Ministry: Indonesia Has Only Four Decent Zoos

Jakarta Globe, Vento Saudale, Feb 08, 2015

In this file photo taken on April 17, 2013, an ailing critically endangered
Sumatran tiger named Melani is fed from an enclosure at the Surabaya Zoo.
(AFP Photo/Juni Kriswanto)

Pasuruan, East Java. The Ministry of Environment and Forestry has given the management of the vast majority of Indonesian zoos a piece of its mind, saying there are only four decent wildlife parks throughout the archipelago.

Indonesia currently has 58 registered zoos, but 54 of them are either deemed improper by the government or are not yet officially accredited.

Bambang Dahono Adji, the ministry’s director for conservation, said that only half of the nation’s zoos had gone through the accreditation process, and that most failed to make the cut.

“Out of those 29 zoos, only 4 received the A-grade, meaning they are decent and appropriate,” he said on Saturday. “While the others were given Grade B [less than decent] or C [bad].”

The four zoos that do make the grade are Taman Safari Cisarua in West Java, Taman Safari Pasuruan in East Java, Taman Safari Gianyar in Bali, and Sea World in Jakarta.

The accreditation process is conducted once every five years by representatives from the government, veterinarians and other experts who look at animal welfare, animal death rates and the zoo’s facilities, among other things.

“We will evaluate from time to time whether [a park's] accreditation result gets better or worse,” Bambang said. “It’s possible for a Grade-A zoo to get a lower grade in its next accreditation. For those with Grade C, if they don’t get their act together, the ministry will recommend that their license be revoked.”

Bambang admitted that state-run zoos have been performing poorly, but he said he expected plenty of improvement in the near future, as the government has been investing in human resources.

Surabaya Zoo is the most notorious wildlife park in the country, for its high rate of animal deaths.

The zoo lost its permit in 2010 over a tug-of-war over control of the zoo by the previous management. The management fiasco resulted in the massive neglect of the animals and dozens of deaths, including of critically endangered species, and the loss of some animals suspected to have been sold into the illegal wildlife trade. But Surabaya Mayor Tri Rismaharini in August last year announced major changes in the running of the zoo.

Before the mayor stepped in, a lion was found strangled to death in its enclosure after getting tangled in a cable that was hanging loose near its door. And in 2012, the zoo’s only giraffe was found dead with a 20-kilogram ball of plastic trash in its stomach. The plastic was believed to have accumulated from trash thrown into the giraffe’s enclosure by visitors. There was also a case in 2011 of three baby Komodo dragons going missing — presumably sold into the illegal wildlife trade.

Buleleng grape farmers cry out for help

Alit Kartarahardja, The Jakarta Post, Buleleng, Bali | Thu, 04/01/2010 11:21 AM

It was once a fertile vineyard with purple grapes hanging on each healthy vine.

The scenery matched that of any vineyard in the world. Carpets of green filled with bunches of beautiful ripe grapes were seen everywhere in the villages of Buleleng in North Bali.

Local farmers in the Buleleng regency in North Bali, some 100 kilometers north of the Bali provincial capital of Denpasar, have successfully managed to grow grapes in the dry and arid soil.

The location of the vineyards is undoubtedly the most determining influence in the success of grape growing. Not all grape varieties can be successfully grown at any given site.

Certain grape varieties thrive in certain climate and soil conditions. Originating from Turkey and grown in Mediterranean countries, grapes were foreign to many Balinese farmers, who preferred to cultivate local fruit and crops like mangoes, durians, oranges, pineapples and avocados.

However, thanks to the rapid development of farming technology, a number of farmers in the villages of Temukus in Banjar Labuan Aji, some 30 kilometers northwest of Singaraja, had been cultivating quality purple grapes, with a taste comparable to imported grapes.

A number of local winemakers procured their raw materials from this village.

Now, however, it seems like just a beautiful and sweet memory for many grape farmers there. “In the early l990s, we could sell purple grapes at Rp 15,000 [US$1.5] per kilogram. We gained huge profits from growing grapes,” recalled Made Ardika and his two fellow farmers Nyoman Sweca and Kadek Astawa, who are the pioneering grape farmers in the area.

The majority of small-scale farmers, who own one hectare of vineyard at the most, are now suffering from bad pre- and post-harvest yields.

“Most of us sell our harvest yields to middlemen. They are the ones who determine the price of the crops,” Ardika said. Last February, the latest harvest season, the intermediaries could only pay Rp 500 per one kilogram of ripe grapes.

“How can we cover all our production costs?” complained Astawa. “Many farmers just let the ripe fruits hang on the trees. We felt very sad and disappointed with this drastic market fluctuation,” Astawa added.

Historically, Banjar village was one of the potential locations on the island for grape cultivation. Local farmers in the village started to cultivate vines in the early 1980s with prolific yields.

Ida Kade Ardika, a successful grape grower in the village, explained that the quality of grapes from Buleleng was very good and many farmers could sell their harvests for domestic consumption.

“We sold the grapes to many supermarkets and fruit markets in Jakarta, Surabaya, Bandung, Medan in North Sumatra and many other cities in Indonesia,” said Ardika, a doctor turned noted vineyard owner.

Until the early 2000s, the condition of local grape farming was stable in terms of production, pre- and post-harvest handling and marketing lines.

“Our current situation has been influenced both by internal and external factors,” the doctor commented.

Internally, a large number of local farmers were reluctant to adopt the newest grape-growing technology, which required new expertise on grape cultivation including soil management, drip irrigation, new farming techniques and post-harvest treatments.

“There was so much innovation and new technologies to boost the production of grapes and to enhance the quality of the fruit. But, local farmers still had no access to the new systems,” Ardika added.

The present global climate change adversely affected the condition of the plants and the soils.

“Sometimes, the weather was so hot and dry, with very limited rain in the wet season and long droughts during the dry season.” The extreme weather also invited in new types of pests, he added.

While in other countries, farmers had already started using mechanization, Buleleng farmers insisted on adopting traditional farming methods. Such old-fashioned methods could no longer repair the damaged soil nor control pests.

“Vines need moisture and fertile soil. When the soil is not in good shape, the quality of the fruit will be badly affected. This led to the deep plunge of the price in the market,” he added.

The world trade system has allowed overseas countries like China, Australia, New Zealand and Thailand to flood local markets with their fruit. China is one of the greatest fruit exporters to Indonesia.

“With limited capital and farming skills, we cannot compete with the giant competitors like China’s farmers,” he added.

Government support of small-scale farmers is badly needed to encourage them to produce quality harvests. “What we need is stable marketing distribution and price mechanism,” he said. Additional training is required to help boost farming skills.

Vineyard cultivation is economically profitable if it is handled properly. One hectare of vineyard could yield 10 to 15 tons every harvest season. This means, every harvest, a farmer could gain Rp 60 million provided that the price ranges between Rp 5,000 and Rp 6,000 per kilogram.

“It requires strong commitment from all the stakeholders to develop our agricultural sector. Farmers in Bali and other places in Indonesia are always the losers.”

Nestlé cultivates 140,000 disease-resistant cocoa trees

Manila Bulletin, February 13, 2010, 2:11pm

ABIDJAN (Reuters) – Nestlé has cultivated 140,000 disease-resistant cocoa trees to distribute to farmers in Ivory Coast and should boost that number to 1 million per year by 2012, a company executive said.

Nestlé last year launched a plan to hand out the high-yield saplings to farmers with a view to possibly doubling their productivity and improving the often poor quality of Ivory Coast's cocoa.

''This year, we are aiming to produce 500,000, and from next year onwards, 1 million every year,'' Klaus Zimmermann, Nestlé's global head of research and development, said.

He spoke to Reuters during a visit of World Bank President Robert Zoellick to a Nestlé installation in Ivory Coast.

Zoellick used the occasion to highlight badly needed reforms to the sector, which he said had to be more transparent and tax farmers less.

Ivory Coast, the world's top cocoa grower, which supplies 40 percent of world demand, has suffered in recent years from lower yields because of aging trees and black pod disease.

Cocoa sector reforms have been held back by a political crisis that has persisted ever since a 2002-3 war split the country in two, leaving the north in the hands of rebels.

Echoing similar efforts in Indonesia and Ecuador, Nestlé, the world's biggest food group, is carrying out research on cuttings from Ivorian plantations to help propagate the stronger varieties.

Zimmermann said Nestlé's high-yield plants would be a hit with farmers.

''When the farmer realises he can get three-fold his income on the same land, he will be convinced,'' he said.

Benefits of the plants include higher quality cocoa, in a country better know for its bulk than its top grades, resistance to disease and drought, and 50 percent to 200 percent more productivity.

Zimmermann cautioned, however, against thinking this would quickly solve Ivory Coast's aggregate supply problems.

''In Ivory coast there are 3 billion trees. If we plant over the next 10 years 12 million, the impact on the quantity of the product will not be that big,'' he said.

Ivorian cocoa plantations yield, on average, between 400 and 500 kilograms of cocoa per hectare, compared with averages closer to 2 tonnes per hectare in countries like Indonesia.

Exporters on Monday estimated about 751,000 tonnes of beans had reached Ivory Coast's two ports by Jan. 24, up from 681,049 tonnes in the same period last year.

Fears that a vicious combination of aging trees, disease and dry weather will bode poorly for cocoa crop yields this season have kept cocoa futures trading at 30-year highs in London and New York in the past few weeks.

From the Past to the Future

The Jakarta Post, WEEKENDER | Fri, 01/22/2010 4:02 PM |Profile

A professor of geology and physiology at the University of California, Los Angeles (UCLA), Jared Diamond is best known for his Pulitzer Prize-winning book Guns, Germs and Steel, a scientific analysis of the history of civilization. His other, perhaps more important message is to never forget the lessons of history. Hana Miller interviews him.

“I have often asked myself,” Jared Diamond writes in his book Collapse: How Societies Choose to Fail or Succeed, “What did the Easter Islander who cut down the last palm tree say while he was doing it?”

At a time when the future of the planet and the life it supports has come to the forefront of popular media, Diamond’s message about learning from the mistakes and the choices of past civilizations in his recent Collapse becomes especially pertinent. Referring to the analytical model he uses to examine various different societies and how they adapted to – or ignored – the actualities of their circumstances, Diamond shares with us his thoughts on the factors that put Indonesia’s future most at risk, raising critical points about the direction in which we are knowingly leading ourselves.

Globalization

In my book Collapse, I discuss the successes and failures of past societies at solving their environmental problems – such as the successes of the Japanese, New Guinea highlanders and Tikopia islanders, and the failures of the Polynesians on Easter Island in the Southeast Pacific, the Mayans of Mexico, Guatemala and Honduras, and the Anasazi Indians of the Southwest United States.

In the past, when societies on different continents around the world were largely isolated from each other, the success or failure of one society didn’t affect distant societies. For example, it had no effect whatsoever on Indonesia when the Easter Island society collapsed, or when the Mayan cities collapsed. It also had no effect on Indonesia when Japan in the 1700s solved its forestry problems sustainably.

Today, however, in our globalized world, anything that any country does has the potential to affect any other country. For example, with global warming, greenhouse gases emitted in the United States or China or Russia contribute to global warming that affects Indonesian reefs. Globalization also means that Japan, a populous rich country that’s very good at protecting its own forests, succeeds in doing so by destroying the forests of other countries, such as Indonesia.

International business and the environment

Among the most important relationships for Indonesia are those involving Southeast Asian and worldwide businesses that import raw materials from Indonesia, especially tree products (timber and paper materials), fish and other sea products, oil and minerals.

My impression is that some of these international businesses operate in Indonesia according to standards that are not up to the highest international ones. For instance, much is known about how to manage forests sustainably to extract wood and wood products at a rate no higher than the rate at which new trees grow. Thus the forest can be exploited for the indefinite future. Japan and Germany are examples of densely inhabited countries that have been managing their forests sustainably for around 400 years. Even after centuries of exploitation, visitors to Japan and Germany are stunned to see how large a fraction of the area of those countries is still covered by forests: about 76 percent in the case of Japan!

As a result, there is no ongoing deforestation in Japan and Germany: new forests are planted or grown at a rate at least equal to the rate at which mature forests are cut down, and the extent of forests in Japan is actually increasing. In Indonesia, however, these international standards for sustainable forestry are in many or most cases not followed by international wood and pulp and paper companies. That’s a tragedy and a big economic loss for Indonesia: as things are going now, Indonesia will not continue to enjoy forest income for the indefinite future.

An added tragedy for Indonesia is that much or most forest products are exported in the raw form of unfinished logs. But most of the value of forest products is added after the trees are cut, when the logs are worked into finished timber and paper. This added value is much greater than the value of the unfinished logs. In effect, most of the profits from Indonesia’s timber are not received by Indonesia, but by the countries to which it exports its timber.

Similar problems arise with fisheries. There are well-established international standards for managing fisheries sustainably, so that fish are caught at rates no higher than the rates at which they can spawn and grow to maturity. Sustainably managed fisheries provide an income for the indefinite future. Examples of these include the Australian rock lobster fishery and the American wild salmon fishery. But most fisheries in Indonesia are not managed sustainably. That, again, is a tragedy for Indonesia, which loses a source of income that could continue for the indefinite future – if only it were managed properly.

It is entirely within the power of the Indonesian government to obtain a good economic deal with regard to foreign exploitation of its raw products. Other countries already insist on getting a good deal for their raw products. All that the Indonesian government would have to do is license only foreign companies that meet accepted international standards for managing fisheries and forests, and insist that most of the added value of Indonesian forest products be added in Indonesia rather than in Japan or China or Taiwan or Malaysia. Sadly for Indonesia, this is not happening at present.

The Five-Point Framework

In assessing whether a country is succeeding or failing at solving its major problems, I go through a checklist of five sets of factors: human impacts on environmental resources; climate change; effects of friendly trade partners; effects of hostile neighbors, and a country’s social, political and economic conditions that either help or hurt the country in recognizing and solving its problems.

Of these five factors, it seems four are critical for Indonesia. The one that is not critical – at least at present – is hostile neighbors. Although Indonesia has had problems with other countries in the past, that’s not the case today.

But the other factors all apply to Indonesia. With regard to the first factor, I mentioned above the overexploitation and decline of Indonesia’s rich forests and fisheries. Climate change affects Indonesia, especially through the harmful effects of global warming on the country’s rich reefs and through the increased frequency of extreme climate events such as cyclones, droughts and floods.

Friendly trade partners are another problem: Indonesia has friendly relations with Japan, China, Taiwan and Malaysia, but those countries are now partly the cause of the problems in Indonesia’s fisheries and forests.

Finally, as regards the fifth factor, political considerations in Indonesia are important for understanding why the economy and the people enjoy only a small fraction of the benefits they would otherwise receive from the country’s fisheries and forests.

Societal Response

My experience is of conflicts of interest, of two types. One set of conflicts involves those I mentioned above, between international interests – which make money by exploiting Indonesian resources unsustainably and add most of the value outside the country – and Indonesia’s own interest.

The other set of conflicts is between short-term and long-term interests within Indonesia itself: many Indonesians, just like many other people around the world, pursue short-term interests to the detriment of long-term ones. An extreme example is the use of dynamite fishing in coral reefs. This yields more fish for sale in the short run, but destroys the reef and hence reduces potential fishery income in the long run.

Factors for hope

At least four sets of factors make me hopeful. One was the serious discussion of climate change that took place in Copenhagen and is expected to continue elsewhere. The second is the role of big businesses, not all of which are destructive: some international corporations have been major forces for hope for the world’s future, by managing resources sustainably.

A third factor for hope is the recent change in attitudes about environmental issues in my country, the United States, which under the Bush administration pursued shamefully ignorant and destructive environmental policies. It’s also a promising sign that the Chinese government is taking some, but not all, environmental problems seriously.

Finally, a factor for hope is exemplified by The Jakarta Post – by which I mean not just the Post itself, but world media in general. Thanks to the Post and other media, including newspapers, TV, radio and the Internet, people in one part of the world can quickly learn about what is happening in other parts.

I shall never forget being at a small, remote airport in the Indonesian province of Maluku, where passengers could watch TV while waiting for their plane. And playing on the screen while I was there was a Michael Jackson video! While the late Michael Jackson is enjoyable, there are other things one can see on TV may be more important for understanding what is going on in the rest of the world.

As a result of the Post and other media, Indonesians now have the means to understand what’s going on in other countries. Some of those things are good and admirable, and some are terrible and destructive. Through the Post and other media, you have the opportunity to watch and learn from and imitate the policies of other countries that you believe promote long-term economic success, and you also have the opportunity to see destructive things that other countries are doing and you can avoid repeating those same mistakes in Indonesia.

President: Revitalized must be further developed

Antara News, Saturday, January 30, 2010 05:32 WIB

Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono said after Indonesia`s agricultural, plantation and fisheries sectors had been successfully revitalized, they needed to be further developed to reach a higher performance level.

"The first revitalization wave in agriculture five years ago has been accomplished. We acknowledge it has been successful but we will not stop at this point. We will carry out a second revitalization program over the next five years," the President said in Jakarta on Friday.

The second wave of agriculture, plantation and fisheries revitalization would be done to enhance self-sufficient and sustainable food security and can come to be reserves or food supplies for the world, he said.

To achieve the goals the President mentioned eight keys of success, which are devising a strategy and adopting the right policies, such as selecting qualified commodities which are given priority development.

The 15 commodities selected by the Chamber of Commerce and also used by the government consisted of four strategic commoditiesm, namely rice, corn, sugar and soybeans, and six superior export commodities such as palm, coffee, tea, cocoa, tuna fish and shrimps.

There are other two commodities to support public health consisting of cows and chickens meat, also three other popular commodities of mangoes, bananas and oranges.

"These 15 commodities are very important, but we still have to maintain rice and corn self-sufficiency and surplus, immediately fill the sugar self-sufficiency, reduce dependence on soybean imports, and increase the adequacy of cows meat supply," he said.

The President also called for improved research and technology development, by seeking new production enhancement innovations without opening a new field.

Keeping the environment is also mandated by the president, to run the agriculture, plantation and fishery development are environmentally friendly.

"Indonesia`s spatial must be done correctly. Businessmen and farmers should not only pursue profits. I expect the field fire to be stopped. We`ll help the local communities not to easily burn their field to farm," he said.

The President also reminded to continue to improve the farmers, planters and fishermen welfare and not to make them only as a production factor, because they are the state`s assets, owner and the national economy.

Beside production increasing, the President also expected the basic food commodities prices remain affordable to the people.

Related Article:

President : Listen to farmers

Government to pursue agrarian reforms

Aditya Suharmoko, THE JAKARTA POST, JAKARTA | Sat, 01/16/2010 12:47 PM

President Susilo Bambang Yudhoyono says the government will speed up land reforms by providing the public with greater access to land, and acquire more agricultural land to improve Indonesia's rice production.

"I'd like agrarian reforms with a plus, by which the public can acquire land. I expect this will be carried out by the National Land Agency *BPN* and local administrations," Yudhoyono said Friday in Marunda, near the East Canal Flood area in North Jakarta.

The President was launching the government's Strategic Land Program for the People's Justice and Prosperity. During the launch he also handed over 1.53 million land certificates to the public.

Yudhoyono said the planned issuance of new government regulations was part of the government's first-100-day program to speed up agrarian reforms launched a few years ago.

According to research conducted by the Agriculture Ministry, Indonesia has 11.6 million hectares of farming land, 7.6 million of which is irrigated. The report suggests Indonesia needs another 11.8 million hectares of farm land by 2030 to meet the projected national demand for 59 million tons of rice.

Of the country's total 190 million hectares of land, 101 million hectares is suitable for agriculture without creating a damaging ecological imbalance. At present, 64 million hectares is used for farming, the report says.

Former agriculture minister Anton Apriyantono said many farmers did not own their own land, and most worked as casual laborers for larger farm businesses during the harvest season.

Anton also said farmers had to spend large amounts to obtain land certificates.

Yudhoyono urged the BPN to act quickly in creating an inventory of unclaimed land, which the BPN said estimates to amount to around 7.3 million hectares.

"Manage unclaimed land, settle land disputes and speed up the ongoing land certification process," Yudhoyono instructed the BPN.

"Improve the government's service to the people. Larasita *the People's Service for Land Certification* is a primary program. Come to the people, don't wait until the people come to you," he added.

Through the Larasita program, the BPN will provide cars and motorboats to reach residents of remote and isolated areas, such as the Thousand Islands.

BPN head Joyo Winoto said the agency would soon be able to resolve more than 3,500 land disputes.

Jakarta Governor Fauzi Bowo said 69 percent of the property in Jakarta had no land certification. "Jakarta administration and the BPN plan, over the next three years, to speed up the certification of all property belonging to residents and the government."

Yudhoyono said within his first 100 days in office (before Jan. 31) the government would issue a regulation on dormant land.

He also said the government would work to stop speculators, who could cause losses to original landowners and the government when land was needed for development.

The government plans to speed up its infrastructure projects to spur economic growth to between 6.3 percent and 6.8 percent per year over the next five years.

"*If the government doesn't stop speculators* when it *needs land for* a project, the government will have difficulty running the program and the people won't receive decent compensation, but speculators will be the ones who profit," Yudhoyono said.

RI to expand oil palm estates amid environmental concerns

Riyadi Suparno and Nani Afrida , The Jakarta Post, Nusa Dua, Bali | Thu, 12/03/2009 2:47 PM

Despite environmental concerns, Indonesia plans to continue the expansion of its much-contested oil palm plantations to cover a total area of 18 million hectares, from the current 9.7 million, to generate more employment and improve people's welfare.

Coordinating Minister for the Economy Hatta Radjasa said on Wednesday that Indonesia would adopt "sustainable palm oil development" to ensure the expansion would not create more environmental problems.

"Sustainability is not an option, it's a must. Sustainability in the palm oil sector must cover all three aspects, social, economic and environmental," Hatta said after opening the 5th Indonesian Palm Oil Conference.

Hatta noted the government was committed to reducing greenhouse gas emissions by 26 percent by 2020, and that such a target could only be achieved by establishing new oil palm plantations.

Therefore, he said, the government would implement stricter regulations on clearing land for oil palm estates, and would work to reduce forest fires and illegal logging.

Indonesia, currently the world's largest palm oil producer, is considered one of the biggest emitters of CO2 from land use. Environmental activists have singled out the development of massive oil palm plantations as one of the biggest contributors to the emissions.

Indonesia has a total 9.7 million hectares of land that have been licensed for oil palm plantations, 9.7 million hectares of which are already planted, while 1.8 million remain empty. Indonesia produ-ces 19.2 million tons of palm oil per annum.

In comparison, Malaysia has 4 million hectares of oil palm plantations, and produces 16 million tons. Unlike Malaysia, Indonesia has more land to use for plantations.

"Based on the land characteristics and the climate, we have a total 18 million hectares of land, including the existing 9.7 million hectares, which could potentially be used for palm oil plantations, without disturbing our forest preservation efforts," said Agriculture Minister Suswono.

Suswono also said that environmental concerns should not discourage the government, businesses and farmers from continuing to invest in the palm oil sector, noting that environmental concerns were exaggerated, while economic benefits were largely ignored.

"The emissions from opening new oil palm plantations are more in the form of CO2, and the oil palms to some extent absorb CO2. Compare that to methane emissions in the West, which are 23 times more dangerous than CO2," Suswono said.

In addition, the sector contributed US$12.4 billion in export revenue, the biggest outside the oil and gas sector, and employed 3.4 million households.

"But it doesn't mean that we ignore the environment. Ignoring the environment means we are committing suicide," he said.

Deputy agriculture minister, Bayu Khisnamurthi, said that Indonesia's palm oil sector was one of the booming sectors, and with the government's support and support from the banking sector, he predicted the country's output would double in the next decade to 40 million tons per year.

Indonesia allocates 18 million hectares of land for palm oil

The Jakarta Post, Nusa Dua, Bali | Wed, 12/02/2009 11:21 AM

Indonesia's position as the world's number one palm oil producer would likely not be shaken in years to come as the country still has 18 million hectares of land that could be used for palm oil plantations, almost double the current 9.7 million hectares that have been licensed for palm oil estates.

Agriculture Minister Suswono said after the opening of the 5th Indonesian Palm Oil Conference in Nusa Dua, Bali, that of the total 9.7 million hectares, 7.9 million hectares are already planted with palm oil, while the remaining 1.8 million hectares still stand empty.

"Based on the land characteristics and the climate, we have a total of 18 million hectares of land that potentially could be used for palm oil plantations, without disturbing our forest preservation efforts," Suswono said.

In addition to providing more areas for palm oil plantation, the government would also help improve the productivity of the existing plantations.

In comparison, Malaysia has only 4 million hectares of palm oil estates, but it produces 16 million tons of palm oil per annum. Indonesia has almost double the size, 7.9 million hectares, but produces only 19 million tons of palm oil.

Suswono said most of the lost productivity lies with plantations owned and managed by smallholders, which account for 41.4 percent of total plantation areas.

He said plantations belonging to smallholders produce 1.5 to 2 tons per hectare, while plantations managed by private companies produce 7 tons per hectare, while those managed by state-owned companies produce 4 to 5 tons per hectare.

"So, we are considering giving incentives to improve the productivity of estates belonging to smallholders," Suswono said.

Related Article:

Govt to provide incentives to boost palm oil industry

Govt gears up to limit free trade deal adversities

The Jakarta Post , JAKARTA | Mon, 03/16/2009 11:30 AM

Milking it all the way: A farmer milks a cow at his farm near Jl. Mampang Prapatan, South Jakarta, in this June 19, 2008, file photo. The Agriculture Ministry has proposed Rp 145 billion (US$12.18 million) this year from the stimulus package to boost the competitiveness of the country’s meat, milk and dairy businesses against foreign competitors, ministry officials said Saturday. (JP/J. Adiguna)

Indonesia is preparing massive financial and technical support for meat and tropical fruit businesses in a bid to cash in on ASEAN’s free trade deals with Australia and New Zealand.

The Agriculture Ministry’s director general of husbandry, Tjeppy D. Soedjana, said Saturday the ministry had proposed Rp 145 billion (US$12.18 million) this year from the stimulus package to boost competitiveness of the country’s meat, milk and dairy businesses against foreign competitors.

He added the businesses would face tougher challenges due to the recently inked free trade agreement (FTA) between ASEAN and Australia and New Zealand.

“The proposed stimulus will help local cattle farmers develop their businesses, while also preparing them to compete against imported products before the ASEAN FTA with Australia and New Zealand takes full effect,” Tjeppy said.

Under the FTA, Indonesia will completely slash its import duties on four beef products from the two countries by 2020 and on seven dairy products between 2017 and 2019.

Tjeppy said steps in preparing the farmers should be taken immediately from the upstream level of the cattle breeding sector.

“If the Finance Ministry approves the stimulus, not only we can cover domestic demand, but we can also compete with overseas products and even export our products,” he said.

He added the stimulus would take the form of loan interest subsidies for domestic cattle farmers under the existing cattle breeding business financing (KUPS) scheme.

“The KUPS scheme is pro-poor and intended for small cattle farmers,” he said, adding local farmers were currently breeding 10 million cows.

Besides the subsidy, the ministry will also help cattle breeders work with oil palm farmers to help provide sufficient feed for the cattle.

“A hectare of oil palm plantations can feed two to three cows. There are around 7 million hectares of plantations, which translates into feed for 21 million cows,” Tjeppy said.

He added Indonesia imported 30 percent of its meat demand annually, consisting of 450,000 cows for breeding and 150,000 tons of frozen meat, while importing 70 percent of its dairy demand.

Besides the meat and dairy businesses, the ministry will also help expand the export of tropical fruit to Australia and New Zealand under the FTA, which scraps import duties for horticultural produce.

Sri Kuntarsih, secretary of the Agriculture Ministry’s horticulture directorate general, said Indonesian fruit exports to Australia were limited because of strict quality inspection systems in place, which acted similar to non-tariff barriers.

She added that ever since the deal was signed, the ministry had submitted a proposal to the Australian Embassy in Jakarta regarding the possibility of exporting three types of produce: mangosteens, mangoes and onions.

“However, the embassy said we had to select only one for the time being. So we’ve decided to go with mangosteens,” she said.

“Australia has very high standards for the quality of agriculture produce. “This has been our main concern for not being able to enter their market sooner.”

Indonesia is targeting a 13 percent jump in horticulture exports worldwide this year to $411 million. (fmb/hdtw)

Indonesia must boost palm yields to save forests

By Aloysius Bhui and Ed Davies, Reuters, Mon Mar 16, 2009 7:14am EDT

JAKARTA (Reuters) - Indonesia needs to squeeze far higher yields from existing palm oil plantations rather than open up more land in a country with some of the world's swiftest deforestation, a Greenpeace official said on Monday.

Indonesia, the world's top palm oil producer, yields only about 2 tonnes per hectare from its plantations, or just a third of the 6 to 7 tonnes in countries such as Malaysia with better estate management practices, said Annette Cotter, campaign manager for the forests campaign in Greenpeace Southeast Asia.

A view of a destroyed rainforest in Kotawaringin Timur district in Indonesia's central Kalimantan province, October 9, 2007. REUTERS/Hardi Baktiantoro

"What's interesting about palm oil in Indonesia is that the current plantations actually yield a very, very poor return," Cotter said, speaking as part of the Reuters Food and Agriculture Summit.

Indonesia has 7.1 million hectares, or 17.5 million acres of palm oil estates, with smallholders accounting for about 35 percent, but is looking to expand further.

In a controversial move, Indonesia's agriculture ministry said last month it would allow 8 percent of its 25 million hectares of peatlands, which harbor huge carbon stocks, to be used for palm oil, ending a freeze on permits dating from December 2007.

"You don't need to expand into further forest and further peatland to get increased economic benefits from palm oil," said Cotter, calling the move to end the freeze on peatlands "a total disaster."

Up to 84 percent of Indonesia's carbon emissions come from deforestation, forest fires and peatland degradation, a report sponsored by the World Bank and Britain's Department for International Development says.

"So what you've got is a situation of relatively poor management of existing plantations and you've got companies looking for further expansion to increase production but not looking at increasing productivity in existing estates," said Cotter, who has spent 12 years at Greenpeace with time in Brazil monitoring Amazon forests.

By boosting existing estates' productivity, Indonesia would "go a very long way to increasing production and increasing therefore Indonesia's exports," she added.

GREEN PALM OIL?

Under fire from green groups and consumers, the palm oil industry set up a Round Table on Sustainable Palm Oil (RSPO) in 2004, to develop an ethical certification system, with commitment to save rainforests and wildlife.

One of Indonesia's top palm companies, PT Musim Mas, was its first to be certified by RSPO in January.

Cotter called RSPO a "toothless tiger" that has failed to seriously curb deforestation.

"They (RSPO) need to prove that they are actually committed to their principles before we can say they are actually doing a good job," she added.

The global financial crisis was delaying planned palm oil expansion and showing up its flaws, she added.

"What palm oil is being sold as is the green gold, but it's another classic boom and bust industry," said Cotter, noting that a collapse in palm oil prices late last year led to job losses and fruit rotting on trees.

BIOFUEL THREAT

The growing trend of palm oil use in biofuel also threatened conservation and food security, Cotter said.

Indonesia and Malaysia, the world's top two palm oil producers, have made the use of palm-based biodiesel mandatory from this year.

Cotter said biofuel could be looked at for development only after food security issues had been addressed, and principles of sustainable agriculture enforced.

"But that's not the case we are in at the moment."

Sharp drops in global food prices, including palm oil, have temporarily eased concerns over food security.

"If you look where the trends are going internationally with palm oil it's focusing more and more on biofuels and less and less on food," she said.

"And so you're actually going to see in the future questions around food security."

(Editing by Clarence Fernandez)

Certification problems make Indonesian agricultural produce less competitive

Benget Besalicto Tnb., The Jakarta Post, Jakarta | Sat, 03/07/2009 2:19 PM

Lack of certification has been blamed as the main factor behind the lack of competitiveness of Indonesia's agricultural products, both domestically and internationally, an agribusiness consultant said Friday.

Ernest E. Bethe III, program manager of agribusiness for the International Finance Corporation's (IFC) Indonesia Advisory Services, said the lack of certification stemmed from the absence of awareness on the need for certification for the international market.

He also blamed the fact that certification agencies in the country were not fully developed yet.

He pointed out that 20 years ago, Indonesian agricultural products could still manage to compete in global markets.

During that period, he went on, the Singaporean market was flooded with Indonesian agricultural produce. But now, even in the domestic market, local produce cannot compete with imported foods.

There have been several cases where Indonesian food products, especially fresh produce, have been rejected in overseas markets due to problems related to pesticide content or other harmful chemical substances.

Some standardization and certification agencies have set up operations in the country, but are running at less than peak effectiveness, Bethe said.

"I think it is mainly related to the lack of certification and the problem of inefficiency in the supply chain," he said.

He added that poor infrastructure in supporting the supply chain had fueled the need to import agricultural produce, because under such conditions, imported foods became much cheaper.

"We've also witnessed that it is very costly to acquire certification for food products here," he told a media briefing for an upcoming conference on the sustainable agricultural supply chain.

"This is because producers have to ask foreign certification agencies to ensure their produce is acceptable for the international market."

The conference will run from March 12-13, and will be organized by the IFC, an institution that operates under the World Bank to promote growth and reduce poverty in developing countries like Indonesia, in partnership with the private sector.

Bethe said the IFC conference would feature a number of experts in supply chain management, who would share best practices with executives from emerging Asian companies.

There will also be technical workshops on supply chain management, which will be combined with interactive strategy sessions and networking opportunities.

"Participants will receive advisory services and information on consumer market trends," Bethe said.

"All will be tailored to the new realities in the face of the worldwide economic crisis, rising food prices and increasingly stringent import specifications and standards."

Brigit S. Helmes, the head of advisory services at IFC Indonesia, added the conference was part of the institution's program to target about 900,000 farmers for training in the supply chain management as a way to increase their income over the next five years.

She said that the IFC, in cooperation with the Smallholder Agribusiness Development Initiative (SADI), would commit a total fund of US$38 million this year to train farmers.

But she pointed out this would be done in cooperation with companies involved in the supply chains of certain agricultural products, and not do it directly with farmers.

SADI program director Jacqueline Pomeroy said SADI, which is fully funded by the Australian government, had so far focused its training programs in four provinces in the eastern part of Indonesia: South and North Sulawesi, and East and West Nusa Tenggara.

It has provided about Rp 1.1 billion for each of 24 subdistricts in the provinces, or a total fund of about Rp 24 billion, to train farmers.

RI CPO exporters seek to comply with EU certification rules

The Jakarta Post, Jakarta | Wed, 02/18/2009 2:06 PM

Indonesia's crude palm oil (CPO) exporters are preparing themselves to have their products meet the "sustainable certification" requirement.

This requirement is soon to be applied in international markets, and Indonesian exporters need to comply so as not to lose their competitive edge, a minister and business players said on Tuesday.

Agriculture Minister Anton Apriyantono awarded on Tuesday the first ever Sustainable CPO Certificate to PT Musim Mas, one of the industry's major players, and said at least four other companies would follow suit in the following months.

"Crude palm oil contributed around US$10.7 billion to the country's economy in 2008 and the industry absorbs around 3.7 million laborers," Apriyantono said, speaking on how vital the commodity's contribution to the economy is.

"Right now, there are four other companies which are preparing themselves to meet the standard needed for the certification. They are PT Hindoli in South Sumatra, PT Lonsum and PTPN 3 in North Sumatra, and PT Sime Indo Agro in West Kalimantan," he added.

The certification, which is issued by the Roundtable on Sustainable Palm Oil (RSPO), is vital to the Indonesia CPO industry because it will help the world's largest CPO producing nation to maintain its market share, especially in EU countries.

The European Union EU requires that starting in 2010, all of the CPO imported into EU countries will have Sustainable CPO Certification to ensure that the production process of the commodity was carried out in an environmentally friendly way.

This measure was adopted because EU environmentalists felt the rapid expansion of Southeast Asia's oil palm estates was in part responsible for the destruction of tropical forests and wildlife.

One of the requirements for the certification test is that CPO producers must prove that their production process can reduce the greenhouse gas effect, or greenhouse effect, by as much as 35 percent.

The certification also requires CPO producing companies to meet eight main principles including transparency, legal and regulatory compliance, long term financing capability, best production practices, environmental responsibility, and labor welfare assurances along with 39 other standard criteria.

"We invested around $20 to $40 per hectare in our plantation to meet the standard. In total, the investment was around $600,000," PT Musim Mas president director Bactiar Karim said.

The secretary general of RSPO, a non profit-oriented organization grouping growers from CPO_producing countries, Vengeta Rao, said the organization, along with the government, would help smaller growers to acquire certification.

"The cost to acquire the certificate will be much lower for smaller growers, but we have yet to determine how much that will be," Rao said.

The country exported around 13 million out of 17 million tons of palm oil produced in 2007. The volume of CPO exports increased the following year to 14.5 million tons out of a total production of 18.5 million tons.

"We exported around 1.5 million tons of CPO with a value of $1 billion to the EU last year," Derom Bangun, former chairman of the Indonesia Palm Oil Producer Association (Gapki) and vice chairman of Indonesian Palm Oil Board (DMSI), said.

"Another advantage of having a certificate is that certified companies may sell their products $40 higher per ton, compared to companies who do not have certification."

DMSI marketing head Susanto said that the certification would not have much immediate impact on the industry, but it would definitely give an edge to Indonesian CPO producers in the long run.

"PT Musim Mas is just the beginning. Slowly but surely, all of the palm oil estates in Indonesia will be receive the certification," he said.

The country's CPO prices were booming in the first half of 2008. Prices hit a peak of $1,200 per ton, generating huge profits.

The global financial crisis, however, inevitably turned the tables around. Lack of demand from the market caused an oversupply that slashed the average price of the commodity by around 60 percent by October, although the prices have started to climb and stabilize again since the start of this year.

Industry players recently projected a conservative forecast of 20 million tons of production capacity this year, targeting 14 to 16 million tons of exports, with a favorable average price level at $400 per ton. (hdt)

Bulog chief says RI to export rice not for "showing off"

Banda Aceh (ANTARA News) - National Logistics Agency (Bulog) Chief Mustafa Abubakar said Indonesia would export rice not for "showing off" its rice self-sufficnecy but because it had to dispose of a rice production surplus.

"We will export rice not to show off nor for any political purpose but because domestic rice production in 2008 was rather good and has resulted in a surplus," Abubakar said here on Monday.

The Bulog chief was here to attend a working meeting on rice procurement in all provinces in Sumatra. He said the government was planning to export rice also in an effort to keep the domestic rice price stable.

"If the rice surplus is not exported, there will be an over supply in the market, and then its price will fall. Though some of the production is exported national rice stocks will remain stable," he said.

Since 2008, Indonesia has stopped importing rice because Bulog was able to buy up 3.2 million tons of domestic farmers` rice. In 2007, Indonesia was still importing rice from Vietnam and Thailand at a volume of 1.3 million tons.

"By stopping rice imports, the government was able to save Rp15 trillion. Most of these funds is now flowing to farmers in villages. In the past, the funds flowed to farmers in Vietnam and Thailand," the Bulog said.

Abubakar said the government was planning to begin rice exports in March 2009. It was believed that the export would not affect stocks at home because the rice to be exported was number one quality rice.

For stocks procurement at home, Bulog had set a target of 3.8 million tons. "We are optimistic that procurement for 2009 will reach 3.8 million tons," he said.

Therefore, he said, it was hoped no protracted droughts, floods and pest attacks would happen this year that could affect rice plants during the planting season.

Cheap imported milk spoils production in Central Java

Suherdjoko, The Jakarta Post, Semarang | Wed, 01/28/2009 5:17 PM

Farmers in Semarang, Salatiga and Boyolali regencies in Central Java have been forced to dump thousands of liters of fresh milk they are unable to sell to industries which prefer cheaper, imported milk.

A farming cooperative in Getasan, Semarang, reported that it had thrown away 22,000 liters of milk, worth Rp 66 million (around US$6,000) since local dairy factories began purchasing less local milk.

“We had to throw the milk in to the river because the industry refuses to buy it and we don't have enough storage room, while fresh milk keeps coming everyday,” Widodo, chairman of the coop, told The Jakarta Post on Wednesday.

Farmers in Central Java sell their milk to five main producers of dairy products, namely Bendera, Indomilk, Ultra, SGM, and Nestle.

“Those factories have only profit on their minds. When imported milk was expensive they bought our milk, even though it was not as good. But now, after we managed to improve the quality, they choose the cheaper import,” Agus Warsito, Chairman of the Central Java chapter of the Indonesian Dairy Cow Farmer Association, said.

Agus said the government has to protect local farmers by raising import taxes on milk. (dre)

Kalla urges more study on food crops

Andi Hajramurni, The Jakarta Post, Makassar | Fri, 01/02/2009 8:55 AM

FOOD FOR THOUGHT: Vice President Jusuf Kalla (second left) talks to a lab technician at the Cereal Crops Research Center in Maros, South Sulawesi, during an official visit to the province on Wednesday. (JP/Andi Hajramurni)

Vice President Jusuf Kalla has urged researchers to further intensify food crop development, particularly in rice and corn, to help boost national food production and maintain the country’s food self-reliance that was achieved last year.

Kalla was speaking during the inauguration on Wednesday of a training program on improving agricultural output for district heads, district military commanders and village-level guidance military officers across South Sulawesi, at the Cereal Crops Research Center in Maros regency.

The training program is aimed at assisting farmers in the province enhance agricultural production, particularly to meet the rice and corn surplus targets of 2 million tons and 1.5 million tons, respectively, this year.

Prime variety crops, Kalla said, could only be achieved with continuous research and development into the latest agricultural techniques.

“Research can only be developed by sound knowledge,” he added.

Advanced research, he went on, was necessary because dwindling farmland in Indonesia meant extending existing farms was an unlikely option for boosting production.

“Our croplands are increasingly limited. Extending them would mean further deforestation. Besides, it is costly to open up new farmland. So our only choice is agricultural intensification to increase food production. We also need superior variety seedlings, good irrigation systems and adequate fertilizer,” Kalla said.

He admitted the government had neglected to restore irrigation systems over the past 10 years, but said it would now focus on the issue, including building new channels in 2009 so rain-dependent rice paddies could be irrigated, and to capitalize on the biannual sowing system.

Currently, the Cigeulis superior rice seedling yields up to 5 tons of rice per hectare, but Kalla insisted this could be enhanced to 6 tons.

The Vice President also said Indonesia had achieved food self-sufficiency, especially in rice, thanks to hard work from farmers, researchers and field officers.

“We were able to achieve self-sufficiency in rice in 1982, and achieved it again in 2008. We must be grateful to the farmers, researchers and agricultural guidance officers who worked hard to enhance our agricultural production,” he said.

Kalla also visited the center’s library and molecular biology lab.

Center head Muhammad Yasin said the center had developed six superior hybrid corn seedlings as of the end of 2008, which he added could boost output and were superior to varieties from other Asian countries.