Facilitating Smallholder Farmers’ Market Access
In the OIC Member Countries
67
forests and marine ecosystems. In recent years, forest fires and the degradation of land
and peat forests have heightened greenhouse gas emissions and threatened air quality in
Indonesia and neighboring countries. The government has moved ahead with initiatives to
improve governance and accountability in the forest and land sector, supported in part by
a grant from Norway under REDD+, a United Nations initiative to limit greenhouse gas
emissions from deforestation and forest degradation and to support conservation and
sustainable forest management. The government is also working with the World Bank and
other donors to improve land tenure policies, forest policies, and forest governance at the
national, provincial, and district levels.132
An important consideration is that growth in total factor productivity has been strong in
Indonesian agriculture, implying that much agricultural growth has come from using
resources more efficiently. compares rates of productivity growth in selected
developed and developing countries. Although productivity gains have ebbed and flowed
in Indonesia, the consistent improvement in agricultural productivity across five decades
has been a major driver of income gains in the sector.
To sustain agricultural growth, Indonesia must protect the natural resources that support
agriculture and use those resources more efficiently by achieving continued
improvements in productivity. These two objectives are central to Indonesia’s agricultural
policy.
132 World Bank (2014b).
FIGURE 38: PER CAPITA PRODUCTION INDICES FOR INDONESIA, 1961–2010
Source: FAOSTAT (FAO 2014).