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Courtesy of Sonya Dyah Kusumadewi, August 2020
This article is also available in Bahasa Indonesia here[DS(1] .
To ensure Trade, Development and the Environment Hub (Trade Hub) research activities contribute to their goals, it was essential to understand existing conditions surrounding the three study commodities: palm oil, coffee and wild species. Accordingly, the Indonesia Trade Hub team conducted scoping studies during year of 2019 for each of the project’s work packages to understand prevailing conditions and identify research gaps. Comprehensive scoping analyses and feedback provided the basis for the project to move forward. The scoping studies aimed to map baseline information and data critical for project implementation and achieving greater outcomes and impacts. Preliminary results of scoping studies were presented during the national kick-off workshop and a report was established based on input received from multiple stakeholders during the workshop. The executive summary is here and the full report is available here.
Methodologies and key findings from each report are summarized in the table below.
Table 1. Summary of methodologies and key findings of scoping studies by the Trade Hub Indonesia research team
| Work Package | Topics | Methodology | Authors | Key findings |
| WP1 Wild species trade | Songbird trade in Indonesia | Big data analysis (web data extraction of the online marketplace) | CIFOR 1. Beni Okarda 2. Ahmad Dermawan 3. Usman Muchlish | Four of the five most traded/advertised species are songbird species.The trade value of songbirds (Passeriformes) is USD 0.48m a month.Protected species were being advertised.There is also strong domestic demand for songbirds, and protected species are easily traded in online marketplaces. |
| WP2 Domesticated species trade | Overview of oil palm and coffee in Indonesia | Oil palm 1. Literature review 2. Actor-centered power 3. Social Network Analysis Coffee 1. Literature review | Oil palm by CIFOR 1. Herry Purnomo 2. Sonya Dyah Kusumadewi 3. Ahmad Dermawan Coffee by the WCS and UNILA team | Palm oil is recognized as a driver of deforestation and cause of biodiversity loss in Indonesia. However, the narrative is evolving with time. The market continues despite various pressures, and is a risk for remaining forests, especially in Sumatra, Kalimantan and Papua.The government and private sector are identified as the most influential actors in oil palm governance (from ACP and SNA). Coffee has a long history as a driver of deforestation and climate change. Causes are shifting agriculture and forest encroachment as demonstrated by the situation in Bukit Barisan Selatan National Park. |
| WP3 Social impacts | Socioeconomic impacts of the palm oil trade in Indonesia | A literature review based on the protocol from WP3 at the global level | CIFOR 1. Sonya Dyah Kusumadewi 2. Agus Andrianto 3. Herry Purnomo | Various positive and negative socio-economic impacts of oil palm development on the rural community in Indonesia are identified.The research team identified that the key driver of inclusive growth through oil palm development is the involvement of smallholders. Independent smallholder is the most important direct stakeholder of oil palm in the rural area for WP3 intervention in Indonesia.The three most important barriers to address are technical barriers (how to maintain yield and productivity), access to finance, and compliance with sustainability standards. |
| WP4 Trade policies and economic impacts | 1. Palm oil trade policy 2. Wild species trade chains | 1. Systematic review 2. Literature review | RCCC-UI 1. Sonny Mumbunan 2. Dewa Ekayana 3. Abdilla Alfath 3. Dhita Nabella | The palm oil trade sector consists of four fundamental trade-driver categories: endowment, markets, institutions and trade networksTrade outcome typologies consist of economic growth, job creation, poverty alleviation and prevention, income, food security and sustainability, which includes deforestation, biodiversity and other environmental issues.There are three wildlife trade chains in Indonesia: legal, quasi-legal, and illegal trade chains. |
| WP5 Modeling trade scenarios | Land-use modeling to support policy scenarios for rural development at the national and sub-national levels in Indonesia | Review of existing modeling tools | ICRAF Sonya DewiBetha LusianaTania BenitaHarry Aksomo | Four land-use models were reviewed where ICRAF has relevant experience: 1. Land Use Change Driver Modelling (LUDM) e.g. Dynamic EGO 2. Land Use Change Scenario Modelling (LUSM) e.g. FALLOW and InVEst 3. Land-Based Development Scenario Modelling for Decision Support (LDDS) e.g. GLOBECOM, System Dynamics 4. Land-Based Development Scenario Modelling for Negotiation Support (LDNS), e.g. LUMENS |
| WP6 Private sector solutions and impacts | Platforms, initiatives, and policies led by the private sector aimed to prevent and mitigate biodiversity and habitat losses | Literature review including publication and document review from existing research at CIFOR | CIFOR Heru Komarudin Michael Brady | Reviews of four types of private initiatives: 1. Collective aspirations 2. Certification schemes 3. Company pledges 4. Codes of conduct adoption. Some challenges persist hampering effective realization of commitments, such as lack of coherent legal frameworks (e.g. HCV and HCS set up); constraints in monitoring performance due to unclear definitions and criteria to achieve verifiable outcomes; different visions of sustainability among stakeholders; lack of transparency, particularly for corporations; and lack of incentives. |
| WP7 Public sector solutions and impacts | Major policies and regulations governing natural resource management, biodiversity conservation, and the environment associated with forests, oil palm and coffee plantations, and wildlife. | Literature and document review | CIFOR 1. Heru Komarudin 2. Michael Brady | 11 major laws and regulations governing plantations and industry operations, and the protection of biodiversity and local people affect oil palm plantation development. There is also major sectoral law for oil palm and a series of presidential instructions to support the implementation of sustainable palm oil. |
| WP8 Innovation, technology and outreach | Trade database and/or visualizations | Big data mining and analysis | Herry Purnomo (CIFOR)Dyah Puspitaloka (CIFOR)Andree Ekadinata (ICRAF) | Reviews of 29 national and international web-based trade platforms. Around 93% of platforms provide trade data for Indonesia; 90% on palm oil and 79% on coffee.SNA suggested potential data providers and developers to work with. |
| WP9 Capacity building, technology, and outreach | Capacity building for sustainable investment decisions | Literature review and internal discussions | IPB University Suria Darma TariganIskandar SiregarMiftah RahmanKen Dara Cita | Potential networks for targets of capacity building activities have been identified for each stakeholder group (government, private sector, financial sector and NGOs).Potential training topics for stakeholders have been identified. |
For any inquiries regarding Trade Hub Indonesia, please contact Sonya Dyah (s.dyah@cgiar.org)
Visit the Trade Hub global website here.