (888,852 tonnes) (BPS, 2012).
Detailed distribution of percentage of production for five main commodities namely
cabbage, potato, tomato, shallot and chili by province in year 2011 can be seen in Graph 1.
Four provinces: West Java, Central Java, North Sumatra and East Java are main production
areas for 4 – 5 main commodities contributing around 70% of national production. NTB
(West Nusatenggara) province – in lieu of North Sumatra - is included in the graph because
12
it is a main production area for shallot. North Sulawesi province – in lieu of East Java - is
included in the graph because it is a main production area for potato.
Graph 1: Distribution of production (%) for five main vegetable commodities by
main provinces in year 2011 (BPS, 2012)
Others
11.26
100%
90%
Others
24.31
Others
25.28
80%
Percentage (%)
70%
60%
East Java
13.09
North Sulawesi
11.9
North Sumatra North Sumatra
11.9
14.2
50%
40%
West Java
20.7
20%
10%
NTB, 9.95
West Java
11.1
West Java
25.93
30%
Others
41.46
East Java
19.42
East Java
East Java
8.87
6.32
North Sumatra North Sumatra
9.46
19.17
Central Java
48.27
Central Java
27.7
Central Java
24.99
cabbage
potato
West Java
West Java
34.18
Central Java
8.58
0%
Central Java
Others
34.64
shallot
North Sumatera
tomato
East Java
West Java
20.65
Central Java
16.67
chili
Others
Table 2 shows the data on harvested area, production, and yield per hectare for seasonal
vegetable in Indonesia in year 2010-2011 (BPS, 2012). One common note for all these crops
data was especially refer to yield (productivity) level. It is still largely below genetic
potential or claimed yield of commercial varieties. This gap between actual yield and
potential-genetic yield is mainly due to lack of GAP adoption. Potential yield of the
vegetable crops were presented at last column (based on data available within Ewindo
product catalog) in the Table 2. Year 2011 actual yield is in the range of 17 – 63 percent of
potential yield of each crop. This indicates of ample rooms to increase yield towards near
potential yield through adoption of GAP and technology recommendation.
Five seasonal vegetables crops for the year 2010 and 2011 at the top-5 production volume
were cabbage, potato, tomato, shallot, and chili. Four main provinces that produces large
amount of seasonal vegetables crops are Sumatera Utara, Jawa Barat, Jawa Tengah and
Jawa Timur. In 2011, production of cabbage reached 1,363,741 tons. Four provinces for
largest producer of cabbage totaling 74.21 percent of national production are Jawa Tengah
28.21, Jawa Barat 19.86, Jawa Timur 13.41, and Sumatera Utara 12.73 percent respectively.
In 2011, the average of cabbage yield was around 18 tons/ha until 22 tons/ha.
13
Table 2: Harvested Area, Production, and Yield per Hectare of Seasonal
Vegetables Plants in 2010 and 2011, and Potential Yield of Some Crops
Year 2010 *)
Production
(Ton)
Yield
(Ton/Ha)
57,593
541,374
9.40
55,611
526,774
9.47
109,634
1,048,934
9.57
93,667
893,124
9.54
1,816
12,295
6.77
1,828
14,749
8.07
22,251
116,397
5.23
17,684
92,508
5.23
8,728
101,205
11.60
9,441
113,491
12.02
Potato
66,531
1,060,805
15.94
59,882
955,488
15.96
Cabbage
67,531
1,385,044
20.51
65,323
1,363,741
20.88
2,083
32,381
15.55
1,813
27,279
15.05
Chinese Cabbage
59,450
583,770
9.82
61,538
580,969
Carrot
27,149
403,827
14.87
33,228
Spinach
48,844
152,334
3.12
Commodities
Bunching Onion
Shallot
Garlic
Red Bean
Cauliflower
Radish
Green Bean
Area
(Ha)
Area
(Ha)
Year 2011 *)
Production
Yield
(Ton)
(Ton/Ha)
Potential
Yield **)
(Ton/Ha)
% of actual
2011 yield
25
38
21.5
55.8
67.5
30.1
9.44
55
17.2
526,917
15.86
25
63.44
46,882
160,513
3.42
13.5
25.33
36,483
336,494
9.22
32,063
334,659
10.44
Chili-Capsicum a.
122,755
807,160
6.58
121,063
888,852
7.34
20.5
35.8
Chili-Capsicum f.
114,350
521,704
4.56
118,707
594,227
5.01
10
50
Yard Long Bean
85,828
489,449
5.70
79,623
458,307
5.76
25
23
Kangkong
55,164
350,879
6.36
55,704
355,466
6.38
27
23.6
Cucumber
56,921
547,141
9.61
53,596
521,535
9.73
50
19.5
Chayote
10,693
369,846
34.59
9,669
428,197
44.29
161
5,533
34.37
221
13,068
59.13
Eggplant
52,157
482,305
9.25
52,233
519,481
9.95
60
16.6
Tomato
61,154
891,616
14.58
57,302
954,046
16.65
60
27.8
Sweet Pepper
*) Data source: BPS (2012)
**) Potential yield of some crops was based on information provided in Ewindo Product Catalog
Production of the potato plant in 2011, reached of 955,488 tons. The largest potato
producer provinces were Jawa Tengah, Jawa Barat, Sumatera Utara, Sulawesi Utara, Jambi,
and Jawa Timur. Respectively the six provinces accounted for 26.21, 23.04, 12.88, 11.99,
9.33 and 8.95 percent share to the national production. Total production generated by the
six provinces was 92.39 percent. Average of potato yield in 2011 was 13 - 19 tons/ha.
Tomato crop production in 2011 reached 954,046 tons. Production of tomato combined
from four provinces (Jawa Timur, Jawa Tengah, Jawa Barat and Sumatra Utara) reached
61.72 percent of the total tomato production in Indonesia. Production from each province
contributing to national production, were: 37.19 percent from Jawa Barat, Sumatera Utara
9.79, Jawa Tengah 7.65, and Jawa Timur 7.09 percent respectively.
Shallot production in 2011 reached 893,124 tons. Province of Jawa Tengah, Jawa Timur,
Jawa Barat and Nusa Tenggara Barat are main shallot producers. Production of shallot in
four provinces, respectively, were 372 256 tons in Jawa Tengah, 198,388 tons in Jawa Timur,
101,273 tons in Jawa Barat, and 78,300 tons in Nusa Tenggara Barat.
14
In 2011, total production of chili (capsicum annum) reached 888,852 tons. The main
producers of chili were Sumatera Utara, Jawa Barat, Jawa Tengah and Jawa Timur. Average
productivity of chili (capsicum annum) in four are provinces between 5 tons/ha until 12
tons/ha. Percentage of production from the four provinces to the total production
respectively amounted to 22.25, 21.98, 13.40 and 8.29 percent.
2.4.2. Production trends of vegetable crops
Graph 2 to Graph 4 describes production line pattern of selected vegetable crops during
period of 1997-2011. Indonesia’s vegetable production has increased by an average of 2.87
percent per year since year 2000 from 7.42 million tonnes to reach 9.76 million tonnes in
2011. However, over the last five years Indonesia’s vegetable production has slowed with
output increasing at a rate of only 1.36 percent per year. Between year 2000 and 2011 the
main changes in vegetable production has been as follows:






Garlic – drastic decrease by 75.0%;
Shallots – increase by 15.6%;
Cabbage – no change;
Potatoes – decrease by 2.2%;
Chili – increase by 22.1%;
Tomatoes – dramatic increase by 60.8%.
Graph 2: Production pattern of shallot, bunching onion and garlic during 1997 2011
1,100,000
1,048,934
1,000,000
900,000
893,124
800,000
700,000
600,000
500,000
400,000
Shallot
605,528
526,774
Bunching
onion
294,411
300,000
200,000
100,000
Garlic
102,055
14,749
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
0
For Allium crops it is interesteting to note a steady production increase of shallot and green
onion (bunching onion); while garlic production declined drastically during the last 15 years
(Graph 2). With regards to shallot, in year 2012 and especially 1 st semester of year 2013 lack
of supply had caused drastic increase of shallot price. Lack of supply was mainly caused by
15
failure of harvest in main shallot production area like in Central Java, West Java and Bima
(NTB). There were observations that even bulbs supposed to be available for planting
materials had been sold as consumption bulb. Shallot price per kg during period of January
– May 2013 was in the range of Rp 40,000 – 90,000 where normal price is in the range of Rp
6,000 – Rp 15,000.
Graph 3: Production pattern of potato, cabbage, and carrot during 1997 – 2011
1,600,000
1,400,000
1,200,000
955,488
1,000,000
800,000
1,363,741
1,338,031
Potato
813,004
600,000
526,917
400,000
200,000
Cabbage
Carrot
227,305
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
0
Graph 4: Production pattern of chili, tomato, and eggplant during 1997 – 2011
1,600,000
1,483,079
1,400,000
1,200,000
954,046
1,000,000
800,000
Chili *)
801,545
Tomato
600,000
400,000
200,000
460,310
Eggplant
519,481
279,516
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
0
*) Since year 2003, chili data include small chili
As shown in Graph 2, production green onion (leaf onion) has been steadily growing i.e.
almost double during from 1997 to 2011 production. Production of onion (locally called as
bawang Bombay) is neglible, and there is no official data record available on onion
production. Indonesia imported onion 13,358 tonnes in year 2000 and increased more than
five times in year 2011: 74,652 tonnes (with value of US $ 32 millions).
16
Two crops specific to highland production areas: potato and carrot were having a slight
steady increase in production. While another crop: potato was having fluctuative production
pattern as can be seen in Graph 3. Potato production was actually decreasing 2.2% between
year 2000 and 2011.
Production of three vetegable crops in Solanacea group: chili, eggplant and tomato have
been tremendously increased over last 15 years (Graph 4). Tomato grew 60% between year
2000 - 2011.
2.5.
Market description
2.5.1. Imports of Fresh/Chilled Vegetables
In 2006, Indonesia horticulture imports stood at $600 million USD and rose to $1.7 billion
USD in 2011 (Ministry of Trade). Approximately 45% of such imports constitute fresh fruit
predominantly apples ($153 million USD), oranges ($150 million USD), grapes ($99 million
USD) and durians ($74 million USD). China is the main source of Indonesia’s fruit imports at
55% followed by Thailand 28%, USA 10%, Chile 4% and Australia 3%. In 2011, imports of
fresh vegetables increased by 29% with white onions making up a substantial portion ($242
million USD) as well as red onions ($74 million USD). (Source: http://www.gbgindonesia.com
/en/agriculture/article/2012/overview_of_indonesia_s_horticulture_sector_fruit_vegetable
s.php, accessed Jul 23rd, 2013). In 2006, total horticulture imports of $600 million USD
included $153.82 million USD of vegetable imports.
In a limited circulated report, Khomasurya and Morey (2013) described volume and value of
Indonesia vegetables import. Since year 2000, imports increased annually by an average of
19.1% in volume and 57.0% in value to reach 781,734 tonnes worth US$458.4 million
(equivalent to 5% local production) in 2011 (Table 3).
The main vegetables imported in 2011 were garlic (419,090 tonnes), shallots (160,467
tonnes), potatoes (78,419 tonnes), onions (74,652 tonnes) and carrots (41,868 tonnes).
These 5 vegetables comprised 99 % of the volume of Indonesia’s vegetable imports in year
2011 or 98% of total USD value.
Between 2000 to 2011, growth/year of the 5 top vegetable imports by volume, was: Carrots
(astonishingly up by 1,219%), Potatoes (up dramatically by 147%), Onions (+42%), Garlic (+
13%) and Shallots (+ 11%),
17
Table 3: Total of Indonesia's Imports of Selected Fresh Vegetables by Volume
(Tonnes) and Value (US $ ‘000) 2000 - 2011
Commodity Description
Potatoes
- volume
-value
Tomatoes
- volume
-value
Onions
- volume
-value
Shallots
-volume
-value
Garlic
- volume
-value
Leeks
- volume
-value
Cauliflowers/ Broccoli- volume
- value
Brussels Sprouts -volume
-value
Cabbages
- volume
-value
Mushrooms
- volume
-value
Carrots
- volume
-value
Asparagus
-volume
-value
Celery
- volume
-value
Total – volume
Total – value
2000
4,569
1,436.6
607
223.2
13,358
3,437.8
53,711
12,913.8
174,036
43,444.6
164
62.1
172
163.9
3
3.7
188
135.7
71
103.8
310
191
232
43
118
99
251,903
63,059
2006
4,211
1,959
227
200
21,247
7,368
78,462
30,106
296,476
107,194
959
591
661
558
22
17
170
174
336
324
8,027
3,549
94
80
198
232
412,849
153,820
2007
5,559
2,687
208
252
25,449
9,305
107,649
44,097
341,102
123,957
929
668
616
611
13
16
256
248
608
502
20,433
9,172
88
82
231
264
504,813
193,323
2008
5,345
2,880
142
236
38,898
15,255
128,016
53,814
425,274
152,497
972
408
635
684
9
22
294
278
584
567
18,341
9,415
79
87
169
194
621,934
238,621
2009
11,727
6,689
47
101
33,862
12,826
67,330
28,942
405,138
166,340
451
600
590
621
0
1
185
121
879
1,018
19,690
10,036
22
23
67
109
542,418
229,243
2010
24,204
14,591
57
55
52,545
22,475
73,270
33,862
361,289
245,960
606
838
906
1,039
0
1,058
657
1,272
1,796
33,692
17,617
7
9
54
100
551,844
341,665
2011
78,419
46,412
18
74
74,652
32,064
160,467
77,444
419,090
272,819
581
796
1,043
1,238
0
1
1,870
1,396
1,111
1,613
41,868
21,935
4
5
49
108
781,734
458,437
Data source: BPS (2012)
2.5.2. Impact Of Imports On Local Production of Vegetables
Garlic imports impacted on local garlic production – import growth from 2000 to 2011, grew
+141% while local production dropped by -75%. Another affected product is the potatoes;
import grew by +1,616% while local production went down -2% over the same period.
People are eating more shallots and carrots since both import and local production numbers
both went up, although in favour of imports: Shallots imports grew faster at +199% while
local production also grew but slower at +16% ; carrots showed a much more dramatic
import growth of +13,406% while local production also grew by a mere + 61%. There was no
onions grown locally over the period or there were no statistics for onions over the period.
Thus onions were wholly imported and grew +459% from 2000 to 2011 (see Table 4)
(Khomasurya and Morey, 2013).
18
Table 4: Impact change of imports on vegetable production 2000 - 2011
Top Five Vegetables in Local Production
Imports Volume in Tonnes
Garlic
Shallot
Potatoes
Onions
Carrots
2000
174,036
53,711
4,569
13,358
310
2011
419,090
160,467
78,419
74,652
41,868
Production volume in Tonnes
141%
199%
1616%
459%
13406%
2000
59,008
772,818
977,349
2011
14,749
893,124
955,488
-75%
16%
-2%
326,693
526,917
61%
2.5.3. Exports of Fresh/Chilled Vegetables
In 2011, Indonesia exports of seasonal vegetables recorded from sixteen commodities which
are namely shallots, garlic, cauliflowers, potatoes, cabbages, turnips, carrots, spinach, chili,
mushrooms, cucumbers, eggplants, tomatoes, strawberry, melon, and watermelons. Export
value of these sixteen products was 21.80 million US dollars in 2011. Selected commodities
export data (shallot, cabbage, potato) is presented in Table 5. Indonesia vegetable export
value is far below import value of around 450 million US dollars in 2011 (BPS, 2012).
Table 5: Exports Production of Shallots, Cauliflowers and Potatoes by Country of
Destination 2010-2011
Commodity Main Countries of Destination
Shallot
2010
Value –FOB
Volume (kg)
(US$)
3,231,997 1,814, 425
2011
Volume
Value –FOB
(kg)
(US$)
13,790,664
6,594,469
Thailand, Singapore, Philippines,
Malaysia, Vietnam
Cabbage
29,606,452
7,105,339
21,630,083
5,528,156
6,771,599
2,426,044
5,117,410
2,578,877
South Korea, Taiwan, Malaysia,
Singapore
Potato
Singapore, Portugal, Malaysia,
Antigua/Barbuda, Japan, Timor
Leste
Exports of several fresh vegetables from Indonesia in year 2011 (BPS, 2012):
- Shallots
: volume of 13,790,664 kg, value of US$ 6,594,064,
- Cabbage
: volume of 21,630,083 kg, value of US$ 5,528,156 US$,
- Potatoes
: volume of 5,117,410 kg, value US$ 2,578,877 US$,
- Eegg-plants : volume of 1,433,050 kg, value of US$ 1,306,002,
19
-
Chillies
Spinach
Tomatoes
: volume of 732,791 kg, value of US$ 559,666,
: volume of 770 350 kg, value of US$ 1,219,535, and
: volume of 675,437 kg, value of US$ 660,818.
Compare to 2010, in 2011 the number of countries importing vegetables from Indonesia has
increased, as well as to the overall value obtained FOB increased. Of the three largest
commodity exported overseas commodity only cabbage FOB impaired. This is because
Singapore and Malaysia give the biggest are contributor FOB value in 2010 to reduce
imports of cabbage in 2011.
Thailand was the largest vegetables importer from Indonesia with value of 5,411,507 U.S. $
or approximately 24.82 per cent of Indonesia exports of vegetables products, especially
shallots.
2.5.4. Volume of Horticulture Seeds Exports and Improts
Table 6 shows export and import of horticulture seeds for years 2008, 2009 and 2010
(http://hortikultura.deptan.go.id/index.php?option=com_content&view=article&id=337:vol
ume-impor-a-ekspor-sayuran-th-2012&catid=57:ekspor-impor&Itemid=686;
accessed,
August 14, 2013).
Table 6: Volume of Horticulture Seeds Exports and Imports years 2008 - 2010
No
Komoditas
1.
Vegetable (Kg)
2.
Fruits (Kg)
3.
Floriculture
Seedlings
Kg
Seeds
2008
Impor
2009
Ekspor
Impor
2010
Ekspor
Impor
Ekspor
131.374
2.306.311
174.778
6.153.190
309.632
4.451.572
3.223
6.025
3.541
1.658
125
1.836
2.964.117
83.449.473
4.591.240
116.472.700
2.603.655
99.088.983
-
220.231
-
7.110
-
23.443
10.000
-
1.500
5.100
3.006.931
-
Table 7 shows export and import of vegetable seeds (including shallot bulbs and potato
tubers) for 2011-2012 (DGH, http://hortikultura.deptan.go.id/index.php?option=
com_content&view=article&id=337:volume-impor-a-ekspor-sayuran-th2012&catid=57:ekspor-impor&Itemid=686; accessed, August 14, 2013).
Import volume of shallot and potato seeds in 2011 was 11,082 tonnes and dropped to 5,074
tonnes in 2012 while export volume is neglible. Import volume of vegetable seeds in 2011
was 921.6 tonnes and dropped to 247.8 tonnes in 2012; while seeds export volume in 2011
was 5,287.3 tonnes and decreased to 4,502.1 tonnes in 2012.
20
Table 7: Volume of Vegetable Seeds Exports and Imports 2011 - 2012
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Commodity
Bulbs/roots
Potato
Shallot
Total of bulbs/roots
Seeds
Kangkung
Bittergourd
Cucumber
Chili
Yardlong bean
Gambas
Pumpkin
Eggplant
Radish
Sweetcorn
Tomato
Cabbage
Cauliflower
Chinese cabbage
Caisim
Pakchoy
Mustard
Broccoli
Carrot
Total of seeds
Total bulbs/roots &
seeds
Unit
2011
Import
Export
2012
Import
Export
Kg
Kg
kg
2.382.000
8.700.000
11.082.000
50.000
50.000
2.574.000
2.500.000
5.074.000
-
Kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
kg
5.500
199
1.159
9.355
15
306
3.300
744.301
3.629
13.790
2.100
5.960
95.200
29.450
1.000
400
6.000
921.664
5.001.000
75.818
77.572
25.633
34.743
17.520
23.281
2.193
19.461
7.038
3.024
35
5.287.318
4.120
110,1
174
5.069,5
20
7
17
97
1.502
104.334,5
5.503,6
6.941
4.993
8.354
100.000
2.201
400
1.576
2.400,6
247.819
4.244.500
69.347
55.473
31.685
6.415
8.502
25.400
6.246
40.151
9.830
442
4.170
4.502.161
kg
12.003.664
5.337.318
5.321.819
4.502.161
Data source: DGH (2013)
2.5.5. Domestic
During period of 2000 – 2011, both local productions and imports combined, vegetables
consumption in Indonesia per capita increased from 33.3 in 2000 to 41.6 kg/pax/year in
2011, a 25% increase. At the same period, Indonesia population was 224.784 million in
2000 and became 245.613 million in 2011, a 9% increase. This comparison of change is
showing a healthier trend of eating more vegetables. Current consumption rate is 41.6 kg
per capita per year or 100 grams/day/person (Khomasurya and Morey, 2013).
Indonesian consumers are also increasingly purchasing packaged food with some value
added, rather than purchasing unprocessed products from local wet markets. The total
value of such purchases grew from $4.2 billion in 1998 to over $16 billion in 2008. In
addition to the changes in the actual consumer food basket, the outlets through which
these products are purchased have also undergone a change. In 1998, less than 22 percent
21
of packaged food was sold in standardized retail outlets, such as supermarkets,
hypermarkets, and discount and convenience stores, rather than in independent corner
“mom-and-pop” stores. In 2008, over 34 percent of sales were through standardized stores
(Rada and Regmi, 2010).
This stresses the importance of investments in post-harvest handling and agro processing,
adequate storage (including cold/cool storage), packaging facilities, and transportation,
among others between production areas of vegetable crops and population cencentrations.
PASKOMNAS (a private company who builds and operates commodity markets in
Indonesian big cities for vegetables and fruits) promotes better handling of products. It
calculated estimation of Indonesia big cities needs for these fresh produces. Table 8 shows
calculated estimation for Greater Jakarta cities. In Greater Jakarta (cities of Jakarta, Bekasi,
Depok and Tangerang), estimated daily needs for shallot 90 tonnes, potato 59 tonnes, chili
pepper 112 tonnes, garlic 52 tonnes, tomato 79 tonnes and cabbage 70 tonnes.
Figure 2: PASKOMNAS commodity market
Currently, PASKOMNAS operates 4 commodity markets: 3 in Java and 1 in Sumtara. They
plan to build another 15 markets in big cities across Indonesia (Soekam Parwadi, 2013,
personal communication).
Table 8: Calculated consumption of some vegetable for Indonesia big cities
(tonnes/day) (Source: PASKOMNAS, 2013)
Cities
Population
Shallot
0.0066
Potato
0.0043
Big chili Small chili
0.0041
0.0034
Garlic
0.0038
Tomato
0.0058
Cabbage
0.0051
Jakarta
8,800,000
58.08
37.84
36.08
29.92
33.44
51.04
44.88
Bekasi
2,000,000
13.20
8.60
8.20
6.80
7.60
11.60
10.20
Depok
1,400,000
9.24
6.02
5.74
4.76
5.32
8.12
7.14
Tangerang
1,500,000
9.90
6.45
6.15
5.10
5.70
8.70
7.65
Total Greater Jakarta
90.42
58.91
56.17
46.58
52.06
79.46
69.87
22
Table 9 shows daily absorption of PASKOMNAS commodity market in Tanah Tinggi,
Tangerang city, Banten province. For instance, it intakes among others 140 tonnes of
cabbage, 160 tonnes of chili, 60 tons of tomato, 120 tonnes of shallot, 30 tonnes eggplant,
70 tonnes of potatoes, 25 tonnes of cauliflower, 18 tonnes of yardlongbean in a day.
PASKOMNAS is now actively seeking partnership and building relations with growers groups
and local traders to fulfill growing needs.
Table 9: Daily intakes of a PASKOMNAS commodity market and common
identified varieties of Ewindo products included, Tanah Tinggi market
Volume
(Ton) Identified varieties
No
Commodity
Packing
1
Big chili
20
Gada F1, Sultan F1
Carton box
2
Curly chili
120
TM 99, Tanamo
Carton box
3
Small chili
20
Dewata F1,
Mesh bag/ carton box
4
Tomato
60
Marta, Martatav
Wooden box
5
Cabbage
140
Talenta
Mesh /plastic bag
6
Potato Grade A/B
70
Granola
Mesh bag
7
Shallot
120
Bima, Tuktuk
Mesh bag
8
Eggplant- purple
30
Raos F1, Yumi F1
Mesh/ plastic bag
9
Cucumber
12
Bandana, Sabana
Mesh/ plastic bag
10
Biitergourd
10
Dulco, Lipa F1
Mesh/ plastic bag
11
Yardlong bean
18
Parade Tavi, Parade
Not specified
12
Cauliflower
25
PM126, Luna
Carton box, bag
13
Celery
10
Jade, Amigo
Not specified
14
Carrot
18
Cipanas/Pusaka, Kuroda
Mesh bag
15
Ridge gourd
8
Prima F1
Mesh bag
16
Cecek
15
Local
Not specified
17
Sweet corn
30
Bonanza
Mesh bag, plastic bag
Figure 3a and b show domestic variability on cabbage and garlic price in several provincial
cities stretching from east: Ambon, Kendari to west: Medan, Padang, Jakarta, and Aceh
(data source: http://aplikasi.deptan.go.id/smshargakab/lhk04.asp, accessed on August 14,
2013). For cabbage (mainly produced in country) and garlic (mainly imported product),
variation of price follows a skewed higher retail market price at cities of eastern part of
Indonesia (Ambon, Kendari), largely factored by high transportation cost from neighboring
islands from western part of Indonesia.
23
Cabbage retail price (Rp)
20,000
16,000
Ambon
12,000
Pontianak
8,000
4,000
0
Kendari
Banda
AcehMedan
Bengkulu
(a)
Garlic retail price (Rp)
30,000
Kendari
20,000
10,000
Ambon
Padang
Banda
Bengkulu Pontianak
Aceh Medan
Jakarta
0
(b)
Figure 3: Domestic variation of cabbage and garlic market retail price in some
cities (August 2013)
2.6.
Producers
As already described in Section 2.1, there are around 2.29 million people employed in
horticulture sector. There are around 5 million people categorized as free workers in
agriculture sector. Total employment in agriculture sector is 42.5 million in year 2010 (BPS,
2012), data from BPS published in 2013 the figure now is 39,959,073. (http://www.
bps.go.id/tab_sub/view.php?kat=1&tabel=1&daftar=1&id_subyek=06&notab=3, accessed
on August 20, 13). But there is no specific information on number of vegetable farmers.
Planted and harvest area would also depend on type and kind of crops grown.
Basuki and Adiyoga (2012) in a focus group discussion with farmers groups in Java found
average planted area for tomato, cucumber, chili, and sweetcorn are 0.51, 0.14, 0.31, and
0.50 hectare respectively. However, an assesment on vegetable farming system in Sidoarjo
regency, East Java revealed that in periurban area the farming scale of kangkong, amaranth
and choisum in average was 230 m2 (Suryadi et al 2013 in Basuki and Adiyoga, 2012). Using
24
an average of 0.15 ha, Basuki and Adiyoga estimated Ewindo seed adopters around 2.2
million. One estimated, including backyard and frontyard vegetable growers and periurban
growers, total Ewindo seed adopters might be totaling up to 10 million users (personal
communication with Wakrimin, National Sales Manager of Ewindo).
In many cases, segregating a clear line between vegetable growers and non-vegetable
farmers is quite difficult. The same farmer may well grow paddy or corn in one season and
followed by cultivating chili in the next season.
Basuki and Adiyoga (2012) observed farmers in Majalengka who planted chili not in the
same time with other chili production area. Because of the different planting time farmers
claimed that they always got high selling price of their chili. In dry land, they grew chili from
September to end of March, followed by corn which they planted in the end of March when
the chili was nearly finished harvested. They harvested their corn in August and let the land
fallowed. In the rice field, farmers grew chili from August to February and followed by rice
from February to June and then they grew vegetable such as cabbage, leek, choisum, potato
and red beans (Figure 4).
Figure 4: Farmers planting pattern in Majalengka area (Basuki and Adiyoga, 2012)
Basuki and Adiyoga (2012) continued their observation in Majalengka on how farmers
shifting from local chili variety/landrace upon introduction of new hybrid varieties bred and
developed by seed companies. In the particular village of Suniabaru, it is very interesting to
see a chili variety of Lado dominated cultivation after 10 years whilst in presence of other
varieties and the local race as well (Figure 5). It will be more interesting to see how varietal
shifting is going to happen upon introduction of new hybrids other than Lado. Whether it is
going to be replaced by another better variety from the same company or challenged by
competitor’s product, time will tell. As stated before in Table 2, current attainable range of
actual vegetable yield is 17 – 63 % of potential or claim yield by seed providers. Multifactors affect yield realization at famers’ level. Challenges and constraints faced by farmers
25
range from low access to technology such as quality seeds i.e. good seed adoption is
growing, sub-optimal fertilizers application; lack of effective field extension (government
support); sustainability issues related to soil and water conservation, agro-chemical usage,
cultivation practices, harvest and post-harvest handling; market access, and so on. On-farm
and off-farm factors are inter-related in affecting farmers’ achievement.
Figure 5: Sketch of chili varietal adoption during a decade in Suniabaru village,
Majalengka (Basuki and Adiyoga, 2012)
On-farm technical complexity level may well categorize farmers competency to do crop
cultivation related to his/her aspiration of profit objectives. The author tries to group
vegetable crops based on cultivation technical level and potential profit generated from
cultivating the crops assuming normal farm gate price (Table 10). Khomasurya and Morey
(2013, email communication) used the groupings to develop a vegetable cultivation ladder
(Figure 6).
Table 10: General category of vegetable cultivation related with potential profite
generated by grouped crops
Indicators of technical complexity/level
Crops
Leafy vegetables: choisum,
kangkong, amaranth
Yardlong bean, pumpkin,
French bean
Cucumber, Bitter gourd,
ridge gourd
Eggplant, Small chili (Cabe
rawit)
Tomato, shallot, onion, Chili
(cabe besar & cabe keriting)
I
v
-
-
-
-
II
v
-
-
-
-
III
-
v/ -
-
-
-
Potential of
profit/ha (Rp
,000) *
Rp 5,000/
2
1500 m
20,000 50,000
30,000 60,000
IV
-
v
v
v/ -
-
70,000
V
-
v
v
v
v
100,000
Category
*assuming normal good price;
Direct
sowing
Seedling
prep
Raisedbed
Mulching
(plastic)
Pruning
(Note: Some figure referred to PASKOMNAS information)
26
Vegetable Cultivation Ladder - Level of complexity in vegetable cultivation
East West has no seeds yet
East West has seeds
Tomato, Chili, Shallot
Garlic, Spring Onion, Mushroom
Potato, Cauliflower, Carrots, Radish, Paprika
Eggplant, Small Chili, Carrot, Cauliflower, Lettuce
Red Beans, Bird's eye,
Cucumber, Bitter Gourd, Ridge Gourd, Celery,
Chokos,Chinese Cabbage
Yardlong Bean, Pumpkin, French Bean
Leafy Vegetables: Choisum, Kangkung, Amaranth, Kale, Cabbage, Sweet Corn
Swamp Cabbage, Spinach
Rp000 Profitability/hectare
33,333
20000 - 30,000 50,000 60,000
70,000
100,000
Figure 6: Value ladder of vegetable cultivation – potential profit generated on a 1
hectare land base
2.7.
Consumers
As stated earlier, according to McKinsey Global Institute (2012), there will be in year 2020
85 million people categorized as consuming class in Indonesia. Consumption of fruit and
vegetables is an important component of Indonesia’s diet and Indonesian consumers spend
a higher proportion of their food budget on fruit and vegetables compared to other Asian
countries. In 2011, Indonesia produced 18.3 million tons of fruits and 10.3 million tons of
vegetables; up from 14.7 million tons and 9.1 million tons in 2005 respectively (Hortichain,
2012).
The additional consuming class will contribute to increased vegetable and fruit consumption
due increased purchasing power and awareness about health and the nutritional benefits of
fresh fruit and vegetables as part of a balanced diet become entrenched in everyday eating
habits. This trend is also being accelerated by improved supply chains and the ease of access
to modern retail facilities such as supermarkets in urban areas which allow for the correct
storage of fresh produce thus making previously unavailable varieties of fruit and vegetables
available to consumers.
The market is therefore highly promising for both local and foreign producers; however the
country’s reliance on imports is highlighting the declining competitiveness of Indonesia’s
domestic horticulture sector as well as the government’s moves towards more protectionist
and restrictive trade policies. The geographic nature of in Indonesia provides a major
challenge to distribute fresh products nationally to reach consumers on the other islands.
Most of Indonesia's locally produced fresh vegetables are transported throughout Indonesia
27
in non-refrigerated transport and the traditional wet markets still dominate fresh food trade
with an increasing trend of food purchases at modern retail outlets.
Fresh fruit and vegetables have always made up a significant portion of the Indonesian diet
which in the past consisted of locally grown produce purchased from traditional retail
outlets and markets. Indonesian consumer spending on fresh horticultural products
compared to that on rice was 50% in 1994, this has since risen to 75% in 2004 and 100% for
urban dwelling Indonesians in 2007 (Horticultural Producers and Supermarket Development
in Indonesia Report, World Bank).
However, Indonesian per capita consumption of fresh fruit and vegetables is still below the
recommended level set by the FAO (73 kg/capita/year) at an average of 40kg per person
every year. Singapore has reached 120 kg, while China reaching 270 kg, Cambodia and
Vietnam were 109 kg and 85 kg respectively (Hortichain, 2012).
Based on BPS (2013), household monthly average expenditure for vegetables and fruits are
Rp 23,949 and 15,443 respectively out of Rp 323,478 for total food expenditure which is 7.4
and 4.8 % respectively for vegetable and fruits.
Table 11: Crop and number of varieties produced and marketed by EWINDO
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Crop
Amaranth
Bitter gourd
Cabbage
Carrot
Cauliflower
Celery
Choisum
Corn-sweet
Cucumber
Eggplant
French bean
Kale
Kangkong
Lettuce
Melon
Pepper (chili)
Pumpkin
Ridge gourd
Shallot
Tomato
Watermelon
Yardlong bean
Total
Number of varieties commercialized
1991
2001
2011
2013
2
3
3
3
0
3
7
6
0
1
2
1
0
1
2
2
0
1
2
2
0
2
3
3
1
2
5
5
0
0
6
7
1
5
12
18
2
5
8
8
0
1
5
5
2
2
1
1
1
1
3
3
0
2
2
5
0
0
2
4
2
12
23
26
0
1
2
2
0
2
2
2
0
0
2
2
0
11
18
21
1
3
12
14
0
3
7
8
12
61
129
148
28