Jakarta (ANTARA) - Deputy for Food, Natural Resources and Environment at the National Development Planning Ministry (Bappenas) Leonardo A.A. Teguh Sambodo said coffee and cocoa are sources of livelihood for millions of Indonesian families."Coffee and cocoa are not only high-value export commodities, but also sources of livelihood for millions of Indonesian families who are now increasingly vulnerable to climate change," he said, according to an official statement here on Friday.

He made this statement at the multi-stakeholder workshop and project kick-off for supporting the launch of a national parametric insurance scheme for coffee and cocoa farmers in Indonesia.

However, he said the sector still faces various challenges, including low productivity, weak traceability systems, and the vulnerability of smallholder farmers, which could affect Indonesia's competitiveness and market share at the global level.

According to him, an integrated strategy is needed to strengthen farmers' access to production inputs, financing, and technology, as well as to open up wider and more sustainable market access.

This effort is expected to expand inclusive access to protection and financing for coffee and cocoa farmers, while also supporting sustainable agricultural development. This is in line with the 2025-2029 National Medium Term Development Plan (RPJMN).

The event marked the start of a pilot project to develop parametric insurance for coffee and cocoa farmers, which will test product design, integration with business financing, and implementation mechanisms in a number of regions.

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He expressed hope that the results of the project would form the basis for developing a national model that could strengthen farmers' resilience to climate risks.

"Coffee and cocoa are strategic, export-oriented plantation commodities in Indonesia, with most production coming from smallholder plantations. This underscores the importance of strengthening protection for farmers as key actors in maintaining the sustainability of supply and the competitiveness of national commodities," Sambodo said.

Pewarta : Alatas, Kenzu
Editor: I Komang Suparta
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