http://www.thejakartapost.com/news/2010/03/05/merauke-estate-not-answer-ri's-food-problem-coalition.html

Merauke estate not the answer to RI's food problem: Coalition
Adianto P. Simamora ,  The Jakarta Post ,  Jakarta   |  Fri, 03/05/2010 10:24 
AM  |  National 



A coalition of activists called on the government to review a policy on a 
large-scale food production systems being built over 1.6 million hectares of 
forest areas in Merauke, Papua province.

They said the 2010 government regulation on cultivation would not improve the 
country's food sovereignty issue as it only accommodated the interests of the 
giant private companies to reap benefits.

The government should assess, among other issues, whether the estate would 
benefit local people and whether Merauke's environment could accommodate such a 
huge food estate project.

"It is too risky for the country to entrust its food sovereignty to private 
businesses," the coordinator of Alliance for Prosperous Villages, Tejo Wahyu 
Jatmiko told reporters on Thursday.

Article 2 in the regulations says the cultivation aimed to promote food 
sovereignty and security and improve local people's welfare.

The regulation says that in Papua a license holder could manage 20,000 
hectares, twice as large allowed in other provinces.

Article 24 says the products from the cultivation should be prioritized to meet 
domestic needs in the event a natural disaster or massive crop failure. The 
status would be determined by the President.

"This article means products from food estates would mainly go abroad. So how 
would it fulfill food security in the country?" Tejo said.

The coalition warned the projects would violate the spatial planning and 
environment laws.

The environment law requires the local administration to assess environmental 
capacity as the basis to determine types of business activities eligible in the 
area.

The Alliance of Prosperous Villages consists of 18 non-governmental 
organizations, including Sawit Watch, People's Coalition on Food Sovereignty 
and the People's Coalition for Justice in Fisheries (Kiara).

Public campaigner at the Sawit Watch, Edi Sutrisno said oil palm plantations 
are a lesson on how people do not benefit without thorough environmental 
analyses.

"We are not against food for people program, but the plan of food estate in 
Papua does not target Indonesia's needs," he said.

The food estate is one of priority agendas of President Susilo Bambang 
Yudhoyono this year. The first projects will convert an area of 500,000 
hectares.

++++

The Straits Times (Singapore)
Saturday, February 27, 2010


Foreign farmers welcome in Papua

Wahyudi Soeriaatmadja, Indonesia Correspondent

Official cites 2.5 million ha of land ideal for cultivation in Merauke

JAKARTA: Indonesia is about to try turning some of its vast tracts of fertile 
land into the colour of money.

The Agricultural Ministry is putting the finishing touches on a programme aimed 
at getting foreign and local investors to mass-produce crops both for the 
Indonesian market and for export.

The programme will allow foreign and local investors to lease and manage food 
estates in Merauke, a regency in the eastern-most province
of Papua.

Senior ministry official Hilman Manan was quoted by Agence France-Presse last 
week as saying that Merauke had 2.5 million ha of land which was ideal for 
cultivation.

'The area is flat and has a good climate. Its soil is appropriate,' he said.

'Sumatra is already congested with other plantations...and Kalimantan is full 
of mining areas and many plantations.'

Japan, South Korea and some Middle Eastern countries have expressed interest in 
the programme, he said.

Large-scale farming by Indonesian and foreign firms has been going on for 
years. But it has mostly been confined to oil palm. Commodities such as corn 
and sugar cane are still imported.

In recent years, land-scarce countries have tried to lease Indonesian soil to 
grow crops for their own people.

Saudi Arabia's Bin Laden group last year reportedly considered developing up to 
two million ha of farmland in Papua to grow basmati rice. The US$4.3 billion 
(S$6 billion) plan apparently stalled in October because of land acquisition 
problems.

Earlier this month, the partly government-owned Minerals Energy Commodities 
Holdings from the United Arab Emirates said it was keen on renting 100,000ha of 
land in Kalimantan to produce rice, sugar cane, oil palm and fruit.

On Thursday, a ministry spokesman told The Straits Times that local governments 
in Merauke, home to only 175,000 people, were eager for foreign investment and 
for the estate scheme to take off.

'We cannot do this mass farming on Java because we need to protect small 
farmers,' he added.

He was echoing earlier concerns that the scheme, if launched nationwide, would 
crush small-scale farmers in Java, Bali and Nusa Tenggara.

There are an estimated 42.6 million small-scale farmers, mostly in heavily 
populated Java. About 70 per cent of Indonesia's food supply comes from the 
island.

Ministry officials say the Merauke food estate will have a mix of crops - from 
rice padi, maize, soya bean and sugar cane to oil palm. Indonesia is now the 
world's top producer of palm oil.

To make sure that the estates are not seen by residents of the areas as a form 
of 'land grab', investors will be given only up to 100,000ha each to develop, 
with a 35-year land-use lease. This can be extended later.

Investment firms will be given tax and custom duty breaks but they have to be 
joint ventures, with foreigners holding a 49 per cent stake at most.

'We will also mandate the amount of produce that can be exported and what has 
to stay in the domestic market,' said the Agricultural Ministry spokesman.

Businesses such as the PT Bangun Tjipta Saran conglomerate have said that they 
are raring to grow corn and sugar cane. But they say they desperately need the 
government's help to develop infrastructure such as roads, a port and new 
airport runways.

wa...@sph.com.sg 
        

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