Agribusiness problems hamper fair competition<\/p>\n
M. Taufiqurrahman, The Jakarta Post, Jakarta<\/p>\n
A small scale businessman from Brastagi, North Sumatra, who sells
\nagricultural produce in Jakarta, complained about extortion by
\nboth officials and thugs.<\/p>\n
"Business these days is very hard," said Edi Purba, 42. "For
\ndelivering a truck of sweet potatoes, for example, I have to pay
\nup to 20 unauthorized fees to officials and thugs between Medan
\nand Kramat Jati market in Jakarta."<\/p>\n
He said, at a seminar on building networks for small- and
\nmedium-scale enterprises (SMEs) earlier this week, that in Kramat
\nJati market, where he unloaded his goods to a middleman, he had
\nto pay around Rp 20,000 (US$2) to thugs in "security" fees.<\/p>\n
Edi said that such illegal payments made to both officials and
\nthugs were one of among many problems that now had to be faced by
\nSMEs.<\/p>\n
This was not the only problem that had prevented SMEs from
\ndeveloping, he said.<\/p>\n
"We also have problems in obtaining loans from the commercial
\nbanks, because the requirements for SMEs to get loans are the
\nsame as those for large-scale entities," he said.<\/p>\n
He also cited, as an example, how the quality of his produce
\nnow was starting to deteriorate.<\/p>\n
"The sweet potatoes I grow on my farm are becoming smaller,
\nand I don't know what has caused it," he said in dismay.<\/p>\n
An expert from Bogor Institute for Agriculture (IPB), Endang
\nGumira Said, told the seminar that extortion, low quality and
\ndifficulties in obtaining loans had now caused Indonesian farmers
\nto lose their ability to compete with farmers from other
\ncountries.<\/p>\n
"The existence of unauthorized fees is one among many problems
\nafflicting agribusiness in the country," he said.<\/p>\n
Endang said that Indonesian agricultural produce also had
\nproblems in penetrating the markets of some developed countries,
\nsuch as Japan and the United States.<\/p>\n
"Countries such as Japan and the U.S. demand high-quality
\nagricultural produce from other countries, something that can no
\nlonger be fulfilled by most of Indonesian farmers," he said.<\/p>\n
He added that Indonesia now lagged behind countries such as
\nMalaysia, China and Thailand in penetrating the world market of
\nagricultural produce.<\/p>\n
"Currently, China can produce around 120 million tons of sweet
\npotatoes per year, making it the largest producer in the world.
\nIndonesia can produce only two million tons," he said, adding
\nthat Indonesia now stood as the second-largest producer of sweet
\npotatoes.<\/p>\n
He also said that Indonesian efforts to develop a strong
\nagriculture industry were now tainted by those who committed
\nfraud under the name of enterprise for agricultural business.<\/p>\n
"The fraud committed by Qisar and Adfarm is but one example of
\nhow agricultural business can turn into serious crime," Endang
\nsaid, referring to cases of the misuse of investors' funds by two
\nagricultural companies collaborating with government officials.<\/p>\n
He said that unless serious efforts were made to boost
\nagribusiness, it might plunge into a deeper crisis.<\/p>\n
"Right now, of around 60 tuna-processing companies, 20 have
\nsurvived the competition in the world market," he said, adding
\nthat the 20 still had to import 30 percent of their raw materials
\nfrom the Philippines.<\/p>\n
He said that SMEs should rely on themselves rather than the
\ngovernment as it was already afflicted by serious problems,
\nincluding corruption.<\/p>\n
"Agribusiness should build its own network based on trust,
\nsomething that is very lacking in our society," he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/agribusiness-problems-hamper-fair-competition-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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