Been enjoying our Fixing Aid podcast? We'd love to hear from you!

  1. Home
  2. Asia
  3. Indonesia

Agriculture expansion plan under fire

A Papuan woman carrying her son in Papua. The region is one of Indonesia's poorest. Approximately 35 percent of the Papua's 2.6 million inhabitants live below the poverty line
A Papuan woman carrying her son in Papua (Jefri Aries/IRIN)

The Indonesian government's plan to develop a food estate in Papua has come in for heavy criticism for potentially marginalizing small farmers and threatening the environment.

The government hopes the 1.6 million hectare Merauke Integrated Food and Energy Estate in Merauke District will turn Indonesia into one of the world's biggest food producers.

The project will need between 50 and 60 trillion rupiah (US$5.5 billion-$6.6 billion) in initial investment and is expected to create thousands of jobs, Deputy Agriculture Minister Bayu Krisnamurthi said.

Some 36 local and foreign companies have expressed interest and the government will spend between 2.5 and three trillion rupiah on infrastructure, he said.

"We need major investors to come in first," Krisnamurthi told reporters this month.

Crops to be grown include rice, sugar cane, soya beans and maize, he said.

NGO activists have rejected the plan, saying the estate could bring more harm than benefit to the local population.

"Food is not just a commercial commodity but is also a basic human right, and leaving food provision to the private sector can hinder people's access to food because corporations are driven by profit," Elisha Kartini, an activist from the Indonesian Farmer Union (SPI), told IRIN.

The Papua region, comprising most of the western half of the island of New Guinea, is divided into two provinces – Papua and West Papua. They are the poorest of Indonesia’s 32 provinces, with 35 percent of its 2.6 million inhabitants living below the poverty line, according to the National Bureau of Statistics, against a national poverty rate of 14.15 percent in 2009.

A traditional food market in Papua, one of Indonesia's poorest regions

Jefri Aries/IRIN
A traditional food market in Papua, one of Indonesia's poorest regions ...
http://www.irinnews.org/photo.aspx
Friday, March 26, 2010
Economic marginalization fuelling conflict in Papua
A traditional food market in Papua, one of Indonesia's poorest regions ...

Photo: Jefri Aries/IRIN
A traditional food market in Papua, one of Indonesia's poorest regions

Competition

Indonesia's leading environmental group, Walhi, warned that the project would amount to a land grab and cause local farmers to suffer because they would be unable to compete with major corporations.

"The foundation of our food security is still vulnerable," Muhammad Islah, Walhi's water and food campaigner, told IRIN

"Farmers are still struggling with scarcity of land in the face of market liberalization and government policy unfavourable to small farmers," he said.

"If this project goes ahead, it would amount to legalised land-grabbing when domestic and foreign businesses are allowed to compete with small farmers."

Agriculture Minister Suswono said Indonesian companies would control interests in the estate and foreign ownership would be limited to 49 percent.

Deputy Minister Krisnamurthi said the estate was expected to contribute one million metric tonnes in rice production annually and between 800,000 and 1.2 million metric tonnes of sugar. Indonesia produces about 60 million tonnes of rice annually.

Coordinating Minister for the Economy Hatta Radjasa said the project would start this year but details were still being worked out and tried to allay fears that it would damage the environment.

A local Papuan man tends to his sweet potato plants on a hillside in Papua

Jefri Aries/IRIN
A local Papuan man tends to his sweet potato plants on a hillside in Papua
http://www.irinnews.org/photo.aspx
Friday, March 26, 2010
Aid access challenges for Indonesia's Papua region...
A local Papuan man tends to his sweet potato plants on a hillside in Papua

Photo: Jefri Aries/IRIN
A local Papuan man tends to his sweet potato plants on a hillside in Papua

"We have to really make use of idle land, so forest areas must remain intact and deforested areas will be converted into plantation areas," he said.

Environmental threat

But Walhi warned that the estate would threaten the ecosystem and its ecological balance.

"Large-scale land conversions in Merauke, which consists of predominantly low-lying land and marshes, could cause it to lose its land areas," Walhi said in a statement. "The decrease in forest and water catchment areas could result in a faster intrusion of sea water to the land."

The West Papua Advocacy Team, a Papuan pressure group, said the plan entailed an expansion of Merauke's population of some 175,000 people to up to 800,000.

The group warned that the project would likely involve a state-supported inflow of non-Papuans along the lines of decades of "transmigration policies" adopted by the government of former president Suharto.

The policy has in the past been blamed for ethnic conflict in the Indonesian part of Borneo and Sumatra islands.

"That conflict has arisen as local populations are marginalized in their own homelands as government supports programmes that favour the internal migrants to the disadvantage of locals," the group said in a statement.

"There is growing opposition to the scheme from small-scale Papuan farmers who say they fear their traditional livelihoods will be threatened by the large-scale, state-subsidized commercialization of agriculture," it added.

ap/ds/mw


This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions

Share this article
Join the discussion

Right now, we’re working with contributors on the ground in Ukraine and in neighbouring countries to tell the stories of people enduring and responding to a rapidly evolving humanitarian crisis.

We’re documenting the threats to humanitarian response in the country and providing a platform for those bearing the brunt of the invasion. Our goal is to bring you the truth at a time when disinformation is rampant. 

But while much of the world’s focus may be on Ukraine, we are continuing our reporting on myriad other humanitarian disasters – from Haiti to the Sahel to Afghanistan to Myanmar. We’ve been covering humanitarian crises for more than 25 years, and our journalism has always been free, accessible for all, and – most importantly – balanced. 

You can support our journalism from just $5 a month, and every contribution will go towards our mission. 

Support The New Humanitarian today.

Become a member of The New Humanitarian

Support our journalism and become more involved in our community. Help us deliver informative, accessible, independent journalism that you can trust and provides accountability to the millions of people affected by crises worldwide.

Join