2017年-世界发展银行全球_The_Economics_of_Clove_Farming_in_Indonesia_60页_1mb

Summary of the Economics of Clove Farming in Indonesia

Core Content

This report provides an in-depth analysis of the economic livelihoods of clove farmers in Indonesia, focusing on their role in the broader tobacco industry and the potential impacts of tax reforms on their economic stability. It is part of the Indonesia Tobacco Employment Studies, conducted by the World Bank and the American Cancer Society, and includes findings from a comprehensive survey of 600 clove farmers in the two largest clove-growing regions: Sulawesi and Central Java.

Main Findings

• Indonesia's Dominance in Clove Production: Indonesia is the world's largest producer of cloves, accounting for over 70% of global production. The tobacco industry, particularly the kretek sector, purchases around 90% of the annual clove harvest.
• Clove Farming as a Secondary Activity: Clove farming constitutes only a small portion of the total economic activity for most households. Over half of the households derived less than 20% of their income from cloves, indicating that clove farming is not the primary source of livelihood.
• Economic Viability: Clove farming is not highly profitable for many farmers, especially in regions like Minahasa. After accounting for household labor costs, the average clove-farming household loses more than $2 per kilogram.
• Poverty Levels: Clove-farming households are generally poorer than the average Indonesian household, with 37% of them falling below the poverty line compared to 11.1% nationally.
• Labor Intensity and Employment: Clove farming involves intermittent labor, mainly concentrated during harvest and post-harvest periods. Full-time equivalent employment is low due to the seasonal nature of the work.
• Potential for Reallocation: Many clove-growing households are capable of reallocating their resources (land, labor, capital) to other economic activities, such as alternative crops or small businesses, if clove farming becomes less viable.
• Land Use: Clove farming is often conducted on land that could be better used for more economically viable activities, especially in regions where alternative cash crops like rice or corn are feasible.

Key Recommendations

• Research and Support for Alternatives: The government should research and support alternative livelihoods, especially in less viable clove-growing areas such as Minahasa.
• Enhance Agricultural Extension Services: Improve access to agricultural extension services for non-clove crops to support farmers in transitioning.
• Educational and Financial Assistance: Provide educational grants to improve agricultural management skills and offer low-interest loans or grants to farmers willing to switch to alternative crops or small businesses.
• Strengthen Value Chains: Enhance the supply and value chains for alternative local crops to make them more attractive and viable for clove farmers.
• Targeted Policy Interventions: Focus on areas where clove farming is least profitable and implement targeted assistance to help farmers transition smoothly.

Methodology

• The report is based on a household-level survey of 600 clove farmers in North Sulawesi and Central Java.
• The survey was designed to capture a wide range of economic activities, including both clove and non-clove farming, as well as other sources of income.
• It included data on household assets, labor costs, income sources, and alternative economic opportunities.
• The survey also examined socio-demographic characteristics, food security, and access to social safety nets.

Limitations and Conclusion

• The study acknowledges limitations in data collection, particularly in the scope of labor statistics and the representativeness of the sample.
• The conclusion emphasizes that while clove farming is not the main source of income for most households, it is still a significant part of their economic activity. Tax reforms affecting the kretek industry may not have a large negative impact on clove farmers due to their ability to reallocate resources to other economic activities.
• The report highlights the importance of supporting clove farmers in transitioning to more profitable and sustainable livelihoods through targeted interventions and improved access to financial and educational resources.

Key Statistics

• Clove Production: Over 70% of global clove production is from Indonesia, with the tobacco industry purchasing about 90% of the annual harvest.
• Household Size: On average, clove-farming households consist of four people.
• Land Use: Clove-farming households own and cultivate land, with median sizes varying by region (e.g., 2 hectares in Minahasa, 1 hectare in Wonogiri).
• Income Levels: The average daily income from clove farming is $7.93, slightly above the overall survey average of $7.32, but most households work fewer than four months in clove farming.
• Poverty Rate: 37% of clove-farming households are below the national poverty line.

Conclusion

The economic role of clove farming in Indonesia is significant but not dominant. The study provides valuable insights into the livelihoods of clove farmers, highlighting the need for supportive policies to ensure a smooth transition to alternative economic activities in the event of tobacco tax reforms. The findings suggest that clove farmers are generally adaptable and can benefit from targeted interventions to improve their economic outcomes.