INDONESIAN AGRICULTURAL-DEVELOPMENT - THE AWKWARD CASE OF SMALLHOLDER TREE CROPS

The problems of transforming smallholder tree crops from traditional low-yielding to modern high-yielding technology are examined, using a meta production function approach to analyse the changes. The role of government in transformation is considered, and various 'individual' and 'block' improvement schemes implemented since the 1950s are analysed. Many of these schemes have not been successful owing to poor planning and inadequate managerial and financial support, and their coverage has been small in relation to the huge areas needing improvement. The paper suggests a more modest 'dispersal' approach to transformation, concerned with setting up nurseries to provide better quality planting material and advice to individual farmers. But even this revised approach should be carefully planned and executed in light of previous mistakes, if it is to have widespread impact.