Anggi M. Lubis, The Jakarta Post
Agriculture Minister Suswono says that Indonesia and Australia are ready to move forward on a gigantic investment plan to develop ranches in Papua and West Nusa Tenggara (NTB), as a part of a rekindled effort to foster partnership and bolster investment in the beef and cattle trade.
Suswono said on Tuesday that the government was readying Rp 1 trillion (US$87 million) to procure cattle and enhance infrastructure for building new ranches in the two provinces to boost Indonesia’s local cattle population amid surging beef prices and shrinking cow numbers.
“This year we will disburse Rp 400 billion, which will be distributed equally to build necessary infrastructure in Papua and West Nusa Tenggara,” he said.
In addition to funding from the Indonesian government, Suswono said the program would also receive financing from the Australian government, which had committed to pour A$60 million ($56 million) into a 10-year initiative on Indonesia’s beef and cattle industry under the “Indonesia-Australia Red Meat and Cattle Forum” launched earlier this year during the tenure of former Prime Minister Kevin Rudd.
Newly elected Prime Minister Tony Abbott had expressed his intention to resume the initiative as part of an effort to get the neighboring countries’ oft-disrupted beef trade back on track.
“The new Australian government is determined to put past episodes behind us and to build on the joint Red Meat and Cattle Forum established in July to foster partnership between the meat industries [in Indonesia] and in Australia. Australian business has rarely been keener to explore investment opportunities and build partnerships that transfer skills and build local industries — here and at home,” Abbott said on Tuesday during a breakfast with Indonesian ministers and businesspersons, which was part of his first overseas visit after being elected two weeks ago.
To meet rising demands, Indonesia, through state-owned agribusiness company PT Rajawali Nusantara Indonesia (RNI), is planning to own a ranch in Australia to help bolster the domestic beef supply. RNI is currently assessing five Australian companies, as it looks to acquire a cattle-breeding firm that has between 50,000 and 500,000 head of cattle by allocating Rp 350 billion ($30.45 million) for the planned investment.
The Agriculture Ministry’s head of animal husbandry, Syukur Irwantoro, said that local government would operate the planned ranches in Papua and NTB, adding that the national government would also encourage state-owned enterprises to help run the ranches.
The two provinces, according to Syukur, were chosen based on availability of land and the local cow population in the area, and that the government hoped the regions could one day supply the entire nation.
Employers Association (Apindo) chairman Sofjan Wanandi said that Indonesia and Australia should maintain mutual investment projects and emphasized that the Indonesian government should create a conducive atmosphere to facilitate foreign investment.
“We want to invest in Australia, so it’s time they start investing in our country too. They have expertise in cattle, both in research, technology and breeding — these are the things they need to bring to our heavily import-reliant country,” Sofjan said.
“But now that they are interested in investing, the government has to do its homework, which is improving our infrastructure so we can free up the land for investment.”
Comment:
Abdul Khalid:
You need the approval from the legitimate owners of the land first.
In West Papua, clearly the Indonesian authorities do not have any legitimity to speak in place of the West Papuan people. The land in West Papua is owned by West Papuan tribes and this, since long before Indonesia entered into West Papua and annexed her; since long before the Majapahit empire too. Contrary to what self-proclaimed Indonesian "historians" claim, the Majapahit empire was rather small in size and in any case it did not extend as far east as West Papua.
To summarize, any business in West Papua should be done with the informed consent of the traditional owners of the land and Indonesia is not the traditional owner of the land in West Papua.