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Anwar Adnan Saleh, Governor of West

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Anwar Adnan Saleh, Governor of West TOWARDS A BETTER WORLD COCOA: “MOVING TOGETHER FROM WEST SULAWESI – INDONESIA” Presented by: Anwar Adnan Saleh Governor West Sulawesi Province - Indonesia At: 21st World Cocoa Foundation Partnership Meeting Spynx Club – Washington DC June 13 -14, 2012 1 Profile of Indonesia Geography Area : Land: 2 Million & Maritime 7.9 Million km2 No. Island : 17,508 Major Island : Sumatera (473,606 km2) Java & Madura (132,107 km2) Kalimantan (539,460 km2) Sulawesi (189,216 km2) Papua (421,981 km2) Most known : Bali (5,632 km2) 2 Profile of Indonesia People Population : 242 Millions (EST 2012) Youth Population : 110 Million No. of Ethnic Group : 300 Major Ethnic Group : - Javanese (40.6%) - Sundanese (15.0 %) - Madurese (3,3 %) - Minangkabau (2,7%) -Bugis(2.4%) -Banten(2.0%) - Banjar (1.7%) - Others (29.9%) Work Force Allocation : 98 Millions - Agriculture (43.3%) - Trade & Restaurant (20,4%) - Manufacturing (11.8%) - Public Service (11.2%) 3 Economy of Indonesia Fact GDP 2012 : USD 820 Billion GDP Growth Rate : 6.7 % GDP per Capita : USD 3,504 Trade (Non Oil & Gas) Export : 203.496 (USD Billion) - Major Markets : China, Japan, USA & India Import : 177.435 (USD Billion) - Major Suppliers : China, Jepang, USA & Thailand 4 Total Balance of Trade Indonesia Billion of USD Billion of USD Export Import Surplus 2008 137.020 129.197 7.823 2009 116.510 96.829 19.681 2010 157.779 135.663 22.116 2011 203.496 177.435 26.061 2012 Billion of USD Export Import Surplus January 15.570 14.554 1.016 February 15.695 14.866 829 March 17.267 16.427 840 Total 48.532 45.847 2.685 5 GROWTH OF NON-OIL AND GAS EXPORTS BY DESTINATIONS No Country 2007 2008 2009 2010 2011 Trend (%) 2007-2011 1 China 6.664,1 7.787,2 8.920,1 14.080,9 21.595,6 34,23 2 Japan 13.092,8 13.795,3 11.979,0 16.496,5 18.330,1 8,89 3 United States 11.311,3 12.531,1 10.470,1 13.326,5 15.684,2 7,41 4 India 4.885,0 7.060,9 7.351,4 9.851,2 13.279,0 26,28 5 Singapore 899048.990,4 10. 104, 6 7. 947, 6 955369.553,6 11.113 , 4 3753,75 6 Malaysia 4.593,1 5.984,5 5.636,4 7.753,6 9.200,1 17,92 7 Rep. Korea 4.660,3 5.174,3 6.869,7 7.565,8 19,65 374643.746,4 8 Thailand 2.646,9 3.214,5 2.598,4 4.054,4 5.242,5 17,34 9 Netherland 2.749,5 3.881,2 2.902,9 3.682,1 5.076,3 12,45 10 Taiwan 2.337,8 2.901,2 2.875,5 3.252,3 4.205,1 13,75 6 GROWTH OF NON-OIL AND GAS IMPORTS BY ORIGINS No Country 2007 2008 2009 2010 2011 Trend (%) 2007-2011 1 China 7.957,3 14.947,9 13.491,4 19.688,0 25.456,4 29,71 2 Japan 6.472,7 14.864,7 9.810,5 16.910,7 19.321,0 26,06 3 United States 4.711,8 7.731,5 7.037,6 9.299,4 10.697,0 20,01 4 Singapore 3.908,3 11.095,6 9.236,6 10.053,3 10.548,4 20,77 5 Thailand 4.194,8 6.269,9 4.570,8 7.420,6 10.248,3 21,59 6 Rep. Korea 1.994,5 4.792,4 3.807,8 5.593,0 7.440,9 32,15 7 Malaysia 2.149,9 3.931,2 3.184,2 4.521,8 5.745,4 23,44 8 Australia 2.817,1 3.980,5 3.374,1 4.092,9 5.173,6 13,24 9 India 1.604,4 2.510,3 2.084,9 2.696,0 3.979,2 20,78 10 Taiwan 1.439,7 2.713,9 2.008,3 2.956,4 3.854,3 22,81 7 Anwar Adnan Saleh in Brief Governor of West Sulawesi Province, Indonesia since 2006 ((p2nd period) Focus on cocoa development to increase prosperity of under “West Sulawesi Cocoa Initiative Program” Initiator of “a national program for higher cocoa production and quality” Also known as “Cocoa Governor”Governor In designing and implementing cocoa program, West Sulawesi collaborates with Hasanuddin University and other institutions including Swiss Contact & Nestle (recently), Mars, IFC, ACIAR, Amarta 2 (to begin), etc; and hopefully with WCF (soon) 8 9 Bappeda Prov. Sulbar Economic Growth of West Sulawesi 2006-2010 D A C CPO P E 19 201 1085 201 Sumber: BPS Sulawesi Barat, Tahun 2010 Purpose of Presentation To share experiences from West Sulawesi on cocoa development sector. To discuss opportunities for collaborations to strengthen cocoa development program in indonesia for the benefit of smallholders and all stakeholders in cocoa industries. 11 Key Factor of Cocoa In Sulawesi Sulawesi contributes 65 % to Indonesian cocoa bean production and West Sulawesi is among the major cocoa producing provinces. Cocoa in Sulawesi was first grown in West SlaesiSulawesi in earl y 1960s. At present, the province has 165,000 ha cocoa farms, ppgroducing beans around 150,000 tons per year. West Sulawesi is aiming at producing at least 250,000 tons of beans per year by 2015 –and working closely all stakeholders to achieve higher smallholder income and stronger cocoa industry. 12 Key Factor of Cocoa In Sulawesi Cocoa sector is responsible for 71 % of the population livelihood and prosperity The government of West Sulawesi started its cocoa program by establishing “West Sulawesi Cocoa Initiative Program” in 2007, only a year after it became a province, with the support of Hasanuddin University. Theinitiativewasthenscaleduptobeanational program movement called “National Program for Cocoa Production and Quality Improvement”. 13 Government Full Support for The Better Cocoa Movement The governor with cocoa field Facilitators 14 Cocoa In Sulawesi Economic Corridor With the support of Hasanuddin University, the government of West Sulawesi has pioneered an integrated zero waste cocoa – cow production system. Farm profitability increases due to higher cocoa yield, better bean quality, substantial extra income from cow, compost, biogas and some food crop production. The soil is healthier and cocoa pests and diseases are better controlled. 15 MP3EI – 6 Economic Corridor 1 Sumatra EC 2 Java EC 3 Kalimantan EC 4 Sulawesi EC 5 Bali – Nusa Tenggara EC 6 Papua – Kepulauan Maluku EC •Sumatra Economic Corridor as a “Center for Production and Processing of Natural Resources and As Nation’s Energy Reserves” •Java Economic Corridor as a “Driver for National Industry and Service Provision” •Kalimantan Economic Corridor as a “Center for Production and Processing of National Mining and Energy Reserves” •Sulawesi Economic Corridor as a “Center for Production and Processing of National Agricultural, Plantation, Fishery, Oil & Gas, and Mining” •Bali – Nusa Tenggara Economiiic Corridor as a “Gateway fifor Tourism and Nat ional Food Support” •Papua – Kepulauan Maluku Economic Corridor as a “Center for Development of Food, Fisheries, Energy, and National Mining” 16 Program: Integrated Zero Waste Cocoa Production The Indonesian government launched a new comprehensive economic development program through a Master Plan of Acceleration and Expansion of Indonesian Economic Development 2011 – 2025 (MP3EI) Under this MP, six economic corridors are identified as growth centers expppgyected to boost the economic development throughout the country. One of the corridors is “Sulawesi Corridor”. Sulawesi Corridor focuses on cocoa, food crops, fisheries and nickel/oil & gas. Six major issues to address: Sustainable crop and farm productivity Quality and added value Pr ocessing Fair and competitive marketing Farmer empowerment and capacity building; and Database support enhancement for a better, more comprehensive cocoa sector management. 17 Integrated Zero Waste Cocoa Production System o Soil is healthy o Much better controlled (reduced) pests & diseases o High bean qu ality o Cocoa yield increases o Substantial extra income from cows, compost, biogas & biopesticides o More sustainable (economical, environmental & social) 18 Cocoa Agrifinance The West Sulawesi government, with supports from multi stakeholders (IFC, bank, off takers, fertilizer manufacturer, farmer groups) has also introduced a scheme for cocoa agri-finance program to: Increase cocoa productivity & quality (yield increases by 2 to 3 times, bean count < 100) Increase profitability Encourage balanced fertilizer used by farmers for healthy soils Stimulate more competitive business. 19 Need Based Training Under the umbrella of Cocoa Sustainability Partnership (CSP) forum, we collaborate with Swisscontact & other institutions (members of CSP) to conduct a training program based on our dynamic needs. Through promoting collaborations, we encourage the public (farmer’s community) to improve their knowledge sensible farming 20 Accelaration of Indonesia Economic Trasformation A Master Plan: “Acceleration and Expansion of Indonesia Economic Development” (()MP3EI) MP3EI – An Integral Part of National Development Planning Sulawesi Economic Corridor: Cocoa is one of the main economic activities (along with agricultural crops, fishery, nickel and oil & gas) Cocoa is a sector that involves the largest number of smallholders in Sulawesi Cocoa h as h uge pote nt ia l to g ro w fu rt her e 21 Closing Remarks We are looking forward to have WCF on board in our cocoa program Much has been achieved, yet more support and innovations are needed to scale up and accelerate the success for a more prosperous cocoa smallholders, better farming quality and sustainable cocoa industry. We believe that World Cocoa Foundation and its worldwide members can provide valuable support for the development of cocoa center of excellence in Indonessia and specifically in West Sulawesi towards better world cocoa industry.
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