President Susilo Bambang Yudhoyono asked state-owned enterprises (SOEs) to devise measures to achieve food security in the country during a coordination meeting with SOEs in Yogyakarta on Wednesday.
“Within the next five to 10 years, SOEs should be able to make investments and of course cooperate with the private sector,” Yudhoyono said in his address to top officials of more than 100 SOEs.
Besides food security, the President also encouraged the SOEs to work toward the availability of alternative energy and eco-friendly transportation means.
“Should you need the support of any government regulations, I’ll help speed up the process as long as you have a clear concept [of the project],” he went on. State-Owned Enterprises Minister Dahlan Iskan said that from the total 141 SOEs, only 110 were healthy.
“The others have turned into corpses, existing only in name,” Dahlan said.
Dahlan added there were a number of SOEs that were involved with food security like agro-industry company PT Sang Hyang Seri, state logistics agency PT Bulog, and plantation companies PT Perkebunan Nusantara I to XIV.
Dahlan said there would be no friction nor unhealthy rivalry between these companies. “They are now under one command, food security command,” he said.
To reduce the nation’s dependence on rice imports, SOEs were looking into opening 100,000 of rice fields in West Kalimantan.
“By the end of this year, we will open 1,500 hectares of land,” he said. The rice fields would be managed by the SOEs, but still entirely owned by the people, he explained.
SOEs would give the farmers assistance in supplying seeds and fertilizer that would be paid by the farmers after harvest time. The assistance was important, he said, because many farmers did not have sufficient funds during the planting season and often were forced to opt for inferior seeds and fertilizer.
Besides importing rice, Indonesia also imported wheat, about 7 million tonnes per year, while demand kept increasing year by year, Dahlan went on.
“The middle-class is growing, therefore wheat consumption is rising. We cannot depend so much on imports. In February 2013, we will massively plant sorghum on 15,000 hectares of land as a substitute for wheat,” Dahlan said.
The SOEs were also planning to increase beef production, especially for impoverished families. They will farm 300,000 cattle on palm oil plantations because the stalks of the palms were good for animal feed, the minister said.
In his address, Yudhoyono also talked about the role of the SOEs in the development of the regional economy. The President highlighted the issue in the context of Indonesia’s increasing importance in the Asia Pacific Economic Cooperation (APEC). Indonesia will host the APEC summit next year.
Dahlan said SOEs could also act as the country’s economic locomotive, especially in eastern Indonesia, where infrastructure was scarce.
Sea port operator PT Pelindo II, also known as Indonesia Port Corporation, has plans to construct a port in Sorong, West Papua.