Poor Farmer Income Improvement Through Innovation Project :
Indonesia
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Summary
Poor Farmer Income Improvement Through Innovation Project :
Indonesia
Timetable
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Financing Plan and Loan Utilization
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Project Outcome
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Implementation Progress
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Status of Covenants
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Loan Name
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Poor Farmer Income Improvement Through Innovation Project |
| Country |
Indonesia |
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Loan Number
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1909 |
| Project Number |
34112- 01 |
| Fund Source/Amount[Closed] |
| Asian Development Fund |
US$56.00
million
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|
| Thematic Classification |
Economic growth
Social Development
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| Description |
The long-term development goal is increased innovation in agricultural production and marketing by poor farmers. The immediate objectives of the Project are (i) improved targeting of village-level public investments to locations-specific needs, (ii) increased access of poor farmers to information, and (iii) a reorientation of the focus of agricultural research to the needs of marginal rainfed areas. The Project will comprise four components to be implemented over 5 years: (i) poor farmer empowerment, (ii) development of national and local agricultural information resources, (iii) support for agricultural innovation development and dissemination, and (iv) project management.
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| Project Rationale |
To improve their incomes, poor farmers have to be able to innovate in agricultural production and marketing in response to market opportunities. However, they are constrained from doing so because of a lack of appropriate technologies, village-level investmsents in public goods, and access to information. While the Government is taking steps to fill the gaps in providing public goods support for agriculture, and increasingly for nonrice crops, additional support is needed to target village-level public investments to the needs of poor farmers, to increase the access of poor farmers to information, and to increase the availability of technologies needed by poor farmers. The Project responds to the above by empowering farmers to undertake simple village-level investments, providing support for the development of proper technologies for rainfed areas, and providing them with the relevant information resources.
The Project directly addresses the focal points of ADB's country operation strategy (COS), which include creating and strengthening basic institutions; improving regional equity, especially targeting rural areas and less-developed islands, undertaking human and social development, and enhancing the role of women. The COS emphasizes participatory project design and administration and highlights the benefits of diverse and stable cropping systems, the development of rural infrastructure, and access to finance. The Project is in line with COS as it supports a demand driven and participatory process of agricultural innovation, and a tranparent and inclusive implementation approach. |
| Impact |
Increased innovation in agricultural production and marketing by poor farmers.
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| Project Outcome |
| Outcome |
Progress Toward Outcome |
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Preliminary Results of Village Mapping as of September 2009. An assessment using log frame indicators conducted on all 1,067 project villages revealed that 72% or 871 villages are highly successful and successful. Criteria generally achieved are: (i) farmers contribution to village infrastructure investment, (ii) increase farm production, and (iii) percentage of poor farmers as beneficiaries. The remaining 296 (27.47%) are to yet to achieve the followings: (i) transforming farmers group into a business entity, (ii) institutionalize operation and maintenance of infrastructure, (iii) change from subsistence to commercial farming, and (iv) integrate village institutions into village administrative structure.
Findings of the benefits assessment (IA) conducted on 4,200 households in 5 districts showed that benefits have accrued to the beneficiary farmers as follows: High FIRRs (14-151%), NPV of Rp 56 million - Rp 5,180 million, B/C ratio of 1.1 - 4.1, as also production increases of more than 35%, ranging from 31 to 48%, reduced post-harvest loss averaging 21% with a range of 10-30% and income growth of 30-50% and improved ex-farm market price from 10-20%. Altogether about 80% of the target farmers experienced benefits from the Project (range 43-90%). This is collaborated by the satisfaction survey showing that 90% of the target farmers were satisfied with the Project (87-93%). Gender mainstreaming was successful with hard evidence indicating high accessibility of women farmers to agriculture technologies.
Farmers in the villages where investments have commenced are satisfied with the quality of investments. Proportion of poor farmers among the beneficiaries has been re-assessed in 2009 and estimated at 80%.
Print media, VCD/DVDs, radio and television are being used to disseminate information and technology to farmers. Adequacy of information dissemination in remote locations was consistently stepped up in the last 18-month extension of the Project.
An action plan for revitalizing relevant research program of national and regional agricultural research institutes, with increased budgetary provision has been prepared and included in the 2005-2009 strategic plan of the Ministry.
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| Implementation Progress |
| Outputs |
Status of Implementation
Progress (Outputs, Activities and Issues) |
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Implementation progress of the individual components is estimated as follows:
A. Poor Farmers Empowerment (47%): Investment activities were planned for 520 villages and completed in 403 villages. Village public investments consist of construction of farm-to-market roads, storage facilities, minor irrigation schemes, technology assistance, farmer training, information technology, soil and water conservation activities, and rural markets.
B. Development of National and Local Agricultural Information (45%) A national farming website has been established under URL-Address: http://portalagribisnis.deptan.go.id//.
C. Support for Agricultural Innovation Development and Dissemination (64%): Several technologies required by poor farmers in the Project areas have been identified and the IAARD has generated and developed required technologies. .
D. Project Management (49%): The PCMU and the 5 PIUs have been established and have been fully operating in project management and coordination activities. Establishment of project offices including posting of key personnel completed, procurement of office equipment and vehicles ongoing with about 50% of total requirements procured. The consulting firm and national and local NGOs are fielded.
As of Project Completion of 31 October 2010:
Component A: Poverty targeting of poor farmers has been strengthened beyond the targeting of poor districts because village investments were targeted to poorer villages within these poor districts. Villages within the target districs have been ranked according to their poverty incidence based on available village data. Only villages wtih more than 40% of households classifieds as not yet prosperous or minimally prosperous were included in the Project.
Component B: Even at project closure, the PFI3P Project will still continue its activities. The main stakeholders will have to continue the project, especially the Indonesian Agency for Agricultural Research & Development (IAARD) (the former EA), the empowered farmers, other related government sector institutions, NGOs (as the beneficiaries), and local government authorities.
Component C: The development assistance requires greater and closer coordination among the different government and non-government bodies to be more efficient and effective to avoid unnecessary waste of resources, and expand the benefits from development investments. As a result of the availability of technology and innovation for the marginal rainfed dry areas, the farmers have begun to recolonize the previously idel land in their villages. Thus, this Project has been instrumental in the extensification of agricultural production.
Component D: A well-structured program on farmers' mobilization, empowerment, human resource building, accessibility of information/technology, and village institutional strengthening were systematically carried out to prepare the farmers in carrying out the activities designed to help them improve their farming and marketing operations. Hence, the farmers are able to improve their standards of living through their improved understanding and readiness to apply what they learned.
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| Geographical Location |
Districts of Temanggung and Blora in Central Java, East Lombok in West Nusa Tenggara, Ende and East Nusa Tenggara, and Donggala in Central Sulawesi. |
Safeguard Categories
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| Environment |
B |
| Summary of Environmental and Social Issues |
| Environmental Aspects |
The initial environmental examination (IEE) of the sample subprojects has shown that the Project would not create any significant environmental impacts. The minor environmental impacts associated with increasing agriculture productivity will be minor and mainly relate to increased exposure to agrochemicals, and therefore could potentially increase health problems related to agrochemical use. To mitigate, training on health and safety for utilizing agrochemicals will be included in the curriculum of the village facilitator training program. The other potential impacts are primarily related to civl works, particularly for rehabilitation and improvement of village roads and irrigation. Mitigation measures to address environmental impacts are provided in the management plan of the IEE.
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| Stakeholder Participation and Consultation |
| During Project Design |
Identified during project appraisal.
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| During Project Implementation |
Stakeholder consultations were undertaken.
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| Responsible ADB Officer |
Agustina Musa
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| Responsible ADB Department |
Southeast Asia Department
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| Responsible ADB Division |
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| Executing Agencies |
Ministry of Agriculture
Secretary General
JL Harsono, Rm. No. 3 Pasar Minggu Jakarta 12550
Agency for Agricultural Research and Development
Dr. Gatot Irianto
Director General
Jalan Ragunan No. 29 Pasar Minggu Jakarta 12540 Republic of Indonesia
Agency for Research & Development
Dr. Haryono
Secretary of IAARD
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| Concept Clearance |
08 Mar 2001 |
| Fact-finding |
23 Jul 2001 to
24 Aug 2001 |
| Appraisal |
01 Apr 2002 to 11 Apr 2002 |
| Board Approval |
15 Aug 2002 |
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CLOSING |
| Loan No. |
Approval |
Signing |
Effectivity |
Original |
Revised |
Actual |
| 1909-INO |
15 Aug 02 |
17 Jan 03 |
17 Jul 03 |
30 Jun 08 |
31 Oct 10 |
05 Jan 11 |
| |
TOTAL (
Amount in US$ million) |
| Project Cost |
56.00
|
| ADB |
56.00
|
| Counterpart |
0.00
|
| Cofinancing |
0.00
|
|
| Date |
ADB |
OTHERS |
Net Percentage |
| Cumulative Contract
Awards |
| 10 Feb 2012 |
49.190
|
|
97%
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| Cumulative
Disbursements |
|
10 Feb 2012 |
50.765
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100%
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| Category |
Sector |
Social |
Financial |
Economic |
Others |
Safe |
| Rating |
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Satisfactory
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Satisfactory
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Satisfactory
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Satisfactory
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