Government starts revitalization of farming sectors

Rendi A. Witular, The Jakarta Post, Purwakarta, West Java

President Susilo Bambang Yudhoyono officially initiated on Saturday a revitalization plan for the country's agriculture, fisheries and forestry sector as part of the government's efforts to achieve higher economic growth and reduce unemployment.

Accompanied by a number of ministers, governors and representatives of farmers and fishermen, Susilo led the ceremony at the Jatiluhur Dam in Purwakarta, West Java.

Central to the revitalization plan are blueprints for developing the three sectors, which arrange the provision of fiscal and non-fiscal incentives to encourage businesses to invest in the sectors and outlines policies to improve the incomes and productivity of local farmers.

"The government hopes the three sectors can support the country achieve an economic growth target of 6.6 percent annually over the next five years and help reduce unemployment and poverty," Susilo said in his speech.

For the first phase of the revitalization, the government has appointed Jambi, West Java, Central Java, East Kalimantan, South Sulawesi and Gorontalo as the provinces which will first apply the blueprints.

It has also prioritized action on several commodities over the short- and medium-terms, including rice, corn, soybeans, sugar and beef production, aiming for eventual self-sufficiency in these areas.

Second-tier priorities include crude palm oil, rubber, prawns, tuna and forestry products -- commodities the government believes can be developed to spur on economic growth and soak up unemployment.

It also plans to boost exports in horticulture, poultry, processed foods and wood-based products, while research and development money would be spend on developing products derived from seaweed, along with bioenergy and biomedical resources.

The country's agricultural, fisheries and forestry sectors have lagged behind in comparison to other countries in Asia due to the mismanagement of resources by previous governments and the corruption of officials and local regulatary bodies, who take advantage of unclear regulations.

At present, the nation's agricultural growth stands at a mediocre average of 3.5 percent per annum.

In order to encourage businesses into the sector as well as to enable them to compete with overseas farmers, the government plans to provide fiscal incentives in the form of tax reductions or exemptions for agricultural produce or income taxes.

During the ceremony, Susilo announced the provision of several incentives worth some Rp 10 billion (about US$1.2 million) to farmers, which he said showed the government's seriousness about the plan.

"Many have said that the government's revitalization efforts are just rhetoric -- nothing more than theories and pledges. I assure you that this is not rhetoric. We are serious in this, and hope that farmers and fishermen can support it," Susilo said.

The government also wanted to revive the country's ailing processing sectors to add value to Indonesian products, many of which were still currently being exported as raw materials, he said.