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Investment agricultural sector is still slow

JAKARTA - The growth of investment in the downstream sector of agriculture, cattle farming and horticulture over the last 10 years lower than the average growth of gross domestic product (GDP) of Indonesia.

This condition is contrary to government programs that put agriculture as a strategic sector. "This work is serious because the government put agriculture as a strategic sector," said Head of the Investment Coordinating Board (BKPM) Franky Sibarani in Jakarta yesterday. Franky presented, last year realized investment for these three sectors decreased.

Total realized investment for agriculture downstream industry, namely oil palm, cocoa and rubber in the quarter III / 2014 on domestic capital investment (DI) only Rp6.6 trillion, down compared to 2013, which reached Rp10,1 trillion. Meanwhile, foreign direct investment (FDI) reached Rp24,1 trillion, slightly lower than in 2013, which reached 25.2 trillion.

In October to December 2014, there are three companies interested to invest valued at USD258 million. During the period of 2010 to the third quarter / 2014 investment realization reached Rp136,2 trillion consists of PMDNsebesarRp35,1triliun and FDI reached USD10,1 billion. 71% of the value of the investment contributed by palm oil processing industry, rubber processing industry 18%, and 11% cocoa.

The number of workers absorbed in the manufacturing sector has reached more than 788,000 people, 70% of which is absorbed by the PMA. Domestic and foreign investment that has obtained the license in principle (pipeline projects) in the same period a value large enough that domestic investment of Rp172,2 trillion and FDI by USD22,4 billion.

"However, it should be noted a decline in interest in investment in 2015," said Franky. Meanwhile, total realized investment in the sectors of cattle breeding and meat and dairy industries in the third quarter / 2014 reached Rp832 billion from Rp2.4 trillion. The figure is lower than the realization in 2013 that reached Rp2.7 trillion. Given the decline in investment is very deep, Franky promised to increase the value of investment in the farm sector.

In the horticultural sector investment realization in 2010 until the third quarter / 2014 to reach 3.1 trillion. The investment consists of domestic investment of Rp823 billion and USD225 million of FDI. Workers absorbed in this sector reached more than 38,000 people. "We did the investor meeting. Hopefully, the current investment of the actors who attended this we ask improved again, "he said
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