Indonesia banking on agroindustry: Luhut
Indonesia banking on agroindustry: Luhut
JAKARTA (JP): The agroindustry sector, having shown its
resilience during the economic crisis, will play a key role in
Indonesia's economic development in the coming years, Minister of
Industry and Trade Luhut Binsar Pandjaitan said on Monday.
The government's middle to long term economic strategy calls
for maximizing the use of natural resources, especially in the
agroindustry sector, Luhut said in his speech opening the
International Agro Expo 2000 at the Manggala Wanabakti building.
The short-term strategy calls for increasing nonoil/gas
exports, developing small and medium enterprises and increasing
production, he said in the speech which was read by Djumarman,
the secretary of the director general for chemical, agriculture
and forestry based industries.
The economic crisis changed the orientation of the economy. It
has subsequently become more people-oriented and no longer
focuses as much on large industries," Luhut said.
Small and medium enterprises -- which have contributed 13.3
percent to Indonesia's gross domestic product -- proved to be far
more resilient during the crisis than big businesses, he said.
Small and medium enterprises which are geared for exports and
use local raw materials have grown even faster than they did
before the 1997 crisis, he added.
The ministry will continue to focus on the development of
agro-based industries aimed at making Indonesia an exporter of
processed food as well as an exporter and producer of primary
agricultural products.
"This means farmers or village cooperatives will have to be
capable of doing off-farm activities," Luhut said, adding that
these activities would need support in the processing and
marketing sectors.
Luhut pointed out that the agroindustry sector brought in $2.5
billion in foreign exchange last year, up from $1.6 billion in
1995.
Indonesia's major agroindustry exports include palm oil,
coconut oil, processed cocoa, margarine, canned fish and
cigarettes.
The sector attracted Rp 34.08 trillion ($4 billion) worth of
new investments last year compared to Rp 22.75 trillion in 1995.
The number of agro-based companies increased in 1999 to 2,309
from 2,058 in 1995, and the number of workers in the industry
rose to 735,392 people in 1999 from 678,748 people in 1995.
The minister did not give the figures for 1997 when the
economic crisis first hit Indonesia.
Some 60 companies and institutions, or half the number
expected by the organizers, are taking part in the Agro Expo 2000
which will end on Friday.
Wisnu M. Soedjowo, the deputy chief organizer, blamed the
recent situation in Jakarta and the weakening of the rupiah for
the low turn out.
The participants include representatives from the North Maluku
and North Sumatra administrations, from Thailand, Sudan, Britain,
South Africa and Hungary.
Major corporate companies include state-owned fertilizer maker
PT Pupuk Kalimantan Timur and publicly listed poultry firm Sierad
Produce.
Products being exhibited include teakwood seedlings, cereals,
tractors, chemical sprayers, fertilizers and processed food
products like chicken nuggets and hibiscus tea. (10)