Government starts revitalization of farming sectors

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.