Syndicate 7

Beatus Edoway
Eko Ontorjo
Adji Priambudi
Hanjas Putra
Aleksander Purba

MM5006_Business Economic

McKinsey Report
Unleashing Indonesia
potential

Agricultural & fisheries

Challenges :
1. Demand of Agriculture and Fisheries
Will Sharply Increase.
2. Decreasing number of Farmer due to
Urbanization.
Improve
Productivit
y of
Agricultura
l product

GDP
Increase

Poverty
Decrease

Strategy Increasing agriculture and

fisheries

Increase smallholder yields

Shift high-value crops
Increase commercial yield
Cultivate low-carbon unused land
Increase fisheries production
Reduce food losses and waste

Increase commercial yield

Currently
Oil palm sector
2,3 ton per hectare/year < 8 ton per hectare/year
Problem
Poor irrigation system
Lower-Yielding Cultivars
Under investment in fertilisers
Suggestion
Improving management commercial farm
Creating awareness about value lost
Genetic Varieties (R&D)
Investing new varieties & sharing intellectual right

Cultivate low-carbon unused land

Currently
22 Million hectares of land
35 % at Kalimantan, 15% at Papua
30% could be used as agriculture production
Problem
Land used was abandoned
No info for unused land
Low investment
Suggestion
Degraded land bank
Overview land
Reducing emission
Reducing forest degradation
Reform of land-titling

Increase smallholder yields

Current yield levels are low less optimal farm management and
unfavorable economic condition.
The management of smallholder farms constrain :

Technology

Extension Services

Access to Credit
Irrigation System

Infrastructure

Producing Higher-Value
Crops
High valuable Crops :
- Oil Palm
- Fruit
- Vegetable
Major Challenges :
1. Marketing
2. Cold Supply Chain
3. Low R n D Budget

Horticulture

Thank You