World Bank2013-03-292013-03-292010https://hdl.handle.net/10986/13069The agriculture sector has been and will continue to be important for poverty alleviation efforts in Indonesia. Indonesia was very successful in increasing agriculture productivity during the 1970s and up to the early 1990s, but productivity stagnated during most of the 1990s, partly as a result of declining public investments. Public spending on agriculture has increased significantly in the last decade, but a large share of that spending has been allocated to subsidizing private inputs. The impact of public spending on productivity can be positive, but that depends on the composition of spending. While public goods and services will have a positive impact on growth, subsidizing private inputs is unlikely to have much of an impact. Reforms to the existing subsidies systems can be combined with continued assistance to poor farmers, while the freed up resources could be used to provide improved public goods and services. A reallocation of spending should be combined with renewed efforts to improve the efficiency through which key services are provided, in particular in the areas of R&D, extension services and irrigation.en-USCC BY 3.0 IGOACCOUNTINGAGRICULTURAL COMMODITIESAGRICULTURAL DEVELOPMENTAGRICULTURAL EMPLOYMENTAGRICULTURAL EQUIPMENTAGRICULTURAL EXTENSIONAGRICULTURAL EXTENSION SERVICESAGRICULTURAL GROWTHAGRICULTURAL INPUTAGRICULTURAL INPUT MARKETSAGRICULTURAL INPUTSAGRICULTURAL MARKETINGAGRICULTURAL OUTPUTAGRICULTURAL POLICIESAGRICULTURAL POLICYAGRICULTURAL PRODUCTIONAGRICULTURAL PRODUCTIVITYAGRICULTURAL PRODUCTSAGRICULTURAL RESEARCHAGRICULTURAL RESEARCH AGENCYAGRICULTURAL RESEARCH MANAGEMENTAGRICULTURAL SCIENCEAGRICULTURAL TECHNOLOGYAGRICULTURAL UNIVERSITYAGRICULTURAL WORKERSAGRICULTUREAGRICULTURE ORGANIZATIONAGRICULTURE RESEARCHANIMAL HEALTHARABLE LANDCAPACITY BUILDINGCATTLECENTRAL GOVERNMENT SPENDINGCEREALSCGIARCHEMICAL FERTILIZERSCOFFEECOMMODITY PRICESCOMPARATIVE ADVANTAGECOMPETITIVE GRANTSCOMPETITIVENESSCONSUMERSCROPCROP LANDCROP PRODUCTIONCROPPINGDEBTDECENTRALIZATIONDEFICITSDEFORESTATIONDEVELOPMENT AGENCYDEVELOPMENT STRATEGYDIMINISHING RETURNSECONOMIES OF SCALEEXPORTSEXTENSION AGENCYEXTERNALITIESFAOFARMERSFARMINGFARMLANDFARMSFINANCIAL CRISISFISCAL POLICYFISHFISHERIESFOOD CROPSFOOD PRICESFOOD SECURITYFORESTRYFORESTRY RESEARCHGDPGDP PER CAPITAGOVERNMENT SPENDINGGOVERNMENT SUBSIDIESGRAINGREEN REVOLUTIONGROSS DOMESTIC PRODUCTGROWTH POTENTIALGROWTH RATEHARVESTHIGH YIELDSHUMAN CAPITALIARCINCOMEINCOME SUPPORTINCOMESINDUSTRIALIZATIONINEFFICIENCYINNOVATIONINSURANCEINTEREST RATESINTERNATIONAL AGRICULTURAL RESEARCHINTERNATIONAL AGRICULTURAL RESEARCH CENTERIRRIGATIONIRRIGATION SYSTEMSLAND USELIVESTOCKLIVESTOCK FEEDLOCAL GOVERNMENTSMACROECONOMIC STABILITYMAIZEMAIZE YIELDSMATCHING GRANTSMOAMULTIPLIER EFFECTMULTIPLIER EFFECTSNATIONAL BUDGETNATIONAL BUDGETSNATIONAL GOVERNMENTSNEW TECHNOLOGIESOPPORTUNITY COSTOPPORTUNITY COSTSPALM OILPER CAPITA INCOMEPOLITICAL POWERPOLLUTIONPOSITIVE EXTERNALITIESPOTATOESPOVERTY ALLEVIATIONPOVERTY REDUCTIONPRICE CONTROLSPRIVATE GOODSPRIVATE SECTORPRIVATE SECTOR INVESTMENTPRIVATE SECTOR PARTICIPATIONPRODUCTION COSTSPRODUCTIVITY GROWTHPRODUCTIVITY INCREASESPUBLICPUBLIC DEBTPUBLIC EXPENDITUREPUBLIC EXPENDITURE ANALYSISPUBLIC EXPENDITURE REVIEWPUBLIC EXPENDITURESPUBLIC GOODPUBLIC GOODSPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC PROCUREMENTPUBLIC RESOURCESPUBLIC SECTORPUBLIC SERVICESPUBLIC SPENDINGPUBLIC WORKSQUARANTINERICERICE YIELDSRURAL INFRASTRUCTURERURAL ROADSSAVINGSSEEDSSOCIAL WELFARESOIL EROSIONSOIL QUALITYSUGARTECHNOLOGY ADOPTIONTECHNOLOGY TRANSFERTOTAL FACTOR PRODUCTIVITYVALUE ADDEDVEGETABLESVOTERSWAGESWEALTHWorld Bank10.1596/13069