The development objective of the Sustainable Management of Agricultural Research and Technology Dissemination Project is to improve the institutional capacity and performance of the Indonesian Agency for Agricultural Research and Development (IAARD) to develop and disseminate relevant and demand-driven innovative technologies, meeting the needs of producers and of the agri-food system. There are four components to the project. The first component of the project is human resource development and management.

Revitalizing agriculture is critical for rural Indonesia's economic prosperity. Historically, Indonesia's dramatic poverty reduction was driven by progress in agriculture and agriculture continues to be a potent driver of growth and poverty alleviation. Agricultural sector growth strongly induces non-agricultural sector growth in rural areas, particularly through demand for locally produced and services. Agricultural sector productivity growth (along with price changes) has remained the most important way out of poverty.

This policy note, Environmental Management for a Sustainable Economic Development Strategy for Nanggroe Aceh Darussalam, investigates six environmental management topics which will affect the capacity of the province to develop the economy and need to be underpinned by strong environmental and natural resource management. The six topics cover: agriculture, forestry, fisheries, land and water, environmental law and regulations, and spatial planning.

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.

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.