KETAHANAN PANGAN dan KETAHANAN PANGAN dan KETAHANAN EKONOMI KETAHANAN EKONOMI

MELANJUTKAN EVOLUSI MELANJUTKAN EVOLUSI DENGAN REVOLUSI BERPIKIRDENGAN REVOLUSI BERPIKIR

AGUS PAKPAHAN AGUS PAKPAHAN

WHAT ARE OUR PROBLEMS?WHAT ARE OUR PROBLEMS?

OUR PROBLEM IS IN OUR MINDOUR PROBLEM IS IN OUR MIND• Our belief:Our belief:

• Agri(culture) vs industry, or agri(culture) then Agri(culture) vs industry, or agri(culture) then industry, or agri(culture) and industryindustry, or agri(culture) and industry

• Food & EconomyFood & Economy Food & FamineFood & Famine Plenty of foodPlenty of food Cheap food price policyCheap food price policy Food and political instabilityFood and political instability Who pay cheap food?Who pay cheap food? Food & our futureFood & our future

• Our sense:Our sense: What is beauty of good food & peaceful economy?What is beauty of good food & peaceful economy?

• Food is a part of cultureFood is a part of culture How to change our culture to secure our futureHow to change our culture to secure our future

Our Problem (cont.)Our Problem (cont.)• Our knowledge:Our knowledge:

Evidences: 7000 years or more of agricultureEvidences: 7000 years or more of agriculture Rise and fall of nationsRise and fall of nations

• Hundred dead citiesHundred dead cities• Maya, Aztec, etc.Maya, Aztec, etc.• DesertificationDesertification• Developed and Developing countriesDeveloped and Developing countries• Who have food for now and future?Who have food for now and future?

Developed countries? Developed countries? Developing countries?Developing countries?

Determinants:Determinants:• Adaptive capacityAdaptive capacity• InnovationInnovation• Buying high productivity Buying high productivity • Noogenetic revolutionNoogenetic revolution

What Can Nature Supply?What Can Nature Supply? Tropical climate:Tropical climate:

• Large diversity but lesser volume per size of landLarge diversity but lesser volume per size of land• Tropical plants and animalsTropical plants and animals• Humid and hotHumid and hot

Geographical configurationGeographical configuration• Islands types of landIslands types of land• More waters than landMore waters than land• Different size of islands; e.g. Java is only about 7 % out Different size of islands; e.g. Java is only about 7 % out

of total Indonesia’s land area but produce about 60 % of of total Indonesia’s land area but produce about 60 % of food.food.

Population size is high, e.g.: 115 million in 1970, Population size is high, e.g.: 115 million in 1970, 217 million in 2005 and will be 275 million in 217 million in 2005 and will be 275 million in 2050.2050.

Poor countryPoor country

AGRICULTURE, FOOD & ECONOMYAGRICULTURE, FOOD & ECONOMY

Economic development is expected to transform the economy from heavily Economic development is expected to transform the economy from heavily based on agriculture to industrial economy.based on agriculture to industrial economy.

This kind of evolution has been a process of rapid changing economic This kind of evolution has been a process of rapid changing economic structure in developed nations. Less than a century, for example, the US structure in developed nations. Less than a century, for example, the US economic transformation has reduced number of farmers from more than economic transformation has reduced number of farmers from more than 50 % in 1860 to less than 10 % in 1960 and now is about 2 %. 50 % in 1860 to less than 10 % in 1960 and now is about 2 %.

Can developing countries follow the path of structural evolution such as Can developing countries follow the path of structural evolution such as happened in developed countries? Can information era be compatible with happened in developed countries? Can information era be compatible with agricultural development in developing countries?agricultural development in developing countries?

China Cultural Revolution had been paid by about 27 million death of China Cultural Revolution had been paid by about 27 million death of people because of hunger and famine during 1949-1951, and now after people because of hunger and famine during 1949-1951, and now after more than 50 years China has not yet become a developed country. more than 50 years China has not yet become a developed country.

Green revolution has been practiced for more than 30 years but Indonesia Green revolution has been practiced for more than 30 years but Indonesia still have about 20 % people in poverty and income per capita only still have about 20 % people in poverty and income per capita only reached the level of about poverty line standard.reached the level of about poverty line standard.

Therefore, what goals should be taken and what direction and instruments Therefore, what goals should be taken and what direction and instruments must be taken to reach our better future? must be taken to reach our better future?

WHAT WILL BE WITH OUR WHAT WILL BE WITH OUR WORLD TREND?WORLD TREND?

The issue will be much more complex because the situation of the world The issue will be much more complex because the situation of the world has changed significantly. When most Asian countries reached has changed significantly. When most Asian countries reached independence from colonialism in 1950, for example, the world population independence from colonialism in 1950, for example, the world population was only 2.5 billion people but now the world population is about 6 million was only 2.5 billion people but now the world population is about 6 million people. Furthermore, in 2025, the world population was predicted about people. Furthermore, in 2025, the world population was predicted about 7.5 billion. In 2050, the population of the world was projected around 8 7.5 billion. In 2050, the population of the world was projected around 8 billion (low projection) to 11 billion people (high projection). Therefore, billion (low projection) to 11 billion people (high projection). Therefore, within 100 years since 1950, the world population at least will increase by within 100 years since 1950, the world population at least will increase by more than three timesmore than three times[1][1]. The world’s resources become scarcer.. The world’s resources become scarcer.

If we assume Indonesian economic growth is maintained 5 % a year, using If we assume Indonesian economic growth is maintained 5 % a year, using a simple growth formulation suggest that income per capita of Indonesia in a simple growth formulation suggest that income per capita of Indonesia in 2050 will be about US$ 8,000. This average level of income achieved by 2050 will be about US$ 8,000. This average level of income achieved by developed countries in 1977-1978. In addition, a country that has income developed countries in 1977-1978. In addition, a country that has income per capita around US$ 8000 in 2002 was Saudi Arabia. Income per capita per capita around US$ 8000 in 2002 was Saudi Arabia. Income per capita of Indonesia in 2002 was US$ 710, and in this year income per capita of of Indonesia in 2002 was US$ 710, and in this year income per capita of South Korea was US$ 9,930. So, observing those figures at least we may South Korea was US$ 9,930. So, observing those figures at least we may have an intuition or a sense that in 2050 will Indonesia be like South Korea have an intuition or a sense that in 2050 will Indonesia be like South Korea in 2002? in 2002?

[1][1] Source: United Nations, Source: United Nations, World Population Prospects: The 2000 RevisionWorld Population Prospects: The 2000 Revision (New York: February 2001).(New York: February 2001).

COPING WITH UNCERTAINTYCOPING WITH UNCERTAINTY Whether or not Indonesia will be able to reach Whether or not Indonesia will be able to reach

that level of per capita income is uncertain. What that level of per capita income is uncertain. What is quite predictably certain is that global situation is quite predictably certain is that global situation in the future will be more intense with in the future will be more intense with competitions. In fact, there might be also more competitions. In fact, there might be also more intense conflict among nations. One of the most intense conflict among nations. One of the most probable factors for intensifying conflicts in era of probable factors for intensifying conflicts in era of globalization is that there will be more globalization is that there will be more competition of population on land or space for competition of population on land or space for life. Most of population in the world in 2020 will life. Most of population in the world in 2020 will be in Asia and this situation will make Asian be in Asia and this situation will make Asian countries to think and work harder and to countries to think and work harder and to maintain a more peaceful condition. maintain a more peaceful condition.

Agriculture, natural resources Agriculture, natural resources and control over resourcesand control over resources

Agriculture is human activities that dependent on natural Agriculture is human activities that dependent on natural resources. Farmers are individuals or communities that raise their resources. Farmers are individuals or communities that raise their living from agriculture. living from agriculture.

The development of technology, organization, and management The development of technology, organization, and management has induced a new form of agriculture, namely raising livestock or has induced a new form of agriculture, namely raising livestock or planting crops by corporation. planting crops by corporation.

The latter is an application of industry principles into agricultural The latter is an application of industry principles into agricultural practices. King called the latter as industrialization of agriculturepractices. King called the latter as industrialization of agriculture[1][1]. .

In developing countries has been practiced since the middle of In developing countries has been practiced since the middle of 19th century, especially in plantations of industrial crops. A 19th century, especially in plantations of industrial crops. A company in Indonesia may have more than 100,000 hectare. So, company in Indonesia may have more than 100,000 hectare. So, we have majority of small farmers with land size less than one we have majority of small farmers with land size less than one hectare, and at the opposite side we find a company with land size hectare, and at the opposite side we find a company with land size more than 100,000 hectare.more than 100,000 hectare.

• (1) M.B. King, 2000(1) M.B. King, 2000

OWNERSHIP IMPACT ?OWNERSHIP IMPACT ? What are the implications of this pattern of ownerships? What are the implications of this pattern of ownerships?

What will be our future of agriculture when majority of What will be our future of agriculture when majority of farmers is lack of land but there are a few companies farmers is lack of land but there are a few companies controlling land, capital, and markets? controlling land, capital, and markets?

Can we transform our rural economies when majority of Can we transform our rural economies when majority of rural people are landless? rural people are landless?

Can we transform national economy from agrarian Can we transform national economy from agrarian economy to industry when most farmers have no control economy to industry when most farmers have no control over land, capital, and agricultural market? over land, capital, and agricultural market?

In other world, can we transform our economy if majority In other world, can we transform our economy if majority are the poor and lack of opportunities and minority are rich are the poor and lack of opportunities and minority are rich and controlling all economic opportunities? and controlling all economic opportunities?

WHAT DEVELOPED COUNTRIES WHAT DEVELOPED COUNTRIES HAVE DONE?HAVE DONE?

Let us learn from the US experience. One of the most interesting Let us learn from the US experience. One of the most interesting cases with the US is that rapid economic transformation in cases with the US is that rapid economic transformation in reducing number of farmers out of agriculture had not caused reducing number of farmers out of agriculture had not caused social revolution. social revolution.

All transformation is a matter of economic forces. In 1820, All transformation is a matter of economic forces. In 1820, numbers of the US farmers were 71.8 % of labor force, and a numbers of the US farmers were 71.8 % of labor force, and a hundred year latter, 1920, number of the US farmers reduced up hundred year latter, 1920, number of the US farmers reduced up to 27 % out of total labor force in the US. (Compare to the to 27 % out of total labor force in the US. (Compare to the situation of Indonesian now, there are still more than 40 % of labor situation of Indonesian now, there are still more than 40 % of labor force engaged in agriculture). force engaged in agriculture).

In 1940, number of farmers reduced to 17.4 % with average size In 1940, number of farmers reduced to 17.4 % with average size of farm 70 hectare (174 acre). In 1994, the number of the US of farm 70 hectare (174 acre). In 1994, the number of the US farmers declined to about 2.5 % and the average land holding size farmers declined to about 2.5 % and the average land holding size increased to 191 hectare (471 acre). increased to 191 hectare (471 acre).

Increasing land holding size was also induced by President Increasing land holding size was also induced by President Abraham Lincoln that enacted Homestead Act 1862 that given Abraham Lincoln that enacted Homestead Act 1862 that given opportunities to the US farmers acquired the land with very cheap opportunities to the US farmers acquired the land with very cheap price with a unit of the land 65 hectares (165 acres).price with a unit of the land 65 hectares (165 acres).

THE INDONESIA TREND?THE INDONESIA TREND? What had happened in Indonesia was the opposite caseWhat had happened in Indonesia was the opposite case[1][1]. In . In

1870 the Dutch colonial enacted Agrarischwet 1870, namely an 1870 the Dutch colonial enacted Agrarischwet 1870, namely an agrarian law that allow foreign investor to open and use the land agrarian law that allow foreign investor to open and use the land for plantation. Such types of law is still used up to now, and have for plantation. Such types of law is still used up to now, and have made more than 19.9 million hectares of plantation companies’ made more than 19.9 million hectares of plantation companies’ controlled land in 2002. If we compared to total wet land (paddy controlled land in 2002. If we compared to total wet land (paddy rice land) in 2002 that only 7.8 million hectares and associated rice land) in 2002 that only 7.8 million hectares and associated farmers and labourers 40.6 million persons, then the land holding farmers and labourers 40.6 million persons, then the land holding size is small (BPS, 2003)size is small (BPS, 2003)[2][2]. We see that the distribution of land . We see that the distribution of land holding size is very skewed, a tiny land controlled by farmers, and holding size is very skewed, a tiny land controlled by farmers, and huge land controlled by corporations. huge land controlled by corporations.

[1][1] See (1) S. Kartodirdjo and D. Suryo, 1991. See (1) S. Kartodirdjo and D. Suryo, 1991. Sejarah Perkebunan di Sejarah Perkebunan di Indonesia. Kajian Sosial Ekonomi. Penerbit Aditya Media, Indonesia. Kajian Sosial Ekonomi. Penerbit Aditya Media, Yogyakarta. (2) S.M.P. Tjondronegoro and G. Wiradi (Eds.), 1984. Yogyakarta. (2) S.M.P. Tjondronegoro and G. Wiradi (Eds.), 1984. Dua Abad Penguasaan Tanah. P.T. Gramedia, Jakarta.Dua Abad Penguasaan Tanah. P.T. Gramedia, Jakarta.

[2][2] Badan Pusat Statistik, 2003. Stastistik Indonesia. BPS, Jakarta. Badan Pusat Statistik, 2003. Stastistik Indonesia. BPS, Jakarta.

RURAL-URBAN SYNERGY: RURAL-URBAN SYNERGY: SPREADING KNOWLEDGESPREADING KNOWLEDGE

Economic transformation from agriculture to industry calls for huge Economic transformation from agriculture to industry calls for huge energy. In the developed countries, it is implied by reduction of energy. In the developed countries, it is implied by reduction of numbers of farmers, farmers have energy to transform their position so numbers of farmers, farmers have energy to transform their position so that they were or their children were acceptable in the new that they were or their children were acceptable in the new employment opportunities. Abraham Lincoln has contributed in this employment opportunities. Abraham Lincoln has contributed in this human resources transformation through Morrill Act 1862, namely the human resources transformation through Morrill Act 1862, namely the establishment of Land Grant College in all over the US.establishment of Land Grant College in all over the US.

Therefore, there was an expansion of human resources capacities in Therefore, there was an expansion of human resources capacities in both agriculture and agricultural based industries through development both agriculture and agricultural based industries through development and application of new knowledge and technology in those areas. and application of new knowledge and technology in those areas. Agriculture and rural areas supplied not only agricultural product Agriculture and rural areas supplied not only agricultural product surpluses but also high quality of human resources that migrated from surpluses but also high quality of human resources that migrated from rural/agricultural areas to the cities that demand for their labor and rural/agricultural areas to the cities that demand for their labor and skills. skills.

The economic expansions in cities have induced smaller labor demand The economic expansions in cities have induced smaller labor demand in agriculture and in effect declining number of farmers. Increasing in agriculture and in effect declining number of farmers. Increasing population has no negative effect in term of reduction of farmers land population has no negative effect in term of reduction of farmers land holding size, but in the contrary the new situation make scarcer labor in holding size, but in the contrary the new situation make scarcer labor in agriculture. This scarce labor in agriculture induced demand for agriculture. This scarce labor in agriculture induced demand for mechanization, and the latter increased demand for manufacture mechanization, and the latter increased demand for manufacture products. Therefore, cities and rural areas have been in a synergy products. Therefore, cities and rural areas have been in a synergy situation. situation.

RURAL VS URBAN: OUR CASERURAL VS URBAN: OUR CASE

In Indonesia and in other developing countries as well, In Indonesia and in other developing countries as well, fragmentation and conversion of agricultural land took place. On fragmentation and conversion of agricultural land took place. On the other hand, the growth of industry has no sufficient power to the other hand, the growth of industry has no sufficient power to absorb additional labor force. In South Korea, the share of absorb additional labor force. In South Korea, the share of agricultural GDP had reduced from 41 % in 1957 to 4 % in 2002; agricultural GDP had reduced from 41 % in 1957 to 4 % in 2002; and such reduction was followed by reduction of agricultural labor and such reduction was followed by reduction of agricultural labor from 70 % in 1957 to 12 % in 2002. We see that any 1.0 % from 70 % in 1957 to 12 % in 2002. We see that any 1.0 % reduction of agricultural GDP in Korea has been followed by 1.56 reduction of agricultural GDP in Korea has been followed by 1.56 % of reduction of labor in agriculture. The same case was also % of reduction of labor in agriculture. The same case was also happened in Malaysia and Thailand but with a smaller reduction happened in Malaysia and Thailand but with a smaller reduction percentage of labor, namely only about 1.02 % and 1.1 %, percentage of labor, namely only about 1.02 % and 1.1 %, respectively. In Indonesia, however, any 1.0% reduction of respectively. In Indonesia, however, any 1.0% reduction of agricultural GDP was only followed by reduction of 0.43 % agricultural GDP was only followed by reduction of 0.43 % agricultural labor. Here we see that industrialization in Indonesia agricultural labor. Here we see that industrialization in Indonesia has not produced sufficient energy to make economic has not produced sufficient energy to make economic transformation, except only in agricultural GDP term that it has transformation, except only in agricultural GDP term that it has declined from 56 % in 1957 to 17 % in 2002declined from 56 % in 1957 to 17 % in 2002[1][1]. .

[1][1] Agus Pakpahan, 2004.” Agus Pakpahan, 2004.” Industrialisasi yang menyakiti petani”. Industrialisasi yang menyakiti petani”. Suara Pembaruan, 17 Nopember 2004, p.5. Suara Pembaruan, 17 Nopember 2004, p.5.

ECONOMIC TRANSFORMATION ECONOMIC TRANSFORMATION & MAJORITY POOR FARMERS& MAJORITY POOR FARMERS

Economic transformation is difficult to take place where Economic transformation is difficult to take place where majority of farmers are small farmers and majority of labor majority of farmers are small farmers and majority of labor force are poor.force are poor.

Certain designed structural changes related with land or Certain designed structural changes related with land or with agricultural resources must be undertaken and at the with agricultural resources must be undertaken and at the same time, industrial policies should be focused on how to same time, industrial policies should be focused on how to fasten economic transformation. fasten economic transformation.

Analogy with what Abraham Lincoln has been done in 1862; Analogy with what Abraham Lincoln has been done in 1862; Indonesia also needs such a kind of innovation to support Indonesia also needs such a kind of innovation to support agriculture and rural economies and at the same time agriculture and rural economies and at the same time opening new opportunities in industrial and services opening new opportunities in industrial and services sectors. sectors.

One option is to shift agricultural corporations to move to One option is to shift agricultural corporations to move to downstream industries and farmers take over the downstream industries and farmers take over the ownerships and control in plantations or other agricultural ownerships and control in plantations or other agricultural lands. Market is used in such transformation, and financial lands. Market is used in such transformation, and financial institutions are created to support such plan. The process institutions are created to support such plan. The process could take more than 20 years of operation.could take more than 20 years of operation.

Broadening Ownerships Broadening Ownerships We believe that economic transformation will not take place We believe that economic transformation will not take place

as long as majority of farmers and workers are poor and as long as majority of farmers and workers are poor and such situation will continue take place if there is no new such situation will continue take place if there is no new design of broadening ownerships and participation of the design of broadening ownerships and participation of the poor into economy. poor into economy.

It is a basic strategy for sustainable development, namely It is a basic strategy for sustainable development, namely increasing what people can do or can be by majority of increasing what people can do or can be by majority of people that they are now in poor situation. They potential people that they are now in poor situation. They potential energy should be materialized in the form of positive energy should be materialized in the form of positive participation and it calls for the above new design. Social participation and it calls for the above new design. Social revolution or social disharmony will threaten Indonesia if revolution or social disharmony will threaten Indonesia if the present situation continues taking place in the future.the present situation continues taking place in the future.

Sufficient food is a matter life and death of our economy Sufficient food is a matter life and death of our economy and so for our nation.and so for our nation.

Rural Area & PovertyRural Area & Poverty

Import Trend of CerealsImport Trend of Cereals

Revenue of Top Ten Food & Revenue of Top Ten Food & Beverages CompanyBeverages Company

CompanyCompany Revenue (bill US$)Revenue (bill US$)

1.1. Nestle S.A.Nestle S.A. 54.254.22.2. Kraft Foods, Inc. Kraft Foods, Inc. 29,729,73.3. Unilever Unilever 25.625.64.4. PepsiCo Inc.PepsiCo Inc. 25.125.15.5. Archer Daniels Co.Archer Daniels Co. 23.423.46.6. Tyson FoodsTyson Foods 23.323.37.7. Cargill Inc.Cargill Inc. 21.521.58.8. ConAgra Inc.ConAgra Inc. 19.819.89.9. Coca-Cola Co.Coca-Cola Co. 19.519.510.10. MarsMars 17.0 17.0

Agricultural land per agricultural worker (ha/ Agricultural land per agricultural worker (ha/ worker)worker)

RegionRegion 1989-19911989-1991 1998-20001998-2000

WorldWorld 4.0 4.0 3.83.8

Develop Develop 29.9 29.9 37.6 37.6

DevelopingDeveloping 2.6 2.5 2.6 2.5

Source: F.A.O. http://www.fao.org/es/ess/os/envi_indi/part_221.aspSource: F.A.O. http://www.fao.org/es/ess/os/envi_indi/part_221.asp

How much food we need?How much food we need? 217 million x 120 kg/kapita = 26 million ton of 217 million x 120 kg/kapita = 26 million ton of

rice (2004)rice (2004) 275 million x 120 kg/kapita = 33 million ton of 275 million x 120 kg/kapita = 33 million ton of

rice = 55 million ton of paddy (2050)rice = 55 million ton of paddy (2050) Paddy production estimate (2005)= Paddy production estimate (2005)= ± 54 million ± 54 million

ton.ton. What do we perceive:What do we perceive:

• Rice import?Rice import?• Hunger & Malnutrition?Hunger & Malnutrition?• Declining food/population productivity growth?Declining food/population productivity growth?• How much is our uncertainty & risks?How much is our uncertainty & risks?

Sources of UncertaintiesSources of Uncertainties

Population growthPopulation growth high growth & high growth & imbalance population distributionimbalance population distribution

Capacity to produceCapacity to produce land conversion & land conversion & soil fertility deteriorationsoil fertility deterioration

Declining capacity of social capitalDeclining capacity of social capital farmers’ capacityfarmers’ capacity

Unfriendly climate & bad harvestUnfriendly climate & bad harvest Political instabilityPolitical instability Infrastructure inadequacyInfrastructure inadequacy

Action of ThoughtAction of Thought

Redefining food:Redefining food:• How can we adapt with our nature?How can we adapt with our nature?

Healthy & Healthy & halalhalal food food New foodNew food what is our food what is our food

• Food technology & industryFood technology & industry Flour based food based on local resourcesFlour based food based on local resources Food diversityFood diversity

• Building new cultureBuilding new culture

Action of Thought (cont.)Action of Thought (cont.)

Regrowing agricultureRegrowing agriculture sustainable sustainable agricultureagriculture• Lesson from Green RevolutionLesson from Green Revolution

Farmers remained poorFarmers remained poor Declining capacity to produce foodDeclining capacity to produce food Dependency on external sourcesDependency on external sources MNC’s MNC’s

productsproducts Declining Environmental QualityDeclining Environmental Quality

Action of Thought (cont.)Action of Thought (cont.)

Rebuilding Java’s agric. capacityRebuilding Java’s agric. capacity• Reorganize agricultureReorganize agriculture

Integrating food, feed, fuel and fiberIntegrating food, feed, fuel and fiber Corporitazion of farmers Corporitazion of farmers Infusion of SOEs’ capacity into Farmers Infusion of SOEs’ capacity into Farmers

Owned Enterprise (FOE)Owned Enterprise (FOE) Accelerating Outer’s Island Agriculture:Accelerating Outer’s Island Agriculture:

• Building cities & villages simultaneouslyBuilding cities & villages simultaneously• Agricultural induced regional developmentAgricultural induced regional development

Where do We Start?Where do We Start?

Java:Java:• Reindustrializing rice agriculture:Reindustrializing rice agriculture:

Producing energy from husk (sekam)Producing energy from husk (sekam)• 30 million ton rice = 10 million ton husk30 million ton rice = 10 million ton husk• Heating value = 3500 kcal/kgHeating value = 3500 kcal/kg• Heating value/10 million ton husk = 35 trillion Heating value/10 million ton husk = 35 trillion

kcalkcal• 6 MW plant require 7.1 ton/hour6 MW plant require 7.1 ton/hour 1 MW = 1.18 1 MW = 1.18

ton husk/hourton husk/hour• 10 million ton husk = 8.47 million MW/hour 10 million ton husk = 8.47 million MW/hour • Price of electricity Rp 600/kWhPrice of electricity Rp 600/kWh• Value of electricity = ????Value of electricity = ???? huge!!! huge!!!

Cont.Cont.

Increasing land productivityIncreasing land productivity• Leveraging potentialsLeveraging potentials• Target: 2050Target: 2050 farm size in Java > 5 farm size in Java > 5

ha/farmerha/farmer• Assure farmers’ welfareAssure farmers’ welfare

FOE (farmers owned enterprise as major FOE (farmers owned enterprise as major instrument).instrument).

Cont.Cont.

Outer islands:Outer islands:• Natural Resources Specialization:Natural Resources Specialization:

Food, Feed, Fuel & Fiber IndustrializationFood, Feed, Fuel & Fiber Industrialization building cities & rural areas building cities & rural areas simultaneouslysimultaneously How the Dutch built Java? How the Dutch built Java?

Build FOE Build FOE

• Expansion SOEsExpansion SOEs

Building Our Markets Building Our Markets

How to harness MNCHow to harness MNC Increasing farmers’ bargaining powerIncreasing farmers’ bargaining power Roles of SOEsRoles of SOEs

• BULOG and other SOEBULOG and other SOE Controlling food importsControlling food imports Food NationFood Nation loyalty loyalty food national food national

identityidentity e.g., serabi vs. pizza e.g., serabi vs. pizza

Building Food Technology & Food Building Food Technology & Food IndustriesIndustries

Food R&DFood R&D Investment in Food IndustriesInvestment in Food Industries Government supportsGovernment supports Global suportsGlobal suports

Conclusions Conclusions

Building new culture in food consumptionBuilding new culture in food consumption Regrowing agricultureRegrowing agriculture Integrating food, feed, fuel & fiberIntegrating food, feed, fuel & fiber Reorganizing agricultural developmentReorganizing agricultural development All supports for agricultureAll supports for agriculture National food identityNational food identity Food security & food safety is a matter of Food security & food safety is a matter of

Life and Death!Life and Death! HERE WE GO!HERE WE GO!