Jababeka Gives Tips on Solving the Problem of Food Supply Chain Disruption
The Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) is a form of economic cooperation between Indonesia and Australia. With the presence of IA-CEPA now, It is easier for Indonesia and Australia to work together in increasing the economic activity of each country.
In the issue of disruption of the supply chain of agricultural products due to global warming and climate change and due to geopolitical problems, PT Jababeka Tbk – as an independent city developer – encourages concrete cooperation between Indonesia and Australia to overcome the current food supply chain disruption problem.
This is because the founder and chairman of PT Jababeka Tbk, S.D. Darmono considers Australia and Indonesia to have complementary advantages. Where Indonesia has a large market with a total of 250 million population while Australia has technology, innovation, access to capital and access to the world market.
The complete discussion of solutions was discussed through the webinar “A Framework of IA-CEPA Global Supply Chain Food Security”, and broadcast live via zoom at the President Lounge, on Monday (5/9).
Darmono – as he is usually called – said that cooperation can utilize land that has not been used by Indonesia and Australia in the form of joint venture cooperation. The goal is to show the world that Indonesia-Australia can contribute to food supply chain problems.
“We can do it with open source in Tanjung Lesung SEZ (in Banten) covering an area of 1500 hectares, where many people come. We have hotels, golf courses, marinas are also under construction. This is a place where people can come and relax. In addition, it is geographically very strategic because it is adjacent to the Sunda Strait which is a trade route. We can start there in an effort to run an agribusiness project,” explained Darmono.
Or, added Darmono, it can also be through the Morotai SEZ- North Maluku. With an area of 1,101.76 hectares, Morotai SEZ has potential in fisheries, namely tuna, skipjack tuna, cobs and vaname shrimp and seaweed cultivation. In addition, the Morotai SEZ has agricultural potential (agribusiness) and natural resources, such as coal, gold, manganese, and nickel and is located in a strategic location, namely trade routes between countries and continents close to Australia.
Promising agricultural and fishery potential of morotai
What is the picture of the agricultural potential of Morotai Island? The area, which is known as its agricultural products, has four five excellent commodities, namely coconut, cloves, nutmeg, rice and cocoa. For a rice paddy area of 1,450 hectares (BPS: 2016), with a rice harvest area on Morotai Island reaching around 1,249 hectares with a rice production of 4,048 tons. As for the coconut commodity, it has begun to be worked on by investors from Japan including trainings for local communities. The goal is to produce high-value products in the international market.
“We just need to start by formulating concepts and plans to work together. Also, we must have a dream together with Australian investors regarding this (food) supply chain cooperation,” said Darmono at the webinar which was attended by more than 100 people.
Need a strategic partner
Adhi Lukman as Chairman of GAPMMI (Indonesian Food and Beverage Entrepreneurs Association) added that, “Indonesia does not only need investors from Australia to come to Indonesia. But Indonesia needs strategic partners to make together products that have added value while also building an end to end food ecosystem. Starting from raw materials, technology to the ecosystem to make prices affordable and competitive for global supply chains.”
The goal is for economic development for Indonesia and Australia as well as sustainable business relationships. This is because agro-industries – such as the food and beverage industry and agriculture – demand from Indonesia are very high. With a large indonesian population and a high Gross Domestic Product (GDP), the demand for F &B has also increased significantly.
Areas for collaboration
“The fields that can be collaborated between Indonesia and Australia are agro-food, education, such as food innovation centers,” said Yonathan Wijaya as Director of Trade and Investment for Indonesia from the Australian Trade and Investment Commission (Austrade).
Yonathan added that the Australian side is interested in exports to the increasing needs of the Indonesian people. However, Yonathan stressed that Australia cannot meet all areas to cooperate with Indonesia. According to Yonathan, the Indonesian side needs to improve capabilities and make adjustments that need to be made so that cooperation between Indonesia and Australia is comprehensive.
Need for education and innovation in regulation
The solution to this condition, SD Darmono explained that there is a need for education and innovation in regulations from the governments of the two countries. This is to make it easier to share knowledge, invest, cooperate to easily run projects. With the presence of ease of regulation, the two countries can handle the problem of constraints regarding cooperation and the problem of food security supply chains.
“Educating the public without practice is just a theory. Therefore, Jababeka’s position, we try to utilize unused land in Indonesia with Special Economic Zones (namely Tanjung Lesung and Morotai SEZ, Kendal), with investors, build infrastructure and cooperate with local governments. For this reason, we can work together through the academy, land use and carry out community empowerment,” said Darmono.
“We (in Indonesia) have land that can be used to maximize profitability. But, we must also be able to create the market. For this reason, we are ready to open source, ready to open discussions on technology and other miscellaneous fields for Australian investors to come to Indonesia in utilizing land to develop local and global markets. We can do it slowly, but it takes patience. First, start with small steps and slowly we will grow together,” added the author of the book “Building a Ship While Sailing”.
According to Darmono, the joint venture project between Indonesia and Australia needs to be moved because the problem of global warming and climate change is a world problem, and the food problem is about survival. That is, if the cooperation is not carried out now, then later generations will feel the impact.