“AGRICULTURAL SECTOR”
Arranged by :
Group Name :
1.
Fiki Oktafiyani (22215663)
2.
Hesti Nopiyanti (23215152)
3.
Zakiah Roshidah (27215393)
Class : 1EB21
Gunadarma University
ATA 2015/2016
CHAPTER 1
DISCUSSION OF THE MATERIAL
1. AGRICULTURAL SECTOR IN INDONESIA
Agriculture
is one of the sectors which is the use of biological resources to produce a
foods, industrial raw materials and energy sources. Agriculture in the broad
sense include agriculture, fisheries, livestock and plantations. Development of
the agricultural sector aims to meet the food and nutrition and increase income
(welfare) society.
a. During
the period 1995-1997 agricultural GDP (livestock, forestry and fisheries)
decreases and other sectors on manufacture increases.
b.
Before the financial crisis, the growth
rate of the agricultural sector output < of ouput non-agricultural sector.
Indonesia
is an archipelago with a vast land so that the livelihood largely on the
agricultural sector. Agriculture is a huge potential in the four forms of contribution
to national economic growth and development, namely:
a.
Expansion of the economic sector is
highly dependent on the growth of output in agriculture, from both the demand
and supply as sources of raw materials for production purposes in other sectors
such as manufacturing and trading.
b.
Agriculture plays a very important
source of growth in domestic demand for products from other sectors.
c.
As a source of capital for investment in
other economic sectors.
d. As
an important source of trade surplus (source of income).
The
low growth in agricultural output due to:
a. Climate
b.
Land
c.
Quality of HR
d. Use
of Technology
2. EXCHANGE OF FARMERS
Exchange is an item that has a fixed
exchange rate with other goods. For
example :
If the price of product A and product B
Rp 10 to Rp 20, the exchange value of the product A to B = (PA / PB) x100% =
1/2. This means 1 product A product exchanged ½ ½ B. The unit B can swap one
unit A. The cost opportunity is 1 unit A For making ½ unit B.
Basis
Swap (DT)
a.
DT in the country: the exchange of two
different goods in the country with national currency.
b.
International DT / Terms Of Trade:
exchange of two different goods in the country with an international currency.
Farmer (NTP)
The
difference in price of agricultural output at a price of inputs (the ratio of
price index received by farmers dg index of prices paid). The higher the
Farmer, the better.
Farmer
each region is different, it depends on :
a. Inflation
each region.
b.
The distribution system for agricultural
inputs.
c. Differences
in the agricultural commodity market equilibrium each region (D = S). If D>
S prices will rise, where if D <S prices will decline.
Explanation
of the Farmer in general :
1.
NTP> 100, means that farmers have a
surplus. The rise price of production is greater than the increase price of
consumption. Farmers' income increased faster than expenditures.
2.
NTP = 100, mean farmers suffered even.
Increase / decrease in the price of production is equal to the percentage
increase / decrease in the price of consumer goods. Farmers' income equals
expenses.
3. NTP
<100, meaning farmers deficit. The increase in the price of production is
relatively small compared to the rise in prices of consumption goods. Farmers'
income drops, smaller than its expenditures.
3. INVESTMENT IN AGRICULTURAL SECTOR
The agricultural sector
is saving a huge potential to be developed and could be the leading sectors in
Indonesia. Indonesia is so vast land spread from Sabang to Merauke, and has
fertile soil anyway. But until now the agricultural sector can not be maximized
due to the lack of investment in agriculture so that the development of minimal
done.
Through agribusiness in Indonesia is very
large because there are many who can not be fully utilized, policies,
regulations given by the area to the public, especially potential investors
both domestically and abroad, as well as facility investment planning. It is
expected to further encourage prospective investors to invest in the field of
agribusiness in Indonesia.
Identify
the Cause of Agricultural Investment
a.
The agricultural sector has risks and
uncertainties that are very high compared to other sectors.
b.
The lack of support provided to be one
factor that makes investments in agriculture increasingly unattractive. As
already known, the current agricultural inputs such as irrigation, for example
in the area, there are some relics of the new order that have been increasingly
unkempt.
c.
If wanted to establish a farm that has
economies of scale large enough, so that it becomes less attractive.
d.
Still not the stability of the
investment climate in Indonesia.
e.
The existence of discretion otanomi area
sometimes overlaps with central government policy.
f.
There is an assumption that agricultural
investment is not attractive compared with other sectors.
Impacts of Agricultural
Investment
Increased investment will boost
agricultural production directly, which its turn will have economic and social
impacts. The expected economic impact is the increased production of various
agricultural commodities and increasingly Pharmaceutics national food security,
as well as the higher incomes of businesses, including farmers, foreign exchange,
and agricultural GDP.
Meanwhile, the expected social impact is
increasingly high employment, both in companies and businesses individual who
make investments, as well as in rural areas in general. Other social impact is
the declining number of poor people in rural areas. So, the rate of
urbanization is adding to the problems in urban areas can be reduced.
Investment is not the only way to increase
agricultural production. Another ways that can be used are agricultural technology
innovation and the development competence of human resources that can improve
agricultural productivity. With the increase in agricultural productivity, the
rate of increasing in demand for agricultural land can be reduced, and
production costs per unit of output will be more competitive. The investment
should be accompanied by technological innovation and improving the quality of
agricultural human resources.
Government policies to
solve the problems as well as encourage investors to invest in the agricultural
sector :
a.
Creating political stability (majority
and minority), social stability (social inequalities and sara), economic
stability (prices, rates, currency exchange rates, inflation, bank interest
rates).
b.
Building a clean government free from
corruption, consistency, clarity and certainty in government policy in the long
term, as well as a more efficient bureaucracy, especially in terms of time and
cost to permit investment.
c.
Conduct training for more skilled labor
force, disciplined and have a high work ethic along with a system of reward and
punishment is clearly to achieve higher labor productivity.
d.
Encourage the development of
investment-based regional advantage, among others, the primary, secondary and
tertiary in order to create job opportunities.
With this policy, investors are getting an
investment policy certainty so that they are easier to make investment
decisions. Governments also need to make efforts to approach investors for invest
in agriculture.
4. RELATIONSHIP WITH AGRICULTURAL
MANUFACTURING INDUSTRY
One of the causes of
the economic crisis that is an error that isn’t based on the industrialization
of agriculture. It is seen that the growth rate of the agricultural sector (+)
although small, while the manufacturing industry (-). Japan, Taiwan and Europe
in advancing the manufacturing industry revolution begins with the agricultural
sector.
Reasons
must be strong agricultural sector in the industrialization process
:
a.
Strong agricultural sector, food
assured, no hunger, political and social conditions stable.
b.
Angle Demand, a strong agricultural
sector, real income per capita rises, the demand by farmers to product
manufacturing rose industry that means developing and manufacturing industrial
output becomes the input agriculture.
c.
Angle offer, demands for agricultural
products as raw materials by manufacturing industry.
d.
Excess output of the agricultural sector
is used as an investment the manufacturing industry such as small industries in
rural areas.
The
reality in Indonesia of dam agriculture production linkages manufacturing
industry is very weak, and both sectors are highly dependent on imported goods.
CHAPTER
2
CASE
STUDY
"Financial Services Authority
(FSA) Invite Financial Industry Expands Credit to Agriculture Sector"
Kunthi Fahmar
Sandy
Friday, June 3th
, 2016 - 11:15 PM
JAKARTA – The Financial Services Authority (FSA)
to encourage the role of the financial services industry through the expansion
of access to financing, especially to farmers, the article space in the
financing of the agricultural sector is still wide open. Vice Chairman of the
Board of Commissioners FSA Waluyanto said, in achieving food security, needs to
be a synergy of all stakeholders, including the support of the finance sector,
the financial services industry.
To that end, the
FSA together with the Ministry of Agriculture (Kemenpar) which is fully
supported by the Financial Services Industry, academia, Bappenas, World Bank,
institutions of non-profit hold a Focus Group Discussion (FGD) acceleration of
the financing value chain or value chain in the agricultural sector in order to
support the achievement of one of the government programs that Food
Sovereignty.
According to
Grace, FGD conducted after the previous day saw directly to the locations where
potential agricultural sector and can be replicated to other locations.
"FGD activities and visits to the agricultural sector is intended to
provide a real picture of the potential, the problems faced in the agricultural
sector, as well as the opportunities and financial contribution of the
financial services industry", he said, Friday (06/03/2016).
Based on BPS
data, the contribution of agriculture Indonesia only around 14% of GDP, still
below the manufacturing sector has contributed 21% of GDP. While Indonesia has
a land area of 191.09 million hectares.
Of the land
area, about 95.81 million hectares of potential agricultural, consisting of
70.59 million hectares in the dry land, 5.23 million hectares in non marsh
wetlands, and 19.99 million hectares of wetlands. "From the potential land
area, most are already used for agricultural land," he said.
Seeing these
conditions, added the FSA take a leading role in their respective sectors,
particularly in promoting financial inclusion and access even greater. Position
the end of April 2016, the distribution of funding or credit food sector
consisting of agriculture, processing industry food commodities, and major
trade sector stood at Rp573 trillion, or about 14.3% of total national banking
credit.
"The number
of loans in the food sector still needs to be improved, especially in the
agricultural sub-sector," added the Head of the Department of
Communication and International, Slamet Edy Purnomo.
He said it was
done, of course, not only to ask for the financial services industry boost
lending but also improve the quality of the agricultural sector so that the
financial industry both banking and non-bank financial institutions such as
finance companies and insurance can be more willing to provide funding and
insurance to the agricultural sector.
The series
continuation of the FGD and visits to the farm, the FSA will sign a Memorandum
of Understanding with the Ministry of Agriculture in the area of increasing
access to finance and financing in the agricultural sector since the FSA
assessed the role of the financial services industry still needs to be improved
to respond to the potential of the agricultural sector is very large and has a
very high efficiency.
The scope of
cooperation between the FSA and the Ministry of Agriculture, among others in
the coordination of policy and financing, provision of data and information
services, research and development, socialization and education, and capacity
building and human resource competence.
(akr)
Analysis of the "Invite
FSA Financial Industry Expands Credit to Agriculture Sector":
Based on the above analysis articles that can be taken is
the Financial Services Authority (FSA) to encourage the role of the financial
services industry through the expansion of access to financing, especially to
farmers, the article space in the financing of the agricultural sector is still
wide open.
To that end, the FSA together with the Ministry of
Agriculture (Kemenpar) which is fully supported by the Financial Services
Industry, academia, Bappenas, World Bank, institutions of non-profit hold a
Focus Group Discussion (FGD) acceleration of the financing value chain or value
chain in the agricultural sector in order to support the achievement of one of
the government programs that Food Sovereignty. According to Grace, FGD activity
and visits to the agricultural sector is intended to provide a real picture of
the potential, the problems faced in the agricultural sector, as well as the
opportunities and financial contribution of the financial services industry.
FSA takes the lead in their respective sectors, particularly
in promoting financial inclusion and access even greater. Position the end of
April 2016, the distribution of funding or credit food sector consisting of
agriculture, processing industry food commodities, and major trade sector stood
at Rp573 trillion, or about 14.3% of total national banking credit. Figures
lending in the food sector still needs to be improved, especially in the
agricultural sub-sector.
The series continuation of the FGD and visits to the farm,
the FSA will sign a Memorandum of Understanding with the Ministry of
Agriculture in the area of increasing access to finance and financing in the
agricultural sector since the FSA assessed the role of the financial services industry
still needs to be improved to respond to the potential of the agricultural
sector is very large and has a very high efficiency.
REFERENCES
http://dokumen.tips/documents/peran-sektor-pertanian-dalam-perekonomian-indonesia-55a4d2acdbea4.html
