Indonesian Political, Business & Finance News

North Sumatra Governor backs development of high-value export commodities

| Source: ANTARA_ID Translated from Indonesian | Trade
North Sumatra Governor backs development of high-value export commodities
Image: ANTARA_ID

Medan (ANTARA) - North Sumatra Governor Bobby Nasution has thrown his support behind the development of various potential export commodities so that they carry higher economic value in the region.

According to him, increased production must be accompanied by derivative products, supply stability and the use of technology in order to expand markets and improve community welfare.

“So, commodity development must be directed so that it has higher economic value,” Bobby said after receiving the Head of the North Sumatra Animal, Fish and Plant Quarantine Office, N Prayatno Ginting, at the North Sumatra Governor’s Office on Monday.

The Governor continued that this would then deliver an economic impact for the people of North Sumatra, as would the use of available technology.

He assessed that North Sumatra holds investment opportunities in the food sector, but production stability and the ability to meet market demand are important matters that must be addressed.

“Many things have potential, such as in the Nias Islands. There, a suitable market has not yet been found. But the problem is not the market; rather, production volumes have not yet met market demand,” Bobby explained.

He said that production capacity at a certain scale is needed for a commodity to deliver high economic value to the communities that produce it.

Bobby noted that the government’s role is to prepare policies and programmes, while the public acts as the main driver of production, including providing markets and commodities.

“Government programmes and budgets must produce something useful for the community. We also want to establish cooperation to research and develop commodities with export potential,” he said.

The Head of the North Sumatra Animal, Fish and Plant Quarantine Office, N Prayatno Ginting, welcomed plans to develop new commodities with export potential from North Sumatra.

He said one commodity with high export value that is not yet widely recognised by North Sumatrans is palm broom sticks made from oil palm fronds.

A number of commodities from North Sumatra, such as crabs, shrimp and swiftlet nests, also make a large contribution to exports, with a value of around Rp8.1 trillion.

“Our current obstacle is that pest and disease samples still have to be sent to laboratories in Jakarta and Surabaya. The cost is quite significant. We hope the laboratory here can be reopened,” Ginting said.

View JSON | Print