Government to Transform Transmigration Land into Communal Cattle Farming Investment Hub
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 whilst delivering economic benefits.
The plan emerged 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 the new concept arose from difficulties in securing land for the cattle farming industry. His ministry proposed utilising 3.1 million hectares of transmigration land under Land Management Rights (HPL), as well as 525,995 hectares of transmigration land currently under development, for use by investors.
Under the system, existing transmigration land would be managed communally through community corporations to enable business cooperation arrangements (KSU), benefiting both communities and investors.
He explained that the concept is novel because transmigrants were previously given two hectares of land to manage, whereas now they are 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," he said.
To follow up on this initiative, Director General of Livestock and Animal Health Agung Suganda said his office would detail the concept next week and launch 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 activities.
"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 said the new concept could reduce Indonesia's dependence on processed cattle products, namely milk and meat. Furthermore, it supports industrial downstreaming whilst helping to ensure the success of the Free Nutritious Meals (MBG) programme.
"The ultimate goal of all this is for us to be self-reliant in meeting our meat and dairy needs. In line with the President's wishes and directives on how, with a population that has now reached 300 million, we can suppress imports as much as possible," he said.
The plan emerged 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 the new concept arose from difficulties in securing land for the cattle farming industry. His ministry proposed utilising 3.1 million hectares of transmigration land under Land Management Rights (HPL), as well as 525,995 hectares of transmigration land currently under development, for use by investors.
Under the system, existing transmigration land would be managed communally through community corporations to enable business cooperation arrangements (KSU), benefiting both communities and investors.
He explained that the concept is novel because transmigrants were previously given two hectares of land to manage, whereas now they are 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," he said.
To follow up on this initiative, Director General of Livestock and Animal Health Agung Suganda said his office would detail the concept next week and launch 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 activities.
"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 said the new concept could reduce Indonesia's dependence on processed cattle products, namely milk and meat. Furthermore, it supports industrial downstreaming whilst helping to ensure the success of the Free Nutritious Meals (MBG) programme.
"The ultimate goal of all this is for us to be self-reliant in meeting our meat and dairy needs. In line with the President's wishes and directives on how, with a population that has now reached 300 million, we can suppress imports as much as possible," he said.