Business participation needed in transmigration
JAKARTA (JP): Cabinet ministers agreed yesterday that entrepreneurs must involve themselves in speeding up the development of transmigration areas.
They said during a seminar that businessmen could contribute technology and money to develop transmigration sites into business centers and make the state-sponsored program a success.
Minister of Transmigration Siswono Yudohusodo, Minister of Agriculture Sjarifudin Baharsjah, and Minister of Cooperatives and Small Enterprises Subiakto Tjakrawerdaya said the participation of the business sector will help improve transmigrants' living standards.
The seminar organized by the Ministry of Transmigration sought ideas on how to involve the private sector in the development of transmigration areas.
Despite its successes, cynics continue to describe the transmigration program as a process of moving poverty from Java to the outer islands because the economic status of the transmigrants does not change much in their new homes.
"The government plans to invite businessmen of various fields to help develop transmigration areas," Siswono said.
He said during the seminar on The Prospects of Investment in Transmigration Areas that the private sector is needed to solve the problem of limited amounts of arable land. Around 2,000 square meters of land is provided for each resettled family.
Transmigrants lack technology for intensive farming, he added. "It would be irresponsible to leave them alone fighting for a better life," Siswono said.
He noted that 219 businessmen have expressed interest in investing in various transmigration areas and that some of them had started businesses there already.
"The government needs more businessmen to help accelerate the development of transmigration areas," he added.
According to Siswono, the failure of many resettlers to improve their living standards was mostly due to limited natural resources in the settlement areas and unsuitable climates.
He noted that 300 out of the 2,100 transmigration sites throughout Indonesia have failed to develop into economically self-sufficient communities.
He said 30 percent of the many thousands of transmigrants have successfully increased their incomes, another 55 percent have come to earn a little better level of income, and the remaining 15 percent have failed to escape the jaws of poverty.
Minister of Agriculture Sjarifudin Baharsjah said that the investment of businessmen in resettlement areas will allow the farmers to diversify their sources of income.
He said investors could encourage farmers to develop agriculturally based businesses and modernize farming techniques.
This approach enables farmers to work at producing industry- oriented commodities, such as palm oil and husbandry products, he said.
Subiakto said that the development of resettlement sites must be accompanied by development of businesses suitable for the areas.
He said that cooperatives, as economic institutions for small- scale businessmen, are suitable for resettlers doing businesses in the transmigration areas.
"A cooperative can provide credit for small-scale entrepreneurs that most banks usually reject," he said. (imn)