R UF/LANÇON WORLD BANK REGIONAL AND SECTORAL STUDIES The development of upland agriculture has become an increasingly important policy objective in Indonesia over the past decade. Despite the successful Green Revolution in the lowlands, the plight of millions of upland farmers remains a significant challenge. From Slash and Financial capital has improved the technology necessary to help maintain sustainable systems, improve crop yields, decrease loss due to pests and disease, and conserve land Public Disclosure Authorized Burn to Replanting in ecologically fragile areas. The formation of biological capital has provided new techniques for improving the sustainability of upland agriculture and the welfare of farmers. Some of the most successful improvements have been the result of innovations Green Revolutions in the by the farmers themselves. Together, these advances help make tropical agriculture in the region sustainable by enabling adaptation to ecological and market changes. Indonesian Uplands This book reports the results of fieldwork conducted by the editors and other experts in some 40 regions of Indonesia from 1989 to 2001. The authors synthesize the work of Gr F rom Slash and Burn to Replanting researchers from a variety of disciplines, backgrounds, and training with their own in-depth een Revolutions in the Indonesian Uplands research. The result is a wide-ranging and insightful history of the successes and failures of efforts to sustain and improve upland agriculture and access to markets. It considers in a detailed way the importance of trees and perennial crops as the main patrimony of upland farmers and as privileged channels to international and regional markets, despite Public Disclosure Authorized frequent boom-to-bust price cycles. The authors also look at the role policy can play in facilitating replanting and tree crop diversification, discuss the potential of off-farm diversification and multifunctionality, and consider other ways to enhance entrepreneur- ship and welfare in the uplands. Of interest to agricultural policy specialists and development practitioners, as well as students and scholars in the field, this book helps demonstrate the ways in which appropriate sustainable development efforts can help alleviate poverty and enhance people’s lives. Public Disclosure Authorized EDITED BY FRANÇOIS RUF FREDERIC LANÇON THE WORLD BANK ISBN 0-8213-5205-9 THE WORLD BANK Public Disclosure Authorized From Slash-and-Burn to Replanting From Slash-and-Burn to Replanting Green Revolutions in the Indonesian Uplands? Edited by François Ruf Frederic Lançon THE WORLD BANK Washington, D.C. © 2004 The International Bank for Reconstruction and Development / The World Bank The World Bank 1818 H Street, NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org E-mail [email protected] All rights reserved. 123407060504 The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the gov- ernments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The bound- aries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorse- ment or acceptance of such boundaries. Rights and Permissions The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, World Bank, 1818 H Street N.W., Washington, D.C. 20433, USA, fax 202- 522-2422, e-mail [email protected]. Library of Congress Cataloging-in-Publication Data From slash-and-burn to replanting: green revolutions in the Indonesian uplands? / edited by François Ruf and Frederick Lançon. p. cm. — (World Bank regional and sectoral studies) ISBN 0-8213-5205-9 1. Agricultural innovations—Indonesia. 2. Poverty. 3. Income distribution. I. Ruf, François. II. Lançon, Frederick. 1961– III. World Bank. Iv. Series. S494.5.15 F49 2002 338.1'6'09598—de21 2002074095 Contents Acknowledgments xi Preface xiii Summary xv Acronyms and Abbreviations xxi 1. Innovations in the Indonesian Uplands 1 François Ruf and Frederic Lançon 2. Technical Innovations and Livestock Production 33 Frederic Lançon and Ibrahim Hasanudin 3. On-Farm Reservoirs for Supplemental Irrigation 43 Pascal Perez 4. Constraints to Adoption of Food-Crop Technologies in Upland Areas 49 Frederic Lançon 5. Introduction of Vegetable Production 59 Frederic Lançon and Ibrahim Hasanudin 6. Ginger and Annual Crops in Tree-Based Agriculture 69 François Ruf, Yoddang, and Syarifuddin vi Contents 7. Tree Crops and Paddy Cropping Systems: Cocoa in Malinau 83 François Ruf and Yoddang 8. From Alley Cropping to Cashew Farms 95 François Ruf and Frederic Lançon 9. Coffee and Agroforestry Systems 103 François Ruf and Yoddang 10. Vanilla on Coffee Farms 113 François Ruf, Yoddang, and Syarifuddin 11. Intensive Orange Production 121 Frederic Lançon and Ibrahim Hasanudin 12. Improved Rubber Agroforestry Systems 129 Eric Penot 13. Pod Borer and Pesticides 147 François Ruf and Yoddang 14. Adoption of Cocoa 173 François Ruf and Yoddang 15. Replanting after Imperata cylindrica 193 François Ruf and Yoddang 16. Replanting Coffee Farms in Southern Sumatra 211 François Ruf, Salem Taher, and Yoddang 17. Price and Nonprice Factors in a Green Revolution 235 François Ruf 18. Conclusion: Technical Breakthroughs and Upland Farmers’ Self-Help Action 259 François Ruf and Frederic Lançon Annex 1 281 Annex 2 289 Annex 3 291 Annex 4 295 Annex 5 299 Annex 6 303 Glossary 309 References 313 Index 323 Contents vii Boxes 1.1 Upland Technology Issues Discussed in the Literature 16 1.2 Plantation and Forest Fires in Indonesia, 1997 27 18.1 Making the Decision to Replant Tree Crops 264 Tables 1.1 Overview: Introducing New Forms of Capital to Farming Systems 6 1.2 Study Sites in the Nusa Tenggara Islands 8 1.3 Study Sites in Sulawesi and Moluccas Islands 9 1.4 Study Sites in Java 10 1.5 Indonesian Agroecological Zones as a Percentage of Total Agricultural Area 12 1.6 Land Use in Indonesia, 1984–1990 Average (’000 ha) 14 1.7 Number of References Reviewed, by broad subject areas 14 2.1 Livestock Sales in Farmer Income for Different Farming Systems 35 5.1 Labor Input for Different Cropping Patterns, hours, per hectare 64 5.2 Costs and Returns by Cropping Pattern, per hectare of harvested areas in Majalengka district, 1988–1989 season, thousands of rupiahs 65 6.1 Approximate Ginger and Rice Prices, 1950–70 73 6.2 Coffee and Ginger Prices and Ginger Production in Rejang Lebong District 76 6.3 Farmer Estimates of Ginger Yields, multiples of the amount of seed planted before the virus outbreak 77 6.4 Components of Nine-Month Ginger Costs and Profits, per hectare in 1989 for a yield of 3.5 times the amount of seed planted 77 6.5 Components of Nine-Month Ginger Costs and Profits, per hectare in 1992 for a yield of 5 times the amount of seed planted 77 7.1 Use of Cultivated Land in the Village of Tanjung Lapang, 1995–96, hectares 86 8.1 Planted Area of Major Tree Crops in Nusa Tenggara Province (‘000) 96 9.1 Survey Data on the Population and Farming Systems in Two Villages of West Sinjai, 1996 107 10.1 Vanilla and Coffee Prices, 1991–96 117 11.1 Estimates of Orange Tree Cash Costs and Returns, per hectare 126 12.1 Rubber Planting Distribution Among Various Projects, 1970–98 132 viii Contents 13.1 Factors Affecting Pesticide Adoptions in Sebatic and Moluccas 161 13.2 Input and Output on Ahmad’s Farm, 1993–2001 163 13.3 Average Cocoa Yield, Revenue, and Pesticide Adoption in Noling, with two-thirds of farms on the plains and one-third in the hills, South Sulawesi, 1997–2001 165 13.4 Average Cocoa Yield, Revenue, and Pesticide Adoption in Tampumea, with almost all farms in the hills, South Sulawesi, 1997–2001 165 13.5 Number of Spray Applications per year by Sulawesi Smallholders, 1999–2001 167 14.1 Sources of Starting Capital and Savings before Migration for Three Villages, percentage 177 14.2 Yields, Prices, Incomes, and Fertilizer Use on the Cocoa Farms of Noling and Tampumea, South Sulawesi, 1995–2001 187 15.1 Estimated Forest Rent and Initial Investment in Cocoa in the Hills, 1997 (Tampumea, South Sulawesi) (US$ per hectare, unless otherwise specified) 195 15.2 Estimated Forest Rent and Cocoa Production Factors in the hills, 1997 (Tampumea, South Sulawesi) 196 15.3 Estimated Production Cost and Forest Rent in the hills, 1997, U.S. cents per kilogram 197 15.4 Fertility Plains Rent and Cocoa Production, 1997 198 15.5 Plains Rent and Production Costs of Cocoa, 1997, excluding depreciation costs 199 15.6 Average Cocoa Prices in Plains and Hills in the Noling Region, South Sulawesi, 1995–2001 (rupiahs unless otherwise specified) 201 15.7 Estimates of Forest Rent and Initial Investment, including effects from use of herbicides, in 1997 (US$ unless otherwise specified 203 16.1 Distribution of New Planting and Replanting