Sustainable Management of Agricultural Research and Technology Dissemination (SMARTD) : A Strategic Framework
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Washington, DC
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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. To shift agriculture
along these dimensions, Indonesia needs to transition from
its current and ineffective public stance, growing subsidies
and selective output protection, to a more aggressive
provision of public goods and services that build support
systems for farmers to achieve continuous productivity
gains. This will require an enabling agriculture policy
environment, significant improvement in the delivery of
services, agricultural research and extension in particular,
and supporting enabling investments, which will encourage
small farmers to move to high value agricultural activities.
This will boost employment and raise incomes in rural areas
while creating a bigger rural market with greater trade and
investment opportunities.
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