Milling News
Opportunities in Indonesia by Chris Jackson, Export Manager UK TAG In these columns I have written before about Indonesia, but I make no apologies for doing so again from a UK perspective. It was the first Asian country that our newly elected Prime Minister visited in 2015 and very soon their President will make his first State Visit to our country. These very high profile visits reiterate the importance given by us to trade between our two countries. Indonesia is widely regarded as a politically stable, democratic country with a population of over 250 million people, 84 million of whom are now rated as middle class and having disposable incomes for luxury goods. With a trillion dollar economy it is the largest in SE Asia and ranked tenth in the world. And with over 60 percent of its population of working age and young who are enthusiastically embracing all new technology and becoming more urbanised. The challenge for our agri and aquaculture industries allied with food production and safety must be to help them develop their industries. Agriculture is a vital sector with food security a priority to meet the population’s needs and to help its economy by increasing its exports. It already accounts for 15 percent of GDP; the third largest after hydrocarbons and manufacture Indonesia is seeking to move its agricultural and aquaculture industries further up the value chain and is trying to attract foreign investment, technology and innovation from global companies. The aim: to improve production by more than 20 percent. This cannot be achieved on its own and the Government is already improving and building roads air and sea ports along with dedicated business and manufacturing parks with improved power supplies to enable modern manufacturing, packaging and distribution to be efficient and effective. This includes for the production of inputs of manufactured feedstuffs, fertilisers, sprays and pharmaceuticals. From the foreign investment perspective corruption and illegal trading is being very effectively tackled, making the country a very safe place to trade. As a country based around thousands of islands aquaculture is a main source of income with a clamp down on illegal fishing mostly carried out by foreign countries the opportunities for home based production are significantly increased, along with the development of efficient fish farming both from salt and fresh water. These industries cannot be developed without efficient milling and feed formulation to meet every growth stage and fulfil the genetic potential, whilst using the best technologies available. To this end foreign expertise and investment is being actively sought. Placing Indonesia as a world leader in fish and shrimp production. Once produced the industry needs to be developed to meet the Global GAP standards not just for export but also 26 | February 2016 - Milling and Grain
to safely feed the increasingly urbanised population. With fish shrimp and other crustacean species a source of human protein that can now be effectively farmed opportunities for efficient production abound. For agriculture the country offers climate and soil types ideal for crop production horticulture being of significant importance as well as the staple of rice and potatoes. There are massive marketing opportunities for storage and marketing for perishable crops. Similarly the livestock industry is open for investment and improvement along with the genetic improvement (which can be easily achieved) management and production systems need to be upgraded to realise the full potential Already innovative crop genetics in country have developed a soya bean that can be produced in sub tropical conditions, with these sort of developments and the use of hitherto under developed protein sources from algae and insects the future for stock farming can be better assured. Improving production and incomes, maintaining a sustainable future whilst also protecting the environment. Already in place to help overseas potential investors is a free service the EU TCF EU Indonesian Trade Cooperation Facility dedicated to assisting European companies better understand the opportunities for investment working closely with BKPM. Technology and training are key issues along with investment. The Government are committed to improvement and are keen to help especially foreign investors take full advantage of the countries capabilities. Utilising technology, co operation the rural population will make significant improvements to their industries and countries well being In summary the country in my view offers business and entrepreneurs opportunities in: • The supply chain (waste reduction, logistics, cool chain, packaging) • Quality & quality improvement. • Food safety, hygiene, trace ability, standards. • Post harvest technology. • Science & Innovation, R&D Collaboration. • Aquaculture & fisheries. • Genetics. • Value adding. • Investment. • Emphasis on environment and sustainable production technologies. • Agriculture, crop and livestock production. Finally for this column I think that Indonesia offers fantastic opportunities for investors, traders farmers and I am looking forward to my next visit @AgrictecExports