T

he government'€™s efforts to curb imports have been given a lift after an influential business association and government leaders from corn-producing regions have shown a commitment to supporting the Agriculture Ministry food production goals.

On Monday, a Memorandum of Understanding (MoU) was signed by the Indonesian Feed Millers Association (GPMT) and 101 regents from corn-producing regencies across the country.

The 101 regents head regencies with a total area of 700,000 hectares of corn fields, while the GMPT represents 62 animal-feed manufacturers, including Cargill Indonesia, Charoen Pokphand Indonesia and Japfa Comfeed.

Agriculture Minister Amran Sulaiman said corn supply was important because the commodity was the main material used in poultry feed, which currently consumes 90 percent of national corn production.

The country'€™s economic growth has triggered rising demand for poultry in recent years. Indonesia currently needs at least 20 million tons of corn each year, according to Amran.

'€œHowever, we are still importing 3 million tons of corn each year to fill the gap between supply and demand. That is why we are aiming to achieve self-sufficiency in rice, soybean and corn productions, which should have been achieved this year,'€ Amran said after observing the MoU signing.

Data at the Central Statistics Agency (BPS) show that Indonesia imported 3.1 million tons of corn last year, mainly from Brazil, Argentina, India and the US.

As poultry demand increases, Indonesia'€™s total consumption for animal feed is predicted to reach 16.8 million tons this year, of which 6.8 million tons comprise dry maize-corn, according to GMPT data. Predicted production this year is up 1 million tons from 15 million tons last year.

This year, the government has targeted Indonesia'€™s total corn production to reach 20.31 million tons, a 4.1 percent increase from 19.5 million tons last year.

In order to meet the target while reducing imports, Amran said the government aimed to add 1 million hectares of corn fields and increase supplies of related equipment for corn farming and mills, which would be funded by the ministry'€™s budget.

In mid-February, the House of Representatives approved the 2015 revised state budget, which also comprised the Agriculture Ministry'€™s total budget, worth Rp 16.92 trillion (US$1.3 billion), including procurement for corn seed amounting to Rp 750 billion for the 1 million hectares of corn fields.

Another move will be to set a farmer'€™s selling price (HPP) for corn, which will help boost farmer productivity to support the government'€™s program, as well as asking for a larger role of the State Logistics Agency (Bulog) to maintain supply for the commodity.

Also on Monday, GPMT chairman F.X. Sudirman said the association fully supported the government'€™s program to curb imports, which had negatively affected the poultry feed industry during rupiah depreciation, as they relied on imported raw materials.

Sudirman said his association hoped corn imports would reach between 4-5 million tons, higher than last year'€™s 3.1 million tons, if the effort to boost national production to an additional 1 million tons could not be reached.

'€œIf there is an additional 5 million tons of corn production, we don'€™t need to import anymore for the next two years. However, we have to admit it is very difficult to reach the target, including finding an additional 1 million hectares of corn fields,'€ he said.