Government Strengthens Cattle Industry Ecosystem Using Transmigration Land
Jakarta (ANTARA) - The Indonesian government is strengthening the cattle farming industry ecosystem with a new concept that utilises transmigration land managed communally through community corporations, thereby attracting investment interest whilst delivering economic benefits.
The strengthening plan resulted from a meeting between Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu, Transmigration Minister Iftitah Sulaiman, Director General of Livestock and Animal Health at the Ministry of Agriculture Agung Suganda, and Director of PT Asiabeef Biofarma Indonesia James Jerry Huang at the BKPM office in Jakarta on Friday.
Transmigration Minister Iftitah explained that this new concept emerged due to land scarcity problems in the cattle farming industry. Her ministry proposed utilising transmigration land comprising 3.1 million hectares under Land Management Rights (HPL), as well as 525,995 hectares of transmigration land currently being developed, to be made available to investors.
Under the system, existing transmigration land would be managed communally through community corporations to enable business cooperation agreements (KSU), providing benefits for both communities and investors.
She noted that this concept is new, as transmigrants were originally given two hectares of land to manage, but are now only provided with a house and yard. "We are converting these community corporation assets into equity in the form of shares distributed to the community," she said.
To follow up on this initiative, Director General of Livestock and Animal Health Agung Suganda stated that his office would detail the concept next week and conduct a pilot project in East Sumba, East Nusa Tenggara (NTT) to build a cattle farming ecosystem on transmigration land.
According to him, 10,000 hectares of transmigration HPL land could support 5,000 productive breeding cows, including a processing ecosystem through to downstream operations.
"This is a pilot project that we hope to realise this year, and Asia Beef together with the Indonesia-Brazil Cattle Consortium are ready to facilitate and support it in terms of funding, technology and building the ecosystem," he said.
Meanwhile, Deputy Minister of Investment and Downstreaming Todotua stated that this new concept could reduce Indonesia's dependence on processed cattle products, namely milk and meat. Furthermore, it supports industrial downstreaming whilst helping to advance the Free Nutritious Meals (MBG) programme.
"The ultimate goal of all this is for us to be self-reliant in meeting our meat and milk needs. In accordance with the President's wishes and direction, with our population now exceeding 300 million, we must suppress imports as much as possible," he said.
The strengthening plan resulted from a meeting between Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu, Transmigration Minister Iftitah Sulaiman, Director General of Livestock and Animal Health at the Ministry of Agriculture Agung Suganda, and Director of PT Asiabeef Biofarma Indonesia James Jerry Huang at the BKPM office in Jakarta on Friday.
Transmigration Minister Iftitah explained that this new concept emerged due to land scarcity problems in the cattle farming industry. Her ministry proposed utilising transmigration land comprising 3.1 million hectares under Land Management Rights (HPL), as well as 525,995 hectares of transmigration land currently being developed, to be made available to investors.
Under the system, existing transmigration land would be managed communally through community corporations to enable business cooperation agreements (KSU), providing benefits for both communities and investors.
She noted that this concept is new, as transmigrants were originally given two hectares of land to manage, but are now only provided with a house and yard. "We are converting these community corporation assets into equity in the form of shares distributed to the community," she said.
To follow up on this initiative, Director General of Livestock and Animal Health Agung Suganda stated that his office would detail the concept next week and conduct a pilot project in East Sumba, East Nusa Tenggara (NTT) to build a cattle farming ecosystem on transmigration land.
According to him, 10,000 hectares of transmigration HPL land could support 5,000 productive breeding cows, including a processing ecosystem through to downstream operations.
"This is a pilot project that we hope to realise this year, and Asia Beef together with the Indonesia-Brazil Cattle Consortium are ready to facilitate and support it in terms of funding, technology and building the ecosystem," he said.
Meanwhile, Deputy Minister of Investment and Downstreaming Todotua stated that this new concept could reduce Indonesia's dependence on processed cattle products, namely milk and meat. Furthermore, it supports industrial downstreaming whilst helping to advance the Free Nutritious Meals (MBG) programme.
"The ultimate goal of all this is for us to be self-reliant in meeting our meat and milk needs. In accordance with the President's wishes and direction, with our population now exceeding 300 million, we must suppress imports as much as possible," he said.