Page 8 - sr_2012.pdf

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DECADE
According to McKinseyi, Indonesia will become the 7th largest economy in the
world by 2030. Indonesia’s middleclass will grow by another 90 million. This
rising demand will eventually take a toll on the country’s natural resources.
In terms of food security, Indonesia is pursuing an ambitious programme
to increase yields and output so that it can become self-reliant and a net
exporter of basic food staples. Indonesia also aims to strengthen the value
chains in industries where it has global competitive advantages, such as
the palm oil sector.
However, agricultural expansion, driven by both smallholders and large-scale
agriculture organisations, has become the country’s major contributor of
carbon emissions and environmental issues. Land-use changes account
for 70% of Indonesia’s total Green House Gas (GHG) emissions, and the
attrition of Indonesia’s unique ecology and rainforests. A significant part of
the solution lies in sustainable farming.
In 2012, the Indonesian government developed the Partnership for Indonesia
Sustainable Agriculture (PISAgro) with both Indonesian and international
companies. PISAgro leverages on the World Economic Forum’s (WEF) New
Vision for Agriculture as its dialogue platform.
The Public-Private Partnership provides an innovative, multi-stakeholder
model for addressing Indonesia’s agricultural challenges. The principle of
this partnership is based on the WEF Vision of 20-20-20. PT Indofood Sukses
Makmur Tbk (ISM) is one of the founding members of this partnership.
Since 2010, the Indonesian government, through its Indonesia’s National
Mitigation Actions programme and National Action Plan for Reducing
Greenhouse Gas Emissions (RAN - GRK Rencana Aksi Nasional Penurunan
Emisi Gas Rumah Kaca), has aimed to cut carbon emissions from “business
as usual” by 26% by 2020, with an additional 15% contingent upon receiving
international support. The focus sectors for GHG reductions are forestry,
peat lands, agriculture, energy, industry, transportation, and waste sectors ii.
These global initiatives have led to new legislations in Indonesia. By the end
of 2014, all palm oil plantations will have to start ISPO certification process.
In May 2013, Indonesia’s President, Susilo Bambang Yudhoyono, further
imposed a two-year moratorium, covering 64 million hectares of primary
forests and peat lands, on new forest concessions.
Indonesia has over eight million hectares of oil palms to date. It is projected
to reach 10 million hectares by 2015. Small farmers account for 40% of
total planted area. As the industry grows, there is a need for a clear system
of measurement and monitoring by the government and industry leaders
in order to move towards sustainable practices in agriculture iii.
challenges in indonesia
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