Agricultural Economy in Indonesia

By:

Name : Ni Wayan Sudiarti

NIM : 1607531044

No. Absen : 37
Abstract

Agriculture is one sector which as a livelihoods of Indonesia community.

Agriculture activity is very influential for our life, in terms of both economic and
political. Especially, in terms of economy, that is with the role of government is
expected to maximize the performance of farmers in the form of agribusiness and
food security, so it can stabilize the economy of Indonesia. Because we can not
deny that the real role of farmers is very important. The role of government still
has not optimal against the farm, there are several obstacles that make less
prosperous the farmers, include the high prices of fertilizer and seed, scarcity of
land and infrastructure facilitie, especially on small farmers in the village. This is
to be the one economy issue in Indonesia, that is the lack of government
intervention and farmers are still considered the existence of one eye. With a
variety of agricultural issues that have farmers can not work optimally.
Chapter I

Phenomenon

In agriculture activities, there are still some problem in optimizing the

performance and about how to maintain food so that they only need their imports
and economic activities in Indonesia was unstable due to the import activity.
Thus, i hope that the government intervene in attention to the fate of farmers and
also pay attention to how food management or performance management of the
farmers. Here is coverage out and published on online newspaper
(readinglist/1203220008295MHTML). The things below shows the facts from the
above discussion and i can parapharase, is as follows.

Jakarta – Usual problem in improving productivity of national rice is still

faced by agriculture sector in Indonesia, it is the opinion of the Chairman of
Public Himpunan Alumni Institut Pertanian Bogor (HA-IPB) Bambang
Hendroyono at the time of the Regional Council Judge IPB in Bandar Lampung,
Sunday (6/4), together with the strengthening of the management of HA – IPB
Dewan Pimpinan Daerah (DPD) Lampung.

Bambang said that there are two classic issues still facing the agricultural
sector. The First, that is every year the conversion of land (agriculture) to reach
100.000 hectares. The second, less concerned of the younger generation in the
countryside at this time of the rice agriculture because passion or interest is not
there. It is said by Bambang in a press release received by JPNN.

It is different from the needs of society are in fact 90% of the Indonesian
people consume rice as a staple food every day, meanwhile the agriculture is still
facing a classic problem. Rice has been used as a substite for the diversity of
staple food of Indonesian people based on government policy, even for nearly
seven decades of independent Indonesia.

Bambang also explained, that in addition to being a staple food, a symbol

of prosperity and social stability of the community comes from rice. Bambang
said that based on data from Biro Pusat Statistik (BPS) 2013 there were
approximately 20,4 million people involved in the food agriculture, so that from
these ranges can be said to be about 18 million people are likely to engage in rice
agriculture.

It also said that more than 200,000 mill in post-harvest activities, have
been involved in rice agriculture. The mill is scattered in around of Indonesia. It is
unfortunate, the majority of the number of poor people in Indonesia, that is 28,07
worked as poor farmers (about 13 million people).

In the data BPS (Badan Pusat Statistika) explained, that from 2004 there
were 40,61 million people who are 15 years and over working in the agricultural
sector, while the data began to decrease to 39,96 million people. The support of
agricultural infrastructure such as irrigation, primary to tertiary agricultural tract is
a factor the lack of national agricultural productivity improvement.

In addition, the lack of attention of the government, both of central and

local. It is shown from the damage of irrigation canals in various regions.
Demonstrated also by the low productivity of our agriculture.

Based on that, Bambang said, that the existence of the mistakes of the
policy cause policy in the import of food borne justified, especially the
importation of rice, corn, soybean, and meat.(fat/jpnn)

In addition to the things stated by any source, there are also barriers
obstacles. First, the farmers do not have the power of bargaining a bit of their
crops. Every time there was the result of the harvest, the farmer experienced loss
because the price immediately plummeted. As if market mechanism really punish
farmers. The market law which reads “when the number of items increases, the
price will be down”. This shows that the difficulty farmers to supplement income
from work. Second, farmers do not have access to production resources and
market freely and equitably. Similarly with the fertilizer. Fertilizer, besides
expensive, too difficult to be found, many manufactured fertilizer but did not get
into the hands of farmers who need it. Precisely fertilizer subsidies entrance to
large corporate farms that also devastated small farmers.
Chapter II

Quotes

According of KBBI (Kamus Besar Bahasa Indonesia) agriculture is

something related with planting. Agriculture are divided into agriculture in the
broad sense and the narrow sense (Mubyarto, 1989;16-17). Agriculture in the
broad sense includes scale agriculture (or agriculture in the narrow sense),
plantantion, forestry, livestock and fishery. Agriculture in the narrow sense is
defined as the people of the farming that is family farms where they produce
foodstuffs such as rice, crops (corn, beans, and potatoes) and horticulture crops
are vegetables and fruits.

Indonesia including in food policy monoculture, which is part of the

attempt to homogenization of culture since the new order. Indonesia only rely on
one of the types of food, that is rice which as a staple food. However, if in areas
not suitable for rice, so they replaced it with corn, tubers, and sago.

As a supporting the lives of millions of Indonesian society, the agricultural

sector requires a stable economic growth and rapid. This sector also needs to be
used as one of the main components in the program and the government’s strategy
to reduce poverty. In the past, Agriculture in Indonesia has given good results on
the economy in Indonesia. However, due to a decrease in crop productivity, in fact
almost all kinds of staples. In addition, the number of farmers decreases and
agricultural activities are losing the potential to create additional jobs and
increased income.

Indonesia is rich of natural resources. However, the lack of management

of these resources make Indonesia prefer to import basic food ingredients. A shift
toward forms of agriculture with a high added value, but the effect of
diversification remains limited to certain regions and commodities within each
sub-sector. Experience of country put pressure on the importance of support in the
process of shifting. An example, in the mid of 1980 when Indonesia achieve self-
sufficiency, 41% of all agricultural land planted with paddy, while currently only
38% of a change that is not big enough for a period of 15 years. On the contrary,
the total harvest of rice cultivation in Malaysia is reduced by half from 25% in
1972 to 13% in 1998.

In food crops in Indonesia are the order of commodities according of the

importance (Body of Research and Development Department of Agriculture,
1990). Rice is a major plants. Although economically rice is not the most
profitable, most of farmer put the rice in their farming operation.

The government should be able to increase productivity and provides the

foundation for long-term productivity improvement continuously. Because
national food production largely implemented by small scale farmers by the rural
poor. So, the development of food security is very strategic to strengthen the
economy in Indonesia, especially the rural poor.

The protection of the farmers needs to be improved by giving the authority

of the certainty of price and strengthening state institutions are obliged to handle
such protection. Lot of poor farmers who do not understand technology now,
besides that they also will not be able to access it because of money. Currently,
less land for farming because of the spread of the industrial construction buildings
are increasing in each location. It certainly can reduce the area for farmers to grow
crops. Meanwhile, the human need for food increases not matched by the
availability of land and the construction of industrial buildings are not planned
without considering the impact.

Agricultural exchange rate is the ratio between the index of prices received
by farmers divided by the index paid by farmers multiplied by 100 (Agricultural
Indicators, 1998; xxii). The notion that the amount of surplus revenue from the
agricultural sector has an influence on the distribution of income is not always
true. This means success in agricultural production was not always followed by an
increase in farmers' income or welfare. Another indicator that shows the same
thing is the comparison of the increase in labor costs in crop farming. Because the
villages with employment opportunities outside the agricultural sector is very
limited, the distribution of land ownership influence on income from outside the
farm open, the distribution of land ownership has no effect on income from
outside the agricultural sector.

Reference of :

 2007, Harianto:45
 1989, Mubyarto:53
 2014, Ali Agus, dkk:151
 2011, Triwibowo Yuwono, dkk:211

Chapter III

Opinion and Reason

 Agriculture in Indonesia has an important role both for survival and
economy. Besides, if there are no farmers who undertake farming activities, then
we will starve or be constantly conducting importing rice. While there is still
agricultural activities that would still perform the import food staples. The role of
government is necessary to tell the progress of the agricultural sector so that we
do not spend money to import food staples. Moreover, it is just a basic need that
we import, not to mention other needs, it will grow rapidly our expenses. Finally,
the name of an agricultural country itself is undermined.

The work of farmers is not so easy and not how the harvest is not
necessarily sufficient capital of their business, especially small farmers.
Agriculture provides great benefits for Indonesia, which can increase income and
reduce unemployment. We must appreciate the farmers in Indonesia because they
are the blessing of food security can be achieved. Land in Indonesia at this time is
getting narrower due to the establishment of industrial buildings that are currently
not planned to make the environment around the river and up to the rice fields
become contaminated. In addition, the growing population growth led to the need
for building a house and land is increasing even more cramped.

Their advanced technology into Indonesia have not been able to be

accepted by rural communities, they just keep sticking to the traditional tools,
such as hoes, sickles, etc. It also should we spread the word to farmers,
particularly rural farmers. So with the socialization or counseling they can
understand how to manage and care for the plants with the use of current
technologies.

Pests that attack plants also can not be resolved, despite being given
pestitisida but pests more and more came from all kinds of pests. It is time for
more attention to be given to farmers in Indonesia from the government.
Moreover, it is not difficult for the farmers and not only sided with employers
who in fact increased fertilizer prices, grain price is lowered, and the terms also
vary for farmers obtain credit. This causes farmers just enough to fill the stomach
and are not paid a fair wage from their work.

The difficulty of living as farmers with paltry salaries make young people
increasingly reluctant to choose a farmer as a profession / field of work. With the
increasing needs of life and increased prices of various needs, profession many
farmers do not profit that much, so that the younger generation prefer other
professions and the profession as a farmer would worsen. Farmers also difficult to
escape from poverty.

The pattern of uniform planting undertaken by the government to farmers

also makes the price is not clear. It is not clear is if the stock increases occurring
prices will decrease, whereas if the stock is empty also cause losses to farmers due
to the food crisis makes imported rice is done. Based on the fate of farmers get
less attention from the government.

If young people today are reluctant to take on a role in the agricultural

sector will lead to the fragility of the Indonesian economy, because the natural
potential in Indonesia can not be managed be authorized in achieving economic
and social welfare. The lack of interest of the younger generation in agriculture
also has hampered the development and advancement of agriculture in Indonesia,
it is very disappointing because the current farming conditions deteriorate. In
addition, of course, youth are reluctant because they feel embarrassed when
selecting farmers as a profession that is considered to have the quality and poor.
The agricultural sector is now a major sector in building the economy of
Indonesia, but it was only a discourse. There is no protection for the agricultural
sector and allowing import activity continues. In addition, the conversion of
agricultural land into non-agricultural land is still poorly controlled.

Farmers in the countryside is still not oriented aspects of the business to

achieve huge profits, they still mengaggap, that agriculture is a routine activity
hereditary. Many of those who work as farmers, including the poor. Agriculture
is only enjoyed by a handful of people who distribute agricultural products,
namely traders or people who invest in businesses that provide benefits instantly,
while the peasants as producers have not been able to enjoy his own business
optimally.

In accordance with the actual problems we face today, we will have

difficulty in meeting food needs in the country. At a later date we may be
increasingly dependent on food imports from abroad. Imports can indeed be an
alternative solution to meet our food needs, mainly due to the cheapening of
agricultural products, such as rice produced by Vietnam and Thailand. However,
we also need to look at what direction the future structure of the Indonesian
economy, and how the structure of the labor force will be formed based on the
direction of the future of Indonesian economic structure.

This time we have the opportunity to prepare policies that could from the
structure of the structure of the Indonesian economy in the future. However, some
of the problems facing the agricultural sector at this time needs to be addressed, so
that we can forward the result of the Indonesian economy which has been built
decades ago in improving the welfare of Indonesian people until today.

Agricultural development in the future are not only confronted to solve the
problems that exist, but also faced with the challenge to face the changes in the
political order in Indonesia that led to the era of democratization which demands
local autonomy and empowerment of farmers. In addition, also faced with the
challenge of anticipating changes in the world order that led to the globalization
of the world. Therefore, agricultural development in Indonesia is not only
required to produce agricultural products that are highly competitive but also able
to develop regional growth and community empowerment. These challenges be a
hard job for all of us if we want agriculture can be a driver of increased prosperity
and can become the motor of development of the nation.
Chapter IV

Suggestion

Many things we must do to further advance and maximize the Indonesian

agriculture. The welfare of farmers and their families is a priority primary goal in
doing any program. One way is to improve the quality of secondary education and
higher education graduates are able to promote agriculture and farming optimally.
In addition, the development of courses in agriculture that can attract today's
younger generation, so that the graduates of the study program is capable of
creating attitudes of youth who have a scientific attitude, creative, and social
concern is high for the progress of agriculture in Indonesia so as to stabilize the
economy of Indonesia.

Agriculture in the form of agribusiness also very good to help the

economic crisis. Many agricultural problems the government should be able to
finish. Because as a protector capable mendistrbusikan natural resources fairly and
equitably in accordance with the objectives of the Indonesian nation is reflected in
the preamble of our Constitution. Farmers are also important in stabilizing the
economy of Indonesia, the government should provide free and quality education
to farmers, providing seed capital and cheap, and perform field irrigation drought.

Natural resources in Indonesia when the very rich, it should be all it can be
managed properly, namely in the agricultural sector that can be used as an
indication of where the agriculture graduates or graduates of economics can
contribute knowledge to farmers us on the countryside so that they can be more
creative and can think innovatively so as to create a stable economy. As well as
with current level of technology that can be utilized together for the sake of the
quality of agricultural products quality and increase food production, so as to
develop and facilitation of technology, information, and communication can
launch agricultural activities for the stability of the Indonesian economy.