Towards a living income for cocoa producers in Indonesia : An insight into the situation of Indonesian cocoa farming households and potential strategies for improved intervention design

Abstract

Towards a living income for cocoa producers in Indonesia; An insight into the situation of Indonesian cocoa farming households and potential strategies for improved intervention design. Wageningen, Wageningen Economic Research, Report 2024-027. 54 pp.; 6 fig.; 1 tab.; 17 ref.The primary objective of this paper is to assess the income situation of Indonesian cocoa-producing households across different regencies and consider the factors that enable or hinder them from earning a living income. Our findings reveal that the vast majority of the studied households are not earning a living income, with many living in a situation of severe poverty. The living income gap amounts to approximately USD 1,365 per household per year, indicating that a significant increase in income would be necessary for households to achieve decent standards of living. Households that are already earning a living income typically have larger farm sizes and tend to be more diversified. Our study concludes with recommendations intended for enhancing the income of these households, either by expanding cocoa production or through other means, ultimately bolstering the resilience of smallholder farming households.