Foreword he future challenges of agricultural development are getting heavier, Tgiven the increasing problems and constraints faced by farmers in the production and release themselves from the poverty entanglements. Global climate change, environmental issues, free trade, land degradation, conversion of productive land for non-agricultural purposes, land fragmentation, pest and disease development, farmers’ lack of capital and declining interest of younger generation to do business in agriculture are the actual problems to be solved. Meanwhile, the population growth rate remains high, demanding the supply of agricultural products in sufficient quantities and in sustainable manner. Experiences indicated that most of the problems faced by farmers in the field can be overcome by the application of technology. Referring to the four successful targets of the Ministry of Agriculture in 2010-2014, the Indonesian Agency for Agricultural Research and Development (IAARD) continues to generate technological innovations to address the problems of farming. In 2012, IAARD produced various technological innovations, such as land management, new improved varieties, cultivation and postharvest technology of various agricultural commodities, mechanization, institutional innovations and alternative agricultural development policies. This annual report contains parts of the information on technological and institutional innovations generated by IAARD in the year 2012 and expected to be a reference for agricultural development. The report also serves as the accountability of IAARD in resources management funded from the 2012 budget. I would like to express my appreciation and gratitude to all those who have contributed in agricultural research and development and prepared the annual report. Jakarta, April 2013 Director General of Indonesian Agency for Agricultural Research and Development Ministry of Agriculture, Republic of Indonesia Dr. Haryono Technological InnovationsForeword 2012 1 Technological Innovations 2012 The impacts of climate change, characterized by the occurrence of extreme climate with excessive frequency, have been felt in many parts of the world. High rainfalls that caused flooding and landslides, for example, have hit agricultural land and settlement in some areas. In coastal areas, sea level rise as a result of climate change has been submerging the crop area which then caused salinity in agricultural land that potentially poison the plants. In certain periods, long dry season caused most of the crops suffering from the drought and even trigger land and forest fires. The accusations against the agriculture as one of the greenhouse gas (GHG) emission sources, come from all walks of life, especially international environment experts and observers. Meanwhile, the free market cannot behold up, which suggests the importance of efforts to increase competitiveness of agricultural products in international market. Efficiency of production system and products that are free of harmful chemical contaminants becomes the demand that must be met, in order the agricultural products will be in great demand by many consumers, therefore it bring about profitable for the farmers. In Indonesia, the challenges of agricultural development were felt more acute. Land degradation, conversion of productive land for non-agricultural purposes, land Lowland rice area in Cianjur, West Java. 2 Annual Report 2012: Innovative Technology for Sustainable Agriculture Rice seedling on tidal swampland of Talangrejo, Banyuasin, South Sumatra. fragmentation, development of pests and diseases, farmers’ lack of capital, and increasingly waning interest of young people to go into farming are a series of problems that also need to look for the solutions. On the other hand, a growing number of people requires agricultural products, especially food, in sufficient quantities on an ongoing basis, because it has the impact on social stability, economic and even politics. IAARD as a public research institution is required to continue to overcome the existing problems. Referring to the four successful targets of the Ministry of Agriculture in 2010-2014, IAARD continues to address the problems and constraints faced by farmers in production through research and development to generate technological innovations. The agricultural area expansion through the opening of new land seems to be a necessity for increasing agricultural production to replace productive land that has been converted to non-agricultural areas, particularly in Java. Land which is available for agriculture is generally found outside Java with suboptimal status as wetland, upland and rain-fed land. The research results showed that partial tidal swampland and peatland can be developed to be productive agricultural land through the application of suitable land management and crop cultivation technology with having regard to the social, economic and local environment. GHG emissions, mainly methane Technological Innovations 2012 3 and carbon dioxide, from the rice fields can be minimized through the cultivation technology, including the arrangement of cropping patterns and use of tolerant rice varieties. Development of a number of improved varieties of rice and tuber crops generated through research is expected to support the sustainable, food self- sufficiency as mandated in the four successful targets of the Ministry of Agriculture. High yield potential, tolerance to inundation, drought, salinity and soil acidity, early maturity and resistance to major pests and diseases are important properties owned by the generally high yielding varieties of rice and tuber crops released in 2012. The superior varieties assembled through conventional breeding have some weaknesses, among others reduced the level of resistance to pests and diseases after being developed in a certain period. Some rice varieties that are initially resistant to brown planthoppers, for example, become susceptible after a few years later. Through biotechnology approaches, it has been assembled rice lines that are expected to have a high level of resistance to bacterial leaf blight (BLB) and blast, an important disease of rice in some areas, that began to threaten the safety of rice production. Efficient, effective and environmentally-friendly production technologies have also been generated to support the efforts to increase the competitiveness and sustainability of production systems. IAARD has also generated several new superior varieties of vegetables, fruits, ornamental plants and some commodities of estate crops to strengthen agribusiness that will improve the welfare of farming entrepreneurs, especially farmers. This Cabbage planted at experimental garden of Indonesian Vegetables Research Institute in Lembang, West Java. 4 Annual Report 2012: Innovative Technology for Sustainable Agriculture Integration of oil palm and cattle at Sabut Mas Abadi plantation in Pangkalan Bun, Central Kalimantan. certainly cannot be separated from the provision of high quality seeds of improved varieties produced by IAARD. The provision of source seeds is a necessity for the success of farming. Through conventional techniques and anther culture, quality seeds of various commodities have been produced to be further developed by breeders to meet the growing demands for the superior seeds. Some commodities of estate crops, such as oil palm and cocoa become an excellent and national superiorities, because they have large market at home and abroad. Aside from being a producer of cooking oil, oil palm also becomes one of biodiesel sources, which is a renewable fuel. Superior varieties and technological process that have been generated are expected to accelerate the development of agribusiness and to increase the contribution of estate commodities to farmers’ welfare and foreign exchange. Amidst the complex challenges faced in production, the Ministry of Agriculture remains willing to achieve self-sufficiency and sustainable self-sufficiency. Beef self- sufficiency is expected to be realized in the not too distant future so it requires a strong commitment from all parties. Through the study of various aspects, IAARD has generated technological and institutional innovations that can initiate the acceleration of cattle population growth to meet the meat demand in the country at a price which is in accordance with the people’s purchasing power. Technological Innovations 2012 5 Sustainable food self-sufficiency can be achieved not only through increased food production, but also through diversification of local food as an important part of national strategy which has a significant impact on national food security. In addition to fulfill consumption need, food diversification is also able to improve the people nutrition. Some food product processing technologies that have been generated could accelerate the food diversification and development of food product agribusiness, both in rural and urban areas. National food security is determined by family food security. This paradigm encouraged IAARD to develop Sustainable Food Reserve Garden (SFRG), which provides various sources of food at the household level. Starting from the development of SFRG in Pacitan, East Java, since a few years ago, now the innovation has been developed in several regions in Indonesia. Besides being able to meet the food needs of the family, SFRG development also provides the opportunity for members of the household to increase revenue from sales of its own products cultivated in the yard around the