Indonesia's cocoa boom: hands-off policy encourages smallholder dynamism

摘要: This case study of Sulawesi's cocoa market is a counterpoint to investigations highly regulated markets - agricultural and otherwise. The Indonesian island's rapid expansion surprised the world market, especially because it came mostly from smallholders.The authors examine smallholders'production marketing systems government policies implemented for smallholders identify any policy lessons that might be useful other countries. Following brief description what they found: 1) following factors contributed expansion: availability suitable land, low production costs, competitive system, relatively good transport infrastructure, favorable macroeconomic policies, smallholders'entrepreneurship; 2) until recent imposition value-added tax, Indonesia's left distribution freer interventions than many commodities. Other commodities were affected by direct involvement National Logistics Agency, price controls, exclusive trade licensing requirements; 3) as result farmgate in Indonesia about 90 percent f.o.b much higher share produced countries Indonesia. free system must maintained develop further; 4) some general have benefited subsector well others. Exchange rates been kept competitive, such absence export tax building basic infrastructure outer islands. Several issues addressed further developed: quality cocoa, adding-up problem (export revenues not increasing proportion quantities), recently imposed pod-borer, marketing, research, retribution, local repressing, environmental problems, governmental now being discussed sector. Government industry also resist natural temptation current players become more conservative, protect their interests.