This paper reviews the impact of Indonesian Government regulations on organic food supply chains and provides recommendations to assist in further development of these chains. It encompasses the marketing system for organic produce and consumer perceptions of organic food. The bulk of the discussion relates to the regulations associated with organic food and how these affect organic food supply chains. The paper outlines the regulations that organic food is subject to in relation to production, labelling, processing and food safety. A list of constraints to organic supply chains are identified by the author as high certification costs, limited locally produced organic food, inability for smallholders to sell organically produced food as organic, fraudulent organic certifications, unproven claims of organic status. Recommended actions to address these constraints are listed and focused on training in organic farming systems, grower group organisation, subsidies for certification and inspections to ensure compliance.
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Paper presented at the Regional Symposium on Marketing and Finance of the Organic Supply Chain, 23-26 September 2012, Seoul, Republic of Korea