Govt urged to push industry to use local farm goods<\/p>\n
Zakki P. Hakim, The Jakarta Post, Jakarta<\/p>\n
The government's focus on developing certain manufacturing
\nsectors that could optimize use of domestic agricultural products
\nhas been warmly welcomed, as it would eventually benefit farmers
\nwho represent the majority of the population here, according to
\nthe plantation farmer's association.<\/p>\n
Agus Pakpahan, executive board chairman of the Federation of
\nIndonesian Plantation Farmers Associations, said the move would
\nhelp boost demand for farm products and eventually improve
\ncommodity prices.<\/p>\n
\"Just imagine, if instant noodle maker Indofood started giving
\npreference to buying local farm products instead of importing
\nthem. The livelihoods of local farmers' could be improved,\" said
\nAgus, a former director-general for plantations in the Ministry
\nof Agriculture.<\/p>\n
According to Agus, publicly listed PT Indofood Sukses Makmur,
\nthe world's biggest instant noodle maker, imported at least
\n350,000 tons of grain every year.<\/p>\n
If the government can convince Indofood and Indonesians that
\nnoodles made from rice flour was as good as those made from other
\ngrains, then the instant noodle maker would surely prefer to
\npurchase local grains, he said.<\/p>\n
Agus said rough calculations showed that importing 350,000
\ntons of grain was equivalent to purchasing 10 million tons of
\nlocal unhusked rice.<\/p>\n
Ministry of Agriculture data shows that up until July last
\nyear, unhusked rice production reached 53.67 million tons,
\nmeaning that the country is now has a rice surplus of some 3
\nmillion tons.<\/p>\n
The government should encourage farmers, and farmer
\norganizations, to sell products that can be processed in order to
\nobtain added value.<\/p>\n
\"Industrialization is not the sole responsibility of big
\nfactories. Groups of farmers could also be part of the process
\nby, for example, simply packaging their products instead of
\nselling them in bulk,\" he said.<\/p>\n
Another way to use industrialization for the benefit of
\nfarmers is by increasing their participation in manufacturing
\nprocesses, particularly through ownership of factories and firms,
\nAgus said.<\/p>\n
\"This is a common practice in industrialized countries, such
\nas in the U.S. Farmers in developed countries control some major
\nfirms that use farm products as their raw materials,\" he said.<\/p>\n
He was quick to add however, that such a scheme would require
\nsupport from the government -- such as access to bank finance --
\nas well as a strong farmers' organization that could afford to
\npay professionals to run the factories.<\/p>\n
The National Development Planning Agency (Bappenas) has issued
\nguidelines for the nation's economic development called the Mid-
\nterm 2004-2009 Development Plan (RPJM), which targets an average
\ngrowth of 8.56 percent for the manufacturing sector.<\/p>\n
Under the program, the government would focus on 10 priority
\nindustry clusters, based on their ability to absorb unemployment
\nand utilize natural resources.<\/p>\n
These include food and beverage industries, seafood and
\nmaritime products, textiles and clothing, footwear, palm oil,
\nwood products, rubber and rubber products, pulp and paper,
\nelectrical machinery and appliances, and petrochemical products.<\/p>",
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"sponsor": "Okusi Associates",
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