December 7, 2018
Indonesia’s Ministry of Agriculture recently borrowed 10,000 tons of corn from Charoen Pokphand Indonesia and Japfa Comfeed Indonesia to help layer farmers who have been hit hard by the skyrocketing price of local corn and its limited supply. Commenting on this, Enny Sri Hartati, Director of the Institute for Development of Economic and Finance, said the government’s move to borrow corn from these companies may not augur well for the investment climate in Indonesia. “People who want to invest in the livestock industry will think twice,” she said. On the other hand, the ministry does not want feed millers to import corn because it still claims that this year’s surplus of local corn production is almost 13 million tons. However, by borrowing corn from the private sector, many industry players are now questioning the corn surplus claim.