From Certification to Growth: Why Smallholder Productivity Matters for Indonesia’s Economy
Penulis
Hasran
Rahmad Supriyanto
Independent smallholder farmers (ISH) are responsible for a significant portion of Indonesia’s palm fruit plantation, but their productivity is the lowest among types of palm fruit farmers. Sustainability certification is one pathway to increasing palm oil productivity. The relationship between certification and increased productivity is well established in the academic literature, but studies have rarely examined its effects on macroeconomic conditions. This study examines the impact of increased ISH palm oil productivity associated with increased certification on Indonesian economic outcomes. Using the GTAP model, our study assesses the impact of increases in ISH productivity on Indonesia’s macroeconomic outcomes. Our analysis contributes to the policy debate that if Indonesia seeks to amplify the contribution of palm oil to its economy, increasing the productivity of ISH will be critical.
Krisna Gupta
