Discussion of bill on farmer protection and Empowerment (RUU P3) entered
the final stage. Government and parliament have agreed on several crucial
issues. Discussion of the bill is expected to be completed by the end of June,
so it could be enacted in July.
Acting Head of Agricultural Elucidation and Human Resource Development
(P2SDM), Achmad Suryana, told business news in Jakarta on Thursday (5/16) that
about 95% of draft of RUU P3 has been completed. Even, the House of
Representatives’ standing committee meeting who discussed the bill has also
completed discussion of the crucial issues.
It is expected that there will be one more meeting with the
synchronization team, after which it will be brought to the drafting team.
After completion of the discussion with the drafting team, the draft bill will
be discussed again with the Standing Committee. Then, it will be submitted to
the meeting between the Minister of Agriculture and Chairman of Commission lV
of the House of Representatives, and then it will be submitted to the plenary
session for approval.
“The great work has been completed. It is relatively faster than the
food Act. We expect that the entire discussion will be completed by end of June
or early July.”
There are at least three issues that become a quite lengthy discussion,
namely the protection of farmers, farmer empowerment, as well as funding and
financing of farmers. For the protection of farmers, the government and the
House of Representatives have agreed to establish seven strategies.
First, the provision of infrastructures and production facilities to
farmers. Second, providing business certainty to farmers. Third, the policy on
commodity prices at the farm level. Fourth, elimination of the high-cost
economy practice. Fifth, compensation due to drop failure. Sixth, information
on the impact of climate change. Seventh, farmers insurance.
The bill also mentions that farmers get protection. Among them are
smallholder crop farmers (farm) who do not have farm land or have farm land of
less than 2 hectares. “So, farmers who will receive protection are landless
farmers who do not own land and have arable land of no more than 2 hectares.”
In addition, food crop farmers have land, but its size is less than 2
hectares. Meanwhile, protection of horticulture farmers, planters, and breeders
are those included in small business category. For horticulture, plantation and
livestock business, the government set a minimum limit of businesses that to do
not need permit. For the plantation business, for example, which land area is
less than 25 hectares.
Land Management Rights for Farmers
Regarding empowerment of farmers, the bill states that the government
has an obligation to provide education and training, counseling and mentoring,
development of national food system and prioritization of domestic production
to meet domestic demand. Furthermore, providing easy access to science and
technology to farmers and strengthening of farmer organizations.
In the articles about the empowerment of farmers, the most crucial
issues are assurance of size of farmers’ farming area. Government and members
of parliament understand that the land area of 2 hectare is the minimum figure
for farmers to be able to live decently.
Therefore, it was finally agreed to provide management right/right to
use abandoned land to farmers. So, the land cultivated by farmers is not a
property right that can be traded, but it is just a management rights. Land to
be given to farmers will be set in advance by the local government as abandoned
land. Farmers will get an area of 2 hectares.
For the financing of farmers, there are two main issues to be
intensively discussed. First, the agricultural Bank. In the discussion, the
House of Representatives wish that there is a bank for farmers. But, the
government sees that it is too early to set up a bank for farmers. Because, the
Bank Indonesia act does not allow establishment of agricultural banks. The cost
to establish a new bank is also very expensive, so that it becomes a burden for
the government’s budget.
Finally, the government and members of parliaments take a middle path.
On the ground that farmers need financing and capital support, the government
will assign state-owned bank to create special units for agricultural
financing. The special units must provide facilities to farmers to get capital,
faster access and low interest rates. “The government hopes that in the next 10
years, these special units for agricultural financing will be transformed into
agricultural banks.”
Second, agricultural insurance. With the agricultural insurance, the
government hopes that farmers will get protection in their farming business.
For this, the government will assign state-owned insurance companies to provide
insurance premium subsidies to farmers. “The bill is expected to become a law
to protect farmers.” (E)
Business News - May 17,2013
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