Pustaka Ilmiah Universitas Padjadjaran

Abstrak

The Role of PPP in Agricultural Value Chains:Case of Indonesia

Developing country governments and donors are increasingly looking to public–private partnerships (PPPs) to deliver growth and positive development outcomes in agriculture. In Indonesia, PPPs in agriculture are a relatively new concept, having been used previously for large-scale infrastructure projects. The government has been working with IFAD and the private sector (Mars) in an attempt to boost smallholder farmers’ livelihoods by reversing the steady decline in cocoa production due to ageing trees, poor soil conditions, pests and diseases, and outdated farming practices. Indonesia’s cocoa value chain PPP was one element of the government’s Rural Empowerment and Agricultural Development (READ) Programme (2009-2014), funded by IFAD and implemented through the Ministry of Agriculture. READ aimed to improve rural infrastructure and overcome productivity constraints (not just for cocoa, but for other crops and non-farm activities too). The PPP began in 2012, as one part of the redesigned READ programme, in response to problems identified during READ’s midterm review. The PPP’s main focus was on raising cocoa productivity among smallholder farmers. The government acknowledged that the Ministry of Agriculture lacked the technical know-how to effectively support small farmers to raise productivity, so needed to tap into private sector expertise. Mars had already established its Sustainable Cocoa Initiative in Sulawesi Selatan, piloting a productivity package designed to support sustainable, high-quality and high-productivity cocoa production among small farmers.