Kadin Chairman Rosan Roeslani Claims The Food Sector Can Reduce Unemployment

JAKARTA - Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Rosan Roeslani claims that the food sector is able to reduce the number of open unemployment. Therefore, the development of the food sector must be prioritized.

"Observing the high demand in the food sector at home and abroad, this sector has great potential for growth. Therefore, the growth of this sector needs to be given priority in the future. Because the food sector can be relied on to reduce the number of open unemployment," he said at the event. Jakarta Food Security Summit 5, Wednesday, 18 November.

Not only that, Rosan also said that the food sector can improve the welfare of society and alleviate poverty.

According to him, in the last few years, Indonesia's economic growth has been very good, around 5 percent. However, this year Indonesia entered the COVID-19 pandemic, Indonesia experienced a devastating shock that hit almost all aspects of life.

Indonesia has officially entered recession. This is because Indonesia's economic growth in the second quarter and third quarter contracted by 5.32 percent and 3.40 percent, respectively. Even so, said Rosan, the contribution to growth and distribution of gross domestic product (GDP) shows an improving trend. So that this will be an important capital to improve economic growth in the fourth quarter of 2020 and 2021.

"The contraction in national economic growth has certainly increased open unemployment, from 5.23 percent in August 2019 to 7.07 percent in August 2020," he explained.

Kadin highly appreciates the government's steps in mitigating the impact of the health and socio-economic crisis due to COVID-19, including providing stimulus for direct cash assistance and social assistance, accelerating the distribution of people's business credit (KUR).

Including supermicro KUR for housewives and victims of layoffs, relaxing the postponement of KUR principal installments, additional KUR interest subsidies, providing tax incentives for MSMEs with a turnover of below IDR 4.80 billion per year, relaxing and restructuring MSME loans, and providing stimulus for workers.

"But it will be even more perfect if it is accompanied by prioritizing food development, because this can also reduce unemployment," he said.

The Indonesian Chamber of Commerce and Industry proposed an Inclusive Closed Loop (ICL) concept which has been proven to increase food productivity and the welfare of oil palm and chili farmers.

"Kadin hopes this concept can be applied to other food commodities, so that it can help grow the national food sector," he said.

Rosan also hopes that the presence of Law No. 11 of 2020 on Job Creation will further facilitate efforts to restore the national economy. The Job Creation Law is a major step and a breakthrough to create a conducive business climate so that it can increase investment flows and create jobs as well as reduce unemployment and improve people's welfare.

"This law will stimulate the activities of the business world which can further accelerate and grow the national economy," he said.