Rural agribusinesses need help: Official<\/p>\n
JAKARTA (JP): A senior official suggested yesterday that
\nbusiness people should help accelerate the development of
\nagriculture-based industries to improve the prosperity of
\nfarmers.<\/p>\n
\"We realize that human resources, technology and science are
\nstill underdeveloped in villages, barring farmers from having the
\nchance to develop their own businesses,\" the chief of the
\nagribusiness agency of the ministry of agriculture, Silvia
\nMarsudi, told a seminar at the Hotel Wisata International
\nyesterday.<\/p>\n
She said that business people, when developing agriculture-
\nbased projects, must consider the potency of the rural areas and
\nways to increase the incomes of local farmers.<\/p>\n
She said that investors' interest in agriculture-based
\nindustries is still low. Out of foreign investments approved by
\nthe government, for example, only 3.5 percent are committed to
\nthe development of agricultural businesses.<\/p>\n
Such businesses also get only about 12 percent of domestic
\ninvestments, she said.<\/p>\n
However she acknowledged that according to the Investment
\nCoordinating Board, foreign commitments committed for
\nagricultural businesses increased from US$729.8 million in 1994
\nto $1.38 billion in 1995 and domestic investments from Rp 71
\ntrillion to Rp 8.6 trillion.<\/p>\n
The fact that interest rates on loans for agricultural
\nbusinesses are high also indicates that banks and financial
\ninstitutions have not yet shown extensive support for the
\nagricultural sector, Silvia said.<\/p>\n
Banks, she said, act more as gateways for money flowing from
\nvillages to urban areas because villagers generally save their
\nmoney in banks, not borrowing money from them.<\/p>\n
She said that agricultural businesses are the best way to
\nachieve the multiple goals of economic development, including
\nbetter economic structure, increasing foreign exchange revenue
\nand creating job opportunities.<\/p>\n
According to Silvia, to encourage more agriculture-based
\nbusinesses in rural areas, her office will pay more attention to:
\ntechnology improvements, financial facilities, pricing and trade
\nrules, quality control, investment incentives, creating a more
\nconducive business climate and human resources development. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rural-agribusinesses-need-help-official-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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