4TH CORRIDOR OF MP3EI, POTENCY FOR AGRICULTURAL MECHANIZATION INDUSTRY

The government has designated food development estate in the Master plan for Acceleration of Indonesia’s Economic Development (MP3EI) in the 4^th corridor, namely Sulawesi. The food development estate method becomes a new opportunity for growth of agricultural mechanization industry.

Haryono, Head of Agricultural Research and Development Agency of Agriculture Ministry, told Business News in Jakarta on Monday (11/5) that the focus of food commodity development in the future is in the 4^th corridor (Sulawesi) and supported by the 5^th corridor (Bali, West Nusa Tenggara and East Nusa Tenggara) and the 6^th corridor (Maluku, North Maluku and Papua). In Java whose farming business is in small-scale, food development in the 4^th corridor is in the form of food estate with size of area of 200 to 500 hectare.

With a broader farming business approach, it will open new business opportunity for development of agricultural machineries. The government expects that engineers must also follow the new platform of the government policy as there will be influence and change of demand for agricultural machineries with the beginning of implementation of MP3EI. “Engineers must see the big picture of MP3EI.”

Moreover, Indonesian agricultural machineries are competitive with other countries, including with China. Even, now Indonesian agricultural machineries are liked by many countries, especially Africa such as Nigeria. This country is the orientation of agricultural industries in the African Continent. This is a pride to Indonesia.

The reason why Sulawesi becomes the focus of agricultural development is because this region has good land potency for food development. Although Sulawesi has a food production support priority for 2026, the government still focuses on the 1^st corridor (Sumatera), 2^nd corridor (Java), and 3^rd corridor (Kalimantan) as the national food production suppliers.

Java has contributed 60% to national rice production. While, other regions like Sumatera and Kalimantan, their food development potency is high, especially in swamp and freshwater swamp areas. Out of 13 million hectare of swamp and freshwater swamps across Indonesia, around 9 million hectare has been opened for agricultural business and 4 million hectare for food business. It means that food development potency in the 1^st, 2^nd, and 3^rd corridors is still very significant.

Udhoro Kasih Anggoro, Director General of Food Crops of the Agriculture Ministry, said that his party will be mapping demand for agricultural machineries across Indonesia. The map will be adjusted to land condition and demand for farm workers. Currently, in many regions, farmers face difficulty in finding workers for planting and harvesting. With the mapping, we expect that farmers could cultivate their land optimally.”

For trial, the government is preparing Sragen Regency as a pilot project. This region is considered ready to fully apply mechanization. In addition to facing decrease in the number of workers, farmers are ready if their land will be integrated with corporate farming system. 

Business News - November 9, 2012