2 for of office feedback. country valuable having provided the acknowledge to like would Team SMALLS The Platform. Knowledge Farming Family FAO the on online found be can description 1 self- or sources non-agricultural with income annual their complement to likely are Indonesia in smallholders production through originated Asia. in smallholders for shares lowest the of one is which Indonesia, in farm family small average the For Economicsituation and diversification areas highland seasons monsoon during rainfall diversified regular highly is Indonesia in zones, agro-climatic several the Given average an having head household the headed. female are familyfarms the of 11 percent with members household 6 to education 5 of consists averaging household plots modest smallholder on out carried generally is farming family small Indonesia, In General aspects  . export themain are andoil rubber palmwhich sector the dominate . as such produce, gradual a spite In world. the in producer increase of food crop production, the country remains a net importer ( of andgrains mainly) other agriculture largest third the Indonesia making steady production, a annual in with increase crop food staple primary the is Rice sector. in the agricultural employed force labor being 33 of around percent Indonesia’s with areas, rural country’s the in particular sector is the second biggest source of employment, in for accounting economy, Indonesia’s for importance crucial of still agricultural is agriculture decreasing, is GDP of share its Although for area. land total the of percent 32 to used equivalent now area land over the production has andis increased decades last total nation’s The Asia. Southeast in Oceans largest Pacific and Indian the straddling world’s islands 000 17 the than more is of archipelago Indonesia of Republic The  poultry and poultry crops income favourable the growing Indonesian smallholders, while a third system, the perennial crop farming system, is mainly headed by larger estates, . Referring to the Asian countries included in the Smallholder ’ Data Portrait. Data Farmers’ Smallholder the in included countries Asian the to Referring 20 survey LSMS the from taken is factsheet this in data the specifically, indicated Unless KEY CHARACTERISTICS OF ROLE OF SMALL FAMILY THE CONTEXT OF AGRICULTURE al

level of 6 years. Women face a more limited access to agricultural resources than men, wherefore only only wherefore men, than resources to agricultural limited access more a Women face 6 years. of level fish represent important sources sources important represent fish oln ad pad rpig r the are cropping upland and Lowland

provide percent of GDP. Moreover, the the Moreover, GDP. of percent 14

SMALL FAMILY FARMS COUNTRY FACTSHEET COUNTRY FARMS SMALL FAMILY and

conditions for the growing of growing the for conditions

grow the bulk of staples, including rice, corn and , as well as of cash crops, under under crops, cash of as well as cassava, and corn rice, including staples, of bulk the grow percent 93 SMALL . .

Keeping livestock Keeping AND THE Although agriculture remains the most important source source important most the remains agriculture Although

FAMILY FARMS fes oeta fr h p the for potential offers

of of protein Indonesia’s total number of farmers are small family farms. They They farms. family small are farmers of number total Indonesia’s on -farm activities contribute only 49 percent to the annual income income annual the to percent 49 only contribute activities -farm

two farming systems that are most commonly commonly most are that systems farming two

cash crops cash . 1 plays a minor role for for role minor a plays

2   Source: World Bank Source:  AT A GLANCE A AT However, 47 percent of the total household income income household total the of percent 47 However, decade. Asia Southeast in economy 5 average a an With nearly reaching country is the Indonesia the national poverty line. poverty national the the population of 11 percent half The – 00 6 percent , such as such , , analyzed by the SMALLS Team in FAO ESA. A detailed methodology methodology detailed A ESA. FAO in Team SMALLS the by analyzed ,

poverty rate has been cut to more than more to cut been has rate poverty within two decades, leaving around leaving decades, two within outo o rice of roduction

in the world ,

2017

, Indonesia has become has the Indonesia , , , , , palm spices, tea, coffee, .

most most 262 fourth most populated most fourth nnual GDP growth growth GDP nnual

million , Indonesian smallholders Indonesian . with with while , A humid tropic climate with with climate tropic humid A 0. a population a 6 hectares. The average average The hectares. 6 . during

still living below still living the more temporate temporate more the

the past the of of practiced by by practiced livelihood, livelihood, la

and and fruits rgest , while while ,

is ©FAO/Roberto Faidutti

Indonesia employment (e.g. with enterprises or rents), which accounts for 30 percent of the average gross annual income of USD 1 967.3 Moreover, income from public and private transfers plays a substantial role for income diversification. The opportunity to diversify is an important way for Indonesian small family farms to self-insure their livelihood against the occurrence of shocks, such as a delay in the monsoon rains that could harmfully affect agricultural production. Nevertheless, income poverty remains high and almost one fifth of the family farms in Indonesia live below the national poverty line. Productivity and technology Smallholder agriculture in Indonesia is often practised without the benefit of modern tools or improved seed varieties. Moreover, the vulnerability of rice farming to has made its production less attractive to smallholders. Encouraging smallholders to diversify, for example, into high value fruits is key to stabilise incomes and reduce poverty. In the light of a rapidly increasing population, long-term promotions by the have fostered both the growth of rice production and a strengthened production of other food crops. Achievements have been made due to the installation of new infrastructure and other farm techniques, as well as the expansion and rehabilitation of agricultural land. Increasing rates of have boosted production, leading to high values of food production per hectare and remarkable productivity per working day compared to other smallholders in Asia, highlighting a shift to more intensive crop farming. However, the value of annual crop production remains considerably low (USD 573). Yet, only 10 percent of the country’s smallholders practice a high level of . Although the average smallholder partially allocates labour to off-farm activities, agriculture continues to be the most labour intense family activity; the share of family labour-days spend on-farm (0.78 person days) remains higher as the one allocated to off-farm income activities (0.24 person days). Constraints Improved technical assistance and a simplified access to credit schemes, have enhanced the livelihood of Indonesian smallholders. Still, among all family farms approximately 17 percent are beneficiary households with a credit that amounts to USD 420 annually. A high share of income spent on food and agricultural inputs limits the potential of smallholders to sustainably re-invest the amount of credit. Moreover, weak infrastructure, declining farm sizes due to demographic pressure and missing linkages between input and output markets challenge and productivity in Indonesia.

SMALL OTHER SMALL FAMILY FARMS IN INDONESIA FARMS FARMS SMALLHOLDER FARMERS’ Average farm size (ha) 0.6 5.0 DATA PORTAIT Farm aspects % of smallholders on total farmers 93 7 The Smallholder Farmers’ % female headed households 11.3 20.5 Data portrait is a Household income (const. 2009 Int.$) 1 967 3 284 % of income from crop production 47 50 comprehensive, systematic % of income from on-farm income 49 52 and standardized data set Income and % of income from agricultural wage labour 6 4 on the profile of smallholder poverty % of income from non-agricultural wages and self-employment 30 32 farmers across the world. % of income from public and private transfers 12 10 It can generate an image on Smallholder poverty rate (national poverty line) 18 14 how small family farmers in Family labour-days supplied on farm over a day period (person days) 0.78 0.77 both emerging and Labour Family labour-days supplied off-farm over a day period (person days) 0.24 0.24 developing countries live Value of crop production (const. 2009 Int. $) 573 1 348 their lives. It is about Production Value of food production per ha (const. 2009 Int. $) 3 904 1 028 putting in numbers, the Value of crop production per working day (const. 2009 Int. $) 6.5 14.9 constraints they face, and Capital and inputs % of households using motorized equipment 9.6 21.5 the choices they make so % of credit beneficiary households 17 12 that policies can be Constraints Credit (const. 2009 Int. $) 417 865 informed by evidence to Distance of household from road (km) 2.3 2.4 meet the challenge of agricultural development. Source: FAO. 2018. Smallholders data portrait (available at www.fao.org/family-farming/data-sources/dataportrait/farm-size/en). Currently, the data portrait provides information for REFERENCES nineteen countries. Asian Development Bank. 2015. Summary of Indonesia’s Agriculture, Natural Resources, and Environment Sector Assessment. Manila. FAO. 2015. The economic lives of smallholder farmers: An analysis based on household data from nine countries. Rome. IFAD (International Fund for Agricultural Development). 2010. Smallholder Farming in Transforming Economies of Asia and the Pacific: Challenges and Opportunities. Rome. I8881EN/1/03.18

3 All monetary values in this factsheet are expressed in constant 2009 international dollar. 

8 For more information about SMALL FAMILY FARMS Please visit: www.fao.org/family-farming/themes/small-family-farmers

Or write to: Laura Schenck – [email protected] © 201 FAO,