Govt to revitalize underdeveloped sectors<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The government has launched a blueprint for the revitalization of
\nthe country's underdeveloped agriculture, fisheries and forestry
\nsectors, as part of an effort to help support higher economic
\ngrowth and reduce massive unemployment.<\/p>\n
Among key points included in the blueprint are the provision
\nof fiscal and non-fiscal incentives to encourage business to
\ninvest in the three sectors, as well as clear-cut policies to
\nimprove the quality and incomes of local farmers.<\/p>\n
Coordinating Minister for the Economy Aburizal Bakrie said the
\nblueprint -- which would be officially announced at a state
\nceremony at the Jatiluhur Dam, Purwakarta, West Java, on June 11
\n-- was expected to help the country use the three sectors to
\nsupport its economic growth target of 6.6 percent annually over
\nthe next five years.<\/p>\n
\"As sounded out during his presidential campaign, President
\nSusilo Bambang Yudhoyono has ordered the revitalization of the
\nthree sectors to help achieve our economic growth target,\" he
\nsaid at a press briefing at the State Palace on Thursday.<\/p>\n
The country's agricultural, fisheries and forestry sectors
\nhave been lagging behind in comparison to other countries in Asia
\ndue to mismanagement of resources by previous governments as well
\nas unclear regulations.<\/p>\n
At present, the country's agricultural growth only stands at
\nan average of 3.5 percent per year.<\/p>\n
Aside from abundant agricultural resources, business is
\ncurrently reluctant to engage in the sector because the
\ngovernment is not protecting local farmers from the flood of
\ncheaper imported produce, especially from China and Thailand.<\/p>\n
In order to encourage business into the sector as well as to
\nenable them to compete with overseas farmers, Aburizal said the
\ngovernment has planned to provide fiscal incentives in the form
\nof tax reductions or exemptions.<\/p>\n
\"We are still studying whether to exempt or reduce value-added
\ntax on agricultural produce or income tax for farmers. We will
\ncome out with the scheme soon,\" he said, adding that the
\nblueprint was designed to be \"business-and-farmer-friendly\".<\/p>\n
For non-fiscal incentives, the government had prepared a
\nnumber of policies, including a possible adoption of import
\nquotas for overseas agricultural products in order to protect
\nlocal farmers, and a provision of permanent agricultural zones.<\/p>\n
Minister of Agriculture Anton Apriyantono said the government
\nwas planning to secure 15 million hectares of land throughout the
\ncountry to become permanent agricultural areas this year, in
\nwhich the utilization of the areas could not be transferred to
\nany other purpose apart from agriculture.<\/p>\n
The areas will be mostly aimed at encouraging the production
\nof rice, corn, soybean, sugar and meat.<\/p>\n
\"The five commodities will be the government's top priority
\nfor development over the next five years. Our target is to become
\nself-sufficient in supplying these five commodities for the local
\nmarket,\" said Anton during the press conference.<\/p>\n
Aside from the incentives, the government will also issue
\nseveral blueprints for other sector in a bid to fully support the
\ndevelopment of the sector.<\/p>\n
The blueprints which are currently in the pipeline include
\nthose on land and agricultural space, village infrastructure,
\nfood security provision and trade of agricultural produce.<\/p>\n
\"All of the blueprints will be issued this year. We expect
\nthat investment from the private sector, public and local
\nadministrations will go mostly into the agricultural, fisheries
\nand forestry sector,\" said Anton.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-revitalize-underdeveloped-sectors-1447893297",
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"sponsor": "Okusi Associates",
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