HARNESSING THE POTENTIAL USE OF IT/ICT IN AGRIBUSINESS DEVELOPMENT IN INDONESIA: The State of the Art
Presented by Professor Soekartawi, Indonesia
Wednesday, 21 May 2008, 1.30-2.30pm in Room B014
Abstract
Indonesia is an archipelago nation of more than 17 thousand islands and of over than 230 million people, making it the fourth most populous nation in the world. Indonesia has a well-balanced economy in which all major sectors play an important role. Agriculture has historically been the dominant activity in terms of both employment and output. The important of agriculture in the Indonesia economy may be explained among others are by its contribution to: (i) form the country’s GDP (14%), (ii) employ nearly 44% of the active population, (iii) provide domestic food consumptions, and (iv). reduce poverty.
Policy objectives of the Indonesian government are directed at increased efficiency and greater self-sufficiency in the agro-food sector. Food safety and security has become an important issue in the processing and distribution infrastructure of the agricultural economy. The government also promotes agro-enterprise and agro-food systems through agribusiness approach because it is a powerful source of economic growth, diversification and rural development.
The Indonesian government has also realized that application of powerful IT/ICT is the driving forces in worldwide agribusiness (particularly in agro-food industries) in the country. Therefore, it is believed that digital opportunities have emerged as ‘power tool’ not only for fostering economic growth but also agricultural growth, poverty reduction and sustainable resources use. In order to foster the positive impacts of digital opportunities through IT/ICT in agricultural development in the country, the government established of a new guiding body to provide strategic direction for the country’s IT/ICT development. The National IT/ICT Council Indonesia is chaired by the President and tasked to formulate IT/ICT policy.
In the Ministry of Agriculture, the national IT/ICT policy has been translated into the five years agricultural development plan, 2005-2009. Programs related to e-Agribusiness (printed, audio, video, computer and web-based technologies) have been identified in order to improve processes information dissemination, access, and exchange; and communication, participation, and network-building activities amongst stakeholders. As a results, the use of IT/ICT are able to reduce agricultural losses, forecast productivity, and enhance production with proper vertical integration of the production centers and the markets. The exploitation of the IT/ICT revolution has likewise made information on agriculture available worldwide and on demand. In fact in most cases, IT/ICT is intensively used in agricultural administration, research and development, extension, marketing, and managing farmers' organizations. Even though the use of IT/ICT in agricultural development is considered very fast in Indonesia, the remaining obstacles are computer illiteracy and unawareness about e-commerce, problems in connectivity, language problems, and load shedding of electricity. |
