The agriculture sector has been and will continue to be important for poverty alleviation efforts in Indonesia. Indonesia was very successful in increasing agriculture productivity during the 1970s and up to the early 1990s, but productivity stagnated during most of the 1990s, partly as a result of declining public investments. Public spending on agriculture has increased significantly in the last decade, but a large share of that spending has been allocated to subsidizing private inputs.
This review's objectives were to examine the structure and performance of the agricultural research and extension systems (public and private) at the central and provincial levels, identify successes as well as constraints to improving the system s effectiveness for fostering innovation, and propose options for further policy and institutional development, drawing on lessons from international experience. The review focused principally on nonplantation crops, although its main recommendations apply across the agricultural sector.
This report summarizes the findings of the Nigeria Agriculture Public Expenditure Review (NAGPER). The NAGPER was undertaken to achieve four main objectives: (i) establish a robust data base on public expenditure in the agricultural sector; (ii) diagnose the level and composition of agricultural spending in the recent past; (iii) understand the budget processes that determine resource allocation in the sector; and (iv) draw preliminary policy recommendations for agriculture. These objectives are admittedly modest.
Indonesian agriculture is at a crossroads. Supporting the livelihood of millions of Indonesians, it needs to underpin renewed and robust growth of the economy; and be a key component of the Government's poverty alleviation strategy. The challenge for the future is to reinvigorate productivity gains among rural producers, and provide the foundation for long run sustainability of these productivity gains. Productivity gains are key to farmer income growth, and for this rebuilding the research and extension systems that have seen a marked deterioration in recent years will be critical.