RI feared to become Asia's lafgest importer of foodstuffs

RI feared to become Asia's lafgest importer of foodstuffs

JAKARTA (JP): Indonesia could become Asia's largest importer
of foodstuffs by the turn of the century if the government does
not take steps to develop agriculture's "on-farm" sector, experts
warn.

"We have seen indications that we may become the largest
importer of foodstuffs in Asia by early next century," Bungaran
Saragih of Bogor Agricultural University said at a seminar on
economic development, hosted by the Center for Strategic and
International Studies on Tuesday.

The on-farm sector includes plant cultivation and animal
raising; harvesting, gathering and post-harvest handling; and the
selling and marketing of agricultural primary products.

Bungaran noted that Indonesia is already one of the world's
largest wheat importers, bringing in 3.5 million tons of wheat
per annum. Indonesia also imports two million tons of corn and
one million tons of soybeans per annum.

Indonesia claims to have been self-sufficient in rice, a
staple food for most Indonesians, since 1984. However, it has
been importing the commodity since the early 1990s and recent
data indicate that rice imports are likely to increase.

According to the Ministry of Industry and Trade, Indonesia's
rice imports have increased almost 10-fold in the last five
years, soaring from US$53 million in 1991 to $514 million in
1995.

The total amount of imported foodstuffs -- both semi-processed
and prepared foodstuffs -- doubled from $934.7 million in 1991 to
$2.04 billion last year. Imports went up an average of 13.3
percent a year, while the value increased by 20.2 percent.

Bungaran said the trend should be alarming the country's
decision makers. He suggested that the government reform its
agricultural policies.

Sharing Bungaran's suggestion is economist Djisman
Simandjuntak. Djisman said that Indonesia, which is blessed with
rich natural resources, must improve the productivity of its
farmers so that the country can feed not only its own people but
also those in the growing East Asian countries.

"Let's become a grain barn for two billion people living in
East Asia early next century by producing a wide range of crops
from the low-elasticity crops to the high-elasticity ones,"
Djisman said.

Meanwhile, senior economist and former minister of population
and environment Emil Salim noted that Indonesia, as a tropical
country, has a comparative edge in the area of tropical
commodities.

He suggested that the government better develop tropical-based
commodities -- such as pulp, paper, crude palm oil and rubber --
to maintain their competitiveness in the world market.

Bungaran added that Indonesia should develop not only estate-
commodities, which have contributed a significant amount of
foreign exchange, but also foodstuffs, which have helped drain
the country's foreign exchange reserves.

Indonesia should take a closer look at agribusiness --
especially the agro-industry, which processes agricultural
produce. He suggested that the government make agro-industry a
leading sector.

In addition to agro-industry, Bungaran said the government
should upgrade and develop new technologies for use in the on-
farm sector.

He said most of the 3.5 million people in the agricultural
sector are working in the on-farm sector producing foodstuffs,
which only contributed 10.6 percent to the country's total gross
domestic product in 1993, down from 22.8 percent in the late
1960s.

"There should be a well-planned effort to change the attitude
of those working in the on-farm sector... by introducing a
contract system so farmers will be accustomed to formal business
practices," Bungaran said.

If Indonesia can develop the on-farm and the agro-industry
sectors, it will be able to reduce foodstuff imports and
eventually beat other foodstuff exporters. (rid)