Indonesian Political, Business & Finance News

Govt vows to boost rice production

Govt vows to boost rice production

JAKARTA (JP): The government promised yesterday to help
farmers rehabilitate village irrigation systems to increase the
country's rice production and improve their own welfare.

"We expect the rehabilitation to be completed by the end of
the sixth Five Year Development Plan period," State Minister of
National Development Planning Ginandjar Kartasasmita said after
meeting President Soeharto here.

Ginandjar, in his meeting with Soeharto to report the latest
developments of the country's rice production and stocks, was
accompanied by Minister of Agriculture Sjarifudin Baharsjah,
Minister of Public Works Radinal Moochtar, State Minister of Food
Ibrahim Hasan and Chairman of the National Logistics Agency Beddu
Amang.

Ginandjar explained that the rehabilitation of the irrigation
systems was initially expected to cover only 900,000 hectares of
rice fields. However, it was found that the systems could cover
up to 1.6 million hectares.

Radinal said that for the 1994-1995 fiscal year, the
government had planned to rehabilitate the irrigation systems of
150,000 hectares in Java and another 150,000 hectares outside
Java.

"But the project has exceeded the target, covering 154,492
hectares in Java and 151,230 hectares outside Java," he said.

Radinal acknowledged that villagers were enthusiastic about
the project because the new dams helped increase their yield.

"What was formerly thought to be only an improvement to the
water management system actually allows farmers to harvest twice
a year, as compared to only once a year beforehand," he said.

Ginandjar said the funding for the project came from the state
budget's reserves. However, he added, in the future the funds
will be allocated in the state budget.

To rehabilitate one hectare of paddy field took Rp 500,000
(US$220). The total amount required for the 300,000 hectares
would reach Rp 150 billion, he said.

Ginandjar said the project was needed because the increase in
population must be matched by an increase in food production.

Rice is the staple food of most of the 195 million people in
Indonesia.

Sjarifudin acknowledged that if the project continued to be
successful, Indonesia could regain its self-sufficiency in rice
and increase the welfare of farmers.

Sjarifudin said earlier this week that agricultural land was
disappearing at a serious rate.

He was optimistic, however, that intensive farming techniques
-- including the irrigation dams -- and favorable weather this
year could help compensate.

He was confident that production levels for 1995 would exceed
the estimates of the Central Bureau of Statistics, which has put
unhusked rice production at 48.45 million tons or 3.89 percent
higher than last year's yield. This is equivalent to 31.5 million
tons of husked rice.

Sjarifudin pointed out yesterday that the country's rice
production could increase in spite of the decrease in the
agriculture land.

"Better farming techniques will increase agricultural
production," he said.

Indonesia was formerly the biggest rice importer in the world
but became self-sufficient in rice in 1984. Until 1993, the
country's rice exports exceeded imports, but since then it has
had to rely partly on imports.

Last year, rice production reached only 46.6 million tons --
the lowest level in 15 years -- as compared to 48.2 million tons
in 1993. The decline was caused by unfavorable weather and plant
diseases. (pwn)

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