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Indonesia

20

Projects Includes planned, ongoing and closed projects

US$ 2,764.92 million

Total Project Cost

US$ 669.59 million

Total IFAD financing

3,904,600

Households impacted


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The Context

Indonesia, with the largest economy in Southeast Asia, has evolved rapidly over the past decade into a dynamic and decentralized electoral democracy with a rapidly growing middle class. Steady economic growth has led to a gradual reduction in poverty, from 17 per cent in 2004 to 11 per cent in 2014.

Three out of five Indonesians live in rural areas, and farming is their main occupation. The agriculture sector contributed 8.5 per cent to GDP in 2016. While the sector's share of GDP has declined markedly during the last five decades, it still is the main source of income for one third of the population and 64 per cent of poor people. Progress is visible in rural areas, but poverty remains concentrated there — 13.8 per cent of rural people are classified as poor compared with 8.2 per cent of urban populations, as of 2014.

With its abundant fertile soils, Indonesia is a major global producer of numerous tropical products, offering strong opportunities to smallholder producers. A growing middle class is increasing the demand for more and diversified food products.

Yet millions of smallholder farmers, farm workers and fishers cannot leverage these opportunities due to limited access to finance, services and markets.

The Strategy

Over the last 35 years, IFAD and the Government of Indonesia have invested more than US$1 billion in rural people to strengthen inclusive and environmentally sustainable economic growth.
Our work concentrates on helping smallholder producers and marginalized groups to become more resilient, integrate into supply chains and gain access to services, technologies and finance. IFAD's projects have been successful in the most remote and vulnerable areas of the country, which also usually have the highest incidence of poverty.

IFAD's current results-based country strategic opportunities programme (2016-2019) aims to support inclusive rural transformation so rural people can achieve sustainable livelihoods. We work to achieve this by providing financing and technical support to develop models for replication and scaling up by the government and others. The emphasis is on empowering marginalized groups including smallholder farmers and fisheries producers, women and woman-headed households, marginal communities and ethnic minorities in selected geographic areas, and youth.

Our future investments will contribute to ensuring that:

  • smallholder producers participate in remunerative agricultural markets;
  • smallholder producers and their families are more resilient to risks;
  • rural institutions deliver services that respond to the needs of smallholder producers.

Results-based country strategic opportunities programme (COSOP):
Arabic | English | French | Spanish

Country Facts

Three out of five Indonesians live in rural areas, and farming is their main occupation.

Over the last 35 years, IFAD and the Government of Indonesia have invested more than US$1 billion in rural people to strengthen inclusive and environmentally sustainable economic growth.

Since 1980, IFAD has supported 17 programmes and projects in Indonesia for a total amount of US$550 million, directly benefiting more than 3 million rural households.


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Country documents

Interim Country Strategy 2014-15

Type: Country Strategic Opportunities Programme
Region: Asia and the Pacific

Indonesia COSOP 2016-2019

Type: Country Strategic Opportunities Programme
Region: Asia and the Pacific

Projects and Programmes

PLANNED Under design after concept note approval

APPROVED Approved by the Executive Board or IFAD President

SIGNED Financing agreements signed

ONGOING Under implementation

CLOSED Completed/closed projects

No matching projects were found
No matching projects were found
No matching projects were found

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Related news

Regional Forum on Inclusive and Sustainable Rural Transformation - Asia Pacific

October 2018 - NEWS
The International Fund for Agricultural Development (IFAD) Asia and Pacific Regional Forum on Inclusive and Sustainable Rural Transformation 

IFAD and Indonesia invest US$55 million to sustainably improve smallholder farmers` incomes and livelihoods

January 2018 - NEWS
he International Fund for Agricultural Development (IFAD) and Indonesia signed a financing agreement earlier this month to sustainably improve incomes and livelihoods and improve nutrition for 67,400 rural smallholder farming households in 18 districts in Sulawesi Island, West Kalimantan and East Nusa Tenggara.

IFAD and Indonesia sign historic financial agreement to improve food security for smallholder farmers

February 2017 - NEWS
The International Fund for Agricultural Development (IFAD) and the Government of Indonesia signed a financial agreement today to fund a rural development project that will greatly improve access to water for irrigation and consequently improve food security, incomes and livelihoods for up to 24 million smallholder farmers. This is the largest project that IFAD has ever contributed to in its 40 years of operation.

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Related publications

Impact assessment: The Coastal Community Development (CCDP)

August 2019
The Coastal Community Development Project (CCDP), implemented between 2013 and 2017, was designed to reduce poverty and achieve sustainable economic growth in 12 coastal districts of Indonesia.

Grant Results Sheet: ICRAF - Climate-smart, Tree-based, Co-investment in Adaptation and Mitigation in Asia (Smart Tree-Invest)

September 2018
The grant mainstreamed climate-smart, tree-based agricultural good practices into the climate adaptation and mitigation programmes of governments, NGOs and the private sector in Indonesia, the Philippines and Viet Nam.

IFAD Results Series Issue 3

December 2018
This issue presents and analyses experiences from the following IFAD-funded projects and programmes...

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