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4. COVID-19 and food
systems in Indonesia
Photo: Lisa Robins
41
4 COVID-19 and food systems in Indonesia
Assoc. Prof. John F. McCarthy
Crawford School of Public Policy, Australian National University
Prof. Yunita Triwardani Winarto
Department of Anthropology, University of Indonesia
Dr Henri Sitorus
Department of Sociology, University of North Sumatra
Dr Pande Made Kutanegara
Centre for Policy and Population Studies, University of Gajah Mada
Vania Budianto
Crawford School of Public Policy, Australian National University
suggesting that the pandemic will have
4.1 Abstract
detrimental effects on nutrition.
This assessment examines the
The crisis has revealed vulnerabilities
emerging impact of the COVID-19
in Indonesia’s complex food systems.
pandemic on food security and rural
This provides an opportunity for
livelihoods in Indonesia. Focusing on
designing research and policy
five key production contexts across
strategies to address key problems.
this highly diverse archipelago, the
Short-term interventions can
assessment finds that COVID-19 is
understand and respond to the
having profound, variable and highly
nutritional and livelihood impacts
dynamic impacts on rural livelihoods.
of this shock. Research can analyse
The impacts differ across geographical
how the pandemic has led to the
areas and production systems,
disruption of value chains and the
depending upon how the effects of
emergence of e-commerce and
the pandemic articulate with local
support measures to address these
food systems, social relations and
issues. Over the medium term,
the livelihood strategies of individual
research can map and analyse existing
households. While the Government
household coping strategies, learn
of Indonesia has rolled out social
from the history of livelihood projects,
protection and other programs to
and support measures to enhance
soften the impact, the fragmentation
diverse livelihoods, heterogeneity
of value chains, falling producer
in agroforestry systems and crop
prices, the contraction of the informal
diversification. Over the longer
sector and the loss of jobs have dealt
term, interventions can support the
a blow to diversified livelihoods,
integration of nutrition and health
severely affecting the welfare of
issues into agrifood policy, provide
rural households in many places. In
for regional responses that build on
response, smallholders are taking
local institutions and knowledges,
up localised survival strategies and
design social protection strategies that
turning back to agriculture. There is
directly address vulnerabilities found
evidence of a fall in access to high-
in regional contexts, and enhance
quality food as households move
farmer learning and their capacity to
to higher energy carbohydrates,
adapt to climate change.
42 | TECHNICAL REPORT 96
4.2 COVID-19 in Indonesia
4.2.1 Country overview (July 2020)
Land use Population COVID-19 and health
Land area: 1.9 million km 2
273 million people First recorded case: 2 March 2020
31.5% agricultural land 45% rural At 31 July 2020:
9.7% GDP from agriculture Adjusted income per capita 106,336 acknowledged cases;
and fish (2018) US$2,990 5,058 recorded deaths*
Present in 34 provinces:
hotspots in Jakarta, East Java,
South Sulawesi, North Sumatra
Local response Agriculture and Key risk multipliers
to COVID-19 fisheries Agricultural pests and diseases
Semi-lockdown; ban on Top staples: rice, fish, livestock, Climate risks, including
large gatherings poultry, bananas changing rainfall patterns
National government stabilising Highly diverse food and Issues of nutrition insecurity
prices, providing social social systems and food access in many
assistance and training communities
Agriculture is the lead sector
Provincial governments in 20 of 34 provinces
implemented movement One of the largest exporters
restrictions; later eased for of tree crops globally
food products
Fish critical for employment and
Programs for ongoing access to food; many fisheries overexploited
agri-inputs and credit
* The assessment reports 34,316 acknowledged cases and 1,959 recorded deaths at 11 June 2020, reflecting the
situation at the time of core aspects of the research.
CHAPTER 4. COVID-19 and food systems in Indonesia | 43Indonesia
4.2.2 Development context Indonesia’s poverty rate has fallen by
over half during the last two decades. In
An overview of Indonesia’s agricultural,
2019, just under 10% of the population
fisheries and nutrition context is shown in
was considered to be living below the
Table 4.1. The diversity of food systems and
national poverty line. This is measured
the impacts to be studied here are highly
by the Indonesian statistics agency at
variable and this presents particular
around 425,250 Indonesian rupiah (Rp) per
challenges for this rapid assessment. As this
month or US$0.76 per day. Income poverty
study is finalised in early July 2020,
remains high among smallholder farmers
Indonesia emerges as the epicentre of
with almost one-fifth of household families
COVID-19 in South-East Asia, and the
practising farming living below the national
COVID-19 crisis is having profound impacts
poverty line (FAO 2018). Stunting rates have
on livelihoods, but these effects are evolving
also fallen gradually, and the Government
and highly dynamic.
of Indonesia has prioritised nutrition
Indonesia is the largest archipelago in the programs in 100 districts where stunting is
world, stretching over 34 provinces with most severe. Nevertheless, stunting rates
270 million people. The total land area is remain high, with around 31% of children
around 190 Mha, and about 29% (some under five considered stunted (TNP2K
55 Mha) is classified as agricultural land. 2017). This means that large numbers of
Agriculture remains the leading sector in children were already undernourished prior
20 provinces (Pradana et al 2019). The major to COVID-19, and research suggests that
food crops in terms of area harvested are undernourishment is a risk factor when
rice, corn, cassava, soybeans and peanuts. facing a pandemic of this kind.
Indonesia also is one of the largest global
producers and exporters of tree crops, 4.2.3 Status of COVID-19 in Indonesia
including rubber, copra, palm kernels, palm
While Indonesia is well connected to China,
oil, coffee, cocoa and spices. Indonesia’s
with large numbers of tourists visiting Bali
gross domestic product has almost
and other parts of Indonesia, the first case
quadrupled over the past decade, even
of COVID-19 was not officially reported
while the contribution of the agriculture
until 2 March 2020. By 11 June 2020, the
sector to gross domestic product has
country had reported 34,316 cases, and
shrunk to 12.81% by 2018 (Global Economy
1,959 deaths. In early June 2020, the
2018, Statista 2020). Yet, in 2020, 30.26% of
number of cases was still increasing, with
the workforce are active in the agriculture
Indonesia recording up to 1,241 new cases
sector (falling from 55.1% in 1990), and
a day, the highest number recorded to
agriculture is still the second-largest
date (JHU 2020). A month later, Indonesia
employer. A Bank of Indonesia official
was reporting 2,657 cases a day, with an
recently argued that the structural problem
infection rate of more than 20% among
is that the productivity of Indonesia’s
those tested. This made Indonesia the
agriculture has slowed amid fast-surging
hardest-hit country in Asia after India
demand, pushing up food prices (Ribka
(Massola & Rosa 2020). By late July 2020,
2017). An alternative argument is that
Indonesian authorities reported that
import restrictions under Indonesia’s food
positive COVID-19 cases had passed 100,000
self-sufficiency policies have pushed up
(Jakarta Post 2020a).
domestic rice prices, along with other food
prices (Amanta & Wibisono 2020).
44 | TECHNICAL REPORT 96Table 4.1 Agricultural, fisheries and nutrition context of Indonesia
Indicators Unit Value
Surface areaa ’000 km2 1,913
Agricultural landb percentage of land area 31.5
Age of 0–19 years percentage of total population 35.3
populationa 20–39 years percentage of total population 31.4
40–59 years percentage of total population 24.0
over 59 years percentage of total population 9.1
Stunting rate c
under 5 years percentage of age group 36.4
Wasting rate c
under 5 years percentage of age group 13.5
Overweight c
under 5 years percentage of age group 11.5
male percentage of total population 25
female percentage of total population 31
Obesity c
male percentage of total population 5
female percentage of total population 9
Prevalence of undernourishmentc percentage of total population 8.3
Population rural percentage of total population 45
distributiona urban percentage of total population 55
Gross domestic product per capita a
US$ 3,893.6
Adjusted net national income per capita (2018)a US$ 2,990
Agriculture and fisheries, value added a
percentage of gross domestic 9.7
product (2018)
Government expenditure on agriculturec percentage of total outlays 1.1
Top staples (ranked most to least)c rice, fish, livestock, poultry, banana, coconut/
copra, corn, sugarcane, mango, pineapple,
cassava
UNDP Human Index rankingd out of 189 111
2017 World Risk Index (mean value calculation out of 171 33
2012–2016)e
a World Bank (2020)
b FAO (2020)
c Global Nutrition Report (2020)
d UNDP (2020)
e Bündnis Entwicklung Hilft (2017)
Data collated on 10 July 2020 by Alex van der Meer Simo.
The actual number of infected people is While the Government of Indonesia
likely to be higher, due to limited testing. is increasing testing, Indonesia has a
The death toll is also underestimated, due comparatively low testing rate. In early
to problems with attribution of the cause June 2020, it was reported that around
of death. COVID-19 has now spread across 10,000 people were being tested a day
34 provinces. (Ritchie et al 2020). By 11 June 2020,
CHAPTER 4. COVID-19 and food systems in Indonesia | 45Indonesia
laboratories had tested 287,478 people from on movement had a highly detrimental
a total population of 270 million, amounting impact on supply and value chains, or
to 1.08 tests per thousand people, one markets and livelihoods, affecting both the
of the lowest rates in South-East Asia. movement of staples around the country
Testing occurs in major hospitals, initially in and food stocks. This policy was loosened,
Jakarta, and gradually extending to cities in with a focus on restricting movement of
outlying provinces. Rural areas lack testing people but not essential items, including
capacities and many districts are unable to food. Different provinces and cities
test and/or can only test small numbers. intermittently continue to restrict the
They need to send swabs to hospitals in movement of people, with village authorities
the major cities where labs are equipped requiring returning migrants to quarantine
to do polymerase chain reaction testing. and provinces requiring letters to move
Reporting of laboratory-confirmed results between islands or between provinces. In
can take up to a week from the time of June 2020, Jakarta started moving to a ‘new
testing (WHO 2020a). normal’, loosening restrictions, much to
the concern of epidemiologists who argued
The impact of COVID-19 across Indonesia
that the pandemic had not yet peaked and
is highly varied, with epicentres in Jakarta,
that restrictions should not be relaxed
East Java, South Sulawesi and North
(Fachriansyah & Sapiie 2020).
Sumatra. Informants in the cities are
highly concerned, while respondents in The government response has been
outlying provinces and rural areas note focused on social protection. Government
that the virus is less prevalent. Some of Indonesia policies have also sought
village informants noted that migrants had to stabilise prices, ensure free flow of
brought the virus back to their villages, agricultural products as much as possible,
even while village administrations were and provide rural credit and support to
quarantining returnees. small and medium sized-enterprises whose
operations have been badly affected by the
Indonesia has a complex and shifting
PSBB policies (Antara News 2020).
tapestry of COVID-19 related policies.
Central and provincial authorities have
implemented different policies over time, 4.3 Assessment approach
with different areas moving into and out
of large-scale social restrictions known This assessment is based on interviews
as PSBB (a semi-lockdown/ban on large using open-ended questions with more
gatherings). During the early stage, large than 20 informants, seeking to achieve
numbers of migrants from the cities and a gender balance among informants,
from overseas sought to return, even as the including researchers, government officials
state gradually tightened policies to restrict and non-government organisation workers
movement back to villages, particularly with national and regional expertise
during the run-up to the annual Ramadan relevant to the study, including informants
migration (Mudik). During this period, most with specific information about the five
areas went through a tighter PSBB period. case studies. In addition, a review was
This greatly disrupted trade networks and conducted of news articles and journal
employment and had deleterious impacts articles and a short survey of rural leaders
on logistics and the movement of food and officials as circulated via email
supplies. Interviews and news articles from and WhatsApp. The assessment is also
this initial period suggest that restrictions based on online data collection involving
46 | TECHNICAL REPORT 96more than 100 informants distributed The World Health Organization (WHO)
across Indonesia. When reading this defines stunting as occurring when
assessment, it is important to remember height-for-age is more than two standard
that Indonesia is very diverse, the trends are deviations below the WHO Child Growth
irregular and context dependent, and the Standards median. Stunting is, of course,
situation is changing rapidly. a complex problem with multiple causes
(WHO 2020b). The term ‘stunting’ is used
The focus of this assessment is shaped by
here as it gives a direct physical indicator of
an analysis of Indonesia’s food security
degrees of undernutrition across Indonesia
mapping exercises and recent stunting
that incorporates various factors that
maps, which provide indicators for patterns
lead to relative deprivation (for example,
of vulnerability and undernutrition across
access to nutrition due to socioeconomic
the nation. The World Food Programme
factors, food preparation and consumption
of the United Nations notes that 58 of
practices, education of women, age of
Indonesia’s 398 rural districts are highly
motherhood, breastfeeding practices,
susceptible to food insecurity and
sanitation, hygiene and access to health
malnutrition is widespread (WFP 2019).
care). Patterns of inadequate access to
Across this diverse archipelago, the food are clearly an underlying cause of
following key issues and areas have been stunting (UNICEF 2018). Stunting rates
identified for further analysis: tend to be highest in Indonesia’s most
• Rice and vegetable producing areas deprived rural areas: 55.48% in Langat and
of Java: Java is home to two-thirds of 44.7% in Asahan (North Sumatra), 59.01%
Indonesia’s population and over half of in Rokan Hulu (Riau) and 55.84% in Barito
the country’s poor and has the highest Timur (Central Kalimantan). Child stunting
numbers of nutritionally insecure is clearly related to food insecurity (SMERU
people (Badan Ketahanan Pangan 2018, Research Institute 2015).
NIHRD 2018). This is a rapid, qualitative study that aims
• Coastal, fishing communities and to provide a snapshot of issues faced by
trading networks: Fish remain a critical Indonesia during and after the COVID-19
source of protein and micronutrients in pandemic. The study relies on reading
archipelagic South-East Asia and there available reports and a limited number
is a high degree of vulnerability among of interviews. Indonesia is a very diverse
artisanal fishing communities. country and follow-up research will be
• Oil palm producing areas: Research on required to identify processes and impacts
stunting suggests that large numbers to provide a more precise picture of many of
of undernourished people are found in the complex issues discussed here.
areas outside Java, where estate crops,
spices and dryland agriculture are the
predominant practices (TNP2K 2017).
• East Nusa Tenggara: There are deep
pockets of insecurity in dryland
agriculture in eastern Indonesia.
• Papua: There are high levels of
poverty and stunting in some areas
of Papua, which is Indonesia’s least-
developed province.
CHAPTER 4. COVID-19 and food systems in Indonesia | 47Indonesia
4.4 Assessment results
4.4.1 Snapshot of key findings
Smallholders
Horticulture, cash crops, informal workers, returning migrants, fishers and
women highly vulnerable
Households with diversified livelihoods are less vulnerable than those with
specialised livelihoods
Farmers unable to sell perishable products at market
Limited availability of agri-inputs
Coping strategies include village networks, traditional agriculture and
selling assets
Supply chains
Low producer margins and high consumer prices from fragmented chains
Reduced demand for estate crops and fish products
Small and medium-sized enterprises (SMEs) lack access to finances and reserves
Advantages for e-platforms and some traders
Governance
Rice prices and supply stabilised in most areas
National social protection system already established
Supplementary programs established for local needs
Input subsidies, rural credit program and support for markets
Community
Households losing on-farm and off-farm incomes
Impacts on women’s workload, income and mobility
Changes in food consumption; cheaper, less nutritious foods
Employment
Informal and formal job losses
Distribution and agri-processing SMEs are vulnerable
Reduced remittances from overseas and urban workers
48 | TECHNICAL REPORT 964.4.2 Exposure and vulnerabilities seven-year high in April. India, Vietnam
and China have restricted their exports
Susceptibility of rice supply in order to ensure supplies for their own
Indonesians have a cultural preference for consumers. The difference between rice
rice. Indonesian diets are highly reliant on production and consumption fluctuates
rice, with low levels of consumption of meat each year. In 2018, this difference was about
and fats (Hirschmann 2020). This exposes 2.85 Mt (Booth et al 2019). There is some
Indonesia to particular risks, given that concern that Indonesia may face a threat of
Indonesia imports significant amounts of shortages late in the year, when, according to
rice and other key staples such as soybeans, one estimate, there may be a gap of around
sugar and meat. Shocks that disrupt logistics 700,000 t/month (Novika 2020).
and distribution, especially to rice imports,
Exposure to climate change
present significant challenges.
Climate change exacerbates the risk of
Anticipating this problem, Indonesian
floods, droughts, storms, landslides and
policies have focused on promoting self-
forest fires. Changing precipitation patterns
sufficiency in food production in order to
are lengthening the dry season and leading
achieve food security. The 2012 Food Law
to more intense rainy seasons, prolonged
emphasises that importing food products
drought in the dry season, and more intense
should be avoided unless local production is
flooding in the wet season. Precipitation
insufficient to meet Indonesian consumption
patterns are changing, increasing the
needs (Limenta & Sianti 2017). The
number of dry days and reducing the
Indonesian parliament and government are
number of wet days, and increasing the
currently deliberating over changing articles
unpredictability of rain intensity, augmenting
in Food Law regarding imports to bring them
uncertainty and uncommon risks for
in line with World Trade Organization rules
farmers. The impacts of El Niño events
through Rancangan Undang-undang Cipta
include reduced average rainfall, which
Kerja (Draft of Employment Creation Law/
affects water storage and exposes extensive
Omnibus Law). As rice imports have been
areas to drought and fire, and rising
restricted and rice production in Indonesia
temperatures, which increase the incidence
is comparatively expensive, rice prices in
and range of pests.
Indonesia have been above world prices1.
For instance, prices for rice and sugar, as Shifts in rainfall, evaporation, run-off
well as fruit and vegetables, are well above water and soil moisture change combine
those found in global markets. Studies have with other risks that negatively impact
suggested that raising rice prices to subsidise smallholders. Reduced water availability
its production has increased poverty. As will lower groundwater tables and empty
the poor spend an estimated 26% of their wells, leading to a lack of drinking and
expenditure on rice and 65% on all foods, irrigation water for farming. This, together
high food prices detrimentally impact the with temperature increases, shorter growing
livelihoods of the poor (Booth et al 2019). seasons, unpredictable rainfall and saltwater
intrusion, negatively affect production
The COVID-19 pandemic has also led to a
patterns and outputs and decrease food
global rise in food prices for rice. The Thai
security. For instance, it is estimated that a
rice market is used as a gauge for the global
30-day delay in the onset of the wet season
rice economy, and the price of rice hit a
decreases rice yields by 6.5–11%, prolonging
1 In 2019, El Niño was blamed for higher food prices, which accelerated to 5.4% year-on-year in the third quarter of
2019 compared to 3.8% growth in the previous quarter (Bappenas 2020).
CHAPTER 4. COVID-19 and food systems in Indonesia | 49Indonesia
the ‘hunger season’. This can increase production centres (Jakarta Post 2020a).
the risks of harvest failures in the second Other sources note that only 30% of areas
planting season and delay the consecutive are expected to have a long dry season,
rice crop. Some estimates suggest that, affecting the second rice harvest. This will
as general crop productivity falls, food lead to a deeper production deficit than
deficits of up to 90 Mt of husked rice will be normal, beginning from August (Novika
generated by 2050 (GFDRR 2011, Ministry of 2020). Lower rainfall is also expected to
Foreign Affairs of the Netherlands 2018). The impact other crops such as corn (Agenparl
high dependence on the production of rice 2020). However, in some areas of Java, a
renders the country particularly vulnerable. wetter dry season is expected, which will
be good for rice production. The Australian
Water deficits linked to climate change
Bureau of Meteorology has also observed
have already been reported for Bali and
that some models predict an increased
East Nusa Tenggara, while food deficits
chance of a La Niña event in the Australian
resulting from climate change have been
spring (September–November) (Bureau of
reported in the provinces of South Sumatra
Meteorology 2020).
and Lampung, East Kalimantan, East Nusa
Tenggara and Papua (Ministry of Foreign Fragmented value chains
Affairs of the Netherlands 2018). Poor rural
Many commodities in rural Indonesia involve
smallholders are among the most vulnerable
elongated, fragmented and geographically
to these impacts, due to the dependence
dispersed value chains (in the supply of
of their livelihoods on land and water, their
inputs, production and marketing) where
limited income (110–140 million people
agrifood products pass through multiple
live on less than US$2 per day), their poor
processing and marketing stages that are
adaptive capacity, and their limited ability to
managed by different actors (Gereffi & Lee
access improved technologies, inputs and
2009). The elongated nature of these chains
alternative livelihood options.
means that they are not subject to market
Reports link harvest variability, particularly standards (for example, food quality and
of rice, to exposure to climate change. Rice traceability) and are not well coordinated, so
production is trending downwards with they are easily disrupted by market shocks
a 13% fall in harvests compared with the such as that represented by COVID-19.
previous year, even though harvests were
Fragmented value chains and poor logistics
still sufficient for a 6.4 Mt surplus (WFP
deliver additional costs (time and money)
2020). During the 2019/20 wet season, a
and lead to spoilage. This can mean inflate
prolonged dryness was linked to the Indian
prices for consumers, as well as lower
Ocean Dipole (Lerner 2020). East Nusa
returns to producers who face higher costs
Tenggara, the driest province in Indonesia,
for transporting to markets. For instance,
has experienced severe drought. In other
research has pointed out that the high cost
areas, rainfall and rice harvests were
of basic staples in remote areas such as
much delayed.
eastern Indonesia compounds poverty and
Indonesia’s Meteorology, Climatology and nutrition issues (Sandee et al 2014).
Geophysics Agency has projected that more
Exposure to fluctuations in agricultural
than 30% of the country’s regions, including
commodity prices
parts of Bali, Java, Sumatra and Sulawesi,
might face an unusually harsh dry season Agricultural producers have become
this year. Regions hit by the worse-than- increasingly commercially oriented.
normal dry season include staple food Studies suggest that, in many cases,
50 | TECHNICAL REPORT 96farmers have transformed the land around consumption indicate shifting access to
their dwellings, previously used for food protein and bioavailable nutrients in diets.
production, by planting commercial crops
for sale. This is especially the case in the Exposure to contracting labour market
estate crop sector, where monocultures are In rural Indonesia, households are
pronounced. Households who purchase increasingly diversified. On-farm activities
most of their food are vulnerable when the contribute only 49% of farming income on
price of the commodities they grow drop by average, with activities off farm and in other
large margins (Abdoellah et al 2020). sectors contributing the remainder (FAO
2018). Income diversification strategies
Land ownership in Indonesia is also
therefore provide a critical means to secure
increasingly concentrated. Smallholders on
household livelihoods. However, incomes
average have less than half a hectare, or
in rural communities remain low, and one
about an acre. Functionally landless farmers
in five farming household are below the
have much less capacity for providing
national poverty line (FAO 2018). Diversified
their own food (McCarthy & Robinson
households who have modest livelihoods
2016). Landless non-food-producing
are vulnerable to reductions in farming
households may be poorer and more
income or income from off-farm work.
vulnerable to fluctuations in labour demand
(Rosalina et al 2007, McCarthy 2019). While Rural communities have also embraced
household food production can be an migration. Large numbers of people move
effective strategy for rural households to overseas or into the cities, either as long-
meet their food requirements, developing term migrants or as circular, seasonal
food crops needs time and requires access labourers. The remittances they send home
to suitable land. increase food expenditure, contributing to
their family’s food security, and potentially
Other studies suggest that communities still
offering a buffer against vulnerability to
value the consumption of local staples, even
food price shocks. However, it also makes
as they have increasingly become net food
the family’s nutritional intake highly
purchasers. In some parts of Indonesia, the
vulnerable to shocks that cause migrant
provision of rice for the poor has become a
family members to lose their jobs and return
key factor shaping a change in consumption
home (Hasanah et al 2017).
away from local staples towards rice
(Utami et al 2018). Rural households Rural people in many areas of Indonesia
consume more plant-sourced protein than are net food buyers. In fact, two out of
animal-sourced protein. three farmers in the country are classified
as net consumers, and the population in
While fish is the main animal-source food
34 provinces spend, on average, more than
in diets in many parts of Indonesia, poor
50% of their incomes on food. According
families often have insufficient incomes to
to Kompas (2020), the 10 provinces with
access fish (Gibson et al 2020). Chicken (meat
the highest percentage expenditure of
and eggs) is also one of the most-consumed
income on food per capita can be ranked
forms of animal protein and micronutrients.
from East Nusa Tenggara (57.21%) to Aceh,
The chicken value chain, which stretches
Papua, North Sumatra, West Sulawesi,
from corn production, feed mill production,
West East Nusa Tenggara, Jambi, West
fodder consumption for chicken and
Sumatra, Lampung and finally South
chicken meat to demand for eggs, is critical
Sumatra (52.04%). These are in outer island
to food security outcomes (Diansari &
Indonesia, and include areas where dryland
Nanseki 2015). Patterns of chicken and fish
agricultural, rubber and oil palm cultivation
CHAPTER 4. COVID-19 and food systems in Indonesia | 51Indonesia
predominate (Pancawati 2020). Among poor significantly effects average calorie intake at
citizens, food accounts for more than 60% the household level because older mothers
of the monthly expenses (Kompas 2020). In better understand food quality and family
fact, the World Bank (2019) estimated that requirements (Srinita 2018). Moreover,
68% of Indonesia’s population is vulnerable women suffer from much higher rates of
to an economic shock. Sustained drops in anaemia. Policies that increase women’s
commodity prices or demand for labour access to and control over resources
will lead to problems accessing nutritious and participation in decision-making in
food. Smallholders lack access to finance agriculture management are important to
and falling incomes impact on their ability to reducing vulnerability (Rosalina et al 2007).
afford inputs. These factors suggest that many women
working in the informal and agricultural
Exposure of women to reduced sectors are particularly exposed to the
agricultural prices and shrinking labour
COVID-19 shock. The price and health shock
markets
that COVID-19 represents will adversely
Women play a vital role in the agriculture impact women’s access to paid labour or
sector. For instance, women are highly agricultural income and is likely to impact
involved in the choice of seeds and household nutrition.
the marketing of crops, and also take
responsibility for family food practices Agricultural pests and diseases
(Rosalina et al 2007). Estimates suggest Pest and disease infestations raise risks
that women make up 37% of workers in the of crop damage and even failure. Avian
agriculture sector. Despite this, women tend influenza continues to circulate and African
to have limited control over land assets, and swine fever is increasingly affecting areas
limited access to the financial resources, of eastern Indonesia. Crop damage in rice-
knowledge and technology required to producing areas continues, due to both
increase crop yields and improve their the increase in humidity and incidence of
livelihoods. While women often manage drought, and also the persistent, excessive
household finances in Indonesia, and have and injudicious use of pesticides. These
a degree of control over decision-making, pesticides increase the fecundity of brown
they cannot access finances without their planthopper (the most devastating pest
husband. In areas where large-scale rural- in rice), kill pest predators, damage rice in
to-urban migration occurs, women take up one planting season and lead to outbreaks
work typically done by men. Female-headed of viruses in the following planting season.
households are more vulnerable to poverty Fungi such as rice blast also significantly
due to their lower incomes, and estimates reduce yields with increased humidity (Fox
suggest that 20% of rural households & Winarto 2016). The fall armyworm is
are headed by women. Due to gender impacting corn yields in some areas, and
inequalities and income distribution, access is expected to decrease corn production in
to credit, and control over land and natural some areas by 30–50% (Detik News 2020).
resources, rural women are more vulnerable
to poverty. Further, previous studies have Nutrition issues
shown that women are vulnerable to The triple burden of undernutrition
gender-based violence during and after (underweight, stunting and wasting) remains
disasters (FAO 2019). a significant challenge. When shocks
to the food system occur, it is a threat
Nutritional security is also gendered. For
multiplier. If not well handled with respect
instance, the age of lactating mothers
to prices (for example, diversification,
52 | TECHNICAL REPORT 96marketing, regulation), these shocks worsen • how to guarantee access to nutritious
the problem. Indonesian diets and food food with increasing demand and
expenditure patterns are changing (for increasing water and energy scarcities.
example, high use of instant foods and
snacks with poor nutritional quality). A Durability of Indonesia’s social
protection system
senior health ministry official interviewed
during this research noted that Indonesian Indonesia has developed a social protection
children were caught in a vicious circle of system since the 1998 east Asian economic
malnutrition and anaemia that increased crisis. This system places Indonesia in a
their vulnerability to the COVID-19. Previous better situation than other neighbouring
crises have suggested these trends can have countries, who are yet to develop social
detrimental impacts on stunting, obesity and assistance policies. A recent World Bank
micronutrient deficiencies. At the same time (2019) report estimated that around
malnourished children are more susceptible 115 million Indonesians were vulnerable to
to the virus. The ageing of the farming falling back into absolute poverty if there
population is also an issue. Most farmers were a shock to the economic system. Faced
in Indonesia are around 56 years old, and with the COVID-19 pandemic, the state
are therefore vulnerable to the COVID-19 is rolling out a series of social protection
pandemic (Ridhoi 2020). programs aimed at helping various cohorts
of people. Nonetheless, this system
Public investments in agriculture will experience enormous challenges in
The Government of Indonesia makes identifying and transferring assistance to its
extensive public investments in input and poorest citizens, and a crisis such as this will
credit subsidies, trade restrictions, state undoubtedly test Indonesia’s system (Antara
enterprises food market interventions, and News 2020).
storage. As a World Bank report notes, a
large proportion of public funding is spent 4.4.3 Impacts of COVID-19
subsidising fertiliser and other inputs, while
The way COVID-19-related dynamics
there has been a long-term underinvestment
intersect with these underlying
in public goods that are vital for agricultural
vulnerabilities varies across production
productivity and competitiveness (World
systems, landscapes, sectors, periods
Bank Indonesia 2016). As the Food and
of time and locations. In this section,
Agriculture Organization (FAO) (2018)
we examine the five contexts identified
notes, smallholders often farm without the
earlier to discuss how this works, before
benefit of modern tools and improved seed
summing up the major impacts in the
varieties. With the COVID-19 shock leading to
following section.
reductions in research and development and
public investment, budgets to modernise Rice and vegetable production in Java
production systems and value chains will
The value chains connecting producers to
be limited.
supermarkets, inter-island, inter-city markets
Longer-term challenges are: or local consumption are very diverse.
• how to produce more with less inputs The short value chains tend to be still
functioning, while the most elongated chains
• how to develop more sustainable and
(for export) have not functioned for some
resilient food systems in the face of
time. There are transportation problems
climate change
and wet markets are intermittently closed in
some areas, leading to delays or bottlenecks
CHAPTER 4. COVID-19 and food systems in Indonesia | 53Indonesia
in getting products to markets. Perishable This combines with outbreaks of pests and
products that need to be marketed quickly, diseases due to the overuse of chemical
particularly vegetables, are especially pesticides and fertilisers. In some parts of
vulnerable to value-chain disruptions. Java, there are significant water availability
Vegetables may not be sold into some value problems for farmers dependent on rainfed
chains, or only sold intermittently. In many agriculture, or those who have limited
cases, as they are being used for livestock streams or irrigated water supply.
or local consumption, this has led to a
Rice farmers in East Java and Central Java
decline in farmer income. Product prices,
(Jogjakarta) keep some of their yields for
especially for perishable products such as
self-consumption and hold off selling some
fruits and vegetables, have dropped. Some
of their rice in the latter period to meet cash
small-scale distributors (lapak) have totally
needs. Rice farmers in West Java used to sell
closed their businesses, as they cannot sell
their yields immediately due to the need
their products or buy from farmers. Women
for cash (as capital for the second planting),
are highly involved in some of these value
to pay debts and to cover daily household
chains, for instance, as sellers in vegetable
expenses. To meet those expenses, farmers
markets, and apparently are highly
had to sell their unhusked rice at lower
impacted. The price of cattle has fallen by
prices than usual, because big traders
50% in some areas, and some households
from outside the village failed to arrive to
who need cash urgently have sold their
buy the unhusked rice. There are reports
cows at half price, indicating a significant
that, due to a fear of shortages later on,
level of desperation in some households
or following practices of keeping rice for
(Woodward 2020).
self-consumption, villagers are retaining
In Java, e-commerce and social media (for rice stocks. This has possible impacts on
example, WhatsApp) have emerged to markets and the attempts of the state
keep value chains working to some extent. logistics agency, BULOG (Badan Urusan
This is a fast-growing phenomenon. Some Logistik), to purchase rice.
reports note that e-commerce platforms
Farmers need capital to start planting
have experienced a fivefold increase in
for the second rice production season.
patronage. In many areas, this is a new way
Disturbances to rice value chains, lower
of governing value chains. While the amount
grain prices at the point of sale and delays
may be still limited and only done by certain
in payments to farmers from mills and
actors, this phenomenon can be considered
middle-agents have reduced their capital.
as a new response. However, as food (retail
This has delayed planting or led to reduced
consumer) prices have risen while product
use of inputs, especially because of the
(farm-gate) prices have dropped, marketing
unavailability of particular fertilisers in the
margins may have increased greatly for
market. Despite the central government’s
those actors able to successfully work
policy to release farmers from their financial
across these disrupted value chains.
burdens, banks still require monthly
The COVID-19 pandemic has not significantly payments from traders and farmers who
affected rice production. However, climate have accessed agricultural credit.
variability (a prolonged dry season due to
While some fertilisers are missing from
El Niño in 2018–19 and the Indian Ocean
the market or are in short supply, the
Dipole during 2019–early 2020) led to a late
main chemical fertilisers and seeds
start of the planting season and a short
remain available. Vegetable growers in
wet season, impacting rice production.
Pangalengan, West Java, are late applying
54 | TECHNICAL REPORT 96Perishable products
that need to be
marketed quickly,
particularly
vegetables,
are especially
vulnerable to value-
chain disruptions.
Photo: Lisa Robins
CHAPTER 4. COVID-19 and food systems in Indonesia | 55Indonesia
fertiliser or are applying ‘fake’ fertilisers, The official list of recipients for social
leading to late and poor growth of plants assistance has a high rate of inclusion and
and affecting yields. Yield reductions could exclusion errors. This may be due to local
be up to 20–30%. leaders incorporating their own relatives or
failing to exclude influential villagers. There
Village leaders in some areas have imposed
are also issues with the updating process.
localised lockdowns, discouraging outsiders
Many local governments have claimed that
from entering villages. Restrictions on
they have received outdated beneficiary
the use of labour due to social/physical
lists from the central government. For its
distancing restrictions imposed by
part, the central government pointed out
local leaders have led farmers to rotate
that many local governments have failed to
labourers, leading to additional costs
regularly update their unitary social welfare
for labour. Returning migrants who have
(Data Terpadu Kesejahteraan Sosial) (DTKS)
lost jobs in the cities and towns remain
database, which contains a registry of the
unemployed and often cannot find work
poorest 40% of the population. However,
in the farming sectors. Those badly
this database is clearly unable to capture
affected include those finding casual work
poverty dynamics prior to and during the
on construction sites, driving pedicabs
COVID-19 pandemic. Significant numbers of
(becak) or working in the informal sector.
people are not receiving benefits to which
Households have lost remittance income,
they are entitled. New programs, such as
which used to be shared with families, and
the unconditional cash transfers (Bantuan
also face the extra burden of more mouths
Langsung Tunai) program, now provide new
to feed.
cash assistance (Rp600,000 per month).
Women who earn secondary income The dispersal of these funds depends upon
from the sale of homemade products (for the diligence of the village authorities in
example, snacks, bamboo handicrafts) are reaching out to cover newly poor residents
experiencing drastic impacts in survey areas who do not receive other assistance.
(Indramayu, Sumedang and Pangalengan in
When the economy moves towards a ‘new
West Java; Trenggalek in East Java; Bantul,
normal’, informants expect the return of
Sleman and Gunung Kidul in Jogjakarta; and
distribution and transportation. This may
Klaten, Magelang and Purworejo in Central
support the return of income generation
Java). A fall in demand from outside villages
from horticultural and homemade products,
and kiosks, the lack of traffic and the closure
as well as off-farm services related to local
of some stalls along the main road have led
trading, food distribution and tourism.
to declining income. Women continue to
However, if COVID-19 impacts increase, this
produce snacks only for local markets. The
return may be delayed, and the detrimental
price of eggs, flour and sugar has increased,
effects discussed above may become
adversely affecting household budgets
even deeper.
and also reducing the margins earned by
women selling food in the informal sector. The most vulnerable include horticultural
For the most part, the prices of staples have farmers, returning migrants, women and
remained quite stable. The price of tofu, a informal workers. Landless labourers may
major source of protein in Java, is increasing have lost work in the informal sector work
due to the rising price of imported soy. One (such as sand mining and rock quarrying)
tofu trader noted that the price of soy has (Woodward 2020). Income from agriculture
risen from Rp600 per piece to Rp700 per has become more important, and many
piece in rural areas (Murdaningsih 2020). can still find work in rice and horticultural
56 | TECHNICAL REPORT 96production as long as cultivation practices within the oil palm sector, of whom 70% are
continue, earning wages as usual. Where casual day labourers (Sinaga 2013).
labourers from other areas have left,
With the onset of the COVID-19 pandemic,
villagers can find new work opportunities.
global demand for estate crops fell. This led
In contrast, farmers employing workers
to congestion in storage facilities. Mobility
experience the extra burdens of the shock.
restrictions meant the transportation of oil
Rice growers will continue with their second
palm slowed, while demand for biodiesel
planting season. However, vegetable
dropped. This led to the closure of some
farmers must weigh up whether to keep
independent mills (Info Sawit 2020). As
growing vegetables for market. Given
company mills prefer to process fresh
the uncertainty, farmers need to gamble
fruit bunches from their own estates,
on what the future might bring. Failure
or from farmers who have partnership
could mean loss of working capital and a
contracts with palm oil companies, the
downward livelihood trajectory.
demand for fresh fruit bunches produced
The impact of the COVID-19 crisis on by independent smallholders has
farmers is differentiated. Wealthier farmer fallen dramatically.
who engage in the commercial production
In May 2020, the price for fresh fruit
of chicken and vegetables have difficulty
bunches had dropped by around 40% in
selling their produce and are badly hit.
many villages in North Sumatra, affecting
However, small farmers who produce
the income of farming households. Rubber
very little, tend to be less affected as they
farmers were hurt even more, with already-
continue to produce to meet household
low prices dropping by as much as 40%.
needs. In general, secondary income
Some responded by converting their rubber
generation from off-farm and homemade
gardens into oil palm, using income from
products has dried up. Villagers must
the sale of the timber to pay for replanting.
wait for the end of the pandemic and the
Sharecropping rubber tappers were the
recovery of value chains, markets and
most vulnerable, as they provide half their
distribution networks. In the meantime,
harvested rubber to the landowner.
they are planting all available land
with vegetables. In general, household While oil palm farmers continue their
expenditure has dropped dramatically. In farming activities as before, they have the
the short term, impacts on household food same operational expenses, even though
consumption will be ameliorated as long as the prices for fresh fruit bunches has fallen.
rice, government social support and local Larger farmers, who continue to produce,
food resources remain available. However, retain their purchasing power. However,
falling food consumption is likely to deepen given the fall in fresh fruit bunches prices,
as the crisis continues. those who borrowed from banks experience
difficulties meeting repayments. With
Estate crops in Sumatra and Kalimantan the relaxation of the loan repayment
In 2018, there were approximately 14.3 Mha requirements from banks, households
of oil palm plantation land in Indonesia avoid repaying loans and some use their
(Kompas 2018). It is estimated that around savings to make up the income lost from
2.67 million smallholders manage around falling oil prices. Given the fall in labour
40% of this land, extending to approximately demand and falling income due to declining
5.8 Mha (Jong 2020). According to one demand for oil palm, marginal farmers with
calculation, there are 10.5 million workers low oil palm production and a dependence
on casual paid labour are acutely affected.
CHAPTER 4. COVID-19 and food systems in Indonesia | 57Indonesia
These include those with three hectares or because subsidised fertilisers have been
or less of inadequately maintained oil allocated to rice farming. Poorer households
palms, typically trees that are from low- face difficulties buying fertiliser and instead
quality planting stock, over age or poorly divert their resources to buying food.
maintained.
While in the past farmers used to practice
Many labourers continue to work as normal dryland rice cultivation (padi ladang), in
for the oil palm companies and receive Sumatra this tradition disappeared after
the same salary. With the temporary farmers converted their land to oil palm.
closure of mill operations, demand for Very few households grow vegetables
casual workers (buruh harian lepas) falls and other food crops in their compounds.
and workers face wages cut and the Farmers rely on sales of fresh fruit bunches
livelihood of casual workers becomes to meet their daily needs, including food,
more precarious (Darto 2020). If there and they are vulnerable to food insecurity
are confirmed cases (COVID-19 positive), if their income falls. For many households,
workers face dismissal. In some locations, there are limited work or farming
casual work opportunities for labourers opportunities outside the oil palm industry.
on smallholder plots have disappeared, as These areas are especially vulnerable to
farming households can no longer afford to food insecurity, and stunting rates tend to
pay them and instead turn to family labour. be high, especially among casual labourers
Where many palm oil mills have closed, and marginal smallholders. Field surveys
outsourced workers, especially casual suggest that daily wage labourers and
workers, such as those harvesting, loading marginal oil palm farmers have poor-quality
and transporting fresh fruit bunches, face diets and cut back on their protein. This is
unemployment. Opportunities to work as especially true during periods of low labour
drivers in public transport or on building demand and low production, such as the dry
sites have disappeared. Unemployed season, which is known as a scarcity period
casual labourers lose their capability to (paceklik) (Sitorus & McCarthy 2019). Villages
purchase food. in remote areas closed their gates and
forbade entry to non-residents, including
Women living close to oil palm estates form
traders who sell food. With the onset of
a large part of the informal workforce, with
panic buying, those with cash stocked up,
many working to harvest loose fruit. This
which raised food prices. Small businesses
group has been identified as vulnerable and
that sold food experienced a sudden drop in
at risk, given their precarious employment,
sales and shops were instructed to close for
lack of social security and poor access to
periods of time. When stocks were low and
healthcare, insurance or fair wages (Zein
prices high, shops lacked buyers.
2018). Women who work casually in the
oil palm sector are particularly exposed While some migrants retain their work in
because they are more likely to lose the city or overseas and avoid returning,
their jobs. many others have lost their jobs overseas
or in urban centres and no longer send
The price of fertilisers has increased and
remittances. In one study village, 130
there is difficulty accessing it, due to
‘children of the village’ have returned home.
mobility restrictions. In some villages, fuel,
As migrants return, there are more mouths
fertiliser and other inputs remain available.
to feed, and a higher risk of spreading
However, they are not easily found in other
COVID-19. Returning migrants face the
oil palm villages, particularly in the more
prospect of being unemployed, with more
remote areas due to transport difficulties,
58 | TECHNICAL REPORT 96people chasing the limited casual work be distributed using centralised data lists. In
available, adding burdens to household remote villages, the benefits from national,
budgets. Some people also have to send province and district safety nets arrive
assistance to unemployed relatives in late. At the time of writing, the social safety
affected urban areas. These landless casual nets have not yet effectively addressed
workers become the most vulnerable group vulnerabilities in remote areas. In some
due to their poverty and the reduction of cases, there are protests from community
work opportunities, especially in remote members who fail to receive cash transfers
villages. This problem is especially acute in time or who deem themselves to be
while they wait for social assistance to treated unfairly.
be distributed.
Vulnerable households respond by
Informal social protection from neighbours, decreasing the consumption of high-quality
local social organisations and local foods and the variety of foods consumed,
companies help. However, they cannot turning to cheap carbohydrates, and selling
cover all villagers and are often unable to productive assets such as jewellery, and
reach remote areas. There are several social even their houses and land. In oil palm
protection programs, principally: villages, the seasonal scarcity begins
• Bansos (food supplies purchased in the dry season when, with falling oil
from community production by local palm production and less work available,
governments for distribution as food marginal famers and landless labourers
assistance) tend to cut back on protein. Village
governments are encouraging households
• Bantuan Langsung Tunai (unconditional
to open home vegetable gardens. While
cash transfer)
social assistance will help households to
• conditional cash transfer program some extent, careful management will be
• staples card (kartu sembako) required over the dry season.
• Bantuan Kemensos (social affairs In the past, farmers traditionally valued
assistance). diversity. With the enclosure of such large
Each program involves a different set areas of land for plantations during the
of recipients and provides different oil palm boom, many find themselves
amounts or forms of assistance. Provincial working small areas of land and are overly
governments are rolling out social dependent on a single crop. In the future,
assistance (for example, the North Sumatra farmers growing estate crops need to find
provincial government provides assistance ways to grow food crops, with strategic
of Rp225,000 per family). Villagers believe support for growing multi-crops or the
that, since COVID-19 can infect anyone reallocation of village, social forestry,
irrespective of their wealth, the distribution housing compounds or plantation land
of assistance should be equal. Therefore, for rice, corn and vegetable cultivation. As
district government assistance is divided the shock most adversely affects casual
equally, with recipients receiving 2.5 kg rice labourers, social assistance needs to target
and 15 eggs from each allocation. However, this group. Palm oil price insurance could
the central government, through the Social be explored to maintain stable prices of
Affairs Ministry, distributes Rp600,000 to fresh fruit bunches. Program support
a limited number of casual day labourer could be extended to develop community-
beneficiaries. The conditional cash transfer based, self or participatory targeting for
program and the staples card continue to food assistance; combine social protection
CHAPTER 4. COVID-19 and food systems in Indonesia | 59Indonesia
with supporting productive farming Conditions in some areas of the Papua
among most affected households; provide provinces are broadly similar to other parts
financial support for multi-cropping; and of the region. While remote areas have
rejuvenation of old trees. limited access to food markets and rely on
their own production, in some areas, factors
Papuan provinces such as climate conditions, land suitability,
Indonesian Papua is divided into the two drought and flood lead to seasonal deficits
provincial administrations of Papua and in food supplies (Ichi & Tamimi 2020). Areas
West Papua (the Papuan provinces). By early of the Papua provinces have significant
June 2020, Papua had the third-highest potential to grow local foods such as
proportion of individuals in its population sago, banana and sweetpotato. However,
infected with COVID-19, and West Papua Indigenous Papuans have also changed
was the fifth (Sucahyo 2020). Both provinces their consumption patterns (Elisabeth
have low capacity for polymerase chain 2020ab). While Papuans traditionally relied
reaction testing, lack health facilities and on local food, the introduction of the Raskin
have limited health workers. They also have (Rice for the Poor) program gave them
high malnutrition rates among children ready access to cheap rice. They prefer to
under five years old and high levels of buy inexpensive rice than grow their own
infectious diseases such as tuberculosis, food. Only 25% are fully self-sufficient food
HIV/AIDS and malaria. The populations of producers who do not primarily consume
the Papuan provinces are considered high rice. These are Indigenous Papuans
risk (Ramadhan 2020). (Orang Asli Papua) who still have home
Due to their vast size, lack of medical gardens (Sumule 2020). The Indonesian
facilities and health workers, and security Food Security Index 2019 notes that
issues, handling COVID-19 in the Papua approximately 90% of districts in Papua rely
provinces is challenging. Many health on food supplies from outside their area.
workers have tested positive (34 as at In 2019, Papua produced 133,684 t of rice,
26 May 2020). The supply and distribution 91% of this in Marauke. However, this
of medicine relies on air transportation only met 10.7% of the total needs (Papua
and faces shortages. Distributing medicine Province 2020). West Papua can only
and developing testing capacity will take produce 10.8% (9,045 t) of its total needs
time. Given these constraints, regional (Sumule 2020). With unstable climate
governments have made extra efforts to try patterns, last year’s harvest in Marauke
to reduce the mobility of people across the failed to meet its target, and average rainfall
region. Papua Province was the first to close fell in February 2020. Furthermore, the
its border, shutting its airport and ports on provinces lack the capacity to speed up
24 March 2020, especially links to and from post-harvest management of rice (Wiyanto
Sulawesi, another COVID-19 hotspot. 2020). Consequently, it is estimated that
Over recent decades, the population of 51% of people in Papua and 75% of people
both Papua provinces have changed their in West Papua depend upon imported rice
food consumption patterns and this has supplies. The government has predicted
generated a high dependence on imports. that drought this year will affect rice
Large numbers of migrants, especially production (Amanda 2020). During the
Javanese, have moved into the Papua COVID-19 pandemic, local governments are
provinces and are primarily rice consumers. encouraging communities to produce more
These groups are vulnerable to fluctuations local food.
in rice prices and availability.
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