How to revamp the farming sector

How to revamp the farming sector

From Media Indonesia

The recent skyrocketing price of rice is actually the result
of long practices of unsound rice supply and distribution.
Unfortunately, the emphasis in the current polemic on this
matter, colored frequently by emotional debates because each
party has its own interests, is how to improve rice distribution
channels or to distribute rice or funds for rice purchases to the
poor. However, all this is too late. Even if the value-added tax
on imported rice is exempted, the problem will only be solved
temporarily.

In point of fact, the crux of the matter is the weakening of
the people's purchasing power as a result of the ongoing crisis
now and, worse still, because of two other factors -- the
overvalued exchange rate of the American dollar against the
rupiah and rice hoarding by speculators who wish to make the most
profits at the expense of their fellow citizens' empty stomachs.

Purchasing power has got even weaker as thousands of workers
in the industrial and service sectors have been laid off, a
condition leading to the acceleration of the process of
impoverishment (according to data of the Central Bureau of
Statistics, about 27 families or about 80 million people now live
under the poverty line).

Of course, high-ranking government officials may try to apply
various systems or policies. One thing to remember, however, is
that the application of the system must have direct effects on
the community and that coordination among government agencies and
ministries must be well established to avoid confusing comments
and prevent the situation from become chaotic.

Allow me, then, to propose a number of measures which may be
incorporated in government policies intended to solve long-term
problems and at the same time lay, in the long run, a strong
foundation for a better system:

1. Re-engineer the agricultural sector and at the same time
reduce favoring megaprojects and conglomerates;

2. Give farmer's produce/output a worthy price (in accordance
with proper business principles);

3. Create labor-intensive and land-intensive undertakings with
clear targets in order to slightly restore the purchasing power.
The business sector must be advised against resorting to layoffs
under the pretext of efficiency;

4. Leave the State Logistics Agency (Bulog) under the care of
the minister of agriculture and the minister of state for food
affairs to ensure that the agency will be run more effectively.
See to it that the agency is supported by a strong management
system in distribution and marketing. In this way, the agency
will perform its control function effectively from the upstream
part to the downstream part in the food sector.

BIMO RAHARJO

Jakarta