EXECUTIVE SUMMARY

Sustainable agricultural commodities refer to the principles and criteria of sustainability at the jurisdictional level. Smallholders and Independent Smallholder farmers are among many key actors in the supply chain of agricultural commodities, particularly cocoa sectors, taking up the most extensive coverage. Indonesian smallholders owned 90 % of cocoa plantations, although their total national output contributed to 65% of overall national cocoa production. Consequently, international and regional markets view farmers’ roles are critical to fulfilling sustainable supply chain production.

In his remarks during the sixth of Jurisdictional Collective Action Forum (JCAF), the Ministry of Small and Medium Enterprises (SMEs) and the Ministry of Trade indicate that SMEs account for an overwhelming majority of economic generation and play a significant role in the contribution to Indonesia’s commitment to achieving the SDGs. The establishment of the training centre and provision of technical assistance to support local farmers’ compliance to sustainable market principles are among many efforts the Government has facilitated to strengthen the SMEs. Undergoing collaboration program between the Government with local partners are Patchouli partnership in Aceh, biopharmaceutical products development in East Kalimantan, Cocoa Products and Beef processing in NTT, and rattan production in Central Java. In some districts, cooperatives facilitate access for smallholder farmers gaining technical expertise for Good Agricultural practices and access to global market.

An academic institution such as IPB provides research knowledge and practical approaches through the Agroforestry system to respond to the increasing global demand of cocoa production against this challenging backdrop of climate and productivities. Some successful models are piloted across farmer groups in Sumatra and Sulawesi to anticipate possible encroachment yet promote higher income through crops diversification and other potential economic incentives.

At the heart of the effort, what has been pursued by two cocoa cooperatives in Jembrana and North Luwuk Regencies are producing sufficient quality yields at competitive prices to curtail challenges for palm-oil conversion due to incentivized price other crops have offered. At the jurisdictional level, a more holistic and integrated approach to aligning regional sustainability goals and agricultural supply chain incentives are critical to motivating stakeholder participation to support increasing production sources, especially for cocoa smallholder farmers.

The dialogue sums up the need to strengthen the role of smallholder farmers through cooperatives. Active involvement across supply chain actors, provision of expert assistance, diversifying crops for income generation, and regulatory framework are identified as necessary steps and takeaway message to promote sustainable cocoa production. Therefore to advance collective vision to achieve sustainable development goals, it is essential to develop the business case for the cooperatives both in Jembrana and Masagena to further identify lessons learned, challenges, and opportunities to leverage and catalyse more stakeholder engagement and investment at the Jurisdiction.

EXECUTIVE SUMMARY

Jurisdiction Collective Action Forum (JCAF) held its virtual Dialogue #4 on 25 November 2021. The forum focuses on this year’s most anticipated global events, the UNFCCC COP 26 in Glasgow and UNCBD COP 15 (Part 1) in Kunming, which brought in the business sectors’ perspectives and their strategy towards achieving net-zero goal and biodiversity conservation, as well as community livelihood. The dialogue of the two prominent summits sought to discuss Southeast Asia’s potentials as a pivotal contributor to the global climate and biodiversity value proposition, particularly as a major producer of agricultural and forestry outputs.

In line with the Indonesian government’s decade of achievement and strong commitment to continue in bending the curve of deforestation, as stated by President Joko Widodo at COP 26, business leaders have proactively stood firm to their commitment to do more than just pledging, but to also translate that pledge to their supply chain operations. Further strengthening conservation programs, traceability and supply chain mapping, renewable energy investments, and sustainable forest management systems are critical models of actions for leading cross-sectors commodities in their pursuit toward climate agenda. The wide array of cross-sectoral actors from financing, rubber sector, and restoration ecosystems collectively outline their strategies and actions to integrate biodiversity conservation and community empowerment into their business models while making financial calls to scale it up.

The fourth JCAF dialogue concluded that business leaders had outlined their actions to contribute to achieving the climate-action agenda as reflected at the UNCOP 26 and UNCBD Cop 15. However, involving financial sectors is critical to unlocking economic opportunities to leverage current silo/ecosystems/project-based activities and synergize with local governments, who sit at the helm of cross-sector, multi-stakeholder collaborations. Therefore the session recommended developing business cases to identify shared-lessons learnings and potential opportunities for scalable solutions in leading jurisdictions, contributing to the implementation measures and action plans toward climate-solution agenda in the next COP 27.

EXECUTIVE SUMMARY

The Jurisdiction Collective Action Forum (JCAF) held its third dialogue on October 15th, 2021, focusing on “Financing Jurisdiction Approach Toward Green Prosperity” and diving into regulatory frameworks, principles, standards, and guidelines to mobilize investments for jurisdictional-scale performance from the perspectives of the Indonesian government, non-state actors, donors, and investors. In the spirit of collective actions, JCAF aims to catalyse partnership across leading jurisdictions to advance sustainable commodity production and low carbon growth.

The recent IPCC report has been hailed as the “red code for humanity.” Limiting global warming to 1.5 degrees Celsius, reducing emissions from commodity-driven deforestation and other land-based sectors have never been so critical. The Indonesian government is committed to halting emissions by 29% independently and by 41% with international support by 2030. It has also further allocated 30%-40% of the national budget toward NDC (Nationally Determined Contribution) implementation. Catalyzing transformation toward an integrated and inclusive Jurisdictional approach (JA) offers a solution toward the pursuance of the country’s climate-change agenda.

JA promotes partnership in low carbon development and strengthens sustainable development through inclusive, innovative, sustainable financing for deforestation-free and highly productive agriculture commodities. The experiences of JA in East Kalimantan and Bio-Carbon Fund-ISLF in Jambi, supported by the UK Government and the World Bank, demonstrated that a blended finance scheme is essential to attract sustainable financing to the jurisdictions. Equally critical is the support from governments, especially regarding regulation implementation and enforcement. Forclime shared lessons learned from JA initiatives in West Kalimantan and Central Sulawesi and highlighted the need to lay out a successful benchmark. Further, the Seruyan experience provided some practical steps to implement a jurisdictional approach, such as training, funding, legal documents, shared resources and inclusivity. In conclusion, this approach provides an inspiring vision and a potential entry point for sustainable financing prospects while paving the way toward green prosperity.

EXECUTIVE SUMMARY

This report highlights the second dialogue, “The Post-2021 UN Food Systems Summit: Indonesia Perspective,” conducted virtually on September 29th, 2021, by the Jurisdiction Collective Action Forum (JACF) collaborators. Pursuing the climate change agenda, we need transformative actions in regulating food sectors through a land-based and jurisdictional approach. The launch of the Decade of Progress Study in curbing deforestation in Indonesia and Malaysia demonstrates areas of success that resulted from Government leadership, business commitment, and civil societies, and the community’s integral role in reducing deforestation.

The Jurisdictional Approach (JA) is one way to pursue transformative food productions toward Low Carbon Development and Sustainable Development Goals (SDGs). TERPERCAYA, which is currently being piloted, was formed through a multi-stakeholder approach to develop and harmonize national and regional priorities collectively across stakeholders and sectors both at the regional and national levels. Furthermore, it will be developed and integrated into the regional plan rewards upon achievements in reconciling both economic growth and environmental protection.

The growing consumer market for sustainable commodities indicates continuous signals that drive transformative actions and commitments across supply chains through community empowerments, entrepreneurship, best-practice sharing and positive narrative building, implementing traceability systems to supply chains; and exploring JA. To advance into scalable impacts requires synergies across sectors to meet challenging priorities, and JA provides the solution to balance economic growth, improved communities welfare, and environmental protection in the cocoa sectors.

EXECUTIVE SUMMARY

This report presents the highlights of the first dialog “The State of Jurisdictional Approaches in Southeast Asia” that was virtually convened on the 25th of August 2021 by the Jurisdiction Collective Action Forum (JCAF) collaborators. JCAF is a collaborative platform consisted of Cocoa Sustainability Partnership, Indonesia Business Council for Sustainable Development, Inisiatif Dagang Hijau, IPMI International Business School – Case Centre, Landscape Indonesia, Lingkar Temu Kabupaten Lestari, Filantropi Indonesia, Partnership for Indonesia’s Sustainable Agriculture, and Tropical Forest Alliance.

The jurisdictional approach (JA) is “an integrated landscape approach that aims to reconcile competing social, economic, and environmental objectives through participation by a full range of stakeholders across sectors, implemented within government administrative boundaries, and with a form of government involvement at the national and sub-national levels of public administration”. Since its inception in the 2000s, JA has generated a wealth of literatures and theories which has then developed into an analytical framework to understand how JA can catalyze transformation in an administrative area and then work together and contribute in the land use sectors.

The Decade of Progress Study presentation kicked off the session by highlighting Indonesia’s achievement in bending the deforestation curve through enabling the policy system, civil society advocacy, market transformation, knowledge transformation and a web of synergy among a variety of actors. Key areas that require further explorations are: (i) to deliver value propositions for district areas to generate impact; (ii) to focus on hotspot jurisdictions where deforestation and fires remain a problem; and (iii) incentives and rewards from private and public sectors.