Commodities

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Beef

Indonesia is the largest beef producer in Southeast Asia but there is a shortfall in production. The government is trying to create a ninety percent self-sufficiency in beef. PRISMA’s research indicates that increasing the availability of feed and artificial insemination services will enable cattle farmers to meet export standards and increase their production volume. East Java and NTT are Indonesia’s biggest cattle producing provinces. East Java is the largest exporter of live cattle bet ...

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Cashew

World demand for cashew kernels has been growing at an average of seven percent every year. Indonesia currently contributes only four percent to the global raw cashew nut market and most of the value adding processes are carried out in India and Vietnam. There are opportunities for key value chain actors to increase production to meet the rising demand for good quality cashew, both domestically, regionally, and internationally. NTB province contributes 11.29 percent to national cashew product ...

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Cassava

Indonesia is the third largest producer of cassava (after Brazil and Nigeria) and the fourth biggest global exporter. The province of NTT contributes 3.3 percent to the national production of cassava and is the second staple crop after maize, making it very important for food security in the area. East Java supplies 15 percent of the crop. The major challenges to the cassava sector in East Java and NTT are: low productivity; substandard quality of cassava and; limited knowledge about markets. ...

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Cocoa

Indonesia is the third largest cocoa producing country in the world at a time when global demand for cocoa is rising. Recent changes to regulations has allowed new cocoa processing companies to establish themselves locally, which has increased domestic demand for dry cocoa. In Papua, cocoa is an important cash crop with approximately 26,000 households involved in cocoa farming on a subsistence basis. Currently there is very little investment in the commercialisation of cocoa farming in Papua and ...

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Coconut

Indonesia is the world’s largest coconut producer with exports in coconut milk, coconut oil, coconut shell and copra meal for carbon production. Nevertheless, Indonesia is behind its competitors in terms of exports, as the vast majority of the country’s coconuts are sold in the traditional market for use in domestic cooking. This provides a clear potential for key value chain players to invest in value-added coconut products for the export market. Although East Java and NTB province are majo ...

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Coffee

World coffee consumption is increasing with Indonesia being the third largest coffee producer (after Brazil and Vietnam). A clear opportunity exists for Indonesia to increase production volume and quality to meet the international demand for speciality coffee. East Java has an estimated 54,300 farmers, and its coffee production area is equivalent to 8.1 percent of the national production area. NTT province has an estimated 51,752 coffee farmers and the coffee production area comprises 57 percen ...

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Maize

Maize is one of Indonesia’s primary food crops. Across the country almost 20 million metric tonnes of maize is produced of which almost half is used for animal feed. Maize is a seasonal crop, with a surplus during peak harvest months and a severe undersupply during the rest of the year. PRISMA has identified a clear opportunity in NTT, NTB and East Java to increase maize production, productivity and quality as part of Indonesia’s drive towards import substitution. In NTT maize is the stap ...

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Mango

Mango is Indonesia’s largest fruit crop but the fruit is seasonal. Because of a glut of fruit on the market during the peak season, there is little incentive for small holder farmers to consider investing in the new technology which would make their business more productive at other times of the year. Instead, they leave their mango trees to bear fruit naturally or rent them out to collectors to manage. In the off-season however, the average on-farm price of mangoes can be more than 10 times h ...

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Pigs

The domestic demand for good quality pork is increasing in Indonesia. NTT province is the largest pork consuming region in Indonesia, where pigs are consumed but are also used for important traditional ceremonies. Pig production is not currently meeting demand because of poor rearing methods and lack of access to quality piglets and high nutrient local piglet fodder. As a result, the private sector is reluctant to invest in pig-rearing. PRISMA is working with PT Setoko Jaya Mandiri on Flores ...

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Seaweed

Indonesia accounts for 13.7 percent of the global market for seaweed. The district of East Flores is an established area for seaweed production and produces one fifth of the nation's supply of seaweed. The district offers high potential for development due to ideal growing conditions but productivity is limited due to: (1) insufficient knowledge of cultivation methods and post harvest production practices; (2) limited private sector investment in improving production standards; (3) lack of innov ...

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Shallots

In Indonesia domestic consumption of shallots outstrips production by about 100,000 metric tonnes each year and imports are needed to close the gap. There is a clear business opportunity to substitute imports by increasing national production. The province of NTB is the fourth largest shallot producer in Indonesia and East Java is the second largest producer. PRISMA has identified the potential for 95,000-140,000 shallot farmers in East Java and NTB that could increase productivity through the i ...

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Soybean

Indonesia currently imports soybean to meet domestic demand making it one of the world’s major soybean importers. Although productivity is increasing, the country’s total harvested acreage has been experiencing a downward trend. There is a clear opportunity to increase local production. PRISMA will work in East Java and NTB where 810,000 farmers plant soybean, an estimated 48 percent of national production. Increasing productivity is difficult because of poor quality seed and the use of poor ...

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Peanut

Indonesia is the eighth largest peanut producing country in the world. Nevertheless, its population consumes more than it can produce, which leaves a shortfall of around one million metric tonnes every year which is then imported. A clear business opportunity exists to increase the production volume and the quality of peanuts for the domestic market. Java is the centre of the country’s peanut production with East Java supplying 30 percent of total national production. The 408,000 peanut farmer ...

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Vegetables

Despite being the 14th largest vegetable producer in the world and the largest in Southeast Asia, Indonesia’s vegetable imports continue to grow faster than its exports. The country’s reliance on imports highlights the declining competitiveness of Indonesia’s domestic horticulture sector. Java accounts for 70% of the country’s total vegetable production, while NTT is one of the lowest vegetable-producing provinces, contributing only 0.43% of Indonesia’s total vegetable production. W ...

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Mung Bean

Mung bean is grown mainly in South and Southeast Asia and the global demand remains consistently high and stable. Demand for mung bean in Indonesia is largely met by domestic production, and although it experienced a dramatic decline in 2012, the production level recovered in 2014. However, there has been a persistent increase in mung bean imports since 2013 to cater for the food processing industry. Availability of mung bean-based food products has increased significantly in recent years and it ...

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Information and Communication Technology (ICT)

In Indonesia, extension services are acknowledged as an important component of achieving food security. National legislation (UU No. 16, 2006) stipulates three types of extension workers: public, private, and self-help/voluntary. However, most extension services are conducted by public workers, as they are the only actors with a clear mandate to do so. Private workers are usually employed by input suppliers and, despite the 2006 regulation, they are not registered with, nor regulated by, the gov ...

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