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Jakarta Post

Cluster scheme essential for growth, equality: Coordinating Minister

News Desk (The Jakarta Post)
Jakarta
Wed, July 26, 2017

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Cluster scheme essential for growth, equality: Coordinating Minister Coordinating Economic Minister Darmin Nasution cuts a tumpeng (cone-shaped yellow rice) during the celebration of the ministry's 51 anniversary on July 25 in Jakarta. (JP/rdi)

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oordinating Economic Minister Darmin Nasution has said the cluster business scheme has great potential to boost the economy and address wealth inequality, as it can involve a large number of farmers across the country.

Under the scheme, which will focus on the agriculture sector, each group of farmers in specific areas will be guided in planting superior commodity crops to produce quality products that have a high market value, he said.

"We can start by introducing different superior commodities in each village. I am sure villagers will be attracted to the program," Darmin said in Jakarta on Tuesday.

Read also: Indonesia to distribute idle forest land to farmers in August

He added that the Village, Disadvantaged Regions and Transmigration Ministry needed to help villagers to decide on the superior commodities that were suitable for each area.

However, the scheme would be successful if it was prepared well, not only in how to produce high quality-commodities, but also in how to handle post-harvest products and facilities, like the availability of granaries.

Darmin said agricultural land for farming could be a problem, because not all farmers had adequate land to plant the commodity crops. “Economic equity is closely related to land ownership. We can implement the cluster business scheme [if land is available]," he said.

Starting in August, the government will distribute idle forest areas owned by state-owned forestry company Perhutani to farmers under a new social forestry program, Darmin said. Through the program, the government will distribute 570,000 hectares of idle land to underprivileged people on Java. (rdi/bbn)

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