Pustaka Ilmiah Universitas Padjadjaran

Abstrak

Appraisal Of Enabling Environments For Agribusiness And Agroindustry Development In Indonesia

Characterization of the agriculture sector in Indonesia grows in average at 2.82% between 2003 2006 and the eight highest sector growths in the economy. The share of agricultural primary sector has been continually declining in the last two decades. In 1986, agricultural sector still contributes 24,2% to the GDP, by 1996 had dropped to 16.7%, and even dropped further to only 12.9% in 2006. However, agricultural sector still remain as the highest jobs provider and support more than 46% of the labors or more than 42 million people and effective policy toward poverty alleviation. In the agricultural sector, food crops and horticulture primary product makes the highest contribution to the economy and the estate crop is the second, both sectors are in increasing growth. Fruit and vegetables indicate very dynamic development in term of production and productivity. In animal husbandry sub-sector, all products appeared to increase in production. Meanwhile, estate crops production revealed sign of declining condition except for palm oil. The agricultural sector trade balances was calculated where fruits and vegetables production generally increasing, high and increasing trend of imported of food product have caused all of the food group are in trade deficit. The next characterization of the agriculture sector is land problem determined that the average land ownership in Java were down by 21.82% and outside Java Island were drop by 20%. On the other hand, the number of small farmers proportion were increase to 5.24% in period 1983 – 1993 (9.79 million to 10.30 small farmers) and the increase of land less farmer by 2.6% in period 1993 – 2003 (10.8 million to 13.7 million small farmers). Among most important constraints that hamper small business development in rural areas are high transportation cost, poor infrastructure, limited access to credit, low quality of labor,regional taxes and retribution. However, general characterization of enabling environment for agribusiness and agro-industry development in Indonesia are rural infrastructure, access to credit, investment climate, local tax and retribution, business development service, license and business registration, and human resources education. There are six key elements of enabling environment such as agriculture trade policy, innovation system (Research and Development), technical assistance, rural farm infrastructure, market linkages and coordination, and risk sharing institution. To analysis of selected elements of the enabling environment, it can be identified from external environment issue. Several external environment issues to drive enabling environment for agribusiness and agro-industry development in Indonesia are food market restructuring, business partnership, and role of financial institution. The best practice and lesson learned can be taken from two kinds of experiences, failing experience and best experience. The best lesson learned from failure experience shows that because of no coordintation and market linkage, both of producers and industry can be survived in their activities. The best lesson learned from best experience are both of producer and industry have market linkage and coordination and the industry have dedicated for improving farmer management.