Tycoon launches corn pilot project
Tycoon launches corn pilot project
JAKARTA (JP): Thousands of farmers watched as tycoon Hutomo
Mandala Putra, Coordinating Minister of People's Welfare Haryono
Suyono and Minister of Agriculture Justika Sjarifudin Baharsjah
get their hands dirty at the weekend by symbolically picking the
first corn crop in Watumilok village, Sikka, East Nusa Tenggara.
Saturday's event was part of a pilot project sponsored by
Hutomo, popularly known as Tommy.
Hutomo, who is President Soeharto's youngest son, has
allocated more than Rp 500 million (US$60,000) to help farmers in
the Sikka, Ende and Ngada regencies to plant corn, cassava and
soybeans.
"What's important in the end is the market ... Through a
partnership program with private enterprises, a market is
provided," Justika told Antara after Saturday's harvest.
On Friday, Tommy moved to allay fears of the possibility of a
monopoly and that farmers would be barred from distributing their
agricultural products at competitive market prices.
"Farmers will be free to sell their crops to anyone," Tommy
said in a joint media conference with Haryono in Jakarta.
He said his desire to help the farmers in the region came from
his late mother's request that he help victims of the tsunami
disaster in Flores in 1992.
Tien Soeharto died in April 1996.
In 1992, Tommy involved his Humpuss Group, the Clove Marketing
and Buffer Stock Agency (BPPC) and other organizations in a
social operation to help disaster victims and farmers by giving
them training and other necessities for farming, especially in
Sikka, Ende and Ngada regencies.
Haryono categorized all villages in the province as least-
developed areas.
Beginning in 1994, Tommy chaired the "Supporting Team to
Implement Presidential Instruction to Develop Least Developed
Villages and to Develop Eastern Indonesia", comprised of national
businesspeople, members of the military and youth organizations.
The team then established PT Putra Timur Perkasa to coordinate
activities in the province, such as buying, processing and
marketing farmer's commodities, including cassava and corn.
"The prices of the commodities will be based on mutually
beneficial conditions," Haryono said.
East Nusa Tenggara ranks first and second in respective
production of cassava and corn in eastern Indonesia.
In 1996, the province produced 818,665 tons of cassava and
545,843 tons of corn.
Haryono also dismissed fears the company would monopolize farm
trading in the province.
"We are sincere in helping them, and farmers have given very
encouraging responses to our efforts.
"Our only intention is to improve farmer's living conditions
with a well-prepared plan."
Observers have voiced worries about possible negative impacts
of the plan, despite expressing their belief in Tommy's sincerity
to help farmers.
Under his agreement with the International Monetary Fund (IMF)
in January, the President removed BPPC's monopoly in clove
trading.
Bambang Trihatmodjo, Tommy's elder brother, had a bitter
experience several years ago when he attempted to help orange
farmers in West Kalimantan, once renowned for its production of
the fruit.
Bambang, through PT Bima Citra Mandiri, worked to help farmers
market their products, especially to Jakarta.
But farmers complained the company practically monopolized the
distribution. Last year, the firm officially withdrew from West
Kalimantan. (prb)