Investment Increases Evidence of Beef Cattle A Lots of Interest

By : Wiyanto Dan Aldo Bella Putra | Wednesday, April 04 2018 - 17:00 IWST

Fini Murfiani Direktur Pengolahan dan Pemasaran Hasil Peternakan Ditjen PKH, Kementerian Pertanian
Fini Murfiani Direktur Pengolahan dan Pemasaran Hasil Peternakan Ditjen PKH, Kementerian Pertanian

INDUSTRY.co.id - Jakarta -  Investments in livestock sub-sector, especially for cattle ranching during the last five years tends to increase. This can be seen from the investment value of PMDN in 2013 which is only Rp. 360.6 Billion and increased in 2017 reached Rp. 842.9 Billion. While the value of foreign investment of 11.3 million US dollars in 2013, rose to 159.7 million US dollars in 2017.

Based on data from the Investment Coordinating Board (BKPM), investment in cattle livestock in 2015 has 15 projects and increased by 2017 to 53 projects.

According to Fini Murfiani Director of Processing and Marketing of Livestock Products Directorate General of PKH, Ministry of Agriculture, to encourage investment in domestic cattle farms, the Government has made several efforts including: First, Increased access to bank financing (through KUR interest subsidy).

Fini Murfiani said, in the year 2018 interest rate KUR (People's Business Credit) which initially 9% fell to 7%. "KUR is currently accessible to business groups, where previously only accessible by individual Debtors," he said in Jakarta, Wednesday (4/4/2018).

Furthermore, she mentioned, the new KUR feature is also possible to make installment payments after harvest (yarnen). In addition there is also Special KUR for the livestock sector people who can be used for cattle breeding business, cattle fattening and dairy cow farming.

Second, Increased access to non-banking financing (PKBL). DG PKH currently continues to increase the utilization of other non-banking financing sources, one of which is PKBL (Community Development Partnership Program) implemented by State-Owned Enterprises such as PT. Sucofindo, PT Pelindo III and PT Jasindo. Through PK, BUMN companies can provide credit / loans with low interest to partners.

Third, Tax reduction. The government also provides facilitation of tax allowance for the business of beef cattle breeding and local cattle fattening based on Government Regulation No. 18 of 2015.

However, according to Fini Murfiani, this facilitation has not been widely utilized by investors, so to be more operational in the field; the Ministry of Agriculture has proposed to the Coordinating Ministry of Economic Affairs regarding the change of business coverage that gets tax allowance facility. These changes include the business of beef cattle breeding, dairy cattle breeding, breeding of beef cattle and the cultivation of dairy cattle. "The plan of PP changes will be set in April 2018," she said.

Fourth, business risk mitigation through Cattle Livestock Insurance (AUTS). AUTS is one of the government's efforts in providing cattle breeding business continuity from the risk of death and loss. By insuring the livestock, the business will be more secure in the business, so as to focus to improve production and productivity of his business.

In addition, insurance is expected to increase the alignment of credit channeling banks to provide credit without additional collateral which has been a constraint for small business actors in accessing credit. Currently there are banks that make the insurance policy as a substitute for additional collateral, namely Bank Nagari in West Sumatra and partnership group of farmers in Wonogiri who get credit from Bank Sinar Mas Branch Yogyakarta.

"We must realize that the population of cows / buffalo in Indonesia is not sufficient to meet the national meat needs," said Fini Murfiani. "To meet the shortfall, we still have to import both in the form of beef and meat," she added.

Therefore, there are two things that the Government has done to accelerate the increase of Indonesian cattle population. The first is to increase the bloodstock, both by the government and the private sector. Where the Government requires all cattle importers to bring in 20 percent of females or sires.

According to Fini, the policy of import ratio of 1 (one) parent of 5 (five) going in accordance with Permentan No. 49 of 2016 and which has been changed with Permentan No. 2 of 2017, among others, aims to accelerate the increase of cattle population and encourage partnership in breeding cattle breeding for empowerment of farmers. The government is very hopeful of the commitment of the feedloters in accelerating the population increase. Until now, importers have not fulfilled the ratio of 1: 5, most of the realization is still imported while the beef cattle have not matched the amount of their obligations.

Second, Special Efforts of Mandatory Breeding Cattle (Upsus Siwab) aimed at accelerating the increase of cattle population at the farmer level through optimization of reproduction.

Furthermore, in the development of Forage for Animal Feed (HPT), DG PKH together with the Office in charge of animal husbandry and animal health has been developing the development of 5,834 ha of pasture since 2013-2016. Its location is spread across nine provinces, namely Aceh, Central Java, East Nusa Tenggara, West Nusa Tenggara, Central Sulawesi, Southeast Sulawesi, South Sulawesi, North Maluku and West Papua. Currently we are identifying the potential of 193,769 ha, and Survey Investigation and Design (SID) has been conducted on an area of ​​10,994 ha.

Until now companies that have invested, both new and expanding since 2015-2017 quite a lot. In Java there are seven companies namely, PT. Sri Hatmini, PT. Sae Abadi Santoso, PT. Putra Jaya Raharja, PT. Sijiro Indonesia, PT. GreenFields Indonesia, PT. Pramana Austindo Mahardinka, PT. Livestock Complex Kasepuhan and PT. Santori. While outside Java about 16 companies, namely PT. Food Sari Utama Mitra, PT. Papua Utama Mitra, PT. Asiabeef Biofarm Indonesia, PT. Biofarm Plantation, PT. Juang Jaya Abdi Alam, PT. Ziong and PT. Agro Ternakindo Terpadu Jaya.

In addition, PT. Elders Indonesia, PT. Green Agricultural Development, PT. Nusantara Tropical Farm, PT. Puri Purnama Delod-Yeh, PT. Sumba Stock Feed, PT. Austasia Stock Feed, PT. Mitra Agro Mandiri Abadi, PT. Sae Abadi Santoso, and PT. Ultra Sumatera Dairy Farm.

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