President Susilo asks state firms to help farmers
President Susilo asks state firms to help farmers
The Jakarta Post, Jakarta
President Susilo Bambang Yudhoyono said he has ordered state-
owned enterprises to work to improve the livelihood of farmers
and fishermen who constitute a majority of the country's 230
million population.
Speaking before thousands of farmers in Harjomulyo Village,
Ogan Komering Ulu Timur, West Sumatra, on Friday, the President
said the government did not want farmers to become poorer and
become caught in a poverty trap because they were exploited by
big investors, including state-owned enterprises.
"We don't want rich businessmen to get richer while farmers
and fishermen get poorer. We don't want this to happen," he said
as quoted by Antara.
The President, however, did not provide details as to how the
government planned to reform or encourage state-owned enterprises
to help, but only said: "We want to fix up our marketing policies
so that all agriculture products marketed at home and overseas
can be sold at higher prices."
Susilo accompanied by first lady Ani Yudhoyono, Minister of
Agriculture Anton Apriyantono, Cabinet secretary Sudi Silalahi
and South Sumatra Governor Syachrial Oesman, stressed the
government had to improve the social welfare of farmers and
fishermen because they made up a majority of the population.
Over the past four decades, farmers and fishermen have endured
economic hardship because of soaring prices for fertilizer and
farm equipment and the falling price of unhusked rice.
Many farmers in Sumatra have changed from growing rice to
fruit and vegetables and ornamental plants, which get higher
prices on local markets. Others have converted their land into
palm oil and rubber plantations.
Susilo told the meeting he had recently held talks with his
Malaysian counterpart, Prime Minister Abdullah Badawi, to discuss
how to improve crude palm oil production and maintain price
stability. Malaysia and Indonesia are the two largest crude palm
oil producers in the world.
Industry players needed to increase their cooperation with
investors and pay attention to managing the environmental aspects
of the crop, Susilo said.
The Ministry of Agriculture, regional administrations and
farmers should work to ensure the efficiency of land use, since a
bigger part of Sumatra had been converted into palm oil
plantations, he said.
"Secondly, the cooperation between investors and farmers
should benefit both sides and thirdly, all sides involved in the
industry should not damage the environment," he said.
Many investors or farmers have burned off protected tropical
forests to clear land for palm oil plantations, threatening the
habitat of protected species and biodiversity on the island and
"exporting" a thick haze to neighboring countries such as
Malaysia and Singapore.
The President made no comment about the mounting demand of
small land-holders for land reform in Sumatra. The majority of
horticultural land in the province is owned by private or state
plantation companies.