Government Promotes Performance of Agro Industry with Partnership Pattern

“The strategic step made by the Ministry of Industry is to increase the integrated partnership program between industrial players and farmers,” said the Director General of the Agro Industry at the Ministry of Industry Panggah Susanto in Jakarta, Monday (28/11/2016).

According to Panggah, the partnership pattern that links the core company with plasma farmers has quite a high economic power.

Because besides being able to overcome funding and farmer production quality obstacles, the partnership pattern will ensure the marketing and price level of farmers’ production results.

“The core company also receives big benefits, among other things they can market their products to their plasma partners or they get a raw material supply guarantee from their partners,” he said.

Therefore, Panggah continued, his party has encouraged industrial players to cooperate in partnerships with farmer groups.

"This will give optimal added value because the trading chain is more efficient,” he said.

Panggah said that several sub-sectors in the agro industry that have implemented quite a good integrated partnership pattern include the milk industry, palm oil downstream industry, sugar industry, and cocoa processing industry. '

'We are sure that this partnership pattern will encourage the growth of the national agro industry,” he said.

Based on BPS data, the agro industry grew by 6.64 percent up to the third quarter of 2016.

From the contribution side towards the non-oil and gas processing industry, the agro sector contributed 46.95 percent to the third quarter of 2016 or up compared to 2015 which was 45.42 percent.

“The role of the agro industry is contributed by the food and beverage industry sub-sector by 32.82 percent, the tobacco processing industry 5.17 percent, and the forestry and plantation products industry 8.95 percent,” Panggah said.

Meanwhile, the export value of the agro industry up to October 2016 reached 29.94 billion US dollars. Meanwhile, the value of domestic investment in the agro industry up to the first semester of 2016 was Rp. 10.68 trillion and foreign direct investment of 2.41 billion US dollars.