the Development of Indonesian Agroindustry

agrobusiness

the Development of Indonesian Agroindustry

Agro-industry, an industrial activity that utilizes agricultural products both from vegetable and animal products which is processed into a product that has a higher price value. This agro-industry involves agricultural, human, scientific, technological, financial and financial resources to produce an industrial product.

Agro-industry is no stranger to Indonesia , this is evidenced when Indonesia was in a monetary crisis in 1998, Agro-industry was able to provide positive economic activity on national economic growth. Agro-industry groups that help national growth are the palm oil industry, cassava processing and fish processing industry.

The group can help national economic growth because it does not depend on imported raw materials and is also a big export market opportunity at that time. In the modern era, the development of Indonesian Agro-industry is still far behind that of neighboring countries such as Thailand and Vietnam. According to data from the Institute for Development of Economic (INDEF), assessing Indonesia’s agricultural sector is far behind that of its neighboring country, Thailand. In fact, the land area in Thailand is much narrower than Indonesia.

INDEF Deputy Director Eko Listiyanto said that with less land, Thailand was able to become the second largest rice exporter in the world. “Thailand’s rice market is 22 percent in the world,” Eko said in his office on Wednesday (4/18/2018). The White Elephant country is ranked one below Vietnam. Based on World Stock Export data, from 15 food exporting countries, Thailand is ranked 2nd below Vietnam.

Director of the Institute for Development of Economics and Finance (INDEF), Enny Sri Hartati, said that currently import dependence is increasingly shifting to meeting basic food needs. It is not just a surge in wheat imports which incidentally is not able to be produced in tropical climates.

But imports ranging from sugar, soybeans, garlic, meat, rice and others have also increased. “In fact, the raw material for the food industry is more than 60 percent must be met from imports. Although until the end of 2017 the trade balance of the agricultural sector still recorded a surplus, but that is only due to the blessing of the surplus plantation sector reaching USD 26.7 billion, “Enny said in his office, Wednesday, April 18, 2018.

Sources: merdeka.com and liputan6.com
Credit to: kompasiana.com – December 26, 2019

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