JEDDAH, 29 May 2005 — Indonesia yesterday sought assistance from the Islamic Development Bank (IDB) and investment from Saudi businessmen for developing its agricultural infrastructure. Indonesian Agriculture Minister Anton Apriyantono, who held a meeting at the IDB with its senior officials, was on the last leg of his tour of Saudi Arabia. He earlier visited Riyadh where he met with his Saudi counterpart Dr. Fahd Belghaneim.
Apriyantono expressed the need for soft loans for building agricultural infrastructure during his meeting with senior officials of IDB. “We’ve been seeking IDB funds from G2G (government to government). We now seek its funds for the private sector,” he told reporters. “Our need to develop agricultural infrastructure is for $1.5 billion, but we’ll be happy to receive whatever IDB advances in the form of soft loans,” he said.
“We signed the first memorandum of understanding related to agriculture with the Kingdom in 1977, but no follow-up was done since then,” he said, adding that his current visit was meant to sign a new MOU with a view to further strengthening bilateral trade relations,” the minister said. Apriyantono pointed out that more than 50 percent of Indonesia’s 220 million population were engaged in agriculture, and so the farm sector remained the largest among all sectors in the Indonesian economy. “It has, in fact, been the engine of growth for Indonesian economy. The national economic development policy has, therefore, placed agriculture development on priority and it is the prime mover of the national economic growth,” he added.
“With our vast range of agricultural and horticultural products, especially sugar, palm oil, fruits, tea and food industries, we’re confident of forging close cooperation with the Kingdom through joint projects. We’re aiming to establish joint ventures in the agricultural sector and invite Saudi investors to cash in on the vast potential that exists in our country,” the minister said.
“With our expertise and skills in agriculture, we’re looking for participation in the Kingdom’s agricultural development,” he added. He mentioned that many Indonesian expatriates were employed in the Kingdom’s agricultural sector, especially in Tabuk where they are working in greenhouses. “Once I return home, an invitation will be formally sent to the Saudi agriculture minister to visit and see our progress in agriculture,” he said. In fact, the Indonesian Ministry of Agriculture has determined agribusiness as a “grand strategy” for agriculture development. Apriyantono termed his visit to the Kingdom as “highly successful,” as he could interact with ministers and senior officials as well as top businessmen.
He said there was tremendous response to some of his proposals from the local business community. They include establishing joint projects with investments, especially in breeding fish and shrimps, agricultural research and development, exchange of visits between specialists and experts, and management of animal resources — management of animal diseases in particular.