Erick Thohir Calls The UAE Interested In Working On Food Estate Projects In Indonesia

SOE Minister Erick Thohir (photo: between)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir said that the United Arab Emirates (UAE) is interested in working on domestic food estate development projects.

In fact, Erick said the UAE has brought a large company called Elite Agro to invest in food estate development in the country.

"Well, one of the food estates that was discussed with the UAE. In fact, they have brought in a large company, Elite Agro, who wants to invest in our food estate," he told reporters at Hotel Four Season, Jakarta, Thursday, February 1.

Even though there are already countries that are interested in investing, Erick said that the construction of this food estate cannot be achieved in a short time. At least, he said, it took 5 years.

"Well, but you see, building a food estate is not 6 months. For example, we are planting seeds, trying out sugar seeds takes 6 months, which seeds match the land. Rice is also the same, it can take 6 months," he said.

"So, the cycle takes 1 to 2 years until it actually grows according to what we projected. So, the food estate takes a minimum of 4-5 years, then we'll see the results. And from the start it must be right," he continued.

In addition, Erick also said that discussions about the food sector were sensitive. Even so, Erick highlighted the food prices that have experienced a significant increase at this time.

He said geopolitical factors such as the conflict in Gaza, as well as the Ukraine-Russia war, then the issue of the Red Sea contributed to the instability of food prices.

In addition, Erick also said that the increase in population was also a challenge.

"We still have a lot of imports. Imported padies, imported sugar. It is impossible for us to keep the country as large as this stuck with only food imports. So that's what we have to unite how farmers are guarded, corporations are imported, markets are raised," he explained.

Erick said, this collaboration with the UAE is an effort by the government to create food security. Erick said this investment would not only benefit Indonesia, but also for the UAE.

"Well, this is why earlier from the UAE also saw this potential as security rather than food not only for us, for him too. This is something we think is a win-win. So we open partnerships with all parties, not just us and who we do," he said.