Moving its capital city, Indonesian business elite eyes agribusiness

reported by: Setiawan Liu

Jakarta, October 12, 2019/Indonesia Media – Indonesian business elite has anticipated the plan of shifting the government’s administrative functions from Jakarta to a yet-to-be-built city in Kalimantan, more than 1,000km away, and how they can improve portfolios or added dimension to the national economic. one of the members of the business elite is frequently on the move, and has a strong need for agribusiness. “There are 50.000 hectares in Kalimantan, but we assume the land area suitable for cropping; 5.000-10.000 (between five and ten thousand) hectares in Kalimantan,” said member of the elite, Jamie Zhang.

Kalimantan itself is the Indonesian portion of the island of Borneo, which is also shared with Malaysia and Brunei. However, Jakarta will continue to be the nation’s commercial and financial centre, and it is believed that the majority of its nearly 10m residents would stay in Jakarta. Moving the capital would cost 466 trillion rupiah ($32.7bn), of which the state would fund 19%, with the rest from public-private partnerships and private investment.

According to her, coconut plantation usually takes longer years. But there are many solutions such as growing corn, banana in the middle of coconut, that area will be productive. “We can generate income,” she said. Another business plan is the company will produce coconut shell charcoal briquette. The market is prospective. If there is a partner for funding, the prospect will be more promising. It will be a very good opportunity. “The contract for sale is ready too,” she said. So far, the company will be able to produce only 250 tonnages from 1000 tonnages committed order.  The funding institution in which the business equity may considered. The land can be used as collateral for funding institution.

In the middle of coffee plantation, she can grow corns which they will harvest in 3 – 4 months. Since coffee production takes much longer (three years), that she can not wait. “Growing corns in the middle of coffee is the solution,” she said. Besides, land consession is another solution for funding institution. The land can be used as collateral. The most important thing, that sales order or contract for corn sale is ready

There is always an innovation which involves developing new products or improving technologies to reach new customers in foreign countries including Middle East Countries such as Qatar, Kuwait. “I am marketing hydroponics in Middle East countries at the moment. with funding institution, the company may achieve the alignment, profit sharing basis cooperation. The percentage may be 40 : 60, but the operation is in foreign country,” she said.

She reiterated that all of agricultural products derived from hydroponics, will be sold in retailers in foreign countries, including Qatar and Kuwait. If she establishes joint-venture scheme, the company can bring in Indonesian market, offering to Middle East, but not full funding. “We support and share Indonesian hydroponics. If the percentage is around 30 percent, Indonesian can be either a sole distributor, producer or seller. We can find partner too,” she said. (sl/IM)