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In The Context of low Carbon Economic Development 

By Happy Tarumadevyanto

Indonesia as an agricultural country ranks after Brazil and other countries that have smallholders in their agricultural activities. The variety of commodities produced also adorns the character of the farmers who manage these natural resources. The farmers vary from those who take care of agriculture and semi-agriculture, including forestry commodities.

The involvement of small farmers in natural resource management is influenced by physical, geographical conditions, and one of the decisive points in this resource management is local policies. Many local-level policies have an effect on the ability of smallholders to cultivate land and market it in a healthy environment that is close to where the commodities are produced.

Smallholders or farmers involved in forestry can use the Social Forestry scheme to participate in forestry and agricultural activities. Some examples of Social Forestry farmer activities include farming on a state or government-owned land and conducting intercropping programs among perennials [other forestry plants]. So that the land can be used optimally for the benefit of the smallholders themselves.

In the context of sustainable commodity management, the role of government is crucial. It is very important for policymakers to consider their ability to manage and market their products. 

Government policies that can be created include

  • Provide opportunities for farmers to market their commodities independently and with deliberation and with clear market incentives. In green development, the government, apart from stimulating policies, also budgeted for the acceleration of the green economy. In 2019, the government budget for Low Carbon development is only 18.9 trillion.   In 2020, the allocation will be reduced to 13.7 trillion. 
  • Provides opportunities for commodity development with government assistance and the commodities produced are getting better. Therefore resilience in a green economy is very important, especially in terms of investment. There will be no investors if the business does not last long or does not even provide profit or cause new problems. Profits are related to productivity, health, and sustainability. The business model that investors are looking for is a business model that can always boost productivity while ensuring sustainability and providing benefits to the environment and society. 
  • The government realizes that the supply chain will mutually influence the origin of products. If oil palm farmers produce their commodities with adequate traceability, of course, they must be supported by government policies in managing their products and marketing. When the government realizes the importance of traceability aspects of a product and its legality, the process of improving governance, especially granting operating permits, will make the land legality process simpler.

In the current development of the green economy, commodities that support the process of reducing the rate of deforestation are an important indicator in the achievement of green growth development.