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Modelling the impacts of policy interventions for food systems transformation in Indonesia

Governance and policy support: Report








Woolfrey, S., Bizikova, L., Henning, C., Boere, E., Kozicka, M., Laborde, D., Piñeiro, V. et al. 2024. Modelling the impacts of policy interventions for food systems transformation in Indonesia – Governance and policy support: Report. Rome, FAO.




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    Modelling the impacts of policy interventions for agrifood systems transformation in Indonesia
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    The Government of Indonesia and FAO have recognized the need for thorough analysis and modelling of Indonesia’s agrifood systems to support agrifood systems transformation efforts in the country. This is needed to provide a better understanding of the governance context in agrifood systems, including the political economy dynamics influencing performance, as well as to identify synergies and trade-offs across different policy goals and optimal policy mixes for achieving multiple policy objectives.In this regard, FAO facilitated a project to pilot an innovative approach to modelling for food systems transformation. This modelling approach was developed and implemented by a team of researchers from IFPRI, IIASA, IISD and Christian-Albrechts- University of Kiel. It uses three different economic models to generate insights that can assist Indonesian policymakers in developing technically sound and politically feasible policy interventions for agrifood systems transformation.This report provides context for agrifood systems transformation in Indonesia and describes the overall modelling approach before synthesizing the results of the individual modelling activities and distilling these into the overall findings of the modelling. It concludes with implications from these findings for policymaking for agrifood systems transformation in Indonesia and suggestions for the next steps.The results of this modelling and the insights drawn from these results are expected to support efforts to translate Indonesia’s commitments on agrifood systems transformation into concrete policy interventions and to inform medium- and long-term development planning by the Indonesian Government.
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    Booklet
    Addressing Food System Transformation, Food Security, and Deforestation in Indonesia
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    This study identifies agrifood system interventions with high transformational potential for Indonesia by utilizing the MIRAGRODEP a multi-region, multisector computable general equilibrium model to analyze policy scenarios. Our findings reveal a range of economic, social, and environmental impacts. Initiatives such as social safety nets and food stamps can enhance affordability, while repurposing farm subsidies can improve socio-economic sustainability. Comprehensive policy packages that include social safety nets, repurposing agricultural supports, environmental regulation and investment in sustainable production, can lead to substantial GDP growth, poverty reduction, and dietary enhancements. However, each intervention presents distinct trade-offs between economic gains and environmental implications. This analysis underscores the need for a holistic policy approach when trying to achieve multiple sustainability goals. Implementing a blend of policies designed to promote environmental, social, and economic sustainability simultaneously could drive Indonesia towards a sustainable and resilient food system, addressing the complex interplay between economic development, environmental conservation, and improved nutrition.
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    Policy brief
    Supporting food systems transformation in Indonesia with governance innovation
    Governance and policy support: Policy brief
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