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JohanN
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For me personally this is an interesting topic. A few minutes ago I responded on a news topic which described the economic growth of Indonesia with 6.3%. I think this is quite well for a country like Indonesia with relative low direct investment and relative low income per capita. After my posting, I saw this article in the Jakarta Post. I apologize for the length:

Supermarkets challenge farmers

The booming modern retail sector now accounts for 30 percent of Indonesia's retail food trade, a World Bank report says, although Indonesian growers of fresh fruit and vegetables have yet to fully take advantage of the opportunities this provides.

"While fresh fruit and vegetables account for 8 percent of supermarket sales and up to 15 percent of urban retail sales, a high proportion -- 80 percent of the fruit and 20 percent of the vegetables -- are imported," says the report.

Published Tuesday, the ground-breaking report is titled Horticultural Producers and Supermarket Development in Indonesia.

The high level of imports reflects missed opportunities for local growers of fresh fruit and vegetables at a time when Indonesian consumption of fresh produce is on the rise.

The report said spending by Indonesians on fresh produce amounted to 50 percent of their expenditure on rice in 1994. This figure had risen to 75 percent by 2004. In urban areas, Indonesians now spend the same amount of money on fresh fruit and vegetables as they do on rice.

In addition to the lower prices, and often better quality, of imported fruit and vegetables, inadequate supply chains make it difficult for Indonesian growers to compete.

"Indonesian farmers trying to sell to the supermarkets are really handicapped by extremely poor supply chains," said Shobha Shetty, the report's lead author.

"Moving over poor roads, lacking cold chains and logistics services, while dealing with entrenched bad business practices, Indonesian farmers face formidable odds. Yet, retailers see a big opportunity for local produce in supermarkets if these supply chain problems can be resolved."

At present, the percentage of local horticultural produce being supplied to the supermarket sector stands at around 15 percent, with the rest going to the country's traditional markets.

The report offers three main recommendations to government, central and local, to help farmers improve their competitiveness and compete head-on with imported fresh produce.

First, the government can provide management, technological and factor-input assistance to farmers, and promote research so as to help farmers keep in touch with the needs of the market.

Second, in order to reduce the current high cost of transportation, it is essential for the government to provide good roads and telecommunications.

Last, but not the least, farmers' access to financial services need to be improved, the report said.

Since supermarkets normally buy on 40 days' credit terms, cash flow problems can affect suppliers, farmers and wholesalers.

To alleviate these problems, the government could facilitate agreements with the association of modern retailers (Aprindo) and the banks to help farmers access commercial loans secured by the sales they have already made to supermarkets.

For traditional retail markets, the report highlights the need for improved hygiene, sanitary standards and infrastructure -- such as pavements, roads, buildings and stalls -- so that they can compete with the supermarkets

I give my reaction on this one in a next post.



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JohanN
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I think the issue we see in the retail in Indonesia is exactly the problem which has to be solved. The problem lies in the fact that the domestic production is not enough to fullfill the domestic requests. In this article it goes about fruits, but it is the case in a lot of product categories (cars, rice, textile, electronics). Fortunately, the article gives also 3 things to improve in order to solve the problem:
1. Improve education / knowledge / skills (improving right now because of gradually better and cheaper education);
2. Improve infrastructure (one of the hot issues of SBY this period);
3. Improve financial services (micro credits). Still to be done; banks are not willing to give credit to small enterprises (like farmers) because banks lack a good system for risk management, they simply have no knowledge to judge (small) enterprises based on a kind of a risk system. BUT, since the crisis in 1998, banks and insurance companies are improving and implementing risk management procedures in their companies. In a few years, I hope they can use these models also for small enterprises.

In short, this is my positive view on the economy in Indonesia.








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Jesses
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Nice topic, Johan.

I believe the solutions proposed in the artical may all be beneficial to individual farmers. However, a fourth solution would be to stimulate cooperation among farmers. This would surely contribute to the realisation of the first three solutions. If farmers organise themselves, they can do greater investments in production and marketing, for example. Secondly, as an organisation they can make themselves heard. And finally (there may be other advantages, but I have to go to work), it may be beneficial in the face of crises.

Sampai di sini dulu,

Hugo



AnisJ
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Selamat datang Anis belanda Welcome Dutch Anis with your article,

It is interesting;
  • I thought you forgot one thing: "INDOnesia got to learn to sell itself ...... NUSAnTara sells better".
    Why do I say this, you know as a Dutchman, in the Netherlands, Dutch have no clear idea with the country and its products, it is always related to Chinese ....
    like Chinees Indische restaurants ..... but it is also suggested with (H)India because of Indisch , especially for the younger generations of Dutch, probably Europeans also ....
  • In short INDOnesian made products have not a clear image !!!


  • 'Ahu kura ahia, mansia nia'

    remknip
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    In my experience with Indonesia, the indonesian people and their economy, when I look at how the people exchange, give and take, things go indirect, unclear and miss therefore the necessary quality of (any) growth. Instead, it will lead to poor quality of goods and services, unawareness of customer needs and (unintended) corruption, to sum-up a few examples of a disrupted growth (in every area of the community, so also the economics).
    When the farmers and everybody in the chain to the supermarket know what quality is bougth/sold in the supermarkets and when they will listen to eachother keeping this quality in mind, they will be able to cooperate to settle for an Indonesian product and kick foreign products out of their beautiful country with that huge potential for growth they hold: the Indonesian people, rich with raw materials and fertile land!



    JohanN
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    Hi Jesses, you are right, you have a point with respect to farmers. Ofcourse there is this kind of cooperation in some way: all small farmers sell their crop to bigger ´landlords´ who give them a price. But this is to low scale and this kind of structure is too old to survive in the global economy and evenin the domestic economy. On the other hand, you see that unions, for example in the electronic industry, are very powerfull and can really complain about little details. Furthermore, when you fire an employee, it cost you at least 3 months and a lot of documents to fill in etc.
    I think, with respect to cooperation, enterprises (not only farmers, that was just an example), should cooperation in order to increase knowledge on subject of quality, export, import , logistics, efficiency and IT.

    Anis, as with most of your postings, I simply do not understand what you mean, and I really try too Emoticon: Yes! . Somehow, I believe we often think the same, but there is really a mind gap between us in a way to communicate this Emoticon: Wink

    Hi Rembrandt, yes you are right, quality control should be the first start to increase the quality of products. And it should all start with making better and more clear deals and contstructions when doing business. I think Japanese and Korean companies are very strong in this kind of things in Indonesia.








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    AnisJ
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    Anis belanda,

  • Aren't those items, you'd mentioned only appliable for the interior economy , whilst INDOnesia had more to gain with the international economy .
  • Besides there is, to my idea, an indifferance for the 'home made products'.
    - I once noticed big 'mandarins' of good quality on a local market, I noticed after buying it, that these 'quality products' were imported from China !!!
    - If the Chinese are more eager to go for quality, why is it INDOnesia is not !!!
  • By being marketed internationally INDOnesia, as a name has/had some difficulties ......
  • On the net you know, as a IT-trader, something common like the international country code ID had caused troubles in getting registrated .... as you know.
  • I have the suspicion that INDOnesian indifferance is also caused by most INDOnesian political leaders.



  • 'Ahu kura ahia, mansia nia'

    AnisJ
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    Johan 'speeding up' is one thing, but compared with what ..... ???
    The country needs a referance frame (referentiekader) ....

    something like this .... of course it is not equal but it creates a 'model to compare with' ........ Emoticon: Yes! Emoticon: Yes! Emoticon: Shiny Emoticon: Shiny


    'Ahu kura ahia, mansia nia'

    JohanN
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    Anis, in my opinion you are completely wrong. You compare something like a geographical parameter. This is totally wrong. Everybody knows that for example the economy of Singapore is much more stronger than that of Poland.
    And you try to compare Indonesia with the Netherlands? What do you mean? If so, this again is not correct: the economy of the Netherlands can be seen as very mature and evolved, in contradiction to the economy of Indonesia who is just starting to heating up.
    How to speed up is just as it says: how to increase the economic growth. India has a growth of 9.3%, China even more. Maybe these two countries are a reference frame?



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    AnisJ
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  • ".... look at the link .... "

  • Like INDOnesia these two countries are 'developing' so 'dynamic' ....... so not steady in their process, what will be their max's or min's ..... nobody is able to tell ..... yet ...




  • 'Ahu kura ahia, mansia nia'

    AnisJ
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    On 31-08-2007 20:09 JohanN wrote:
    Anis, in my opinion you are completely wrong.
  • You compare something like a geographical parameter. This is totally wrong. Everybody knows that for example the economy of Singapore is much more stronger than that of Poland. (.......)
  • And you try to compare Indonesia with the Netherlands? What do you mean? If so, this again is not correct: the economy of the Netherlands can be seen as very mature and evolved, in contradiction to the economy of Indonesia who is just starting to heating up. (......)
  • How to speed up is just as it says: how to increase the economic growth. India has a growth of 9.3%, China even more. Maybe these two countries are a reference frame?


  • Dutch Anis yth.,

    It is like the Dutch football competition ...... there are, as you know three/3 leagues:
  • professional league,
  • first/1 rst league,
  • second/2 nd league.


    Every body is performing in his own league, but 'all their mindsets' are for the professional league .... there is where the big money is .......


  • Meaning INDOnesia could compare themselves economically with with India & China how they are performing (their own league), but all the three have 'their mindsets' on EEC & America including Japan ...... including Singapore.

  • What h'd made you think I was comparing INDOnesia with the Netherlands previously ....... Emoticon: Confused Emoticon: Confused
    The local market , I was talking about was pasar senen in Jakarta ....



  • 'Ahu kura ahia, mansia nia'

    sebastian
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    Interesting topic.

    Im very suprised about this article, what countrys is Indonesia importing from?

    Importing certain fruits & Vegetables from China for example I can understand as it has a cooler climate suitable for growing fruits & vegetables that can not be grown in Indonesia or even if they can the quality is lower because the plants are not ideal for the climate, or if the plant can be grown and does fruit (often only in higher altitudes) the plant strain has been selected because it does grow and fruit in Indonesia, wheres grown in its ideal climate the plants strain will be selected for the size, taste, look,colour of the fruit or vegetable, hence a better quality product.

    But importing fruits or vegetables that are suited to the climate from say a place like Thailand...thats crazy.

    One other thing that suprises me, Living in Australia we have a problem with water, we dont have enough of it, our labour(picking) cost are high, hence we import a lot of things including fruits and vegetables, however it never seems to be from Indonesia, often Thailand even Brazil, Indonesia being so close with labour cost so low, fertile land, regular rain fall, you would think Indonesia would be a major supplier?

    I dont get it?





    JohanN
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    Hi Sebastian, producing is one point, getting it somewhere else is another thing. It has a lot to do with the infrastructure in Indonesia. Besides the very bad conditions the roads and airports are in, it lacks also efficient procedures to increase the logistic performance. In this, I refer to the three things which need to be solved in order to speed up the economy, one of them is improving the infrastructure.
    Cheap labor is only a part of the price you have to pay. A reasonable part of it consists of logistic cost. A good example of this is Tanjung Priok, which has one of the highest prices in south east asia for embarking with vessels, besides very bureaucratic procedures and old equipment.



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    AnisJ
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    Johann yth.,

    Isn't there some similarities between agricultural producers (farmers) & consumers, whether they are in the so-called 3 rd World or 1 st .... I mean they both have 'problems' with their 'intermediars' ...... I'd heard about this book of Dick Barrez on the radio ....


    Milieubewuste parlementsleden bereiden G8 top voorKritiek op ESA .

    Rijkdom gebouwd op afscherming van landbouw.

    Nog altijd leeft vrijwel de helft van de wereldbevolking op het platteland. Nog altijd werken vier op tien mensen als landbouwers of landbouwsters en is dat het meest beoefende beroep.
    Dan kan de landbouweconomie cijfermatig onooglijk lijken in de ogen van vele mensen in rijke landen. Maar ze is en blijft van levensbelang. Voor iedereen trouwens, want eten moeten we allemaal doen, het levert onze energie zonder dewelke we niet kunnen leven.
    En zeker voor de allerarmsten. Want van de 865 miljoen mensen de honger hebben, zijn er 600 miljoen zelf boer. En voor 2,5 à 3 miljard mensen is het hun economisch bestaan.

    Het is waar dat de markteconomie veel welvaart kan creëren. Maar wat we veel te weinig beseffen: als het over landbouw gaat, creëert ongeremde vrije markt en globalisering chaos. Puur economisch vormen voedsel en landbouwproductie een uitzondering waarbij markten onvoldoende goed werken, zeker niet de wereldmarkt die altijd naar de onleefbare laagst mogelijke prijs duwt. Het spijtige resultaat is altijd toenemende armoede en economische achteruitgang in de meeste plattelandsgebieden op aarde. Zo ruïneert de markteconomie het leven van talloze mensen en creëert honger.

    Voedsel en landbouw zijn om tal van redenen – economisch, ethisch, politiek, humanitair, cultureel, zelfs strategisch… - een goed dat je niet volledig uitlevert aan de grillen en grollen van de markt, zeker niet de wereldmarkt. Het is trouwens opvallend dat alle rijke landen hun landbouw afschermen en beschermen, en het belet hen niet om welvarend te zijn. Meer nog, alle rijke landen hebben hun welvaart opgebouwd en hebben zich geïndustrialiseerd op basis van een productieve landbouw en een platteland dat niet aan zijn lot werd overgelaten maar de eerste afzetmarkt vormde voor de nieuwe fabrieken.

    Indien wij op deze wereld voldoende voedsel willen, voedsel dat tevens veilig is om te eten, milieuvriendelijk ook, dus op duurzame wijze voortgebracht, met behoud van de cultuurlandschappen en met respect voor de plattelandstradities, dan moeten wij de landbouw respecteren. Dan moeten wij die landbouw vooral organiseren en beschermen binnen de Europese markt, binnen de Westafrikaanse, de Zuidamerikaanse, Zuidaziatische en andere regionale markten. Want denk vooral niet dat Toscane of Dordogne, streken die vele mensen heel aantrekkelijk vinden, mogelijk zouden zijn in een volledige vrije wereldlandbouwmarkt. Dan moeten de boeren op die regionale markten een leefbare prijs krijgen voor hun producten. Dan moeten ze fatsoenlijk vergoed worden voor alle prestaties die ze leveren voor de ruime samenleving en het milieu.

    Hier wringt echter het schoentje. Mag dat wel? Mag dat van de Wereldhandelsorganisatie? Mag dat onder bestaande en toekomstige vrijhandelsakkoorden? Amper of zelfs niet. Maar dan zijn dit allemaal redenen om landbouw niet toe te vertrouwen aan de Wereldhandelsorganisatie of andere vrijhandelsakkoorden.

    Er is nog meer. We moeten allemaal kiezen. Geven we vrij spel aan een mondiale industriële landbouw die de machtsgreep ondergaat van de grootdistributie? Of geven we voorrang aan een familiale landbouw die vooral lokaal en regionaal is en die een paar miljard mensen opnieuw levenskansen geeft doordat ze een eerlijke prijs krijgen voor hun werk, en doordat ze de productie, verwerking en distributie meer zelf in handen nemen of er minstens meer greep op krijgen? Samenleving, consumenten en boeren hebben er alle belang bij om samen te ijveren voor deze leefbare en duurzame landbouw.

    Dirk Barrez

    Dirk Barrez is de auteur van de filmdocumentaire Koe 80 heeft een probleem en van het gelijknamige boek dat midden september verschijnt – meer informatie op www.pala.be/

    Dit bericht was geplaatst op mei 31, 2007 om 10:10 am en is gearchiveerd onder ARGUSfilmforum, Koe 80. Je kan de reacties hierop volgen via de RSS 2.0 feed.
    Bron: www.argusmilieu.info/blog/?p=177






    'Ahu kura ahia, mansia nia'

    JohanN
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    AnisJ, what do you mean?


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    dirgantara
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    You are right mr JohanN.

    The central goverment has to facilitate and subsidize, increase or revive some import taxes (on cars). And some programs under the Soeharto administration were not that bad. Indonesia should return to a more rightwing minded nation with policies not to protect and serve the presidential family but to protect the Indonesian market.



    On 17-08-2007 21:23 JohanN wrote:
    I think the issue we see in the retail in Indonesia is exactly the problem which has to be solved. The problem lies in the fact that the domestic production is not enough to fullfill the domestic requests. In this article it goes about fruits, but it is the case in a lot of product categories (cars, rice, textile, electronics). Fortunately, the article gives also 3 things to improve in order to solve the problem:
    1. Improve education / knowledge / skills (improving right now because of gradually better and cheaper education);
    2. Improve infrastructure (one of the hot issues of SBY this period);
    3. Improve financial services (micro credits). Still to be done; banks are not willing to give credit to small enterprises (like farmers) because banks lack a good system for risk management, they simply have no knowledge to judge (small) enterprises based on a kind of a risk system. BUT, since the crisis in 1998, banks and insurance companies are improving and implementing risk management procedures in their companies. In a few years, I hope they can use these models also for small enterprises.

    In short, this is my positive view on the economy in Indonesia.








    For a technocratic Indonesia with foreign investors but not foreign owned Indonesian companies

    Jantje
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    Johan wrote:

    1. Improve education / knowledge / skills (improving right now because of gradually better and cheaper education);

    Which should include: CUSTOMER is always king. This would mean a dramatic mentality change. I don't see that happen in the near future.



    andre
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    OK, I allready posted this in this topic, but since it's relevant to this topic also:

    What the government (local and national) should do is use the poor as a workforce that can solve major problems in the country. The hoover dam (1930) was such a project in the US. Later President Roosevelt presented the new deal policy, which included all sorts of projects such as The Civilian Conservation Corps, which sent young unemployed people to rural areas to plant trees against erosion. (Kalimantan could use a project like that).

    Why not solve the floods in Jakarta this way. Or improve the infrastructure?



    AnisJ
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    JohanN

    AnisJ, what do you mean?

    Posted Removed to prevent your adress from being spammed. Click this to go to the user profile. 13-09-2007 18:28


  • Actually the R.I.-gouvernment should protect national small producers, especially against big industrial producers and facilitate them with:

  • 'low intrest capital',

  • logistically, transportation, possibilities to keep food fresh, etc.

    on the long term the country will benefit from these 'national small producers' instead of those big, moreover industrial producers .....

    The relationship of comparison with the Netherlands is the recent 'prijzenoorlog/price war' of the Dutch supermarkets, actually on the long term it will not be the benefit for Dutch consumers; on the short term it is ..... but at the moment (some say the 'price war' is ended) the consumer prices are going up ..... so on the long term the consumers are the loosers ..... besides the 'price war' was for the 'big supermarkets' a question of sheer power to gain bigger market-shares , for some were 'dimished' in their commercial competitiveness ......


    For consumers it is important, that small producers are protected against big industrial producers, it is in their own interest ....






  • 'Ahu kura ahia, mansia nia'

    JohanN
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    Hi Anis, you are right on the subject of the domestic market; small and medium enterprises make economic growth possible in terms of a decreasing jobless rate and more more revenues and sellings. This could indeed increase the economic growth rate. Another benefit of growth of SME´s is the fact that it decreases the posibility of corruption, or, in more positive words: increase the efficiency in doing business: smaller business are often more flexible and accurate in doing business. BUT financial services have to improved.
    On international level, this will not work. Small companies, especially the ones in Indonesia with a lack of knowledge about how to export, can not compete with the big international companies (from Indonesia).

    I have a lot more on these subjects, but I´m tired so I go to bed now.


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    AnisJ
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    On 17-09-2007 23:39 JohanN wrote:

  • Hi Anis, you are right on the subject of the domestic market; small and medium enterprises make economic growth possible in terms of a decreasing jobless rate and more more revenues and sellings.
  • This could indeed increase the economic growth rate.
  • Another benefit of growth of SME´s is the fact that it decreases the posibility of corruption, or, in more positive words: increase the efficiency in doing business: smaller business are often more flexible and accurate in doing business.
  • BUT financial services have to improved.
  • .......... (beneath) .....
  • Small companies, especially the ones in Indonesia with a lack of knowledge about how to export, can not compete with the big international companies (from Indonesia).

    I have a lot more on these subjects, but I´m tired so I go to bed now.



  • "On international level, this will not work."


    Why .... INDOnesia has certain potentials what other Asian countries have a shortage of .... besides China & India ..... they have people of INDOnesian origin abroad in Europe & USA .... they are having communities of INDOnesians .... besides more products are 'common' to those continents and they have 'ambassadors' (people with INDOnesian relations) ......


    'Ahu kura ahia, mansia nia'

    JohanN
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    Anis, if that was the case (I mean, doing business based on the contacts which are indonesians living abroad), this would have already happen, but it did not.


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    AnisJ
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    My favourite super-market: the German Aldi brothers, I found some ...... ananas from INDOnesia, chips (sweet patatoes) ... zum beispiel ....


    'Ahu kura ahia, mansia nia'

    JohanN
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    Anis, please be more specific. You mean that the Albrecht Family is Indonesian? (Aldi is an abbreviation of Albrecht Discount)


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    AnisJ
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    Dutch Anis .... rumbut putih berapa ??? .... baca betul Emoticon: Wink Emoticon: Wink

    .... how many grey hairs have you got already ...... Emoticon: Cry Emoticon: Cry Emoticon: Sadley Emoticon: Sadley Emoticon: Shiny Emoticon: Shiny


    'Ahu kura ahia, mansia nia'


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