Sulawesi's Cocoa Boom: Lessons of Smallholder Dynamism and a Hands-Off Policy

Abstract

The rapid expansion of cocoa production on the Indonesian island of Sulawesi over the last decade surprised the world, not least because it came mainly from smallholders This paper examines government policies that have affected the subsector, and identifies issues it faces. The study concludes that the following factors contributed to the expansion, the availability of suitable land; low production costs; a highly competitive marketing system (a result of the government s policy of limited intervention), relatively good transport infrastructure, favourable macroeconomic policies, and smallholder entrepreneurship. It is particularly important that Indonesia s government left cocoa marketing and distribution free of many of the interventions applied to other commodities. Because of the competitive marketing system, the farmgate price of cocoa in Indonesia is very high relative to the export price Issues that must be addressed if cocoa is to develop further include product quality, the 'adding-up' problem, pest control and VAT.

Agricultural Intensification in Indonesia: Outside Pressures and Indigenous Strategies

“…Either the trees themselves become the most important component (Peluso, 1996) or the trees form part of a total landscape manipulated by the community as a means of resisting outside pressure (Mayer, 1996). Before exploring these ideas in more detail, let us examine the situation in part of Sulawesi, which in recent years has experienced a smallholder-led boom in cocoa (Jamal and Pomp, 1993;Akiyama and Nishio, 1997). Li and Mamar (1991) in their study of the Tinombo region of Central Sulawesi, describe a district in which isolation and a lack of desired timber species enabled indigenous people to pursue their agricultural strategies undisturbed by either logging companies or officials.…”

Gender Participation in Palm Sugar Processing in Kolaka District of Southeast Sulawesi

“…Villagers' perception of palm sugar processing as men's work might have also related to the existence of estate crops. Kolaka District was once well-known as the production center of cocoa and clove [34,35], both of which provided high returns and prosperity to the farmers. During this period, the status of cocoa and clove as t he primary source of income was formed and fostered.…”

Prioritizing Commodities in Southeast Sulawesi Province of Indonesia Using AHP Based Borda Count Method

“…Discussions Tables 2-7 show that each district has its own priority commodities depending on its agroecological and socio-economic conditions. For example, cocoa obtained the highest weight in Kolaka district, which is well known in Indonesia as the production center of cocoa (Akiyama & Nishio, 1997). The first ranked commodity in Buton district is cashew nut, which grows well and has long been produced in the district (Zani, 2012).…”