Rendi Akhmad Witular, The Jakarta Post, Jakarta
In order to take advantage of a looming shortfall in global corn supply, the government needs to act quickly to boost corn production in Sulawesi and provide the necessary agricultural infrastructure, the National Corn Council said Friday.
During a meeting with Vice President Jusuf Kalla, council chairman Fadel Muhammad also urged the government to introduce a scheme to gradually limit the importation of corn in order to encourage local farmers to plant more of the crop.
""The Vice President has agreed to promote Sulawesi as a center for the production of corn on account of the availability of abundant land and labor there. The relevant ministers will be ordered to set aside land and provide the necessary infrastructure to support increased corn cultivation,"" he said.
Last year, the country produced 11.4 million tons of corn and imported around 400,000 tons. Demand for corn is expected to grow by at least 10 percent this year, with a total demand of about 21.17 million tons forecast for 2010.
At present, Sulawesi only produces 1.1 million tons of corn annually.
Fadel, who is also the governor of Gorontalo, said that compared to other areas in Indonesia, Sulawesi was highly favorable for growing corn as the island had 2.7 million hectares of potential agricultural land lying fallow.
The former businessman estimated that an investment of about Rp 3.5 trillion (US$380 million) would be needed to rapidly expand the hectarage under corn in Sulawesi up to 2007, and another Rp 1.5 trillion up to 2010. The estimates also included the development of the necessary infrastructure.
South Sulawesi and Gorontalo are among six provinces identified in the government's blueprint for the first stage of an agricultural revitalization project. The project was launched by President Susilo Bambang Yudhoyono in the middle of last year.
Under the blueprint, corn, rice, soybeans, sugar and beef production are being prioritized by the government as part of an effort to achieve eventual self-sufficiency over the short and medium terms.
The Agriculture Ministry is targeting national self-sufficiency in corn by 2008.
Fadel said that after the country became self-sufficient, it could start exporting corn to take advantage of a looming supply shortfall.
The United States has decided to cut its corn exports this year from 200,000 million tons to around 50,000 tons due to growing demand from its domestic market for raw materials that can be used in the production of biofuel, according to Fadel.
Meanwhile, China, which is also a major producer of corn, is diverting its corn exports to the home market to meet growing domestic demand.
""We must be able to take advantage of any shortages by boosting our production. Now is the time for the government to promote corn cultivation,"" said Fadel. He also said that he hoped the government would be able to ban the importation of corn in 2007.
Indonesia's agricultural sector lags far behind other countries in Asia due to poor management and planning by previous governments, and widespread corruption.
At present, growth in the agricultural sector averages a mediocre 3.5 percent per annum.
