Agriculture in crisis : people, commodities and natural resources in Indonesia, 1996-2000
The primary objective is to review the impact of the monetary and political crisis on Indonesia's agricultural sector and more specifically on farmer incomes and how they are used. In the event of an increase, what investment, consumption, and possibly savings, decisions are made? In 1998, the first year of the crisis, millions of export-oriented tree crop farmers benefited from the currency depreciation and enjoyed a windfall in real terms. What happens to suddenly 'rich' cocoa, coffee and pepper farmers when their country is hit by a severe economic, financial and political crisis while domestic prices for formers' crops are very high? Then in 1999 and 2000, smallholders were suddenly faced with the collapse of world agricultural commodity prices, partly due to sudden currency depreciation in Asia and Brazil. What are the mechanisms involved in such cases? In 1999 and 2000, most tree crop farmers were hit head on by yet another world price slump, placing them alongside the food crop farmers who were already trapped. In the event of a sudden decrease in prices and revenues, what adjustments are made in terms of consumption, possible de-capitalization, and organizing survival?