Jumat 20 Dec 2013 21:08 WIB

Indonesia must have agricultural development model

Rice field in Boyolali, Central Java (illustration)
Foto: Antara/Andika Betha
Rice field in Boyolali, Central Java (illustration)

REPUBLIKA.CO.ID, BOGOR - Indonesia must have an agricultural development model that responded to global economic changes and developments, so that agriculture could contribute in overcoming various global problems, President Susilo Bambang Yudhoyono said.

"This problem must be put in the current context where Indonesia is adopting a decentralization system with its high economic growth. An agricultural development model will decide the direction and history of the nation in the future," the President announced at the anniversary of the Bogor-based Institute of Agriculture (IPB), on Friday evening.
Yudhoyono pointed out the need for at least three agricultural development models. The first model is an economic development strategy, which offers ample opportunities for the market economy to decide the direction of development. In this case, the government should play a role in creating a market that can function efficiently and effectively. 

"The second model is an economic development strategy that highlights the importance of the governments involvement in development. The government has to be involved from the beginning, right from charting out the strategic plans to their implementation. The agricultural development model is the realization of a concept for a centralized authority on economic issues," the president explained.
And the third model is an economic development strategy, which basically incorporates the principles of the first and second strategies mentioned above. The government should intervene by involving other sectors such as the private sector, state-owned enterprises (SOE), and cooperatives.
"I believe that Indonesia should adopt the third strategy as earlier pointed out," the president added.

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