Fruit farmers need banking facilities<\/p>\n
JAKARTA (JP): The country's farmers need banking facilities
\nand more government assistance to improve the quality and
\nproduction of horticultural products, a seminar heard yesterday.<\/p>\n
PT Moenaputra president director I Made Donny Waspada, who is
\na fruit and vegetable distributor, said at a seminar on
\nIndonesian fruit and vegetables that farmers were reluctant to
\ndevelop horticultural estates because it was hard to get banking
\nfacilities.<\/p>\n
Banks treat farmers like other borrowers, imposing high
\nlending rates and demanding collateral, he said.<\/p>\n
\"Farmers need a loan with interest rates between 10 to 12
\npercent a year and the loan should be free of interest for four
\nmonths,\" Donny said.<\/p>\n
He said the average 20 percent interest rate charged by banks
\nwere too high for farmers.<\/p>\n
Bank loans should also be guaranteed by their distributors as
\nfarmers mostly could not offer collateral, he said.<\/p>\n
The Chamber of Commerce and Industry 's Sutrisno said some
\nAsian countries gave lower-interest bank loans to fruit and
\nvegetable farmers.<\/p>\n
Kaman Nainggolan, director of the agriculture ministry's
\ncenter for market and information development, said state-owned
\nestates needed to enter the horticultural business to give
\nbankers more confidence.<\/p>\n
The ministry's figures show Indonesian fruit production rose
\nto 8.5 million tons in 1995, from 5.5 million tons in 1994. But
\nthe harvested area fell from 726,251 hectares in 1991 to 631,671
\nhectares in 1995.<\/p>\n
Vegetable production rose to 6.9 million tons in 1995 from 5.6
\ntons in 1991. The harvested area rose slightly to 890,284
\nhectares from 839,437 hectares.<\/p>\n
Indonesia exported 68.9 million tons of fresh fruit and 94.2
\nmillion tons of processed fruit in 1995 and imported of 122.9
\nmillion tons of fresh fruit and 4.8 million tons of processed
\nfruit.<\/p>\n
Main export fruits were mangoes, mangosteens, bananas,
\npineapples and rambutans. Main import fruits were apples, pears,
\ngrapes, oranges and mandarins.<\/p>\n
Director General of Food Crops and Horticulture Amrin Kahar
\nsaid the government had started paying attention to horticultural
\ncrops three years ago.<\/p>\n
\"We have many tropical fruits, including mangosteen and
\ndurian, which can be developed to be main export commodities. We
\nhave also wide tracts of land that can be used as fruit estates,\"
\nhe said.<\/p>\n
He said Indonesian fruits and vegetables still had problems
\nconcerning quality and production continuity which was because
\nthey were produced mainly by small farmers.<\/p>\n
The government was preparing a quality standard for Indonesian
\nfruits, he said.<\/p>\n
Indonesian food products, including processed fruit and
\nvegetables, have been rejected several times by countries like
\nthe U.S. It rejected US$152.9 million worth of products in 1993
\nand $100 million in 1995. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fruit-farmers-need-banking-facilities-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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