SCHOOL FOR ANIMAL BREEDING TO BE EXPANDED

People’s School of Animal Farming founded by Muladno Basar when he was the Dean of the IPB Faculty of IPB be expended and be developed. With the promotion of Muladno as Director General of Animal Farming and Animal Health, Ministry of Agriculture, the concept which was only applied in small scale would be developed into broader scale.

“Self sufficiency in meat would be hard to attain unless we make a breakthrough. Perhaps it might take 30 years to be self sufficient, by all the breakthrough, self sufficiency could be attained sooner,” he said.

The school of animal farming was established because the position of Australian cattle breeders who had been supplier of meat to Indonesia was not in parallel. In Australia one farmer owned thousands of cows, highly educated and were very market orientated.

In Indonesia one cattle breeder owned 1 or 2 cows, lucky enough if he had 5 cows. The average education level was Elemetary School of Junior High School. Livestock was not the main source of income; they were farmers with limited land for planting food horticulture and gardening. Cows were just some sort of asset only sold when vast amount of cash needed.

Under such circumstances cattle farmers needed a helping hand in order to compete against Australian cattle breeders. The Faculty of animal Farming of IPB mobilized animal farming experts an under the guidance of animal farming experts established School of Animal Farming. In the school there were at least 1,000 cows including 200 male cattles.

Today there were at least 14 schools of people’s animal farming spread out in all of Indonesia. The students were taught all about animal farming. The period of education was 3 years or extendable to 4 years. In the fifth year they were put to work.

Cattle breeders were bound in one business unit. They appointed 9 persons as member of inspection Board. School graduates were placed by IPB as manager of the business unit. These 8 people was expected to transform animal farmers.

 
The problem faced afield was farmers selling female mother cows when they needed money. To solve this problem IPB gathered investors and persuaded them not sell their cow to the butcher. The cow would be bought by investors at the price of Rp.390,000 for 52 months. In 4 years the cow would regenerated and give to one calve.

Many personal investors participated in this program. All the schools that totaled in number was established by collaboration with the Provincial Government. It was the Provincial Government who financed school establishment by among others providing the cash for comparative study with other countries, attening conventions etc.

As initial step the Directorate General of Animal Health had allocated fund for paying Manager’s salary. PT Bedikari had been enlisted as avails so the People’s School of Farmers could get bank’s credit.

In the future financing of SPR would be located from APBN Budget together with the Provincial Government. The universities being involved were also numnerous. Thereby it was expected there would be more animal farmers who were business oriented to speed up self supporting in meat.

The APBN-P 2015 was designed to supported increase of national meat through acceleration of cow’s birth, procurement of mother cow and prevention of cutting productive female cows. To procure mother cows the Government planned to import 27,650 cows plus 3,150 local cows.

Mother cows of palm plantations imported 15,000 cows to be distributed to palm farmers groups included in plasma or independent palm farmers. As with independent farmer’s. as with independent farmer’s group, Scientists building villages and contest winners group was given imported mother cows 11,325 plus 600 local cows, i.e. from Bali and Madura and also 1,000 diary cows.

For developing Regional technical Execution units, 1,200 local mother cows and 200 local cows were provided. For field cows and ex-mining locations 950 local cows were allocated while for universities 125 imported mother cows were provided.

Procurement of calves at the Central Technical Execution Units was 300 Balinese cows, the Regional Technical Execution Units 250 Balinese cows including development of Greenfield animal feed 1.0000 Balinese cows and PO.

Saving of productive female cows in accordance with mandate of Law Number 41 year 2004 on livestock farm was responsibility of the Provincial Government. Therefore Mayor/Regent were asked to make a Law which prohibited cutting of productive female cows.

The Director General of PKH themselves had collaborated with the Police to overcome he problem in West Java, East Java, Lampung, South Sumatra, Bali, NTT and NTB covering 27 regents and cities. At the early stage only publicizing was exercised but no sanction being put. (SS)

Business News - June 19, 2015

AEI AND APBI RATED YEARS GRACE PERIOD FOR MINING COMPANIED TOO SHORT

The association of Indonesia Emitents (AEI) rate that that span of 5 years for mining companies from start at the stockmarket (BEI) until making profit was too short. AEI and BEI were making a proposal to OJK. “Mining business is highly capital intensive, technology intensive and high risk for the long run so it is difficult to guarantee that Mining Permit can yield profit in 5 years,” Herman Kasih, member of AEI Evaluation Team told Business News (16/6).

Besides there were other requirements for holders of IUP Permit before they could play at the stock hall. The company must have an Indonesian Mineral Reserve Committee code while the cost for forwarding KCMI code was quite expensive, around USD 50 thousand (Rp.650 million). Considering the sizable cost, AEI proposed to set up a Venture Capital Body, so there would be enough time for IUP exploration permit to step up their performance whereby to enter BEI. “The Venture Capital could bridge IUM permit exploration holders and debitors. To ask for 8 to 10 years to tolerance, we must lobby OJK first.”

The prospect of mining corporations, in mineral or coal was promising including the prospect in the capital market. The number of mining companies listed at BEI was still limited. AEI Association, APBI and Aspindo recommended mining corporations – besides explorations also be active at the stockmarket.

Simultaneously, AEI would urge the authorities of the stockmarket including BEI to allow convenience. There had been requirement which was hard to meet by mining companies. The Capital Market Authority required a period of 5 years before a mining company made profit. “In 5 years the company is demanded to make profit and such is hard indeed.”

To cope with circumstances, AEI collaborated with APBI to establish a Capital venture body. A mining corporation before entering the stockmarket, must be armed with capital. “A venture capital could serve as bridge for mining companies. The required capital was not ignorable before entering the stockmarket. “We even plead the Government to permit foreign partner investors to hold majority shares, namely 49 percent, but they were not interested in minority shares. They rated Indonesia as not being investor friendly.”

Investors in various sectors including coal, gold and nickel were in the state of wait-and-see. They were attracted to Indonesia’s mineral resources but were walled out by regulations. The condition was different with foreign investors who had existed sooner in Indonesia like Freeport, Vale, Newmount etc. who could command over 80% - 90% of shares, the rest being given the Provincial Government. Under the new regulation, foreign investors could only command maximum 49% of share. BI and OJK had given the opportunity to holders of IUP Exploration permit. The Government of RI was trying to adopt the Joint Ore Reserves Committee (JORC) Australia. “The cost of JORC is extremely high, it could come to USD 200,000.- By BEI requirement, with just USD 50,000 a company could enter the stockmarket". (SS)

Business News - June 19, 2015

DIPASENA EMBANKMENT OPERATORS URGED GOVERNMENT TO TROUBLESHOOT ILLEGAL IMPORTING OF SHRIMP

Ex Dipasena Embankment operators of Tulang Bawang in the Province of Lampung urged the Ministry of Maritime and fishery (KKP) to seriously attend to the invasion of illegally imported shrimp, which caused downfall of selling price of shrimp including those of ex Dipasena embankment in Lampung. “There was indication of leaking import velve and trick of Shirmp Mafia,” Ari Suharso, P3UW Coordinator of Lampung disclosed to Business News (16/6).

KKP had made shrimp as one of the premium commodities of fishery products; but the Government’s action in managing problems in shrimp cultivation seemed to be close to zero. The total revitalization program in Dipasena in the Northern Coast of Lampung, went astray. “Revitalization was not to mention the WFD epidemic which infected thousands of the biggest embankments in southeast Asia.”

Delayed schedule of revitalization program could be injurious to embankment operators which made cultivation even more difficult. Thousand of shrimp cultivation even more difficult. Thousand of shrimp cultivators demanded clarification from the company and they waged mass demonstrations. “Today switched off electricity. On March 4, Ms, Susi, Minister of Maritime and fishery came to Dipasena. She promised mediation between CV Prima and shrimp rearers and turn on electricity, give technical aid, but so far nothing happened”

In the year 2000 Bumi Pasadena was the biggest embankment center in Asia, contributing up to USD 167 million per year. Dipasena was one of the assets belonging national businessman Sjamsul Nursalim. Payment of debt to the Government was part of the obligation as shareholder i.e. bank Dagang Nasional Indonesia (BDFNI). The value according to BKP report came to Rp.19.961 trillion. “Unending conflict because at the beginning asset of Sjamsul Nursalim was sold cheap to CP Prima. Evidently the revitalization program stagnated. Price of shrimp increased problem as it went higher. Supposedly KKP made stringent regulation so the shrimp industry was stable, and undisturbed by illegally imported shrimp.”

CP Prima was a consortium that win ex Sjamsul Nursalim tender asset which became state’s property. On May 2007 finally PT PPA succeeded to sell credit asset and share of Dipasena group worth Rp19.961 trillion to the Consortium of Neptune (CP Prima) only at the price of USD 53.5 million (448 billion). As new owner of ex Dipasena asset, CP Prima changed their name to PT Aruna Wijaya Sakti (PT AWS) who said that the obligation to revitalize would be completed in 12 months (December 2007 – January 2009).

“But the condition worsened. Our conflict with CP Prima had arrived at legal claim at the State Court of Tulang Bawang Lampung. We were forced to exit from Bumi Dipasena. We were also told to pay debt. We owe to the bank by credit pact. Not to CP Prima.”

Unending conflict forced tens of Dipasena embankment operators to run a demonstration at KKP in Central Jakarta. They expected there would be mediator of comflect between embankment owners and CP Prima. The short term solution was that KKP should allow sales of embankment shrimp at the local market.

Price supply at the local market could be stable with increased domestic consumption. Apparently local cold storages was filled with CP Prima was unable to export their shrimp price was down, but the price abroad tend to be stable and this is questionable. We are already miserable and things are made worse with the verdict of Supreme Court which rejected Judical Appeal of 185 embankment operators claimed by CP Prima.”

Partnership between embankment owners and PC Prima was also unbroken. CP Prima had rejected meeting with embankment owners several times, to be exact on February 2011 as partnership no longer included land procurement and production facilities, counseling etc, “We give up, but once in a while there was contact. Broken relation ship with Inti Plasma was by the Facto, not de jure.” (SS)

Business News - June 19, 2015

HORTICULTURE PRODUCTS NOW IN HIGH DEMAND WORLDWIDE

The Ministry of Trade was optimistic that world’s market opportunity for agro business was still wide open. This was an opportunity to grab for Indonesia’s agriculture industry to market horticulture products like vegetables ad fruits. The export market for agricultural products was low through 2014 as global economy slowed down and some buyer countries like China, Japan and some European states reduced their order. By 2015 there was growing confidence among domestic businesspeople that Indonesian agro-business commodities would sell well.

The Director General of Domestic Trading of the Ministry of Trade Srie Agustina stated in Jakarta on Monday (15.6) that there was growing demand for Indonesian fruits and vegetables although not sizable by volume. Srie stated that for the first 3 months of this year Indonesia exported 290,300 tons of fruits and 13.200 tons of vegetables. Export of both commodities was posted to increase against the first quarter of last year. Through January-March 2014 Indonesia exported 222,000 tons of fruits and 7,9000 tons of vegetables.

Therefore she said now farmers should no only step up production by output, but also by quality and build their own brand image. Beside export, the domestic market for horticulture products was not less promising. The upper-middle segment should be the target market of farmers.

Srie mentioned that export of fruits and vegetables increased by 42.02% and 72.43% respectively in Q-1 of this year against same period of 2014 (y o y). Over a period of 5 years (2010-2014) the trend of increase was 13.20% for fruits and 2.8% for vegetables while the trend of growth by volume was 0,52%.

Although export tend to increase, Srie admitted that Indonesia imported fruits and vegetables more than exporting them. Still srie was optimistic that the gap between import and export could be minimized. Data of the Ministry of trade had it that increase was evident in both import and export. By volume, import of horticulture products rose by around 9% to become 1.31 million tons and by value the increase was around 9% to become USD 1.42 billion against that of 2013.

Somehow to look at data of Q – 1 of this year, import of fruits and vegetables was seen to decline. Apparently import of fruits and vegetables in Q-1 of 2015 was 269,000 tons or down by 29.2% of the same period the year before. In terms of value, in Q-1 of this year import of horticulture products was posted at USD 250,6 million or down by around 28.8% of the same period at USD352,1 million.

The fruits and vegetable being imported were among others apple, lemon, grapes, garlics and beans among others from China, the USA and Thailand. The exported commodities were bananas, manggistan, cabbage and some beans which were exported to among others Pakistan, Vietnam, China, the Philippines and Singapore. (SS)

Business News - June 19, 2015