U.S. investors show interest in agricultural industry

JAKARTA (JP): U.S. investors have expressed interest in Indonesia's agricultural sector, an executive of the Indonesian Chamber of Commerce and Industry (Kadin) has said.

The head of Kadin's U.S. committee, Tony Agus Ardie, said after a luncheon with 12 visiting U.S. businesspeople here yesterday that they were drawn to Indonesia's agricultural sector because it had all of the required resources.

"U.S. businesspeople are keen to invest in the agro-industry sector provided they find suitable local partners and improved legal certainty," Tony said.

"They want the government to ensure legal certainty because they sometimes still find regulation inconsistencies which make it difficult for them to make plans," he added.

Tony said the visit of U.S. agricultural investors in a time of economic difficulty served as a moral support to the country's agricultural industry.

He said the industry has been severely affected by the sharp depreciation of the rupiah against the U.S. dollar, last year's prolonged dry season and the difficulty of continuing normal trading activities under the economic turmoil.

"That's why we welcome this mission to Indonesia at this time. We know that by working together in a cooperative manner, we will be able to find solutions to revitalize this important industry," he said.

U.S. companies have played an important part in developing Indonesia's agricultural industry through technical assistance and the transference of technology.

"They have trained our experts, technicians and farmers in more efficient techniques and they have helped provide the capital necessary to develop the industry," Tony said.

The U.S. agricultural mission, sponsored by the U.S.-ASEAN Business Council, will remain here until Feb. 24.

During their visit, the businesspeople will meet with executives of various associations, including those of poultry breeders and feedmeal producers at PT Charoen Pokphand Indonesia, PT Japfa Comfeed Indonesia, PT Ciomas Poultry Processing and PT Sierad Feedmill.

Members of the U.S. mission represent the McDonald's Corporation, Tricon, Texas A&M, Cargill, Pioneer-HiBred and Tyson Foods.

Tony said some of the companies on the mission have provided Indonesia with high-yielding seed varieties for feed, formulated new mixes of feed using domestic inputs and made capital investments in local production and distribution. (rid)