Fruit farmers will get low-interest loans

Fruit farmers will get low-interest loans

JAKARTA (JP): The government has designated a number of banks
to provide loans to farmers carrying a low interest rate for the
development of the horticultural industry.

The loans, which will amount up to Rp 2 million for each
hectare of land used for horticultural planting, will carry an
annual interest rate of 14 percent -- far lower than normal
interest rates ranging from 18 percent to 20 percent per annum,
the director for horticultural development of the Ministry of
Agriculture, Winarno, told a press conference here yesterday.

He said that for the first stage, the loans will be provided
for the planting of six types of fruit.

The six commodities are banana, pineapple, papaya, orange,
markisa (passion fruit) and salak (Zallaca palm fruit).

Winarno, who declined to specify the names of the designated
banks, said that the loans are part of the ministry's policy to
develop agribusiness and agroindustry.

"In order to boost the growth of agroindustry, the development
of our horticultural industry, which is currently dominated by
farmers planting fruit trees in their courtyards, will be offered
to large entities," he said. "The economic scale of the
horticultural development will need at least 500 hectares for
each plantation area."

Since 1991-92, the government has assisted groups of farmers
in establishing 120,000 hectares for agricultural production in
various provinces.

Winarno said the development of the horticultural industry
will also include the application of technology which can lead to
the standardization of fruit quality.

Goeswono Soepardi, president of PT Galasari Gunungswadaya of
Gresik, East Java, said that quality standardization is a must if
Indonesia wants to participate in the international markets.

"We exported five tons of mangoes to Singapore last week and
the importer asked us to send 18 more tons next week but we
cannot meet the demand due to limitations in production,"
Goeswono said. "It is also impossible for us to send mangoes from
farmers' plantations which produce fruit of an inferior quality."

He suggested that fruit producers and farmers establish an
association, which expected to introduce standardization of
product quality.

Currently, Indonesia's share on the international tropical
fruit market is only 0.6 percent. (als)