Tuesday, 2 July 2013

Agricultural Observer : PRODUCTION INCREASE MUST BE ACCOMPANIED WITH GOVERNMENT’S POLITICAL SUPPORT




Government set target of food (paddy, corn, and soybean) self-sufficiency by 2014. Two years more, attempts to achieve target are still facing problem. Therefore, there should be a political support from the government so that the problems that hamper target achievement can be settled.

Fadel Muhammad, General Chairman of Indonesian Agribusiness and Agroindustrial Society (MAI), said that looking at the agricultural condition in Indonesia, particularly food, there is a continual increase of import, not only in terms of volume, but also in term of value.

Since 2004, Indonesia has been continually importing rice. In 2011, rice import reaches 1.8 million ton, and in 2012 is estimated to reach around 400,000 ton. Even, volume and value of wheat import is the biggest among 7 imported foodstuffs.

Soybean import volume in 2009 has started to decline, but in 2010 increase. In 2012, the National Soybean Council recorded that soybean import reaches 2 - 2.5 ton.

Like corn commodity, even though local corn production reaches 18.96 million ton in 2012, as national corn consumption exceeds production capacity, import is inevitable. In 2012 it is estimated at 1.5 million ton. Due to high level of food import, Indonesia has been caught in the global food trap.

We must be careful with this condition. Since 1996, there was an increasing tendency of food demand globally. While in fact, since 1997 growth of world’s food production is much slower than consumption growth. This condition caused increase in food price.

Therefore, the government must realize and understand the factors that contribute to increase of food prices. The government must make a national food politics based on local capacity. If the government is consistent in building food management based on independence, populism, and justice, food self-sufficiency can be achieved.

If we observe quality of development output in the past eight years, justice and populism aspects are less paid attention to in the formulation and implementation of national development policy. Agricultural policy, in a broader sense, must pay attention to marginal cost of crops cultivation to maintain farmers income.

Bustanul Arifin, Professor at Lampung University, said that target of 10 million tons of rice surplus is actually a small thing if the government is willing to work hard, to reduce yield gap between test plots and farmers land. In 2012, paddy production reaches 68.9 million ton of dry paddy (GKG) or 39.3 million ton of rice, or increases 4.9% from 2011.

With rice consumption at 113.5 kg/capita, total consumption of 237.6 million people is 27 million ton. If this data correct, there must be rice surplus of 10 million ton. Actually, it is unnecessary for Indonesia to import rice. But the fact is that in 2012, Indonesia’s rice import reaches 1.8 million ton. Why this happened Estimation basis of rice surplus. Data of the National Bureau of Statistics (BPS) is said to be overestimate, especially in planting index basis.

BPS also questioned why every time we are approaching General Election, rice production growth increases quite highly. For example, in 2004 increases 3.74%, in 2009 increases 6.75%, and in 2012 increase 4.87%. This is what I found.
In the future, Indonesia will need a promotive policy in biotechnology, research and development support commitment, and development and research for development in public institutions. In addition to that, economic incentive system for private sector and the public at large based on a synergic and sustainable ABGC (academicians, business, government and civil society) partnership.

Future reposition is necessary to so that agricultural development should be integrated with rural development strategy, increase of capacity of human resources and social institutionalism.

In the future, agribusiness and agricultural sectors could become Indonesia’s economic prospect. A new incentive system based on innovation and technology must be developed. This is to minimize yield gap, especially in food products. (E)

Business News - January 02, 2013

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