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)