Monday, 14 December 2020 07:29

Pressing the Import of Industrial Raw Materials, the Government Optimizes the Role of Agro-Industry

The government continues to strive to optimize domestic agricultural products so that they have added value and are able to support the national industry. To encourage this effort, a synergy was made between the Ministry of Industry (Kemenperin) and the Ministry of Agriculture (Kementan) as outlined in a Memorandum of Understanding (MoU) or a memorandum of understanding. “The purpose of signing this memorandum of understanding is to synergize the tasks and functions of the two institutions in supporting the development and development of the agro-industry," said Director General of Agro Industry at the Ministry of Industry, Abdul Rochim, Saturday (12/12). Rochim said, the scope of the joint agreement includes increasing production, increasing quality, added value, and competitiveness of agricultural products as industrial raw materials, and increasing the competence of human resources (HR).

Then, increase the network of agricultural business partnerships with industry, exchange of data and information, synergize regulations and standards in the development and development of agribusiness and agro-industry. "The agro industry is a sub-sector of the non-oil and gas processing industry which has an important and strategic role in the national economy, so its performance must be optimized," said Rochim.

According to him, when viewed from the contribution of exports, the agro industry has an important role in the shipping value of the non-oil and gas processing industry. "Even though in the Covid-19 pandemic conditions, in the January-August 2020 period, the total export value of the agro industry reached USD29.27 billion or 35.36 percent of the non-oil and gas processing industry exports amounting to USD 82.76 billion," he said. Meanwhile, the import value in that period reached USD9.87 billion or 13 percent of imports of non-oil and gas processing industries (USD75.97 billion). "Of this value, more than 70 percent are imports of raw materials and supporting materials to meet the production needs of the domestic agro industry," Rochim said.

He gave an example, the need for raw materials for the milk industry, which is equivalent to fresh milk, is around 4 million tons. This need can only be met by domestic raw materials by 20 percent or 0.9 million tons.

The remaining 3.1 million tons or 80 percent in the form of skim milk powder, whole milk powder, anhydrous milk fat, butter milk powder and whey are still imported. Then, the need for sugar cane-based both for consumption and industry is around 6 million tons per year. The domestic sugar industry's production capacity is 2.2 million tons per year, which is generally used as consumption sugar. Thus, the need for industrial sugar, both as raw material for refined sugar and for industry, amounting to 3.25 million tons is still imported in the form of raw sugar.

Furthermore, the types of agro industry that still depend on imported raw materials include cocoa beans reaching 235 thousand tons / year, Virginia, Oriental, and Burley tobacco at 131 thousand tons / year, wheat reaching 12.3 million tons / year, black tea 10.9 thousand tons / year, meat up to 166 thousand tons / year, and fruits and vegetables up to 40.9 thousand tons / year. "It can be seen that there are still many imported raw materials and supporting materials for the agro industry. So, the hope is that the strategic cooperation between the Ministry of Industry and the Ministry of Agriculture will be able to increase the fulfillment of industrial raw materials, increase domestic added value, and increase the competitiveness of national industries, especially in entering export market, "he added.

To improve the performance of the agro-industrial sector, the Ministry of Industry has developed strategic steps, including strengthening the capacity of the agro-industry as a whole with a focus on improving the upstream agricultural sector. Furthermore, bringing the agricultural sector and agro-industrial sector closer to Industry 4.0 technology, increasing value chain efficiency by building better cold-chain networks, and increasing modern agro-industrial production with product innovation supported by super deduction tax incentives for research and development (R&D). "We also continue to strive to strengthen the competitiveness of agro-industrial products in terms of quality, price, and delivery capability to meet ASEAN and global markets, improve technical human resources and agro-industry technology to strengthen national production capabilities in the global market," he concluded.

Source: https://m.liputan6.com/bisnis/read/4431633/tekan-impor-bahan-baku-industri-pemerintah-optimalkan-peran-agroindustri

 

 

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