The Prospect and Direction of Agribusiness Development: Corn Crops

Today not only can be used for food as well as for feed. In the last few years the proportion of maize use by the feed industry has reached 50% of the total national needs. In the next 20 years, the use of maize for feed is expected to continue to increase and even after 2020 more than 60% of the total national needs.

Judging from the land and technology resources, Indonesia actually has an opportunity for self-sufficient corn and even a chance to become a supplier in the world market. The cheaper and more depleted the volume of corn in the international market.

Efforts to increase corn production in the country can be pursued through the expansion of cultivation area and the increase of the productivity. Area expansion can be directed to potential lands such as irrigated rice fields, rainfed paddy fields, and untapped agricultural land. Based on the widespread distribution of paddy fields and irrigation type, it is estimated that there are 457,163 ha potential for increasing the crop index. Outside Java there are 20.5 million ha of dry land that can be developed for corn farming.

In addition to expanding planting areas and improving productivity, corn development efforts also require increased production efficiency, strengthening of farmer institutions, improving product quality, increasing value added, improving market access, developing joint business units, improving the modified system, developing infrastructure, as well as regulation of trading and business incentives. In this connection, various support, including government policy support, is required.

From the technical aspect, the technology needed to support the development of maize are hybrid and superior composite varieties (including the use of biotechnology), among them have the tolerant of soil acidity and keingan, seed production source technology and seed system, technology efficient cultivation with integrated crop management approach (PTT), and postharvest technology to improve product quality and value added.

The investment required for corn development depends on achieving the desired target. In this regard, there are two national corn development scenarios in the 2005-2025 period. Scenario 1 or moderate scenario, production growth rate 4.24% / year. Scenario 2 or optimistic scenario, export volume increased to 15%. Investment requirement for corn development through scenario 1 and 2 in the period of 2005-2025 are Rp 29.0 trillion and Rp 33.7 trillion respectively. Investment costs include the expansion of planting areas on paddy fields, new land clearing (dry land) and infrastructure, seeding, extension, research and development. The proportion of investment is the responsibility of the community 4%, while the sourced from the government and private respectively with a proportion of 74% and 22%.

The policy required in corn development is the policy of development of investment incentives, financial institutions and capital, improvement of technological support that is ready to be applied in the field, improvement of human resource quality, agribusiness institute, marketing support, and support of regulation and regulation.

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