Forty-six coffee companies in Indonesia have currently been certified, producing a total of 47,000 tons of certified coffee per year. This paper examines the challenges of sustainable farming system certification for coffee in Indonesia. Coffee companies were found to engage in coffee certification for a number of reasons, namely as a marketing tool, to reduce risk when prices fluctuate, to make it easier to gather coffee beans from farmers, and to receive a price premium.

This paper explores the implications for value chain structures within smallholder coffee systems across Indonesia arising from the establishment of externally authored environmental and social compliance systems. The paper discusses their implications, and sometimes contradictions, thereby highlighting the complexities of applying global ethics locally. These demands are pivotally changing the incentive structures for various value chain participants, leading to changing business strategies and the emergence of new institutional forms.

The growth of international specialty coffee markets has increased the demand for high-quality coffee production at origin, offering opportunities for smallholders to engage in product upgrading and potentially increase the farm-gate price of their coffee. This paper examines smallholder farmer engagement in specialty coffee production across the islands of Sulawesi and Flores.

The islands of Sulawesi and Flores are among the key Arabica coffee producing regions of Indonesia. In this paper, Hartatri et al. explore the effect of livelihood strategies on decision making processes of smallholder coffee farmers in South Sulawesi and Flores and how they affect farmer engagement with the growing specialty coffee market. The author's assumption is that the way coffee production is inserted within social and agro-ecological systems will affect the willingness of farmers to engage in quality upgrading initiatives.

This report presents a sector profile and value chain analysis of the coffee industry in East Nusa Tenggara, identifying the potential for improved smallholder coffee returns. The research shows that coffee in this region has considerable potential, not least because of its natural low acidity and high body flavour derived from its soil and climate.

Cocoa smallholders generally have limited contact with markets, leading to little awareness of product suitability, quality or choice of crop. This paper examines the characteristics of cocoa industries in Indonesia and Papua New Guinea, discusses key issues for improvement and sustainability of the industries, and describes research and development initiatives aimed at improving smallholder incomes. For Indonesia, the paper explores the Sulawesi cocoa industry.

Cocoa plays two major roles in the Indonesian economy, providing important export earnings and a source of employment for millions of rural smallholders. This research uses an Econometric Model to analyse the factors responsible for the Indonesian cocoa demand and to assess the impact of oil prices and interest rate policies on cocoa exports and production. It uses data from 1983 to 2002 and divides the cocoa production regions into four provinces: South Sulawesi, West Sulawesi, Central Sulawesi and East Java.

This paper examines factors that influence Indonesian cocoa exports and uses an econometric model to assess potential policy impacts. Results identified export price, cocoa production growth, exchange rate and time trend as significant influences on cocoa exports (R2 = 0.9473). The author concluded that a fertiliser price subsidy could be expected to increase Indonesia cocoa exports and production for cocoa smallholders.

This paper reports on the 'ACIAR cassava project in Indonesia', where a farmer participatory approach was used in an effort to increase the productivity of cassava-based cropping systems via adoption of higher yielding varieties and improved cultural practices. The report commences with a brief history of cassava research and development efforts in Indonesia, before providing quite an extensive methodology section outlining the farmer participatory research trials that were conducted.

Cashew is a major source of income for most farmers on the island of Flores. This article details the experience of developing organic cashew nut production in four villages in Flores based on a joint project between VECO Indonesia and Swisscontact. The project aimed to help farmers optimize the potential for cashew nuts through organic certification while maintaining a low input system of production.