| Country Partnership Strategy in Agriculture and Forestry Sector with Indonesia | |||
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| Author | Kim, Jongsun | ||
| Views | 51697 | Publication Date | 2021.03.15 |
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Background and Purpose ○The Republic of Indonesia is a country that includes agricultural development (rural development) as one of the key areas of cooperation in Korea’s Country Partnership Strategy (CPS) for Indonesia and it continues cooperation projects in the agricultural and rural sector with the Korean government. Moreover, the Republic of Indonesia is one of the key countries that the Ministry of Agriculture, Food, and Rural Affairs of Korea (MAFRA) selects for overseas agricultural resources development. Four private companies from Korea reported business operation plans for overseas agricultural resources development and currently operate business in the Republic of Indonesia. ○While the Country Partnership Strategy for the Republic of Indonesia includes key areas such as transportation, public administration, environment protection, water resource management, the agriculture and rural sector is not included in the CPS. This has caused a poor strategy for systematic development cooperation in Indonesia’s agricultural industry. ○This study intends to suggest an implementation strategy for development cooperation with the Republic of Indonesia, by analyzing the current status of the agriculture and forestry sector and the value chain of the key cooperation areas in Indonesia. Research Methodology ○For this study, we used a literature review on the current status of Indonesian agriculture and agricultural policies. We utilized data and documents of the Export-Import Bank of Korea (K-EXIM) and the Organization for Economic Cooperation and Development (OECD) to identify the flow of development cooperation in the Republic of Indonesia. ○As the field study for this research was not possible due to COVID-19, the KREI commissioned a research project for agricultural extension services and the added values of the rice sector in Indonesia to the Brawijaya University of Indonesia. The university carried out the commissioned research from July to October 2020. ○We surveyed online to collect opinions from a total of thirty-one agricultural experts on Indonesian agriculture (10 Korean experts and 21 Indonesian experts) from September 21st to October 23rd, 2020. Based on the result, we analyzed the sectoral and sub-sectoral importance of the agricultural value chain, by adopting the analytic hierarchy process (AHP) model. We used the analysis outcome to establish an implementation strategy for development cooperation. Key Findings ○The Republic of Indonesia produces palm oil, which accounts for 55.4% of the world’s total production. It is also a country known for the second-largest rubber production, the third-largest cacao production, and the fourth-largest coffee production. It cultivates a variety of agricultural goods. It is a producer of a massive amount of food crops, including rice and maize. Although it is the third-largest rice producer in the world, it imports a large amount of rice due to an increase in the local population and the reducing farmland. ○The Indonesian government established the Strategic Plan of the Indonesian Ministry of Agriculture 2020~2024 as one of the mid-term development plans. The main objectives of the plan are as follows: 1) national food security, 2) increasing competitiveness and agricultural products’ values, 3) agricultural resources’ sustainability and infrastructure’s availability, 4) improvement of agricultural workforce, 5) achieving efficiency in service-oriented administration. (For more information, please refer to the report.) |
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