Indonesia Palm Oil Pledge (IPOP)

At the recent UN Summit entitled the New York Declaration on Forests some new corporate pledges. Wilmar, Golden Agri-Resources, Asian Agri and Cargill and the Indonesian Chamber of Commerce and Industry (Kadin) signed the Indonesia Palm Oil Pledge. They commit to work together to improve the environmental performance of the Indonesian palm oil industry. This Pledge includes benchmarks such as proactive government engagement on policy reform and a principle of no planting on high carbon stock or peat lands. The event is reported to be funded by Norway and significantly executed by Climate Advisers, a co-advisor with TFT to Wilmar on its 5 December 2013 "no deforestation, no peat, no exploitation" pledge.


Thanks to a Khor Reports reader, for this background article on the New York UN Summit from an article in REDD Monitor:

Made in the USA, paid for by Norway: The New York Declaration on Forests By Chris Lang 2 October 2014; "The New York Declaration on Forests was funded by Norway. It was part of a contract between Norway’s International Climate and Forest Initiative and the Meridian Institute, a US-based consulting firm... Thanks to Norway’s Freedom of Information legislation and its Electronic Public Records database, we know that the New York Declaration on Forests was part of Task Order 25: “Advancing REDD+ at the UN Secretary General’s Climate Leaders Summit and other Major Climate Events in 2014″....  The Meridian Institute sub-contracted part of this work out to Climate Advisers, another US-based consulting firm. Climate Advisers is working on another Norwegian-funded project aimed at “Creating demand for REDD+”. A Memorandum dated 9 September 2014 from the Meridian Institute asks for further funding from NICFI and explains Climate Advisers’ role: “Climate Advisers has been serving as the primary negotiators and drafters for the parties to finalize the New York Declaration on Forests and its associated Action Agenda....Pharo’s* email explains that Norway saw a “key role” for Indonesia in promoting REDD at the UN Climate Summit. (Brazil didn’t have a key role and didn’t sign on.)... Pharo’s email provides an interesting insight into the way Norway pushed the New York Declaration on Forests. It’s a “a legally non-binding political declaration”...." ”http://www.redd-monitor.org/2014/10/02/made-in-the-usa-paid-for-by-norway-the-new-york-declaration-on-forests/
*Pharo Per Fredrik Ilsaas, Director,  The Government of Norway’s International Climate and Forest Initiative, he Norwegian Ministry of the Environment

Also: Report rates palm oil companies on sustainability commitments by mongabay.com; October 05, 2014; "A new report published Forest Heroes, an advocacy campaign pushing for an end to deforestation, ranks global palm oil companies on their sustainability commitments. The Green Tigers, authored by Glen Hurowitz**, reviews the recent history of environmental policies in the palm oil sector...." http://news.mongabay.com/2014/1005-palm-oil-sustainability-rankings.html#YbvjysWgkr8SCwBM.99; ** Forest Heroes Campaign Chair / Managing Director of Climate Advisers.

 

Statement and press conference:

Indonesian Palm Oil Pledge - Press Conference, 23 Sep 2014 - US and Indonesia climate press conference on the Indonesian Palm Oil Pledge.
http://webtv.un.org/topics-issues/global-issues/watch/indonesian-palm-oil-pledge-press-conference/3801406655001

Pledge statement: http://www.mongabay.co.id/wp-content/uploads/2014/09/Komitmen-empat-raksasa-sawit.pdf


News link:

UN summit hails palm oil pledges September 24, 2014 9:45AM; "Dunkin' Donuts and Krispy Kreme have joined a raft of international food companies pledging at a UN Summit to stop using palm oil (TYPO!), considered a major contributor to deforestation.... And the world's three largest palm oil companies - Wilmar, Golden Agri-Resources and Cargill - said they would co-operate to end deforestation and encourage Indonesia's incoming president Joko Widodo to implement policies on the issue.... The UN said that, after a year-long effort, a growing percentage of palm oil producers had pledged to use forest land that hadn't been illegally cleared, now representing up to 60 per cent of the global production.... Cargill CEO Dave MacLennan, appearing with UN Secretary-General Ban Ki-moon, pledged that the company would go further by avoiding deforestation in all its products - not just palm oil...."  http://www.theaustralian.com.au/business/latest/un-summit-hails-palm-oil-pledges/story-e6frg90f-1227068730658


NGO reactions:

WWF Statement on the Indonesia Palm Oil Pledge September 23, 2014; “The environmental issues associated with oil palm development are well known and of global concern. The commitment we’ve seen today from the leading palm oil companies is welcome, significant, and potentially transformative. This should be a model for other palm oil producers and traders, and for other sectors experiencing forest loss due to uncontrolled agricultural expansion... Transparency and engagement around suppliers is critical, and must be aggressively pursued and openly reported....In the past, limited governance and an absence of enforcement allowed illegal development to flourish, resulting in some of the fastest rates of tropical deforestation on the planet. As the Indonesian Minister of Forestry recently announced, there are two million hectares of illegal palm oil plantings in the Riau Province alone, and WWF’s own field teams are reporting the encroachment of National Parks and Protected Areas.... It is essential now for the government to meet the opportunity presented by these new and deeper company commitments with the governance and enforcement to give them traction. Some regions in Indonesia are already beginning to meet this demand for legal development and production, and we hope and expect to see legality move from the exception to the norm...”
http://www.worldwildlife.org/press-releases/wwf-statement-on-the-indonesia-palm-oil-pledge

Manifesto 5 stepping up efforts (update 5): The tussle over HCS and 35tC/ha

7 October 2014: The tussle over HCS and the 35tC/ha policy step down

Khor Reports: The HCS issue is now at the forefront via two major studies, one rooted in academia (the Manifesto or SPOM group) and one lead by TFT-Greenpeace which first used a provisional 35 tC/ha or tonnes carbon per hectare ceiling based on a pilot study at GAR / PT SMART's Kalimantan degraded estates. However, TFT since says that's  no longer the ceiling; stating that 35 is a "non-existent mirage" used by those not committing to stepped up pledges to fear monger (i.e. 35 is too restrictive of development?).

So what was the 35tC/ha ceiling? In our talks to specialists, that is the life-time average carbon of the oil palm tree (it is referred to in a key RSPO working group document too); thus NGOs said that to be carbon neutral in some sense, oil palms should not be developed in forested areas with more than its own above ground carbon value. Of course, even the oil palm carbon measure is contested - do you include the fronds, fresh fruit bunches and ground cover etc? You may also ask why a crop is compared to trees - some say that may have been inadvertently abetted by some in the industry claiming that the oil palm is as good as a (forest) trees in the first place. Thus, solidifying the tree basis of comparison (which does not apply to other oilseed crops?).

So what will be the basis of "no deforestation"? A higher ceiling? Earlier, some spoke of 100tC/ha as a possibility. Some stepped up pledges have added parameters, such as Wilmar's (via a TFT traceability program) which has a multi-year no human use caveat. Individual B2B traceability programs may have varying parameters compared to the multi-stakeholder efforts such as the RSPO-based.

The details of HCS will emerge soon, as the pressure is on for the two HCS studies to find their conclusions and gain global buyer acceptance.


More reading:
Thanks to a reader for highlighting this, the TFT perspective on high carbon stocks which climbs down from the 35 tC/ha ceiling, http://between2worlds.com/short-history-of-hcs/; 35 tons of aboveground biomass is increasingly the number used to define high conservation value forest for greener palm oil initiatives. Image from Greenpeace:

 

TFT's Scott Poynton writes: "A key question emerged from Greenpeace: “If the accepted threshold is 35tC/ha above- ground biomass and field work reveals that 70% of a given concession is off-limits, what will GAR do? Throw the 35tC/ha threshold out the window and develop anyhow OR respect the threshold and protect the forested areas?”...The noise around 35 really is just that, a noisy mirage created by the communications teams of those companies and industry bodies that want no constraints placed on the amount or ecological condition of land that they can develop.... Brand Palm Oil does have a serious deforestation problem and the sooner it can stop fretting about a non-existent mirage called “35”, the sooner it might solve it."

 

 

 

Khor Reports blog posting on HCS and related topics (more recent at top, going back to landmark GAR-TFT deal in 2011):

• "RSPO+9", new TFT / Climate Advisers-led policies for Wilmar January 12, 2014 http://khorreports-palmoil.blogspot.com/2014/01/rspo9-new-tft-climate-advisers-led.html
• Over 1000tc/ha carbon stock in one oil palm cycle November 20, 2013; http://khorreports-palmoil.blogspot.com/2013/11/over-1000tcha-carbon-stock-in-one-oil.html
• Deforestation detection, RSPO GHG and trade clashes. April 14, 2013; http://khorreports-palmoil.blogspot.com/2013/04/deforestation-detection-rspo-ghg-and.html
• 45% area usable for Kalimantan plantations? March 13, 2013 http://khorreports-palmoil.blogspot.com/2013/03/45-area-usable-for-kalimantan.html
• 100tC/ha ceiling? August 20, 2012; http://khorreports-palmoil.blogspot.com/2012/08/100tcha-ceiling.html
• Golden Agri -TFT deal sets 35 tonnes carbon stored per ha ceiling; February 20, 2011; http://khorreports-palmoil.blogspot.com/2011/02/golden-agri-tft-deal-sets-35-tonnes.html

6 October 2014: Green Tigers pans SPOM (Manifesto) group

Report rates palm oil companies on sustainability commitments by mongabay.com; October 05, 2014; "A new report published Forest Heroes, an advocacy campaign pushing for an end to deforestation, ranks global palm oil companies on their sustainability commitments.
The Green Tigers, authored by Glen Hurowitz, reviews the recent history of environmental policies in the palm oil sector.... The report notes that most of the companies that are signees to the Sustainable Palm Oil Manifesto (SPOM), a commitment established this year, are on the yellow or red lists, while Palm Oil Innovation Group (POIG) companies are on the green list. Environmentalists have criticized SPOM as having weaker criteria than POIG, although several SPOM members just committed to a one-year moratorium on clearing of potential high carbon stock areas while they work out a definition of what constitutes forest...." http://news.mongabay.com/2014/1005-palm-oil-sustainability-rankings.html#YbvjysWgkr8SCwBM.99; Glenn Hurowitz, Forest Heroes Campaign Chair / Managing Director of Climate Advisers (advisor to Wilmar alongside TFT in its 5 December 2013 commitment).


21 September 2014: More slowdown in new plantings? Moratorium on deforestation by Manifesto 5.

Palm oil giants announce deforestation moratorium -- effective immediately by  mongabay.com, September 20, 2014; "On Friday, Asian Agri, IOI Corporation Berhad, Kuala Lumpur Kepong (KLK) Berhad, Musim Mas Group and Sime Darby Plantation said they will suspend forest clearing until they have completed a year-along study that aims to establish a threshold for defining what constitutes high carbon stock (HCS) forest.... The move comes after intense campaigning by environmentalists pushed dozens of major palm oil buyers to establish zero deforestation sourcing policies for palm oil, which is one of the top drivers of forest conversion in Malaysia and Indonesia. At the time of the announcement, several major palm oil producers and traders — including Golden Agri-Resources, Wilmar, and Cargill — had already established zero deforestation commitments based on a definition of 35 tons of carbon per hectare, effectively barring conversion of old-growth forests, secondary rainforests, and peatlands.... The moratorium may provide a temporary reprieve from green groups, which have portrayed the five companies — dubbed the Sustainable Palm Oil Manifesto Group for the name of their sustainability initiative — as laggards in the sector for continuing to chop down forests. NGOs that ran campaigns against the firms — including the Union of Concerned Scientists (UCS) and Rainforest Action Network (RAN) immediately welcomed the announcement, as did Green Century Capital Management, an investment advisory firm that a week earlier called for a deforestation moratorium...." http://news.mongabay.com/2014/0920-palm-oil-deforestation-moratorium.html#U0ZeOH0a1J6Fx7mU.99

 

 

13 September 2014:

 

In late August, two high carbon stock study group meetings for palm oil were underway. One was in Kuala Lumpur and the other in Singapore. Interestingly, several companies straddle both efforts and programs - including Wilma and Cargill (correction: not Unilever at this point).

 

In KL was the Manifesto Group that is building on RSPO certification. Its website is here: http://www.carbonstockstudy.com/Home, and the Sustainable Palm Oil Manifesto can be read here: http://www.carbonstockstudy.com/The-Manifesto/About. Its HCS study is co-chaired by Sir Jonathon Porritt and Dr John Raison of CSIRO Australia. Dr Raison shared the Nobel Peace Prize in 2007 with many other IPCC scientists and Al Gore. It appears that a scientific route is the hallmark of this effort.

 

We'll look out for more information on these.

NIelsen global snack survey

Khor Reports: An interesting survey on snack preferences. It is a $374 billion industry. Many snacks are processed foods, so of major interest to the palm oil sector. Notably, chocolate is the most popular snack. Other important categories include chips, cookies, bread and ice cream. Check out the graphic below from Businessweek.com and also the report linkage from Nielsen and graphic on retail sales by region.

In terms of attributes, it is interesting to read that sustainable/fair trade attributes preference rate similar to organic and that low fat preferences rate lower than low salt and low sugar. In terms of  very important / moderately important/ slightly important/ less (?) important:
GMO free: 43%, 30%, 16%, 11%
Low salt/sodium: 34, 37, 19, 10
Low sugar / sugar free: 34, 37, 19, 10
Low fat: 32, 36, 21, 11
Sustainable / fair trade: 35, 34, 19, 12
Organic: 34, 35, 20, 11

source: Businesweek.com from Nielsen

global snacking study;

What the World Eats When It's Snack Time By Venessa Wong     September 30, 2014
http://www.businessweek.com/articles/2014-09-30/global-snack-survey-what-the-world-eats-when-its-time-for-a-snack?campaign_id=DN093014

Report link:

Global Consumers Nibble, Nosh and Snack Their Way to Big Sales, Global  | 09-30-2014
"Whether you need a quick-fix on the go or a stand-in for a meal, snacks are more than just tasty treats; they’re also big business. Global snack sales totaled $374 billion annually as of March 2014—an increase of 2%* year-over-year, according to Nielsen retail sales data.... Europe ($167 billion) and North America ($124 billion) make up the majority of worldwide snack sales, with sales flat in Europe, and growing at a 2% rate in North America, compared to the previous year. Conversely, while annual snack sales in Asia-Pacific ($46 billion), Latin America ($30 billion) and the Middle East/Africa ($7 billion) are significantly lower than in the other two regions, annual growth in these largely developing regions increased more over the past year—4% in Asia-Pacific, 9% in Latin America and 5% in the Middle East/Africa.... While sugary and salty snacks take the lion’s share of sales, the fastest-growing snack categories are the ones to watch. Sales of savory snacks, which include crackers, rice cakes and pita chips, increased 21% in the last year in Latin America. Meat snacks, like jerky and dried meat, grew 25% in the Middle East/Africa and 15% in North America. Refrigerated snacks, including yogurt, cheese snacks and pudding, jumped 6.4% in Asia-Pacific, while dips and spreads, which include salsa and hummus, rose 6.8% in Europe....“Non-sugary snacks closely aligned with meal-replacement foods are showing strong growth, which signals a shift in a consumer mindset to one focused on health,” said Dunn. “While conventional cookies, cakes and confections categories still hold the majority share of snack sales, more innovation in the healthy snacking and portable food space is necessary to adjust to this changing dynamic.”...
http://www.nielsen.com/us/en/insights/news/2014/global-consumers-nibble-nosh-and-snack-their-way-to-big-sales.html

source: http://www.nielsen.com/us/en/insights/news/2014/global-consumers-nibble-nosh-and-snack-their-way-to-big-sales.html

Higher oil palm yields are bad ?

Khor Reports: Environmentalists and others have been concerned about the extensification of oil palm, arguing that expansion should be on degraded land and that the focus should be instead on yield increases. The Indonesian state appears to be moving toward making degraded land easier to use via new regulations. For quite some time, there has been a great deal of work and effort going into intensification or higher yields. So you would have thought that better yields achievements would be welcomed. However, an article in Science (covered by scientificamerican.com) now argues that yield increase is NOT a good thing after all.... Hard to please on any front? It makes oil palm planting too valuable / lucrative?


News links:

Good Palm Oil Yields Could Be Bad News by Cynthia Graber; "Increased palm oil yields could unintentionally have the effect of creating a bigger demand for land for even more palm oil planting. Cynthia Graber reports... in an article in the journal Science, researchers show how the increased yield could in fact lead to even more tropical destruction. Because as the value of palm oil planting increases, farmers could want to plant on even greater tracts of land. Which is bad news....  Also, a future increase in supply could eventually lead to a decrease in prices. So palm oil could out-compete, say, rapeseed oil from Canada. Which would lead to an even higher demand for palm oil. Which is worse news....  In addition, current low yields and high production costs means oil palm is not planted much in Africa and South America. But higher yields could make oil palm attractive to planters in those regions, leading to even more tropical forest destruction. [L. R. Carrascol et al, A double-edged sword for tropical forests].... 
http://www.scientificamerican.com/podcast/episode/good-palm-oil-yields-could-be-bad-news/

Article link:

Science 3 October 2014:  Vol. 346  no. 6205  pp. 38-40   DOI: 10.1126/science.1256685 
•Perspective Conservation
A double-edged sword for tropical forests
L. R. Carrasco1,  C. Larrosa1,2,   E. J. Milner-Gulland2,  D. P. Edwards3+ Author Affiliations
1Department of Biological Sciences, National University of Singapore, 117543 Singapore.
 2Department of Life Sciences, Silwood Park Campus, Imperial College London, Ascot, Berkshire SL5 7PY, UK.
 3Department of Animal and Plant Sciences, University of Sheffield, Sheffield S10 2TN, UK.
E-mail: dbsctlr@nus.edu.sg (L.R.C.); david.edwards@sheffield.ac.uk (D.P.E.)

With a growing global population and increasing per capita consumption, reconciling agricultural production with biodiversity conservation is a major challenge to humanity (1). A frequently promoted solution to stem the tide of agricultural expansion is to increase crop yields, allowing global demand to be met without further tropical forest losses. Recent genome sequencing of key crops such as oil palm, eucalyptus, rubber, soybean, rice, and cocoa could facilitate substantial yield increases (2–4). Could such yield improvements offer a solution to both tropical forest loss and agricultural demand, or could they pose further challenges to tropical conservation?
http://www.sciencemag.org/content/346/6205/38

Indonesia smallholders get MOA-UNDP support

Khor Reports comment: Indonesia has been moving ahead with various programs to improve sustainability in its palm oil sector. These range from increasing high-key awareness of its efforts in sustainability improvements (e.g. moratorium and REDD+ programs, high-level attendance at international meetings and more) and also more precautions such as a bill to protect farmers' interests. There is a clear impetus for the Ministry of Agriculture to intermediate efforts as there are widespread concerns that unfettered international voluntary programs could be unintentionally disruptive or divisive of the palm oil supply-chain, especially for its small producers and smallholder farmers.

Indonesia's program with the UNDP has been in the works for some time, and the Sustainable Palm Oil Initiative’s (SPOI) national platform was just launched (see news item at bottom). It seeks to help the smallholder sector. Industry talk has been that Indonesian policy makers and bureaucrats had not been so pleased with some private sector programs that asked smallholders to take out significant loans to join sustainability programs which had no promise of premiums to cover the cost thereof. Indeed, key programs often do not highlight the "cost-effective" and "inclusive" principles within their sustainability approach (some other agro-commodities programs are better at doing so). These two features are important for small producers and smallholder farmers; else they be excluded and/or continue to lose bargaining and pricing power to middle-men.

We'll have to find out more about the UNDP program in due course - including its costs and benefits. Smallholders have so far been neglected in the drive for sustainability, so this new program should be a plus. With crucial national and multilateral support, the program can hopefully look beyond narrow commercial interests too. It was already well known in the early days of economic sustainability that "unequal trade deals" would be risky (see blog posting below).

The escalating push for sustainability points toward variable market access or restrictions and hence multi-tier pricing for the commodity. Will a high risk sourcing zone status result in an international price discount? Fortunately, smallholders should retain privileged market access. However, program efforts are needed to effectively secure this and ensure that most of or the majority of any premiums for this category actually reaches smallholders.

Sustainability markets are narrow, shallow and obscure. But the big changes they portend is generating heightened interest and scrutiny.

Related blog posting: http://khorreports-palmoil.blogspot.com/2014/04/revisiting-brundtland-report-1987.html
Tuesday, April 15, 2014;  Revisiting Brundtland Report 1987
Khor Reports: The risks in unequal trade deals has long been recognized, even in the earliest days of the international push for change for sustainability in its broadest sense (inter-generational equity and more) . The UN’s "Our Common Future" / Brundtland Report of 1987 was still heavy on a government role and the principle of “sharing” and conflict mitigation between unequal institutions in the developed world and the developing world. This thinking seems of lower currency in the 2000s sustainability movement (or not highly practiced), including in the sector of palm oil sustainability, which has been narrowly driven on the basis of eco-certification or labeling. The narrower approach is associated with greater competition among NGOs for control of market share in eco-labels and market access policies, as seen across various agro-commodities. In palm oil, top Indonesia policy makers and industry associations are stepping up on regulatory changes and plans for national spatial landuse mapping. Is this the return of government to mediate the uneven negotiations of the big B2NGO2B deal phase? Also witness Australia state government moves to raise the standard on NGO claims and reduce the problem of market boycotts; http://khorreports-palmoil.blogspot.com/2014/04/australia-resource-industries-seek-ban.html.

News links:

Palm oil certification gets int’l support by Tama Salim, The Jakarta Post, Jakarta | Business | Sat, October 04 2014, 1:19 PM; "Indonesia, the world’s largest producer of palm oil, has launched an internationally backed nationwide program to improve the livelihoods of small-scale oil palm growers by helping them obtain national certification for sustainable practices....The Agriculture Ministry, in partnership with the United Nations Development Program (UNDP), officially launched the Sustainable Palm Oil Initiative’s (SPOI) national platform to help low-income oil palm farmers increase their productivity and improve environmental management....Agriculture Minister Suswono said the UNDP had donated US$15.5 million for the five-year program, which aims to get smallholders to abide by Indonesian Sustainable Palm Oil (ISPO) standards, a mandatory sustainability certificate introduced by the government in 2010....According to Suswono, the SPOI program is targeting 4.4 million hectares of oil palm smallholdings, or equal to 44 percent of the country’s total oil palm plantation area. As many as 2.2 million farmers tend the smallholdings, most of which are in need of revitalization and better management. He said he hoped the program would help plantations drive up productivity by at least 5 tons per hectare. Currently, small-scale growers produce 2.5 to 3 tons of crude palm oil (CPO) per hectare, lower than the private sector’s production potential of 6 tons per hectare....The international community, however, has been loathe to recognize the ISPO, saying it does not do enough to ensure sustainability, especially since Indonesia has a weak system of law enforcement. The ISPO lacks 11 percent of the indicators found in the RSPO, including high conservation value, while the RSPO will need 25 percent additional indicators to fully comply with the ISPO.... http://www.thejakartapost.com/news/2014/10/04/palm-oil-certification-gets-int-l-support.html

Felda Global IPO revisited (update 1)

21 September 2014: Lots of talk about Felda Global / FGV share price among KL share market observers. It recently fell to a low of RM3.46/share. Notably below even the most pessimistic view (Macquarie - see below) at the time of its IPO in mid 2012. The 52-week share price trading range: 3.460 - 4.700.

 

source: Bloomberg.com, 19 September 2014

 

  

13 July 2012: Credit Suisse issues report on Felda Global, 12 July 2012: "We initiate coverage on Felda Global Ventures (FGV) with an UNDERPERFORM rating and a target price of RM4.90, a potential downside risk of 11%. There are far better choices—younger age profile with more attractive valuations—in the region. We prefer Genting Plantations and Sime Darby in Malaysia, London Sumatra and Salim Ivomas in Indonesia.... Positives: large, leveraged to palm oil prices, fast-tracked to the indices, net cash position, clear dividend policy and a turnaround plan for downstream... Negatives: Old with falling yields, low profitability, minimal organic growth, potentially less transparency, 1QFY12 results have halved... Expensive and fully valued at CY12 and CY13 P/Es of 16.9x and 17.4x respectively..."

Source: Credit Suisse


Khor Reports Comment: This is the second "underperform" rated report on Felda Global by an investment broker that we have seen. Another report, issued by Macquarie Equities Research on 29 June 2012, gives a price target of RM3.85.

Jokowi-JK cabinet - with new Agrarian Ministry

Khor Reports comment: More news is emerging on the Jokowi-JK cabinet. We'll collate them here for you. You can also read earlier news on the cabinet planning and Indonesia presidential race here: http://khorreports-palmoil.blogspot.com/2014/06/indonesia-presendial-race.html. Notable for those in plantation and agribusiness are the new Agrarian Ministry (we know in our meeting with industry experts, that Indonesia plantation business interests were keen to have a ministry focused on their concerns - is this it?). Also note the to-be rejigged Agriculture and Food Sovereignty Ministry (currently the Agriculture Ministry, with additional functions currently overseen by the Forestry Ministry and the Maritime Affairs and Fisheries Ministry). There are efforts being made to stream-line the functions of ministries and the elimination of deputy minister roles is proposed. 34 ministries are anticipated, with 18 run by ministers with professional backgrounds.

News links:

Jokowi says Cabinet to  have 34 ministries by Dylan Amirio, The Jakarta Post, Jakarta | National | Mon, September 15 2014, 8:04 PM; "President-elect Joko “Jokowi” Widodo announced on Monday the structure of his future Cabinet, elaborating that there would still be 34 ministries in his government and that 18 ministers would have professional backgrounds. “We are looking for a strong, structured Cabinet that is willing to work efficiently with the government in carrying out programs,” Jokowi said at Transition House in Menteng, Central Jakarta... Jokowi did not announce the names of his ministers, but said that 18 would have professional backgrounds while 16 would come from political parties in his coalition..." http://www.thejakartapost.com/news/2014/09/15/jokowi-says-cabinet-have-34-ministries.html

Jokowi to have new ministries, eliminate deputy ministers by Bagus BT Saragih and Hans Nicholas Jong, The Jakarta Post, Jakarta | Headlines | Mon, September 15 2014, 9:48 AM; "President-elect Joko “Jokowi” Widodo will make moderate adjustments as he crafts his Cabinet, employing only minor changes to accommodate his vision but with close attention to the values of effectiveness and efficiency, which may result in reviewing the positions of some deputy ministers and director generals... Many previously expected that Jokowi would reduce the size of the Cabinet, which consists of 34 ministers under President Susilo Bambang Yudhoyono, on the basis that the move could save a significant amount of the state budget... Jokowi and vice president-elect Jusuf Kalla, however, considered the number ideal given the size of the country’s population. Jokowi has also taken into account the consideration that too many changes could also lead to adjustments that will cost the state budget and take time... Andi Widjajanto, one of the deputy heads of Jokowi-Kalla’s transition team, said the two leaders would have the final say on the Cabinet composition by Sept. 15 at the latest... Jokowi has asked us to reassess the effectiveness of the structures of the ministries by, for example, identifying overlapping tasks and functions done by different director generals at different ministries,” said Andi... The 34 ministries being scrutinized by Jokowi-Kalla include 19 ministries with the exact same names as they possess today and three new ministries.
“As many as 12 ministries are with different names, which is partly due to the merger of some functions overseen by different ministries,” Andi said... For example, issues related to higher education will be taken from the Education and Culture Ministry and given to the Research and Technology Ministry, which will then be become the Research, Technology and Higher Education Ministry... The three new ministries proposed are the Agrarian Ministry, the Population Ministry and the Creative Economy Ministry... Jokowi-Kalla will also likely scrap all deputy minister positions, except at the Foreign Ministry. There are currently 19 deputy ministers in Yudhoyono’s Cabinet. “The duties of almost all deputy ministers can be handled by the director generals.

New ministries:
1. Agrarian Ministry
2. Population Ministry
3. Creative Economy Ministry

Ministries with new names or merged
• Maritime Ministry (currently the Maritime Affairs and Fisheries Ministry)
• Infrastructure Ministry (currently the Public Works Ministry)
• Agriculture and Food Sovereignty Ministry (currently the Agriculture Ministry, with additional functions currently overseen by the Forestry Ministry and the Maritime Affairs and Fisheries Ministry)
• Research, Technology and Higher Education Ministry
http://www.thejakartapost.com/news/2014/09/15/jokowi-have-new-ministries-eliminate-deputy-ministers.html