Prospect and Challenge for Investor in Agriculture Sector During Pandemic

UNS – The Agribusiness Study Program, Faculty of Agriculture (FP), Universitas Sebelas Maret (UNS) Surakarta held a webinar on the prospect and challenge for investment in the agriculture sector during the pandemic and new normal era. This event was held on Wednesday (15/7/2020) through the Zoom meeting and live streaming in the Faculty of Agriculture Youtube account. In this webinar, the FP UNS invites three speakers, the Industry Planning Director of for Agribusiness and Other Natural Resources, Zainal Mutaqin, the Chair of Indonesia Agribusiness Association, Dr. Bayu Krisnamurthi, and lecturer of Agribusiness FP UNS, Dr. Minar Ferichani.

Zainal Mutaqin delivers material on Government Policy to Support Investment in Agriculture During the New Normal Implementation. “Currently, the economic sector growth in Indonesia is only 2.97% and Foreign Direct Investment (FDI) Global also predicted to decrease by 30 to 40%. Moreover, the realization of Foreign Investment in the Q1 also decreased by -9.2%. Even further, there are 5.5 million of Indonesia’s Migrant Workers laid off and sent home,” he reveals.

Zainal also explains that Indonesia’s economic growth in the first quartal 2020 is slower along with the restriction of economic activity in the midst of the pandemic. During the new normal, BKPM has several plans to be implemented, “We are arranging investment opportunities in 34 provinces nearing the Feasibility Study, Action Plan on Ease of Doing Business 2022, optimizing President Instruction No 7/2019 and Fiscal Incentive. Moreover, we also optimize the development of Risk-Based Approach OSS System in anticipating the implementation of Omnibus Law, facilitating industry relocation, and developing industrial region in Brebes and Batang,” he added.

On the next session, Bayu Krisnamurthi, reviews the Investment Agribusiness Development, Lesson Learnt from the Indonesian Agribusiness Revolution. Bayu explains that in agribusiness revolution investment, the subject matter must be clear such as paddy, palm, chicken, papaya, and other.

Dr. Minar Ferichani, in their presentation, discusses the investment opportunities in the agricultural sector through strengthening the supply chain subsector and building quality standards. Dr. Minar reviews the matter from an academics point of view, in order to improve universities’ role, detailing that higher education institutions need to prepare their students to conduct internships.

“University needs to establish an MoU for a continuous internship program for the students, where the MoU will ensure the quality of the company, continuous program for 1-2 years, and should ensure that the company can provide opportunities for internship in complete departmental element/component, therefore giving a useful experience for the students,” Dr. Minar states.

To implement this a tripartite collaboration between the university, Department of Industry, and Commerce or Regional Government, as well as listed companies, is needed. Humas UNS

Reporter: Bayu Aji Prasetya
Editor: Dwi Hastuti