Value Chain and Finance Specialist

Organizational Setting

Indonesia has a strong enabling environment for sustainable food systems/livestock production. Its successful multi-stakeholder National Food Systems Dialogue and its strategy provides a strong vision for food systems transformation. Indonesia’s Master Plan for the Acceleration and Expansion of Indonesia Economic Development (2011-2025) highlights livestock as a priority sector. Indonesia’s Agriculture Development Strategy (2015-2045) strongly emphasizes sustainability. The 2020–2024 National Medium-Term Development Plan provides renewed focus on improving food systems governance and genetic quality of livestock. Indonesia’s Food Law number 18/2012 promotes Food Planning including carrying capacity of natural resources, technology, environmental sustainability, spatial planning, and national and regional development plans. In Indonesia, animal base protein (such as beef, buffalo meat, mutton as well as local poultry) is produced by small holder farmers (97%). In addition, labour involvement on livestock subsector was approximately 5.2 million people (or 14.6% compared to labour involved in the agriculture sector). Farmer groups are the smallest entities who deal with husbandry, keeping the animals; they are important parts of value chains. The MoA (DG of Livestock and Animal Health) has their offices at 416 regencies in 37 provinces, through which they mentor the farmer groups in terms of production, provide livestock facilities, small subsidiary, training, etc. The farmer groups number approximately 646,293, scattered in 74,961 villages from 7,094 sub-regencies. The average ownership of livestock varies, according to the location, which is 2-6 heads/farmer. However, those figures can increase according to their location. As livestock becomes a form of farmer’s assets, employment, and livelihoods, in certain provinces, the average of livestock ownership can be around 40. The utilization of agricultural production waste in the region is urgently needed to meet the nutritional needs of livestock feed according to the livestock commodities being developed. This will reduce the cost of raising livestock. Financial support from the government can be in the form of grants or loans such as people's business loans from banks or the National Amil Zakat Agency, access to environment fund managed by Indonesian Environment Fund, attract investments through public-private-community partnership, and/or nucleus-plasma partnership mechanisms. This is a micro finance mechanism given to the farmer groups through authorized banks and under the supervision and endorsement of local livestock offices. Beside the government, several private sector actors are also involved in livestock production, and play roles as financial support, part of the value. The project will encourage to mainstream biodiversity conservation in sustainable development as stated in the Presidential Decree number 1 year 2023. The government of Indonesia is committed to systems resilience building and prevention, nutrient pollution reduction, reduction and reuse of food waste along the length of the food systems value chain. Indonesia’s global commitments and contribution under UN conventions further illustrate this, including United Nations Framework Convention on Climate Change (UNFCCC) commitments to reduce Green House Gas (GHG) emissions by up to 29% with national efforts and up to 41% with international support and the United Nations Convention on Biological Diversity (UNCBD) targets to sustainably manage land for agricultural, plantation and animal husbandry; reduce pollution; animal manures management for biogas; genetic resources conservation; and the restoration of degraded ecosystems. In line with Indonesia’s archipelagic diversity and National Strategic Pathway for Food Systems Transformation, the project will ensure the country’s plans to address the burgeoning demand for protein are environmentally sustainable. Supported by Global Environment Facility under the GEF-8 Food Systems Integrated Program (FSIP), FAO is currently developing a full project proposal entitled “Sustainable Livestock Production to Support Resilient Food Systems, Environment and Rural Livelihoods in Indonesia.” The project aims to catalyze the transformation of livestock systems in Indonesia for increased self-sufficiency, sustainability and the delivery of multiple global environmental benefits (GEBs). The project is consisting of four main components. One of the project components is enhancing delivery of market-based incentives for sustainable production and consumption through environmentally conscious value chains as part of health and balanced diets. FAO is seeking for a Value Chain and Finance Specialist to collect information on the existing value chains conditions and its trends, identify and analyze the barriers to the optimization of value chain conditions and farmer’s engagement in value chains, identify key value chain actors and their roles, and provide the information on financial opportunities and funding mechanism to build improved and sustainable value chain. The results of these works will provide support International Project Design Expert in formulating full project proposal.

Reporting Lines

Under the overall administrative supervision of the FAO Representative in Indonesia, direct supervision of the Assistant FAO Representative (Programme), the incumbent will support the National PPG Coordinator and the International Project Design Expert.

Technical Focus

Provide relevant information on social situation in the proposed project sites, stakeholders mapping and engagement at national and sub-national levels, and environmental and social safeguards assessment.

Tasks and responsibilities

• Characterize the value chains identified in the environmental analysis as determining globally significant environmental outcomes in the target landscape. • Map input and output sides of value chains and associated actors (input sources, processing, value adding, transport, retail, final consumption), private sector involvement. • Analyze value chain conditions and trends (costs, prices, market preferences, standards, requirements etc.). • Analyze the determinants of value chain conditions and of their implications for global environmental values. • Analyze the barriers to the optimization of value chain conditions and farmers’ engagement in value chains in favour of global environmental benefits. • Identify key value chain actors with whom engagement is necessary in order to influence value chains in favour of global environmental benefits. • Recommend actions to influence value chain conditions in favour of global environmental benefits, including engagement with private sector actors and platforms at national and multi-country levels. • Propose indicators, with corresponding baseline and target values, of the effectiveness of the project in influencing value chain conditions in favour of global environmental benefits. • Identify needs for support from the GCP during project implementation (e.g. technical support, methodologies, instruments, knowledge, brokerage of relations) in order to optimize the outcomes of the project in relation to value chain management in support of sustainable food systems.

In collaboration with the NRM and social specialists:

• Analyze the sensitivity of production and resource management practices and value chains (identified in the environmental analysis as having implications for global environmental benefits) to the availability and nature of finance. • Characterize finance supply systems of relevance to the targeted production and management practices and value chains. • Analyze the barriers to optimizing finance supply and its effectiveness in relation to global environmental benefits. • Recommend project strategies for ensuring the availability of finance required to support NRM practices that are compatible with GEBs and food systems transformation. • In discussion with other PPG team members, define and generate baseline and target values for SMART indicators for use in the project results framework and M&E system, related to finance supply.

CANDIDATES WILL BE ASSESSED AGAINST THE FOLLOWING

Minimum Requirements

• University degree in natural, social sciences or any related field. • 10 years of relevant work experience in livestock value chain analysis, especially in Indonesia. • Working knowledge of English. • National of Indonesia or resident of the country with valid work permit.

FAO Core Competencies

• Results Focus • Teamwork • Communication • Building Effective Relationships • Knowledge Sharing and Continuous Improvement

Technical/Functional Skills

• Demonstrating/safeguarding ethics and integrity. • Demonstrate corporate knowledge and sound judgment. • Building and promoting effective teams, including working in teams and equality environment on non-hierarchical bases. • Learning and sharing knowledge and encourage the learning of others. • Communication skills to exchange information, and key ideas in a manner that engages the audience and helps others to understand and retain messages on food systems transformation. • Knowledge of and experience in supporting programmes of Government and FAO development projects dealing with food systems and environmental issues will be highly desirable. • Good inter-personal communication skills. • Familiar with Government and FAO procedures would be desirable. • Knowledge of the national language is an asset.