Tue, 17 Mar 1998

Minister vows to cut imports, boost output

JAKARTA (JP): The newly appointed Minister of Agriculture Justika Sjarifudin Baharsjah promised yesterday to boost the production of several important commodities including rice, corn and soybeans to cut back on imports.

Justika, who replaced her husband Sjarifudin Baharsjah, said increasing the production of such commodities would be her top priority.

She acknowledged that it would be difficult to meet the target, given the unfavorable weather conditions and a decline in the amount of productive land.

"It's a tough job because the agriculture sector very much depends on the weather and the climate. Besides, we are facing decreasing land allocation for agriculture," she said after her installation ceremony.

She said that at least 10,000 hectares to 30,000 hectares of agricultural land was converted for non-farming purposes every year.

Although the availability of farm areas has decreased, Justika said she was optimistic that an improvement in land productivity would prop up farm production.

"We will develop soybeans on some idle land which cannot be used to plant rice."

Indonesia, known for its rich natural resources, ironically imports at least 1.2 million tons of sugar, 1.3 million tons of corn and 1 million tons of soybeans each year. The country imported 1 million tons of rice last year.

Besides these commodities, Indonesia also imports meat, milk and milk products, fruits and other produce to meet local demand.

The chairman of the State Logistics Agency (Bulog), Beddu Amang, said last month that Indonesia would need at least Rp 13.5 trillion (US$13.5 million) to import 1.1 million tons of sugar, 700,000 tons of soybeans, 4.25 million tons of wheat, and 3.3 million tons of rice in 1998/1999.

Justika said the ministry would also continue to subsidize feed meal prices in order to help the country's poultry industry, which is on the brink of collapse due to skyrocketing feed prices.

But she decline to give further details on the form of subsidy.

In the fishery sector, the minister will focus on efforts to boost the export of shrimps, after there was a slight increase last year due to the prolonged drought.

Exports of shrimp reached 97,280 tons worth US$1 billion last year.

Justika said she would also emphasize the development of the rural-based agriculture sector, which could process farming products and absorb workers.

"Agro-industry will have value-added benefits for agricultural commodities and provide jobs in rural areas."

She said the sector was expected to grow at least 5 percent this year. (gis)