On the Competitiveness and Sustainability of the Indonesian Agricultural Export Commodities

Abstract

The study examines the competitiveness and sustainability of key agricultural commodities in Indonesia, namely: coffee, cocoa, tea, cashew and mango. The study recommends policy options to improve the performance of these value chains in the future, both in terms of the competitiveness and sustainability. The study applies the revealed comparative advantage (RCA), complemented by in-depth interviews and discussions with competent resource persons and development partners. Because the stages of competitiveness and sustainability differ by commodities, the arguments presented in each commodity consist of at least two main entries: (i) strengthening competitiveness and sustainability of the commodities, covering the inclusiveness of smallholder farmers and small scale processors of respected commodities and (ii) limiting the impacts of commodity development on natural resources. Best practices of integrated commodity development and natural resource conservations implemented in Indonesia are also explored and examined more carefully in this paper. Among others, strategies for coffee is improving the mechanisms of certification schemes; for cocoa is expanding the SE (somatic embryogenesis) seedling and sustainability-based certification, for rubber is combining clonal-based development and forest protection, for cashew is introducing certification of origin and land rehabilitation, and finally for mango is promoting integrated horticulture development in upland areas.