Local Products Need to Strengthen Foundation

Outside a koisk in the Palmerah market, Jakarta, consumers might see a mountain of rambutans, the hairy fruit favored by most Jakartans. Inside of the kiosk, we will see guavas, Medan oranges, avocados, passion fruits, papayas, sour sops, bananas, etc. But, we will also apples, garpes, peers, shantang and lokam oranges.
Imported fruit colors the variety of fruit in most markets in Jakarta, especially with the China-ASEAN Free Trade Agreement (CAFTA) began to take place after January 1, 2010. With this agreement, imported products could enter both areas without import duties alias zero percent.
In the Plamerah market, imported products could offer competitive prices, or even lower, than the locals. Lokam orange in the market is sold between RP7,000 to 10,000 per kilogram. Now in supermarket could be sold sometimes under Rp5,000. Also shantang orange, before CAFTA, it was priced at Rp15,000. It now around Rp8,000-Rp12,000.
Palmerah market fruit trader Alfin Zulfa said that the prices of local oranges tend to be more expensive than the import ones. Local fruit prices decreased when they are in the season. The supply of imported oranges, however, has no season.
Currently, the price of oranges from China decreased quite a lot. Formaly, a nine-kilogram carton of shantang orange was picked up at between Rp80,000 and Rp90,000. Now it is down between Rp40,000 and Rp50,000.
“Yes, recently the price of oranges, like shantang is down a lot,” said Alfin.
Alfin buys Medan orange, a local product, with the C-class quality, at Rp6,000 per kilogram. He sells them at about Rp8,000. A- and B-class of Medan oranges purchased at Rp7,000-Rp8,000 per kg, and sold about Rp10,000 per kg. “The Medan orange is now considered a rather expensive product, especially it is not in their harvest season,” he said.
Alfin has been selling fruit for about 10 years at the palmerah market. Everyday he buys his fruit in the main market Kramat Jati, east Jakarta, where he can find both local and imported fruits. According to him, 10 years ago, he could already buy Chinese fruits. “Right now it has more and cheaper.”
With the price of imported fruit decreased significantly, many consumers are switching their options. However, consumers of local fruits are still a lot. “Today it is about fifty-fifty,” he asid, adding that CAFTA should encourage local farmers and traders to compete better.
Benny A. Kusbini, Chairman of the Indonesian Horticulture Council, said the impact of CAFTA will begin to be felt in the next six months. Lower-priced imports of fruit will invade the local market. “If the central and local governments don't act quickly, the death knell for the industry, agriculture, and unemployment will be great,” Kusbini said.
It's right time to strengthen the foundations of the country's fruits production. He recommended some measures which include an immediate reform of attitudes among local officilas and respective technical department by eliminating various illegal payments on the streets and in the sea harbors.
Kusbini also suggested the Indonesian government to improve infrastructures such as roads, irrigation, seaports, electricity, and communications. The Indonesian government should also encourage idle bank funding at around Rp850 trillion into the real sector.
The government should also develop cooperative and productive agricultural groups in rural areas. Last but not least, the government should start a serious effort on food diversification, from rice to local flours and tubers. “Then cultivate the love to use domestic products in all circles.”

sumber : Jurnal Nasional (March 1, 2010)