Mon, 18 Jan 2010
From: The Jakarta Globe
By Arti Ekawati & Muhamad Al Azhari
The government has finalized plans and is ready to move ahead with the country’s first integrated food production zone in Merauke, Papua, a minister told the Jakarta Globe on Sunday.

“Drafting of the regulation has been finished and it is ready to be signed by the president,” Agriculture Minister Suswono said.

The food estates, as they are known, are designed to stimulate large-scale investment in the agriculture sector and beef up food security. The developers will be prevented from exporting any of their produce until the nation’s food needs have been met.

If the pilot project, which aims to attract domestic and international investors with a series of tax breaks, is successful, the government hopes to establish similar zones elsewhere in eastern Indonesia.

The completion of the food estate regulation was one of the objectives of the government’s program for its first 100 days.

According to the ministry, the pilot project will see 1.6 million hectares of land in Merauke transformed into an integrated farming, plantation and livestock zone, where companies will grow, process and package their products in one place.

The government plans to give investors financial incentives such as tax breaks and reductions in customs and excise duty, according to the ministry.

The government will also look to streamline the land acquisition process and facilitate immigration for foreign workers.

However, Suswono stressed that “the government will put Indonesian investors in the first priority before inviting foreign investor to invest in Merauke.” Overseas investors will have to work with a local partner and will be restricted to a maximum 49 percent ownership of any joint venture.

In addition to farming, the project will support a wide range of agricultural businesses, including, post-harvesting industries such as sorting and grading, packing, storage and processing as well as agri-tourism.

One million hectares of lands will be available to produce food crops such as rice, soy bean and corn. The rest will be split between plantations, fisheries and livestock. Investors will have to purchase a minimum of 1,000 hectares of land each.

But the development, under which many residents will be forced to sell their land, has met opposition from locals and non-government organizations, who have warned of social and environmental problems.

The Indonesian Farmers Union (SPI) has said that the food estate regulation will lead to a “land grab” by big businesses at the expense of locals.

“This will eventually lead [the country] to losing sovereignty in our food [production],” the union said. “Food estates could also lead to feudalism because the role of the indigenous farmers will be just to provide labor to the capital owners.”

Bungaran Saragih, a former agriculture minister, expressed similar concerns. “There is potential for social conflict between the original residents and the newcomers,” he told the Jakarta Globe last month.

SPI said on its Web site that a handful of local investors have showed an interest in the Merauke project so far: PT Bangun Tjipta, Medco Group, PT Comexindo Internasional, PT Digul Agro Lestari, PT Buana Agro Tama and PT Wolo Agro Makmur.

The union also said executives from Binladin Group, a Saudi Arabian conglomerate, have visited Merauke to examine the project’s potential.



News Search/Filter
Transaction Rates
12 Dec 18
Buy
Sell
AED1
3,980.52
3,980.52
AFN1
192.82
192.82
ALL1
133.71
133.71
AMD1
30.10
30.10
ANG1
8,239.40
8,239.40
AOA1
47.25
47.25
ARS1
386.80
386.80
AUD1
10,546.80
10,546.80
AWG1
8,122.90
8,122.90
AZN1
8,588.07
8,588.07
BAM1
8,519.06
8,519.06
BBD1
7,310.60
7,310.60
BDT1
174.33
174.33
BGN1
8,462.51
8,462.51
BHD1
38,788.47
38,788.47
BIF1
8.13
8.13
BMD1
14,621.20
14,621.20
BND1
9,277.28
9,277.28
BOB1
2,116.42
2,116.42
BRL1
3,745.37
3,745.37
BSD1
14,621.20
14,621.20
BTC1
48,766,427
48,766,427
BTN1
203.43
203.43
BWP1
1,365.93
1,365.93
BYN1
6,893.52
6,893.52
BZD1
7,255.26
7,255.26
CAD1
10,928.40
10,928.40
CDF1
8.97
8.97
CHF1
14,721.30
14,721.30
CLF1
603,832.49
603,832.49
CLP1
21.38
21.38
CNH1
2,121.38
2,121.38
CNY1
2,119.01
2,119.01
COP1
4.55
4.55
CRC1
24.44
24.44
CUC1
14,621.20
14,621.20
CUP1
567.81
567.81
CVE1
150.15
150.15
CZK1
640.05
640.05
DJF1
82.14
82.14
DKK1
2,217.77
2,217.77
DOP1
290.84
290.84
DZD1
123.16
123.16
EGP1
816.27
816.27
ERN1
974.91
974.91
ETB1
521.32
521.32
EUR1
16,556.31
16,556.31
FJD1
6,917.17
6,917.17
FKP1
18,265.31
18,265.31
GBP1
18,265.31
18,265.31
GEL1
5,518.90
5,518.90
GGP1
18,265.31
18,265.31
GHS1
2,987.99
2,987.99
GIP1
18,265.31
18,265.31
GMD1
294.93
294.93
GNF1
1.60
1.60
GTQ1
1,890.70
1,890.70
GYD1
70.04
70.04
HKD1
1,870.54
1,870.54
HNL1
599.11
599.11
HRK1
2,240.45
2,240.45
HTG1
193.28
193.28
HUF1
51.13
51.13
IDR1
1.00
1.00
ILS1
3,897.89
3,897.89
IMP1
18,265.31
18,265.31
INR1
202.13
202.13
IQD1
12.28
12.28
IRR1
0.34
0.34
ISK1
118.05
118.05
JEP1
18,265.31
18,265.31
JMD1
114.66
114.66
JOD1
20,604.76
20,604.76
JPY1
128.96
128.96
KES1
142.71
142.71
KGS1
212.82
212.82
KHR1
3.62
3.62
KMF1
33.63
33.63
KPW1
16.24
16.24
KRW1
12.95
12.95
KWD1
48,088.14
48,088.14
KYD1
17,549.53
17,549.53
KZT1
39.46
39.46
LAK1
1.70
1.70
LBP1
9.69
9.69
LKR1
81.55
81.55
LRD1
92.49
92.49
LSL1
1,021.94
1,021.94
LYD1
10,509.14
10,509.14
MAD1
1,535.27
1,535.27
MDL1
851.31
851.31
MGA1
4.12
4.12
MKD1
269.46
269.46
MMK1
9.29
9.29
MNT1
5.95
5.95
MOP1
1,816.71
1,816.71
MRO1
40.95
40.95
MRU1
401.68
401.68
MUR1
423.48
423.48
MVR1
946.35
946.35
MWK1
19.67
19.67
MXN1
724.43
724.43
MYR1
3,494.31
3,494.31
MZN1
240.16
240.16
NAD1
1,021.94
1,021.94
NGN1
40.17
40.17
NIO1
451.01
451.01
NOK1
1,704.67
1,704.67
NPR1
127.15
127.15
NZD1
10,069.62
10,069.62
OMR1
37,978.72
37,978.72
PAB1
14,621.20
14,621.20
PEN1
4,342.39
4,342.39
PGK1
4,344.99
4,344.99
PHP1
277.19
277.19
PKR1
104.84
104.84
PLN1
3,849.37
3,849.37
PYG1
2.46
2.46
QAR1
4,015.71
4,015.71
RON1
3,554.89
3,554.89
RSD1
139.87
139.87
RUB1
220.19
220.19
RWF1
16.56
16.56
SAR1
3,897.21
3,897.21
SBD1
1,839.20
1,839.20
SCR1
1,071.93
1,071.93
SDG1
307.16
307.16
SEK1
1,609.20
1,609.20
SGD1
10,644.43
10,644.43
SHP1
18,265.31
18,265.31
SLL1
1.74
1.74
SOS1
25.20
25.20
SRD1
1,960.47
1,960.47
SSP1
112.24
112.24
STD1
0.69
0.69
STN1
673.78
673.78
SVC1
1,671.33
1,671.33
SYP1
28.39
28.39
SZL1
1,021.98
1,021.98
THB1
445.49
445.49
TJS1
1,553.41
1,553.41
TMT1
4,177.50
4,177.50
TND1
4,976.06
4,976.06
TOP1
6,379.07
6,379.07
TRY1
2,727.34
2,727.34
TTD1
2,169.82
2,169.82
TWD1
475.16
475.16
TZS1
6.32
6.32
UAH1
527.59
527.59
UGX1
3.91
3.91
USD1
14,621.20
14,621.20
UYU1
454.02
454.02
UZS1
1.76
1.76
VEF1
0.05
0.05
VND1
0.62
0.62
VUV1
131.87
131.87
WST1
5,614.16
5,614.16
XAF1
25.23
25.23
XAG1
213,074.34
213,074.34
XAU1
18,177,432.99
18,177,432.99
XCD1
5,410.14
5,410.14
XDR1
20,310.04
20,310.04
XOF1
25.23
25.23
XPD1
18,210,486.98
18,210,486.98
XPF1
138.74
138.74
XPT1
11,484,902.75
11,484,902.75
YER1
58.40
58.40
ZAR1
1,020.15
1,020.15
ZMW1
1,226.39
1,226.39
ZWL1
45.35
45.35
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services