Indonesia : Agriculture Public Expenditure Review 2010

The agriculture sector has been and will continue to be important for poverty alleviation efforts in Indonesia. Indonesia was very successful in increasing agriculture productivity during the 1970s and up to the early 1990s, but productivity stagnated during most of the 1990s, partly as a result of declining public investments. Public spending on agriculture has increased significantly in the last decade, but a large share of that spending has been allocated to subsidizing private inputs. The impact of public spending on productivity can be positive, but that depends on the composition of spending. While public goods and services will have a positive impact on growth, subsidizing private inputs is unlikely to have much of an impact. Reforms to the existing subsidies systems can be combined with continued assistance to poor farmers, while the freed up resources could be used to provide improved public goods and services. A reallocation of spending should be combined with renewed efforts to improve the efficiency through which key services are provided, in particular in the areas of R&D, extension services and irrigation.

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Bibliographic Details
Main Author: World Bank
Format: Public Expenditure Review biblioteca
Language:English
en_US
Published: Washington, DC 2010
Subjects:ACCOUNTING, AGRICULTURAL COMMODITIES, AGRICULTURAL DEVELOPMENT, AGRICULTURAL EMPLOYMENT, AGRICULTURAL EQUIPMENT, AGRICULTURAL EXTENSION, AGRICULTURAL EXTENSION SERVICES, AGRICULTURAL GROWTH, AGRICULTURAL INPUT, AGRICULTURAL INPUT MARKETS, AGRICULTURAL INPUTS, AGRICULTURAL MARKETING, AGRICULTURAL OUTPUT, AGRICULTURAL POLICIES, AGRICULTURAL POLICY, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTIVITY, AGRICULTURAL PRODUCTS, AGRICULTURAL RESEARCH, AGRICULTURAL RESEARCH AGENCY, AGRICULTURAL RESEARCH MANAGEMENT, AGRICULTURAL SCIENCE, AGRICULTURAL TECHNOLOGY, AGRICULTURAL UNIVERSITY, AGRICULTURAL WORKERS, AGRICULTURE, AGRICULTURE ORGANIZATION, AGRICULTURE RESEARCH, ANIMAL HEALTH, ARABLE LAND, CAPACITY BUILDING, CATTLE, CENTRAL GOVERNMENT SPENDING, CEREALS, CGIAR, CHEMICAL FERTILIZERS, COFFEE, COMMODITY PRICES, COMPARATIVE ADVANTAGE, COMPETITIVE GRANTS, COMPETITIVENESS, CONSUMERS, CROP, CROP LAND, CROP PRODUCTION, CROPPING, DEBT, DECENTRALIZATION, DEFICITS, DEFORESTATION, DEVELOPMENT AGENCY, DEVELOPMENT STRATEGY, DIMINISHING RETURNS, ECONOMIES OF SCALE, EXPORTS, EXTENSION AGENCY, EXTERNALITIES, FAO, FARMERS, FARMING, FARMLAND, FARMS, FINANCIAL CRISIS, FISCAL POLICY, FISH, FISHERIES, FOOD CROPS, FOOD PRICES, FOOD SECURITY, FORESTRY, FORESTRY RESEARCH, GDP, GDP PER CAPITA, GOVERNMENT SPENDING, GOVERNMENT SUBSIDIES, GRAIN, GREEN REVOLUTION, GROSS DOMESTIC PRODUCT, GROWTH POTENTIAL, GROWTH RATE, HARVEST, HIGH YIELDS, HUMAN CAPITAL, IARC, INCOME, INCOME SUPPORT, INCOMES, INDUSTRIALIZATION, INEFFICIENCY, INNOVATION, INSURANCE, INTEREST RATES, INTERNATIONAL AGRICULTURAL RESEARCH, INTERNATIONAL AGRICULTURAL RESEARCH CENTER, IRRIGATION, IRRIGATION SYSTEMS, LAND USE, LIVESTOCK, LIVESTOCK FEED, LOCAL GOVERNMENTS, MACROECONOMIC STABILITY, MAIZE, MAIZE YIELDS, MATCHING GRANTS, MOA, MULTIPLIER EFFECT, MULTIPLIER EFFECTS, NATIONAL BUDGET, NATIONAL BUDGETS, NATIONAL GOVERNMENTS, NEW TECHNOLOGIES, OPPORTUNITY COST, OPPORTUNITY COSTS, PALM OIL, PER CAPITA INCOME, POLITICAL POWER, POLLUTION, POSITIVE EXTERNALITIES, POTATOES, POVERTY ALLEVIATION, POVERTY REDUCTION, PRICE CONTROLS, PRIVATE GOODS, PRIVATE SECTOR, PRIVATE SECTOR INVESTMENT, PRIVATE SECTOR PARTICIPATION, PRODUCTION COSTS, PRODUCTIVITY GROWTH, PRODUCTIVITY INCREASES, PUBLIC, PUBLIC DEBT, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE ANALYSIS, PUBLIC EXPENDITURE REVIEW, PUBLIC EXPENDITURES, PUBLIC GOOD, PUBLIC GOODS, PUBLIC INVESTMENT, PUBLIC INVESTMENTS, PUBLIC PROCUREMENT, PUBLIC RESOURCES, PUBLIC SECTOR, PUBLIC SERVICES, PUBLIC SPENDING, PUBLIC WORKS, QUARANTINE, RICE, RICE YIELDS, RURAL INFRASTRUCTURE, RURAL ROADS, SAVINGS, SEEDS, SOCIAL WELFARE, SOIL EROSION, SOIL QUALITY, SUGAR, TECHNOLOGY ADOPTION, TECHNOLOGY TRANSFER, TOTAL FACTOR PRODUCTIVITY, VALUE ADDED, VEGETABLES, VOTERS, WAGES, WEALTH,
Online Access:http://documents.worldbank.org/curated/en/2010/01/16332530/indonesia-agriculture-public-expenditure-review-2010
http://hdl.handle.net/10986/13069
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Summary:The agriculture sector has been and will continue to be important for poverty alleviation efforts in Indonesia. Indonesia was very successful in increasing agriculture productivity during the 1970s and up to the early 1990s, but productivity stagnated during most of the 1990s, partly as a result of declining public investments. Public spending on agriculture has increased significantly in the last decade, but a large share of that spending has been allocated to subsidizing private inputs. The impact of public spending on productivity can be positive, but that depends on the composition of spending. While public goods and services will have a positive impact on growth, subsidizing private inputs is unlikely to have much of an impact. Reforms to the existing subsidies systems can be combined with continued assistance to poor farmers, while the freed up resources could be used to provide improved public goods and services. A reallocation of spending should be combined with renewed efforts to improve the efficiency through which key services are provided, in particular in the areas of R&D, extension services and irrigation.