Agricultural investment policy in East Kalimantan

Balikpapan, 10/5/12. Investment/Investing in East Kalimantan in general as if only in the addition or coconut sector Palm oil, because in this sector it is very promising and better known in the outside world, even though investing in East Kalimantan is not only in the two sectors, which is more important in the sector or better known as the Food Estate program that has been offered by East Kalimantan to the private sector as well as State -Owned Enterprises (BUMN).

This was revealed by the Deputy for Agricultural and Maritime Coordination, Ir. Diah Maulida, M.A when giving a speech and presentation at the Sklaluas agricultural investment policy coordination meeting in the Novotel Balikpapan Hotel Meeting Room. This event was held in collaboration between the Ministry of Coordinator of the Economy of the Republic of Indonesia Deputy for Agriculture and Maritime Coordinator with the Provincial Government of East Kalimantan, attended by participants of approximately 150 people consisting of Regional Work Units (SKPD) in the Government of the Provincial Government of East Kalimantan and Regency/City in East Kalimantan and the private sector or investors who invest their capital in East Kalimantan.

While the Governor of East Kalimantan, Dr.H. Awang Faroek Ishak in his remarks read by Assistant II for Economics and Development of the East Kalimantan Provincial Province stated that central government support was further enhanced, especially in the agricultural or food sector in accordance with the agreement of the East Kalimantan Provincial Government which was willing to become a national food barn with the support of the Food Estate program in East Kalimantan which prepares land of approximately 343,461 hectares requested by the willingness of the central government as many as 500 thousand hectares, with an investment value of approximately Rp.9 trillion.

The Governor of East Kalimantan said that the current economy of East Kalimantan was dominated by an unrelevable economic resource exploitation, from the 2012 GRDP of 390.63 dominated by the mining sector of 50.79 % while the agricultural sector only contributed 5.35 %. Of course this is not the structure of the economy expected by the Provincial Government of East Kalimantan. Because it is believed that the economy that relies on natural resources can not be renewed in the near future will experience a fast setback as the SDA reserves run out.

Therefore East Kalimantan has prepared a new economic locomotive based on renewable natural resources, with an approach no longer exporting raw material added and able to provide a significant multiplier effect for the welfare of the people who are sustainable. Two major strategies taken are developing existing industries and building and developing agricultural -based industries with an economic scale approach and industrial cluster.

the current agricultural performance has shown improvement, but not optimal that is still far from what is expected. Some important notes need to be considered in the current government, especially the agricultural sector, the rice production is not yet established which is the main food in the country, and is able to stabilize food prices so that the inflation rate tends to be small (stable). Then the achievement of a rice production surplus can provide a pelua ng for farmers to export outside Country.

Food needs in Indonesia are always volatile every year, especially rice. This condition is influenced by many factors including; (1) climate change (floods, drought, planting season changes, etc.), (2) land conversion, (3) disease pest attacks, (4) late fertilizer, (5) superior variety rice seeds that are difficult for farmers to find .

In connection with that, the Provincial Government of East Kalimantan with the 2013 East Kalimantan Program revitalizes agriculture in the broad sense to make a greater contribution to regional and national economic growth as well as an increase in the welfare of the wrong community The one is the development of a wide -scale food cultivation (food estate) which is part of the mandate of Presidential Instruction No. 5 of 2008 concerning the Focus of Economic and Presidential Program No.1 of 2010 concerning the Acceleration of the Implementation of National Development Priorities for 2010.

The Provincial Government of East Kalimantan, examined this carefully and aware that in East Kalimantan it has extensive land to be utilized in agricultural development. After Penas in Kutai Kertanegara, East Kalimantan stated its readiness to become the center of national food granaries through the development of 200,000 ha of food estate. To support this determination, there are now 343,461 ha of land that are spread in 10 districts to be worked on by investors, in time Prof. Riyanto as a member of the Food Estate Development Acceleration Team will make the latest progress made by East Kalimantan Province in the construction of the Food Estate.

The concept of food estate is placed on the basis of the integration of sectors and subsectors in an agribusiness system by utilizing resources optimally and sustainably, managed professionally, supported by quality human resources, appropriate technology Sturdy environmental and institutional and institutional insight. Food Estate is directed at the agribusiness system that is rooted strongly in rural areas based on the empowerment of indigenous peoples/local communities which are the foundation in regional development.

negative views on the development of food estate such as marginalized the role of farmers threatened by the expansion of large-scale agricultural companies and land control on a large scale by foreign investors need to be answered wisely with institutional arrangements such as delta Kayan Food Estate.

Delta Kayan Food Estate is managed with modern agricultural concepts based on science and technology, capital and organizations and modern management. This management is regulated by partnership between investors and indigenous peoples (local) in a way as to answer the tilted assumption that the food estate will later make the people as laborers on their own land.

Thus the design of the development of a broad scale of food cultivation is designed based on four approaches, namely (1) regional development approach (cluster), (2) commodity representation approach, (( 3) Approach to the Environment and (4) Community Development Approach.

The basis of the sustainability of the food estate program is first, agro-climate that is suitable for food development, second, the availability of land for rice fields (10 districts covering an area of ​​343,461 ha), thirdly the existence of investors ( There are already 18 investors willing and ready to build rice/food estate in East Kalimantan) and the fourth, support the Kaltim MP3EI program which will ultimately make East Kalimantan as a new food barn for Indonesia, to block the endurance of PAN Food estate development in East Kalimantan is not without obstacles, cooperation between parties is needed to ensure food estate in East Kalimantan can be realized, especially infrastructure support, accelerating investment realization with ease of licensing at the central level and regions and district government support in ensuring clear and clean land and partnership pattern design between investors, local communities and local governments to avoid social conflicts and culture in the future. Said the Governor of East Kalimantan through Assistant II.

Exposure to the resource person and discussion in the second session with the moderator drh. Syaiful Akhyar, M.Si Head of the East Kalimantan Province Food Security and Counseling Agency on the first occasion of the resource person by Ir. Jamil Musanif, Director of Business and Investment Development, Directorate General of P2HP of the Ministry of Agriculture with the title Government Policy in the Framework of Increasing Extensive Agricultural Investment; Exposure to the second resource person by the Head of the East Kalimantan Province Bappeda, Dr.Ir.H. Rusmadi.MS with the title Exposure to Agricultural Development Policy in a Broad sense in East Kalimantan; The third presentation by Prof.Dr.Ir. Riyanto, M.Sc Chairperson of the East Kalimantan Province Food/Rice Estate Development Acceleration Team with the title Exposure to the Development of Food Estate in East Kalimantan; Exposure to the fourth resource person by Drs.H. Yadi Sabian Noor, MM Head of the Regional Licensing and Investment Agency (BPPMD) of East Kalimantan Province and the Fifth or Last Exposure by Ir. Muhammad Yasir, General Manager of PT. Sang Hyang Seri (Persero) Regional Office VI with the title Exposure to the Implementation of the GP3K Program in order to increase food investment.

Discussion Meetings received an aprisiation from participants, especially the investors who requested an explanation of the status of the Food Estate land to the East Kalimantan Provincial Government and the East Kalimantan Provincial Government through the Head of the Regional Licensing and Investment Agency, Drs.H. Yadi Sobian Noor, MM gave an explanation clearly and was ready to assist in providing services to investors. (Public Relations Bappeda Kaltim/Sukandar, S. Sos).