REPUBLIKA.CO.ID, LONDON -- Indonesia's agricultural products play a strategic role in Indonesia-Italy's trade where Indonesia enjoyed a surplus of US$753 million in 2012 when both countries' two-way trade reached US$3.8 billion, an Indonesian ambassador said.
"Indonesian Ambassador (to Italy) August Parengkuan made the remarks in his address in Rome on Monday to the opening of a popularization program on Indonesia's policy in the development of agricultural exports and imports," the Indonesian Embassy Spokesperson Nindarsari Utomo told Antara here on Tuesday.
The popularization program was among others also attended by Indonesian Ambassador to Brussels Arif Havaz Oegroseo, Agriculture Ministry's Secretary General Hari Priyono, Head of the Agricultural Center of the Agriculture Ministry Suryadi Abdul Munir and Guest Speaker Anna Flavia Pascarelli of the Italian Economic Development Ministry.
According to Ambassador August Parengkuan, four of the major export commodities of Indonesia to Italy were products from the agricultural sector.
One of the four even topped the list of major exports, namely palm oil worth US$675.2 million. It was followed by biodiesel US$383.4 million, rubber US$89.9 million and coffee US$58.6 million.
Other agricultural products that have also been exported to Italy are copra, vegetables and fruits.
He said that the big volume of Indonesia's agricultural product exports was viewed as a great contribution to the international trade given the fact that in the era of globalization competition among agriculture producing countries was tight.
Hari Priyono said meanwhile that at least there were five challenges in the agricultural sector to be faced in the future. The challenges are multidimensional in nature and needs attention.
One of the main challenges is to increase farmers' income as most of them own agricultural land below 0.5 hectare.
Attention should also be given to increasing agricultural/food products to meet the need for the commodities of the rising number of population.
He said that the government also needed to study the transformation process from the fossil-based national economy to the bio-economic based-one. It is important to realize sustainable agricultural development concept in the context of global climate change.
In an effort to give answers to the challenge, he said, a holistic and integral approach is needed.
Anna Flavia Pascarelli explained meanwhile that as a member of the European Union, Italy abides by the Union's regulations on trade issues, namely the Common Commercial Policy, and on agricultural issues, namely the Common Agricultural Policy.
Indonesian Ambassador to Brussels Arif Havaz Oegroseno on the occasion raised the question of challenges being faced by the Indonesian agricultural exports.
He said the agricultural sector in the European Union enjoyed a high subsidy reaching 78 billion US dollars so that agricultural products in the region had high competitive edge.
This matter poses a challenge to various other products from other countries, including those coming from Indonesia, particularly products whose types are almost the same as those from the European Union countries.
Indonesia's exports continued to face fluctuations from year to year. If compared with other those of ASEAN countries, Indonesia's agricultural products still have to compete tightly.
Indonesia's agricultural product export was now ranked fifth on the list, the ambassador said adding that palm oil and rubber were still Indonesia's main agricultural exports to the European Union.
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