FAO in Indonesia

The Ministry of Villages, Disadvantaged Regions and Transmigration, ILO, and FAO signed a partnership agreement on decent work for Food Security and Sustainable Rural Development (DW4FS-SRD) Programme in NTT Province

29/05/2015

"The objective of the programme is to promote food security and sustainable poverty reduction of rural communities in the most vulnerable and disadvantaged districts of Indonesia's NTT province, through increased labour productivity, enhanced employment opportunities and expanding entrepreneurial opportunities in the fields of agriculture, fishery, and livestock to improve incomes," says Villages, Disadvantaged Regions and Transmigration Minister Marwan Jafar after signing the Partnership Agreement with ILO and FAO in Jakarta.

President Joko Widodo and Vice President Jusuf Kalla have set out development priorities for their term called NAWA CITA or Nine Priorities Agenda. The Ministry of Villages, Disadvantaged Regions and Transmigration is responsible to carry out the third agenda, which is to develop Indonesia's outer regions by empowering the districts and villages to strengthen the country's sovereignty.

DW4FS-SRD program is in line with the main target of the Ministry of Villages, Disadvantaged Regions and Transmigration, which is to develop the rural areas. This is mentioned in the Presidential Decree Number 12 Year 2015: Ministry of Villages, Disadvantaged Regions and Transmigration duties are 1) develop the villages and rural areas, 2) empower rural people, 3) accelerate the development in the disadvantaged regions and 4) in transmigration areas in helping the President on his duties.

DW4FS Project:

  • The project is a partnership agreement between the Ministry of Villages, FAO, and ILO to conduct a decent work for food security and sustainable rural development in the NTT province, in the period of 3 years. The Ministry of Villages will lead the joint program.
  • The objective of the programme is to promote food security and sustainable poverty reduction of rural communities in the most vulnerable and disadvantaged districts of Indonesia's NTT province, through increased labour productivity, enhanced employment opportunities that comply with the principles of decent work, and expanding entrepreneurial skill in the agriculture sector. The programme will be implemented in four districts of NTT (namely, Belu, Kupang, East Sumba District, and Timor Tengah Selatan). It will benefit overall a total of at least 10,000 persons/farmers and their families; in addition, there will also be additional program for beneficiaries outside agricultural fields. During the early phase, the target will be adjusted to be more specific.

Focus of the Program:

  • Promotion of decent employment, improved working conditions, better access to social protection and a conducive environment for job creation in selected value chains through social dialogue;
  • Promotion of sustainable agricultural practices, productivity and improvement of processing for the selected commodities, namely maize, seaweed and livestock;
  • Improvement of entrepreneurship opportunities and access to finance, employability and skills in selected value chains and related sectors of the local economy;
  • Promotion of better access to rural infrastructure and land improvement services.

This joint program will require an expected total budget USD 21.7 million, comprised of two main components: (1) technical assistance (USD 12 million); and (2) investment (equipment and infrastructure) (USD 10 million). The fund is yet fully available.

Each party has taken initiatives according to their ability and authority. Some of the activities are:

  • In 2014, ILO has committed to initiate support on experts, advocacy and training in cattle breeding in Kupang worth USD 1.2 million.
  • In 2014, FAO has committed through Technical Co-operation Programme worth USD 350,000 on activities to create added value on seaweed.
  • In 2014, Ministry of Disadvantaged Regions has allocated resources in the four target locations on corn cultivation, seaweed farming, and livestock production. However, due to the creation of new Ministries under the new government, program and functions adjustment is needed to comply with the new authority.
  • The project will be coordinated through the Ministry of National Development Planning (Bappenas) to seek external funding.
  • Contributions from development partners, other ministries, or donors are expected to cover the funding requirements.

FAO and ILO are international institutions committed to partner with the Ministry of Villages, Disadvantaged Regions and Transmigration to support rural development as part of national priorities set by President Jokowi.

The partnership initiative will become a milestone in the multidimensional global partnership to create decent jobs for farmers and to improve rural incomes in NTT in key agro-food value chains – particularly for maize, seaweed and beef.

"This comprehensive initiative, supported by several partners is expected to make a real difference towards the eradication of food insecurity, malnutrition and poverty in rural areas of the eastern Provinces of Indonesia," Mark Smulders, FAO Representative in Indonesia stated.

The joint effort between the government of Indonesia and two international bodies is expected to become a model of rural development for other areas, especially villages near the state borders and villages with special needs.

Indonesia's initiative in the rural development with FAO and ILO as partners has spurred optimism in the United Nations that Indonesia will be able to tackle the issue of poverty and malnutrition through job creation and working conditions that align with international standards.

For the ILO, decent work is the principal way out of poverty and hunger. Drawing on its extensive experiences and success in implementing employment and income generating projects, the ILO is looking forward to working with agencies such as FAO and other key stakeholders on promoting Decent Work for Food Security and Rural Development. ILO hopes this joint support will contribute to improve the lives of the vulnerable workers in NTT.

"We look forward to working with the Government of Indonesia and the FAO in assisting capacity development, technical inputs and policy advice through this project. We want to ensure that the farmers of NTT have secure livelihoods for themselves, for their families and for their communities," said Michiko Miyamoto, Officer-in-Charge of ILO in Indonesia.