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Foreign Companies Dominate Local Crop Seed Market

10 April 2014 12:46 WIB

Proses kultur jaringan pada bibit tanaman kentang di laboratorium Kebun Benih Hortikultura Kledung, Jateng, Senin (10/11). Di tempat ini telah dikembangkan berbagai varietas kentang. ANTARA/Anis Efizudin

TEMPO.CO, Jakarta – Indonesia for Global Justice (IGJ) researcher Rachmi Hertanti said 90 percent of the domestic horticulture market is controlled by foreign companies. Even so, she said, the government still relies on imported food.

IGJ noted the value of food imports continues to surge from US$5.94 billion in 2009 to Rp12.05 billion in 2012.

Therefore, IGJ agrees with the Horticulture Act that restricts foreign investment in the seed business. IGJ believes that the Constitutional Courtshould not grant the judicial review conducted by the Indonesian Seed Producers Association (Hortindo) against the law.  

Hortindo filed a judicial review of Law No.13/2010 on Horticulture to theConstitutional Court, rejecting the restriction of foreign investment inIndonesia's crop seed business.

Separately, director general of horticultures at the Agriculture Ministry, Hasanuddin Ibrahim, said that foreign companies have an equal market share with domestic companies. "The proportion is roughly fifty-fifty," he said.

Agricultural analyst from the Indonesian Political Economy Association, Khudori, said that huge investment is a major issue in the domestic seed industry. To that end, the industry is often forced to work with foreigners. "The government should play a role here; to help the development of local seed," he said.

AYU PRIMA SANDI | ALI HIDAYAT



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