Honorable Chairperson,
His Excellency,
Mr. Paul Kagame,
President of the Republic of Rwanda
His Excellency, Mr. Mario Monti, Prime Minister of the Italian Republic
Honorable Ministers
Excellencies Fellow Governors,
His Excellency Mr. Kanayo Nwanze, IFAD President,
Distinguish delegates
Ladies and Gentlemen,

It is a great honor and privilege for me to speak on behalf of the Government of Indonesia in this important forum that discuss very crucial issue in this world, poverty in rural area, and agriculture where mostly the population of this world depend their lives. Firstly, I would like to express my sincere appreciation and thanks to the President of IFAD and his staff for their untiring efforts and excellent work to ensure the success of this important meeting of the 35th Governing Council of IFAD.

On this occasion, I would also like to commend IFAD for being an organization at the front line in supporting the smaller farmers —men, women and youth— to enable them to eradicate poverty in rural areas by promoting sustainable agriculture development.

Distinguished Board and Governors,
Ladies and Gentlemen,

At the outset, I would like to express my appreciation to IFAD for having organized the 9th Replenishment and successfully gained strong to support from member countries. Gaining the pledge is indeed tough responsibility amidst global economic difficult situation and we appreciate IFAD’s work on this agenda. We see the urgency for IFAD having sufficient resources in order to support poor countries to tackle the global challenges of agricultural development, in particular food security. In this regard, Indonesia ensures its support and has committed to increase the contribution in 9th Replenishment to 100% compared to the contribution in 8th Replenishment.

I would also like to emphasize that IFAD keeps being efficient and transparent in its operation.

Distinguished Board of Governors,
Ladies and Gentlemen,

In Indonesia, agriculture sector plays important role in our economy, of which accounts for 14,3% of GDP in 2011, the second biggest sector contribute to GDP after manufacturing sector. Its role remains critical as two-thirds of our population live in rural area and 36% of labor force work in the agriculture sector. In the efforts of eradicating poverty, Indonesia has set up The 2010-2014 National Medium-Term Priority Framework for Agriculture. In medium term planning, one of Agriculture focus is on the revitalization of the agricultural sector an gaining competitive advantages within the national and global economies.

We thank to IFAD support in some Indonesia projects which has been in line with Indonesian planning and look forward further IFAD’s engagement with agriculture in Indonesia. Accordingly, we view that IFAD programs should continue to provide incentives to smallholder farmer to remain in rural areas to engage in economic activities in agriculture sector.

Distinguished Board of Governors,
Ladies and Gentlemen,

The rising population comes with increasing demand which require sufficient supply. Nevertheless, despite the available food supply, poor people cannot afford basic food due to low purchasing power. The recent commodity price hike has demonstrated that food security does not necessarily associate with food supply, but the price volatility has been a growing concern. The price hike unfortunately has not only hurt the poor, the poor farmers are also affected.

We applaud IFAD’s role in helping poor countries through promoting better skill and enhancing production in agriculture. Considering the global situation where food insecurity is threatening, we see that it is critical for IFAD to strengthen its role in securing global food supply while addressing the structural problems relating to poverty. In this regard, I would emphasize three aspects which require IFAD attention:

• Higher productivity
  It is imperative to increase productivity through research and innovation. The limited arable land and the adverse impact of climate change require a more resilient seed. IFAD must ensure to facilitate investment in the research of resilient seed which is affordable to farmers.

• Investment in agriculture
  We commend IFAD’s initiative to enhance the south-south cooperation through trade and investment in agriculture. With its resource and collaboration with other international organizations, IFAD can continuously strengthen this agenda. IFAD can help open bigger agricultural market for farmers through south-south cooperation.

• Agriculture infrastructure
  Food price has to be affordable for the poor. IFAD can help countries improve logistic system and support investment in agriculture infrastructure. Better infrastructure can help farmers increase production with lower production cost. I look forward IFAD’s further role in this agenda.

Distinguished Board of Governors,
Ladies and Gentlemen,

Now I come to the end of my remarks. It is no doubt that the challenges ahead of us are great. But our commitment and determination are greater to ensure our success to eradicating poverty.

I thank you.

Rome 22 February 2012