THE ROLE OF AGRICULTURE IN ENTERING INTERNATIONAL
TRADE
Introduction
Agricultural trade has been reformed since January 1995 as a result of the Uruguay
Round and is expressed in the Agreement on Agriculture. However, its implementation has
given negative aspects to developing countries (Kadarukmi, 2013). This is due to the
malfunctioning of the special protection mechanism. In addition, the special and differential
treatment, made by developed countries, was not implemented effectively. Thus, the
Agriculture sector has been negotiated since the Doha Round in 2001.
The Uruguay Round related to the agricultural sector has been embodied in the
Agreement on Agriculture. These agricultural trade reforms have been implemented by all
WTO member countries since January 1995 (Warouw, 2003). In practice so far, the
Agreement on Agriculture (AoA) has had a negative impact on many developing countries.
The invasion of imports and the decline in import prices, especially for food products, are
widespread, which has adversely affected food security, poverty alleviation, and rural
development (Hasibuan, 2015).
This is because developing countries must open their markets in accordance with the
trade reforms stipulated in the AoA, as well as the ineffectiveness of existing trade
protection mechanisms. On the other hand, export markets in developed countries are still
not wide open for developing countries, constrained by non-tariff barriers, especially
Sanitary and Pkytosanitary (SPS) related to human, animal and plant health. International
standards are unlikely to be met by smallholders in developing countries (Apriyantono,
2021).
The reforms contained in the AoA are also not in line, focusing heavily on market
access and ignoring other pillars such as domestic subsidies and export subsidies. In fact, it
is through these last two pillars that developed countries have over-subsidized their large
landholding and high-income farmers (Apriyantono, 2021). In addition, many special
treatments {The special and differential treatment afforded to developing countries has
turned out to be ineffective and inflexible, so that developing countries remain unable to
catch up with development and protect themselves from the threat of liberalization.
The corrections are being designed and negotiated in the Doha Round (PD) that
started in late 2001. Aspects covering the agricultural sector revealed in para 13 and 14
(WTO 2001) have guided the negotiations until now (Apriyantono, 2021). The Doha
Declaration has become the basis for the development agenda, including the development of
the agricultural sector. The power of negotiations has changed, no longer monopolized by
developed countries, especially after developing countries joined groups such as the
Gdifensif in the agricultural trade reform (Muis, 2019).
The reforms should be designed in a gradual, flexible manner and should make it
possible for developing countries to reduce poverty, strengthen food security and promote
rural development. In this regard, there are two important aspects championed by the G-33,
namely Special Products (SP) and Special Safeguard Mechanism (SSM). These two aspects
have been accommodated in the July 2004 Package (WTO, 2004), and the Ministerial
Declaration at the VI5 Hong Kong Ministerial Conference (WTO 2005a) (Pangan, 2015).
The Ministerial Declaration is mentioned in Article 7 (Apriyantono, 2021): "Developing
country Members will have the flexibility to self-designate an appropriate number of tariff
lines as Special Products guided by indicators based on the criteria of food security,
livelihood security and rural development. Developing country Members will also have the
right to have recourse to a Special Safeguard Mechanism based on import quantity and
price triggers, with precise arrangements to be further defined."
Special Products (SP). Developing countries want a number of agricultural products
(a maximum of 20% of total tariff lines) to receive flexibility in tariff reduction. The
flexibility includes the level of tariff reduction, or exemption from tariff reduction, which is
different from the general provisions (Sawit, 2003). With this flexibility, it is expected that
developing countries will be able to adjust their din, and also be able to promote rural
development, reduce the number of poor people and strengthen food security (food security,
livelihood security and rural development). These aspects are non-trade concerns that were
also considered in the AoA, but have not received the weight they deserve in creating a fair
and market-oriented trading system. This is the basis for the proposal on SP drafted by the
G-33 and presented at various formal and informal meetings at the WTO (WTO 2005a,
2006a and 2006b) (Apriyantono, 2006).
Special Safeguard Mechanism (SSM). The concept is temporary protection from the
threat of import invasion or import price reduction. If the product is not protected, it will
adversely affect the industry, as well as business actors, including farmers. SSM should be
made in such a way that it is easier for developing countries to implement it. The existing
safeguards in the AoA (Special Safeguard, SSG) are difficult to implement, and less realistic
about the modalities. Likewise, general protection through the Agreement on Safeguards is
not easy to implement by developing countries, in addition to being raw and costly
(Apriyantono, 2021).
This study aims to determine the strategic commodities in United States agricultural
sector and the direction of policies and strategies for developing the agricultural sector,
especially the development of strategic commodities.
Research Methods
In this study, researchers used a qualitative approach with a case study method,
referring to John W. Creswell in his book Qualitative Inquiry and Research Design:
Choosing Among Five Traditions that a case study is an exploration of a bound system or a
case / various cases over time through in-depth data collection and involving various rich
sources of information in a context (Babchuk, 2017). The bounded system is bounded by
time and place while the case can be studied from a program, event, activity or an individual
and organization. In other words, a case study is a research where researchers explore a
particular phenomenon (case) in a time and activity (program, event, process, institution or
social group) and collect detailed and in-depth information using various data collection
procedures over a certain period (Kurnianto & Kusumalestari, 2016).
Results and Discussion
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
Trend in Agricultural Commodity Trade
Trends in Agricultural Commodity Trade Trade liberalization can provide
opportunities or prospects as well as new challenges in the development of agricultural
commodities in the future. It is said to provide opportunities because the commodity market
will be wider in line with the removal of various trade barriers between countries. However,
trade liberalization will cause problems if agricultural commodities produced by United
States farmers are not able to compete with commodities from other countries so that the
domestic market is increasingly flooded by imported commodities, which in the end will
harm domestic farmers. Efforts to increase the production of agricultural commodities in the
country also need to be accompanied by increased competitiveness and business efficiency.
The export value of agricultural commodities in 2005 reached US$ 11.3 billion, with the
growth rate in 2006 (until August) reaching 31.5 percent higher than in 2005 (15.64%)
(Apriyantono, 2021). The increase in agricultural commodity exports was mainly in
plantation commodities such as rubber, coffee, palm oil, cocoa, tea, pepper and vanilla. On
the other hand, United States still imports a number of commodities, especially foodstuffs
such as rice, soybeans, sugar, wheat and beef cattle, the value of which in 2005 reached US$
5.1 billion. These figures show that United States agricultural commodity trade balance was
a surplus of US$6.3 billion in 2005, and a surplus of US$5.6 billion in January-August 2006.
United States is both an exporter and importer of agricultural commodities. In the
international market, United States export commodities face protection, while domestically,
import substitution commodities face the threat of entry from other countries. The
GATT/WTO agreement requires that all forms of barriers, both tariff and non-tariff, must
continue to be reduced and eventually removed (Asrol & Heriyanto, 2017). Changes in the
agreement are expected to have an important impact on agricultural commodities in the
country, both beneficial and detrimental. Strategic Commodities Based on the analysis of
potential and opportunities, both in terms of technical and economic (market), the Ministry
of Agriculture has determined 36 priority commodities covering food crops, horticulture,
and livestock as outlined in the Strategic Plan of the Ministry of Agriculture (Apriyantono,
2021).
These commodities include (Ramli, 2007):
food crops (rice, soybean, corn, cassava, peanut);
horticulture, which is further broken down into vegetable groups (shallots, potatoes,
red chilies); horticultural crops, fruit groups (oranges, bananas, mangoes,
mangosteens, durians), bias plant groups (orchids, and rhizomes);
phytopharmaceutical plant groups (ginger, turmeric temu lawak, kencur, nutmeg,
!ada);
plantations (sugarcane, oil palm, rubber, coconut, kako, coffee, rnete guava, fiber
crops, tobacco, and cloves);
livestock (beef cattle, goats, dornba, pigs, free-range birds and ducks).
From the above 36 commodities, it was further focused into 17 commodities as
covered in the Revitalization of Agriculture, Fisheries and Forestry (RPPK) document.
These commodities include: food crops (rice, corn, soybeans); horticulture (oranges,
bananas, shallots. orchids, biopharmaca plants); plantations (sugar, cocoa, rubber, oil palm,
coconut, cloves); and livestock (poultry, sheep, beef cattle).
Any choice of SP (Special Product) and SSM (Special Safeguard Mechanism) in the WTO9
negotiations should refer to the formulation of these strategic commodities. The
determination of SP or SSM should be closely linked to domestic agricultural development
priorities and strategies. Likewise, international trade policies must be closely linked to
agricultural and rural development, not stand alone. Whatever is designed in the WTO
forum, United States must be able to fight for domestic development interests, not merely
reach an agreement.
If we have successfully fought for the protection of strategic commodities in the
WTO forum, the next question is what is the strategy to develop these commodities? In
accordance with the Government Work Plan, agricultural development policies are outlined
in 3 programs of agricultural development in the 2005-2009 medium term, namely: (1) food
security improvement program; (2) agribusiness development program; and (3) farmer
welfare improvement program. The food security improvement program is implemented
through the following main activities: (1) Increasing food production and availability; (2)
Developing diversification of food production and consumption; (3) Implementing food
quality and safety standards; (4) Reducing the level of food insecurity; (5) Developing and
disseminating agricultural innovations to support food security.
The agribusiness development program is pursued through the following main
activities: (1) Increased production, quality of agricultural products and business efficiency;
(2) Development of rural agro-industry and marketing of agricultural products; (3)
Development of agricultural facilities and infrastructure; (4) Development and dissemination
of agricultural innovations to encourage agribusiness development. The program to improve
farmers' welfare aims to facilitate the increase of farmers' income through empowerment,
increased access to agricultural business resources, and protection of farmers. Meanwhile,
the targets to be achieved are: (1) increasing the capacity, bargaining position, and income of
farmers/agricultural business actors; and (2) increasing farmers' access to productive
resources.
With reference to these three programs, the Department of Agriculture has
formulated 28 main activities that are a priority to be implemented, six of which are used as
the main point of attention as an entry point as well as a prerequisite as a solution to
agricultural development problems including those related to efforts to reduce poverty and
unemployment. The six activities are: (1) Establishment/activation of farmer groups and
farmer group associations (Gapoktan); (2) Facilitation of seed price assistance to farmers;
(3) Agricultural credit guarantees; (4) Investment capital interest subsidies; (5)
Stabiiization/certainty primary commodity prices through the Capital Strengthening Fund-
Rural Economic Enterprise Institution (DPM-LUEP); and (6) Provision/improvement of
agricultural infrastructure. If breakthrough efforts through these six activities cannot be
realized, it will be difficult for other main activities to take place optimally. And the six
main activities above, focused again into a program that is fundamental and needs to receive
the main attention called PANCA YASA, include: (1) Agricultural infrastructure
development; (2) Facilitation of farmer institutional development; (3) Development of
agricultural extension system; (4) Facilitation of Agricultural Financing; and (5)
Development of agricultural product marketing.
In order to improve food self-sufficiency, the government has set a policy to focus
food development on five strategic food commodities, namely: rice, corn, soybean,
sugarcane, and beef. In the short term, these commodities are expected to reach the level of
self-sufficiency so that dependence on the import market and the possibility of supply
instability can be reduced.
National rice production data shows that this commodity has been in surplus since
2004. Therefore, the rice development policy for the 2006-2010 period is directed at
maintaining self-sufficiency in a sustainable manner. Corn production is expected to reach
self-sufficiency in 2007. For soybeans, by 2010 the target is to fulfill 65 percent of national
demand from domestic production. Soybean self-sufficiency is targeted to be achieved by
2015. For sugar and beef cattle, self-sufficiency in production is expected to be achieved in
2009 and 2010 respectively. Self-sufficiency in the context of self-reliance still tolerates the
provision of food through imports, but in a relatively small proportion, no more than 10
percent of total production, even for rice, it is set even stricter, namely exports of no more
than one percent.-spasi-
Discussion
In an effort to develop agriculture as well as to improve food security, eliminate
poverty and increase foreign exchange, the government has established various actual
policies as follows. In connection with efforts to improve food security, the President has
decided through a Limited Cabinet Meeting to implement the National Rice Production
Increase Program (P2BN) starting in 2007. Through this program, the increase in rice
production should reach a minimum of 2 million tons or the equivalent of 3.5 million tons of
grain with an increase of about 5% from 2006 production. This program is not only the task
of the Ministry of Agriculture but will involve all related Departments/Institutions, local
governments in provinces and districts/cities and all stakeholders.
The government is also revitalizing 2 million hectares of plantations, focusing on oil
palm, cocoa and rubber. Plantation revitalization aims to: (1) increase employment
opportunities; (2) increase competitiveness through the development of plantation-based
downstream industries; and (3) improve the national economy by involving local
communities and entrepreneurs. In addition, as an effort to find substitutes for fossil energy
sources (oil and gas), the government is developing bio-energy raw materials^ (Jatropha
curcas) covering 360,000 hectares with a production of 1SOS million tons of seeds or
270,000 tons of oil.
Recognizing the importance of villages as the basis for agricultural development,
since 2005 the Ministry of Agriculture has developed the Pilot and Acceleration Program for
the Dissemination of Agricultural Technological Innovations (Prirna Tani) in 22 districts. In
2007, the program was expanded to cover 200 villages in 200 districts and 33 provinces. The
program is a real-life agribusiness laboratory at the village level that can serve as a reference
for the surrounding area. Prima Tani is efforts to accelerate the dissemination and adoption
of location-specific technology to farmers in accordance with the potential of the region in
order to accelerate agricultural development in the region. This includes fostering and
developing farmers' resources and microfinance institutions to overcome farmers' capital
problems and to increase the value of their produce and marketing.
Another fundamental activity undertaken by the government is the facilitation of
agricultural financing which includes: (a) The banking guarantee program through the SP3
Agricultural Development Financing Scheme, which in 2007 has the potential to provide
agricultural credit of up to a minimum of Rp. 5 trillion; (b) Direct Community Assistance
(BLM) for Agricultural Investment Relief (BLM-KIP) can provide credit interest subsidies
worth up to Rp. 4-5 trillion; (c) 25% Down Payment Assistance for the procurement of
Alsintan (BUMA); (d) Strengthening Group Business Capital (PMUK), BLM-LUEP and so
on.
As in 2006 (Apriyantono, 2021), the development of irrigation and land
infrastructure, most of which is the task of the government, in 2007 is budgeted up to Rp. I
trillion spread across various regions, some of which are in the form of cash for work
programs. A major program that also provides direct assistance to the community is the
provision of free seeds for farmers in various food production centers, which in 2007 was
allocated Rp. 1.056 trillion.
The avian influenza problem has drawn the government's attention with the
increasingly widespread impact of the disease on humans, both those identified as avian
influenza suspects and the death toll.
AI outbreaks also jeopardize the future of the poultry industry, which has been the
livelihood of some people. Therefore, the response to avian influenza must be carried out
quickly, accurately, and thoroughly. The total AI infected areas from August 2003 to
January 2007 are 30 provinces, covering 228 districts/municipalities (data as of January 22,
2007). The number of poultry deaths due to AI from the end of 2003 to the end of 2006
reached 11.3 million birds and the number of human deaths was 82 cases (63 cases).
AI disease control in poultry is implemented by referring to the National Strategic
Work Plan for AI control, namely: (I) Surveillance with community participation in the form
of Local Disease Control Centers (LDCs), training and empowerment of Participatory
Disease SearchfPDS and Participatory Disease Response (RWi); (2) Vaccination; (3)
Depopulation and conipensation; (4) Regulatory support; (5) AI TUMP movement and
integrated surveillance of human and poultry cases; and (6) Virus dynamics monitoring to
determine the mutation of AI viruses in United States.
In order to improve the competitiveness of agricultural commodities, the Ministry of
Agriculture has focused on the development of centers/regions for 32 types of national
leading commodities covering food crops, horticulture, plantations and livestock. Road-map
prospects and agribusiness development directions for 17 of the 32 leading commodities
have been prepared to support the development of these leading commodities. The Ministry
of Agriculture facilitates the financing of critical aspects that are still a limiting factor in
their development at the field level. In order to utilize the existing resources, each
district/city will be given the opportunity to develop commodities selectively, especially by
considering market aspects, compatibility with local resource capacity and the level of
mastery of technology by farmers.
From the aspect of agricultural management, the government developed 17 leading
commodities by combining all the potential that exists in all Departments / Institutions,
Various programs and activities in various Departments that aim to empower the community
are used to fill and shape the form of agriculture modern. Villages are the entry point for
various programs from various departments/institutions. Thailand has successfully
developed its villages with the OTOP model (one tamboun one produc), each district has a
superior commodity according to its potential. Similarly, South Korea with its Saemaul
Undong Movement. For United States, the shared vision is: ONE VILLAGE ONE
EXTENSION WORKER-ONE SUPERIOR PRODUCT. With this vision, it is expected that
it will be easy to achieve a business unit that meets the requirements of economical scale,
efficiency and effectiveness, which leads to the achievement of productivity, quality of
production, increase in added value and improvement of community welfare in the village
concerned. Thus, it is expected that the commodities produced will have higher
competitiveness in the global market.
In relation to the quality of agricultural products traded, especially in the aspects of
Sanitary and Pkytosanitary Measures (SPS) and Technical Barriers to Trade (TBT), the
government carries out several activities including the formulation and establishment of
quality systems, counseling, facilitation and monitoring of the application of quality
systems, as well as awards to producers, processors and traders. Thus, it is expected that
food producers will implement Good Agricultural Practices (GAP), Good Manufacturing
Practices (GMP) and Hazard Analysis and Critical Control Point (HCCP), which have been
a problem for producers in United States.
Conclusions
The government continues to strive to improve agricultural development by
establishing various policies and programs that are directly related to stakeholders including
the community. food security, reducing poverty and unemployment but also increasing
foreign exchange earnings through increased exports and suppressing imports of agricultural
commodities. Along with that, considering the unfair world trade conditions, United States
together with the G-33 group of countries continues to strive for a number of commodities
included in the SP and SSM concepts. The commodities included in these concepts are
expected to have flexibility in instruments and levels of protection according to our needs.
