Smallholder Adoption of Tree Crops: A Case Study of Cocoa in Sulawesi

Tree crops play an important role in the Indonesian economy. A large share of these crops is grown by smallholders, most of whom have not been assisted in any way by government policies. In order to assess the future potential for tree crops, it would be useful to know what factors determine smallholder tree crop adoption. This paper uses survey data from Sulawesi to assess the role of such factors as education, land ownership and information in explaining the adoption of cocoa, a new tree crop introduced into the region in the late 1970s.     

Obstacles to ‘Catch-Up’: The Case of the Indonesian Aircraft Industry

This paper examines the development of the Indonesian aircraft industry. Despite the accumulation of considerable engineering and production capabilities, technical competence has not been a sufficient condition for commercial success. An important reason for the asymmetry between technical accomplishment and performance is underdeveloped managerial capacity. This case raises questions about the viability of policies intended to promote technological ‘catch up’ in complex industries.     

Producing and Procuring Horticultural Crops with Chinese Characteristics: The Case of Northern China

The main goal of our paper is to understand what types of farmers have been able to participate in the horticultural revolution, how they interact with markets and how supply chains affect their production decisions and incomes. We also want to understand if the rise of supermarkets has changed supply chains. Our analysis uses spatially sampled data from 200 communities and 500 households in the Greater Beijing area. In contrast to fears of some researchers, we find small and poor farmers actively participate in the emergence of China’s horticulture economy. Moreover, there has been almost no penetration of modern wholesalers or retailers into rural communities.     

Indonesian Trade Reform in Close-Up: The Steel and Footwear Experiences 1

In evaluating the widespread trade liberalisation that has occurred in Indonesia since 1983, it is important not to lose sight of the uneveness of many of the reforms, both intra- and inter-industry, that have been implemented. Different industry structures help to account for the different degrees of reform delivered within and between industries. This paper examines the extent and implications of the liberalisation process in two structurally diverse industries — steel and footwear. One objective of this paper is to illustrate the consequences for competitiveness of the reform sequence and the instruments of reform; another is to highlight the impediments to further progress.     

The Quality of Smallholder Cloves in Maluku: The Local Response to Domestic Demand for a High-Quality Product 1

Indonesia's cloves meet higher quality Standards than most of her other agricultural commodilies. This paper presents the results of research on Ambon, Maluku, whose smallholder clove farming System is representative of the principal system used by Indonesien clove producers, in which cloves form part of a well-diversified agricultural portfolio. The paper examines the clove marketing system, the factors involved in clove quality, and the system of quality premia and penalties applied in the marketing of cloves. The largest buyers of cloves, the major kretek cigarette companies, demand high-quality produce, because of the highly competitive domestic market and their more recent attempts to penetrate the international market. These buyers transmit their preferences along the marketing chain through the well-defined incentive system, while poorer quality cloves are bought by smaller kretek producers. The result is a system in which high quality standards are maintained.