cond='data:blog.url == data:blog.homepageUrl'> Lampung and Agribusiness: Tulangbawang, Sumatra
  • Breaking News

    23 Juli 2007

    Lampung and Agribusiness: Tulangbawang, Sumatra

    By Oyos Saroso H.N.

    Located in the northernmost region of Lampung province, the regency of Tulangbawang boasts a long and glorious history that has left no trace of itself in our present time. The Tulangbawang Kingdom existed back in the 7th century, as recorded by the China Chronicle, with Menggala as its central city. The kingdom’s remains, however, have long disappeared.

    During the Dutch administration, and even under the New Order regime, the old city slept, untouched by development and was left in isolation. It was once a busy trading center from which foreign ships arrived and departed often with Lampung’s rich spices and harvest on board.

    But the regency, which is home to among the poorest of residents in the province, is set to break the cycle of poverty with a newly-launched, integrated township project. It is hoped the area will become a center for agricultural business.

    The regency covers over 7,700 square kilometers, or 22 percent of Lampung. It was formerly considered an unimportant part of the province until things changed in 1997 when North Lampung was divided into three regencies, one of which being Tulangbawang, with Menggala as its capital.

    Former regent Santori Hasan and incumbent Regent Abdurachman Sarbini busied themselves preparing Menggala’s future, digging up resources that could lure potential investors. Revenue that stood at Rp 1.5 billion (US$163,043) in 2002 soon climbed to Rp 14 billion.

    Today, the regency plays host to 24 multinational companies, including cassava flour and palm oil producer PT Bumi Waras, shrimp farm company PT Dipasena Citra Darmaja, sugar producer PT Silva Indo Lampung, palm oil plantation owner PT Silva Indah Perkasa and rubber producer PT Huma Indah Mekar.

    Large companies such as these give little, however, to development in Tulangbawang, with contributions totaling only Rp 7 billion a year. Under these circumstances the regency continued to struggle in its attempts to help its residents escape poverty.

    Even with Rp 572 billion in assistance from the state budget, the regency’s administration was still unable to build adequate roads and infrastructure, which meant that both rice and cassava farmers were left without a say on the prices of their products.

    The situation prompted the Lampung Statistics Agency to release data in September 2006, which revealed that 322,353 of some 700,000 residents in the regency still lived under the poverty line.

    Hope for progress in turning Tulangbawang into an agriculture-based regency and thus alleviating hardship there came with the launching of the independent and integrated township project by the central government in March this year.

    The plan is to transform a collection of former transmigration villages into an integrated town that will eventually turn into an agriculture-based town.

    Tulangbawang Regent Abdurachman Sarbini said the integrated town’s center is Tanjungmas Makmur village in Mesuji district, home to 68,000 residents who transmigrated predominantly from Java and Bali.

    The Mesuji township covers 20 transmigration sites and six villages outside the transmigration areas. Those living in the area grow corn, palm oil, rubber and rice in cooperation with private companies, while at the same time prepare services for the economy and social activities.

    The development concept blends spatial planning, population management and people’s empowerment, as well as sustainable natural resource management, in the hope of boosting economic growth for the villagers, as well as for other nearby residents.

    The construction of infrastructure and general development in the integrated township should take between 10 and 15 years to complete. This is quite a short period of time compared to the usual 25 to 30 year period the process usually takes.

    For the plan, the regency’s administration has set aside Rp 10 billion, the Lampung administration Rp 21 billion — Rp 8 billion to develop four poor villages and Rp 14 billion to build community health centers — and Rp 200 billion has been allocated from the state budget.

    “A total amount of money needed to build the new village might reach into trillions of rupiah. The fund is covered by the regency’s administration, the Lampung provincial administration and 14 government offices,” Abdurachman said.

    The integrated township is a national project which was initiated following a conclusive study.

    Other candidates for the integrated project included Rupat Island in Riau, Morotai Island in North Maluku, Rantau Pulang and Kaliorang in East Kalimantan, Mandastana in South Kalimantan, Rasau Jaya and Terenteng in West Kalimantan and the district of Mesuji in Lampung. Mesuji was finally given the nod after being considered the most prepared for the massive undertaking.

    Abdurachman said the project was designed and implemented by the central government. The Education Ministry is involved in building schools, the Energy and Mineral Resources Ministry will set up electricity grids and the Public Works Ministry will lay roads.

    To mark the beginning of agriculture-based production in the township, Manpower and Transmigration Minister Erman Suparno is scheduled to help harvest soy, rice and corn on April 3 on a 6,000-hectare plot of land.

    “One hundred percent of land belongs to the people. For the marketing, we’re opening up avenues by inviting big buyers from Jakarta and overseas,” the regent said.

    With the township project underway, foreign investors have started paying attention to the regency. One of these, South Korea-based PT Ingen Company, plans to build an ethanol plant with total investments worth up to Rp 10 trillion over 30 years.

    As much as Rp 600 billion from the investment will be used to construct Gedongmeneng Port. The port is expected to ease the traffic of agricultural products and ethanol from Tulangbawang to Jakarta and overseas.

    “The company needs 200,000 hectares to be planted with cassava (to produce ethanol), but so far we have only prepared 60,000 hectares,” said Abdurachman, who regularly travels to Jakarta in search of investors.

    He said business with Ingen would benefit cassava farmers because of the ethanol producers involvement in profit-sharing schemes.

    “If farmers usually earned between Rp 3 million and Rp 5 million per hectare, they could now get Rp 12 million per hectare annually since they will be planting top cassava seedlings,” he said.


    Sourcer: The Jakarta Post, April 3rd, 2007
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