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Development of food crop seed industry.


The country's production of rice in 2008 rose 4.76% to 60.28 million tons from 57.16 million tons in 2007 in dry unhulled rice (GKG GKG Gabah Kering Giling ). The Central Bureau of Statistics (BPS (Bits Per Second) The measurement of the speed of data transfer in a communications system.

1. BPS - Basic Programming Support
2. bps - bits per second
) said the production in 2007 rose 4.96% from 55.4 million tons in 2006..

The continued increase in rice production in the past four years is partly attributable to the wider use of certified See certification.  rice seeds by farmers as indicated by the increase in production of certified rice seeds in the same period--from 117,000 tons in 2005 to 177,000 tons in 2008.

The production of certified rice seeds has reach around 50% of the country's rice seeds requirement of around 360,000 tons per year for 12.66 million hectares of rice-fields.

The growing demand for high quality seeds has encouraged investment in rice seed breeding industry in the private sector. Investors have established companies to produce high quality seeds and existing producers expand their production capacity. PT Sang Hyang Seri (SHS SHS Shares (stock)
SHS SAW (Surface Acoustic Wave) Humidity Sensor
SHS Sciences Humaines et Sociales (French: Social Sciences)
SHS Student Health Service
SHS Second Hand Smoke
), a state company operating in seed breeding industry has built new production facility with a production capacity of 10,000 tons of seed a year.

Interest has also been shown by foreign investors such as PT BISI BISI Billing Integration Strategy Implementation  Internasional, which is affiliated to the Charoen Pokhpand group, PT DuPont Dupont, DuPont, Du Pont, or du Pont may refer to: Companies
  • E.I. du Pont de Nemours and Company (DuPont), the world's fourth largest chemical company
  • Du Pont Motors
 Indonesia (Pioneer), PT. Syngenta Indonesia and PT Bayer Indonesia.

Rapid growth has also been recorded in the production high quality corn seeds. More farmers have grown hybrid corn seeds. Now farmers have used hybrid corn seeds in larger quantity than conventional corn seeds. The use of hybrid seeds in rice fields is relatively small. Hybrid rice Hybrid rice is a genealogy of rice produced by crossbreeding of different kinds of rice.Some hybrid rice may significantly increase the output.

The earliest hybrid rice was cultivated by Yuan Longping.
 seeds make up only 5% of the country's total requirement of high quality rice seeds.

Production of hybrid rice and corn seeds has been dominated by a number of companies affiliated to multinational agribusiness agribusiness

Agriculture operated by business; specifically, that part of a modern national economy devoted to the production, processing, and distribution of food and fibre products and byproducts.
 companies like PT. Bisi Internasional, PT. Dupont Indonesia and PT Bayer Indonesia. A state company operating in seed breeding industry is PT. Sang Hyang Seri.

Regulation has also contributed to the rapid expansion of seed breeding industry in the country. A regulation requires seed importers to start producing seeds in the country after operating for two years.

The prospect of business in seed breeding industry is encouraging especially as the government has introduced and sought to popularize pop·u·lar·ize  
tr.v. pop·u·lar·ized, pop·u·lar·iz·ing, pop·u·lar·iz·es
1. To make popular: A famous dancer popularized the new hairstyle.

 the use of hybrid seeds among the farmers. High technology and large investment would be needed to produce hybrid seeds, therefore, it is expected that only large financially powerful companies could develop seed breeding industry.

Description of product

Rice seeds

Rice seeds are produced from the generative gen·er·a·tive
1. Having the ability to originate, produce, or procreate.

2. Of or relating to the production of offspring.


pertaining to reproduction.
 breeding of rice plants. There are four classes of rice seeds of high yield variety--breeder seeds (BS), foundation seeds (FS), stock seeds (SS), and extension seeds (ES). The four types of seeds are produced by agencies or bodies named by the National Seed Body and they must have certificate.

The seeds used by the farmers are generally the extension seeds which are the offspring off·spring
1. The progeny or descendants of a person, animal, or plant considered as a group.

2. A child of particular parentage.
 of breeder breeder

1. a person with an animal enterprise involving the multiplication of the herd, flock or group.

2. a female animal used basically for the production of saleable young.
 seeds or foundation seeds which are well kept that their identity ands pure bred are maintained to keep a certain quality standard.

Breeder seeds are ones that is the source of foundation seeds. Foundation seeds are the first offspring of breeder seeds. Stock seeds are the offspring of breeder seeds or foundation seeds.

Each type of the seeds is given different label. BS is given a yellow label, FS a white label, SS purple label and SS a blue label. There is another certified type with pink label which is the first offspring of ES, but since 2007 it is no longer produced on low productivity.

Rice seeds could also be divided into three types--conventional (non hybrid) seeds, hybrid and local seeds. Conventional rice is one from seeds originating from pure line that its individual characteristics are homoozygot and homogenous homogenous - homogeneous . This type is produced widely by government agencies and state companies.

Hybrid rice is one from seed, which is the first offspring of mutation mutation, in biology, a sudden, random change in a gene, or unit of hereditary material, that can alter an inheritable characteristic. Most mutations are not beneficial, since any change in the delicate balance of an organism having a high level of adaptation to its  between two or more different lines having heterozygot and homogenous individual characteristics. This type of seed is produced mainly by private companies.

Another type of rice seed is local seed, which is a non hybrid and specific local plant. Local seeds are small in volume as they are not produced in large scale. They are produced only by farmers in certain areas.

Types of corn seeds

There are three types of corn seeds--composite, hybrid and local seeds.

Composite corn is one produced from a mixture of seeds of several varieties that its individual characteristics are Heterozygot and Heterogeneous Not the same. Contrast with homogeneous.

heterogeneous - Composed of unrelated parts, different in kind.

Often used in the context of distributed systems that may be running different operating systems or network protocols (a heterogeneous network).
. Like rice seeds, corn seed of this type are produced by government agencies and state companies.

Hybrid corn is one from seeds which are the first offspring of crossbreeding of two or more plants of different lines having Heterozygot and Homogenous. Individual characteristics. These types of seeds are produced by private companies.

Local corn seeds are local seeds grown specifically in certain area and non hybrid.

Process of producing seeds

The process of producing non hybrid rice and corn seeds by the state company is as follows: The Research and Development Center of the Agriculture Ministry produces BS(breeder seeds) and FS (foundation seeds), which are then distributed to the provincial Parent Seed Center to be upgraded to stock seeds (SS).

The stock seeds (SS) from the Parent Seed Center are distributed to the Main Seed Center and then to the Auxiliary auxiliary

In grammar, a verb that is subordinate to the main lexical verb in a clause. Auxiliaries can convey distinctions of tense, aspect, mood, person, and number.
 Seed Center where SS are used to produce extension seeds (ES) which are sold directly to the farmers. The Main Seed Center also produces ES, which are directly sold to farmers.

The Parent Seed Center also distributes SS producing state companies and private companies to be upgraded to become ES. Now, however, this system has changed much as companies could access BS and FS directly that they also produce FS and SS in addition to ES

The seeds are certified. In addition to certified seeds, there are seeds produced by other producers both groups and individuals with certificate.

Diagram diagram /di·a·gram/ (di´ah-gram) a graphic representation, in simplest form, of an object or concept, made up of lines and lacking pictorial elements.  

The process of producing high quality rice seeds by government agencies


Note: BS = Breeder Seeds

FS = foundation seeds

SS = Stock seeds

ES + extension seeds

Source : Agriculture Ministry

Private and state companies produce hybrid rice and corn seeds using imported seeds.

Seed Producers

Certified high quality conventional seeds are produced mainly by state companies or agencies PT Sang Hyang Seri and PT Pertani. In addition, there are many small private producers already securing certificate from the agriculture ministry. Hybrid rice and corn seeds are generally produced by private companies in larger scale. There are 18 producers of hybrid rice and corn seeds in the country, up from only two in 2005. Most of them are private companies with only two state companies PT Sang Hyang Seri (SHS) and PT Pertani.

Private seed producing companies generally produce hybrid rice and corn seeds, and state companies produce hybrid and conventional high quality rice and corn seeds as well as other cereal cereal
 or grain

Any grass yielding starchy seeds suitable for food. The most commonly cultivated cereals are wheat, rice, rye, oats, barley, corn, and sorghum. As human food, cereals are usually marketed in raw grain form or as ingredients of food products.
 seeds such as soybean soybean, soya bean, or soy pea, leguminous plant (Glycine max, G. soja, or Soja max) of the family Leguminosae (pulse family), native to tropical and warm temperate regions of Asia, where it has been , mung bean bean, name applied to the seeds of leguminous trees and shrubs and to various leguminous plants of the family Leguminosae (pulse family) with edible seeds or seed pods (legumes). The genera and species encompassed by the term bean are many and variable.  and groundnut groundnut, common name for several different genera of twining herbaceous, leguminous plants with geocarpie (underground fruits), chiefly the peanut. Groundnuts are classified in the division Magnoliophyta, class Magnoliopsida, order Rosales, family Leguminosae.  seeds.

Since 2006, food crop seed breeding industry in Indonesia has continued to grow marked with the establishment a number of producing companies including foreign companies producing hybrid rice and corn seeds in large scale. Among the producers is PT. Dupont Indonesia. PT. Triusaha Sari Tani, Bayer Indonesia, PT. Karya Niaga Beras Mandiri, PT. Source Alam Sutera, and SHS. Some of the companies are affiliated to multinational companies such as DuPont (Pioneer), Monsanto, Bayer, etc..

PT Sang Hyang Seri (SHS)

PT. Sang Hyang Seri (Persero) established in 1971 on a government regulation No.22 Year 1971 with the status of PERUM (Public Company) in Sukamandi Subang, West Java. In 1995, its status was changed into limited company

SHS produce rice, corn, peanut and vegetable seeds with annual production capacity of around 25,000 tons. It has anew a·new  
1. Once more; again.

2. In a new and different way, form, or manner.

[Middle English : a, of (from Old English of; see of) + new
 facility with an annual capacity to produce 10,000 tons of seeds with the system of IRSPP IRSPP Information Retrieval and Scratch Pad Process  (Integrated Rice Seed Processing Plant). The new production facility is integrated with wet and dry laboratory located in Sukamandi, Subang, and West Java coming on stream in 2008.

SHS produces high quality conventional rice seed of the SS and ES classes in 25 varieties. Among the new varieties produced by SHS are Fatmawati and Gilirang. SHS also breeds and sell local rice seeds of high quality variety. In addition to high quality conventional seed it produces hybrid rice seed named Makro and Rokan.

PT Sang Hyang Seri has established cooperation with multinational seed producing companies such as Shenzhen Boshi BioScience bioscience /bio·sci·ence/ (-si´ens) the study of biology wherein all the applicable sciences (physics, chemistry, etc.) are applied.

See life science.
 (BOSHIMA) Co. Ltd. (China) and Devgen (India) to produce hybrid rice seeds. The cooperation is to reduce dependence on imports. Through the cooperation, PT SHS will have profit share of 50% in royalty from seeds sales.

Under the cooperation, an Indonesia-China Hybrid Seed In agriculture and gardening, hybrid seed is seed produced by artificially cross-pollinated plants. Hybrids are bred to improve the characteristics of the resulting plants, such as better yield, greater uniformity, improved color, disease resistance, and so forth.  Center was built in October, 2008 in Karawang.

SHS produces corn seeds of the composite type In computer science, composite types are datatypes which can be constructed in a programming language out of that language's primitive types and other composite types. The act of constructing a composite type is known as composition.  in cooperation with domestic and foreign partners. SHS also produces seeds of other food crops including soybean seeds, mung bean and groundnuts.

PT Bisi Internasional Tbk.

PT. Benih Inti Suburintani Internasional (BISI) was established in 1983 by the Charoen Pokphand The Charoen Pokphand Group is the largest business conglomerate in Thailand. Its chief subsidiary is Charoen Pokphand Foods, which did 116.5 billion baht in revenue in 2005, earning a profit of 6.747 billion baht.  Group and now it is a listed company. It produces seeds, pesticides and distributes fertilizers.

The majority shares of the company are owned by the Jiaravanon family and 23% stake is owned by Midsummer Limited.

Its seed production facility is located in Kediri, East Java Kediri is an Indonesian city, located near the Brantas River in the province of East Java on the island of Java.

Archaeological artefacts discovered in 2007 appeared to indicate that the region around Kediri may have been the location of the Kediri kingdom, a Hindu kingom
. Bisi has three subsidiaries (1) PT Tanindo Intertraco, which operates in the distribution and marketing of hybrid rice and corn seeds, vegetable seeds, and seeds of other food crops; (2) PT Multi Sarana Indotani which produces pesticides and (3) PT Tanindo Subur Prima which distributes and sells vegetable seeds imported form Chia Thai Seed Co Ltd.

Bisi is a fast growing seed producer. In 2008, it expanded its production capacity for hybrid corn seeds by building two new factories with total capacity of 40,000 tons per year with an investment of Rp 276 billion. The expansion increased its production capacity for hybrid corn seeds to 60,000 tons per year.

In 2009, Bisi also planned capacity expansion for its seed production facility in Kediri, but the plan was shelved as a result of the global financial crisis.

PT. DuPont Indonesia (Pioneer)

PT DuPont Indonesia started operation in Indonesia in 1988. PT DuPont Indonesia is a subsidiary of Pioneer Hi-Bred Pioneer Hi-Bred is one of the largest U.S. companies which produces hybrid seeds for agriculture. History
In 1926, farm journal editor and future U.S. Vice President Henry A. Wallace, along with a group of Des Moines, Iowa businessmen, started the "Hi-Bred Corn Company".
 International, Inc., in Des Moines, Iowa “Des Moines” redirects here. For other uses, see Des Moines (disambiguation).
Des Moines (pronounced /dɪˈmɔɪn/ in English,
, which was established in 1926 now a leading company in farm plant genetics genetics, scientific study of the mechanism of heredity. While Gregor Mendel first presented his findings on the statistical laws governing the transmission of certain traits from generation to generation in 1856, it was not until the discovery and detailed study of  with business units in 70 countries.

This company has sold hybrid corn seeds in Indonesia since 1988 using the brand of Pioneer. Dupont has released 23 types of hybrid corn seeds Indonesia, but only six of the varieties P7, P11, P12, P13, P21, and P23, now still sold in the country.

Since 2007, DuPont has released varieties of hybrid rice seeds Padi Pioner 1 (PP1) and PP2, which are bred itself.

PT. DuPont Indonesia has established cooperation with BB Padi (Rice Plant Research Center), which has been licensed to produce and sell hybrid rice seeds called MARO MARO Mid-Atlantic Regional Office
MARO Michigan Association of Rehabilitation Organizations
MARO Months After Receipt of Order
. MARO hybrid rice seeds are hybrid seeds developed by Indonesian researchers of the BB Padi

PT. DuPont Indonesia has seen the superiority of MARO hybrid rice which has a high productivity of 8.85 MT gkg / ha. The paddy seeds are filled out. Apart from resistant to diseases MARO rice food is fragrant fra·grant  
Having a pleasant odor.

[Middle English, from Latin frgr

PT Bayer Indonesia, CropScience Business Group.

In 2000, Bayer acquired Aventis CropScience and renamed it Bayer CropScience, Bayer CropScience in Indonesia is under PT Bayer Indonesia. Bayer CropScience has three divisions BioScience which focuses on improving the quality of plants through crossbreeding and biotechnology.

In Indonesia, BioScience offers hybrid rice seeds called Arize and horticulture horticulture [Lat. hortus=garden], science and art of gardening and of cultivating fruits, vegetables, flowers, and ornamental plants. Horticulture generally refers to small-scale gardening, and agriculture to the growing of field crops, usually on a large  seeds called Nunhems. Nunhems Seeds are the leaders in the horticulture seeds market in Europe and they were first introduced in Indonesia in 2003. Development of Arize hybrid rice seeds in the country started in 2004, and now it has two varieties called Hibrindo R-1 and Hibrindo R-2. In 2006 BioScience introduced Hibrindo R-1 in East Java East Java (Indonesian: Jawa Timur) is a province of Indonesia. It is located on the eastern part of the island of Java and also includes neighboring Madura and Bawean islands. , and West Java the country's largest rice producing provinces.

Production of certified rice seeds reaches 181,000 tons

Production of certified rice seeds in Indonesia includes ES and seeds with pink label. Until 2007, seeds with pink label were still produced in the country, but in 2008, production was no longer produced as the quality was poor.

Most rice seeds that consist of local seeds and composite seeds are produced government agencies such as seed centers and a small part consisting of hybrid seeds are produced by state companies and private companies.

The country's production of rice in the past six years has continued to scale up. In 2007, the production of ES grew by 22% to 147.363 tons and that of seeds with pink label fell 70% to 161 tons, with the total production of certified seeds up 21.5% to 147,524 tons.

In 2008, the production grew further by 23% to 181400 tons.

Increase in the production certified seeds were attributable more too growing number of farmers using certified seeds.

The production of certified rice seeds is around 50% of the country's rice seed requirement of 300,000 tons per year with rice fields totaling 12.66 million hectares.

The country's production of hybrid rice seeds in the past two years grew 21%. The production of hybrid seeds in 2007 reached 1,231 tons, up to 4,624 tons in 2008.

The high growth in production came with growing number of farmers aware of the benefit of using certified seeds. However, the production hybrid rice seeds are still very small in proportion--around 0.61% of the country's total production of seeds.

The high price of hybrid seeds contributes to keeping many farmers from using hybrid seeds. The price of hybrid seeds averages Rp50,000 per kg as against only Rp7,000 per kg of non hybrid seeds.

Production of hybrid rice seeds

Business in the production of hybrid rice seeds has good prospects in Indonesia. The past several years gave seen a steady increase in the production of hybrid seeds. In 2006, production surged from 7.7 tons to 201 tons.

Increase was recorded in the following two years up 510% to 1,231 tons in 2007 and again by 275% to 4,624 tons in 2008.

The increase in production reflects good prospects of business in hybrid rice seeds industry.

There are 14 producers of hybrid rice seeds in Indonesia and three of them have an annual production of more than 100 tons. They are PT. BISI, SHS, and DuPont. BISI Internasional is the largest player in the business with production of 3,000 tons of hybrid rice seeds in 2008.

Production of corn seeds

Increase has also been recorded in the country's production certified corn seeds since 2005. In 2007, the production grew 24.3% to 38,349 tons. In 2008, the production rose further by 49.3% to 57,266 tons.

The country's production of hybrid corn seeds in 2003-2008 made up around 70% of the country's total production of certified corn seeds.

Hybrid corn seeds account for 56% of the total quantity of corn seeds used in the country in 2008.

Problems in the use of hybrid seeds

In the past four years, growing number of farmers have used hybrid seeds which prove to be more productive. Expansion in the use of hybrid seeds, however, will cost a lot more money.

A kg of hybrid rice seed is around Rp30,000-Rp50,000. A farmer will spend up to Rp750,000 per hectare hectare (hĕk`târ, –tär), abbr. ha, unit of area in the metric system, equal to 10,000 sq m, or about 2.47 acres.  on hybrid rice seeds as against only around Rp150,000 by using conventional seeds (inbred in·bred
1. Produced by inbreeding.

2. Fixed in the character or disposition as if inherited; deep-seated.


said of offspring produced by inbreeding.
 seeds). There is also cost of pest control pest control ncontrol m de plagas

pest control nlutte f contre les nuisibles

pest control pest n
 and different cultivation cultivation, tilling or manipulation of the soil, done primarily to eliminate weeds that compete with crops for water and nutrients. Cultivation may be used in crusted soils to increase soil aeration and infiltration of water; it may also be used to move soil to or  techniques.

In addition, there is problem in the availability of hybrid seeds when planting season comes. Hybrid rice seeds could not be replaced with derivatives derivatives

In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset.
 to produce good quality rice. Therefore, there is dependence on certain suppliers of hybrid rice seeds. Such condition could cause much problem as most supplies are imported.

The government, therefore, has sought to cope with the independence by encouraging development of hybrid seeds in the country of local germs or combination with imported germs to turn out new variety.

PT Sang Hyang Seri has started development such combination to turn out new variety, but the government could immediately popularize the use of hybrid seeds among the farmers in large scale as the availability of the seeds is not enough to meet requirement. The country is still dependent heavily on imports.

No less important is to socialize so·cial·ize  
v. so·cial·ized, so·cial·iz·ing, so·cial·iz·es
1. To place under government or group ownership or control.

2. To make fit for companionship with others; make sociable.
 the techniques of using the hybrid seeds. Many small industries, which have no sufficient knowledge of the techniques of using the seeds have been involved in the marketing of hybrid seeds.

The harvest failure of hybrid rice of the Supertoy type in Purwerojo in 2008 was believed to be blamable on the distributor of the rice seeds violating the Law No. 12/1992 on Plant Cultivation System Cultivation System
 or Culture System

Revenue system in the Dutch East Indies (modern Indonesia) that forced farmers to pay revenue to The Netherlands in the form of export crops or compulsory labour.

The Law on Plant Cultivation System rules that before plant seeds are distributed to the farmers, they must first be approved by the agriculture minister to better guarantee that the seeds are of good variety.

Exports small

Exports of seeds have increased after the country succeeded in increasing production of certified seeds. Exports of certified rice and corn seeds in the past two years surged sharply, but the volume remain small compared with the country's total production. In 2007, exports of certified rice seeds rose 20 tons to 102.4 tons and in 2008, the exports rose further to 371 tons.

Meanwhile, exports of certified corn seeds leapfrogged in the past two years, up 220% to 706 tons in 2007 and again by 235% to 2,364 tons in 2008.

The exports volume of both rice and corn seeds, however, remain relatively small compared with the country's production as the competition is sharps especially facing products from China.

Imports fluctuating fluc·tu·ate  
v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates

1. To vary irregularly. See Synonyms at swing.

2. To rise and fall in or as if in waves; undulate.


So far most of the country rice seed requirement has been locally supplied. Imports contribute only a small part. A high increase in the imports of hybrid rice seeds in 2007 was attributable mainly to the government policy to reach the production target for dry unhulled rice of 58,18 million tons.

In 2007, imports of rice seeds surged 2,083% to 3,973 tons from only 182 tons in the previous year. In 2008, imports shrank shrank  
A past tense of shrink.


a past tense of shrink

shrank shrink
 to 2,127 tons.

The government has sought to reduce imports of seeds. Imports have been restricted by requiring importe3rs to start producing seeds in the country after two years in operation as importers.

A company, which has been licensed to import rice seeds is PT. Bangun Pusaka, importing China's hybrid variety of Long Ping.

PT. Bangun Pusaka was granted the import license in 2004 and the license was effective until 2006, but the government extended the license as it wants to reach the rice production target.

Meanwhile, the country's imports of corn seeds peaked at 2,665 tons in 2003. Imports fell in the following years until 2007 before rising again to reach 1,315 tons in 2008.

Imports of rice seeds, which are all hybrid seeds, are small as most farmers still use non hybrid seeds. Around 12.36 million hectares of the country's rice field of 12.66 million hectares are grown with non hybrid rice.

Around 50% of the hybrid seeds grown in the country are local products and 50% imported products.

Imports of corn seeds are also small as the country's requirement of hybrid corn seeds has been supplied locally. Imported corn seeds are also hybrid seeds.

For illustration, 2.41 million hectares of the target of 4.25 million hectares for corn plantations PLANTATIONS. Colonies, (q.v.) dependencies. (q.v.) 1 Bl. Com. 107. In England, this word, as it is used in St. 12, II. c. 18, is never applied to, any of the British dominions in Europe, but only to the colonies in the West Indies and America. 1 Marsh. Ins, B. 1, c. 3, Sec. 2, page 64.  are grown with hybrid corn seeds with the rest for composite corn

Subsidized sub·si·dize  
tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es
1. To assist or support with a subsidy.

2. To secure the assistance of by granting a subsidy.

In 2005, the Government launched a program to revitalize re·vi·tal·ize  
tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es
To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy.
 the country's agricultural sector. The program started by offering low interest credit for farmers, providing fertilizers in low prices and seeds of high yield varieties and offering subsidized credits for plasma farmers.

As part of the revitalization re·vi·tal·ize  
tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es
To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy.
 program, the government subsidized seeds including non hybrid rice seeds and composite and hybrid corn seeds.

Subsidized seeds in 2006 were provided through two state seed producers SHS and Pertani. Subsidized seeds that year totaled 110,500 tons including 65,500 tons via SHS and 45,000 tons through Pertani.

Subsidized composite corn seeds distributed that year totaled 1,350 including 1,100 tons through SHS and 250 tons via Pertani. Subsidized hybrid corn seeds totaled 2,800 tons including 2,000 tons via SHS and 800 tons through Pertani.

In 2007, the subsidy subsidy, financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare.  system was changed by providing free seeds for farmers. The change in the system was considered to hurt the producers as the price they received was below their production cost.

The prices of seeds were determined by the government at Rp5,175 per kg far below the production cost of Rp7,000 per kg. Meanwhile, the subsidy budget for seeds in 2008 was set at Rp1.35 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.

(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.

In the USA and Canada, 10^12.

In 2009, the seed subsidy budget was around Rp1.5 trillion for rice, corn and soybean cultivation. In 2008, the subsidy for rice seeds, corn and soybean was Rp689.7 billion.


Under the subsidy program, the government sets reference the prices for seeds including hybrid and non hybrid rice seeds as well as composite and hybrid corn seeds.

Producers may not sell seed with prices above the reference4e prices. The reference prices of non hybrid rice seeds and composite corn seeds are not the same for all areas and the reference prices for hybrid seeds are set based on productivity. See the following table.

Development of new hybrid rice variety potential

The growing use of hybrid seeds provides an opportunity for seed breeding industry to grow faster in the future, especially as the government through the Rice Research Center (BB Padi) has opened cooperation with the private sector and regional administrations. To produce new hybrid rice varieties.

The private sector will be licensed to produce and sell varieties resulted through cooperation with BB Padi while regional administration is involved in the production of varieties of the public.

Until now BB Padi has released 8 varieties of hybrid seeds, 4 varieties were released as public domain and 4 varieties were released with license or rights to produce hybrid rice by the private sector. The public hybrid varieties--private license is 1:1.

BB Padi still has a reserve of 60 hybrid lines at the phase of Advanced Result Capacity Test (Uji Daya Hasil Lanjutan = UDHL UDHL User Data Header Length ) and more than 300 potential lines at the phase of Initial Result Capacity Test (Uji Daya Hasil Pendahuluan = UDHP).

The expansion of the market of hybrid rice seeds has attracted private companies both domestic and foreign companies to develop new varieties of hybrid rice seeds in cooperation with BB Padi.

A number of companies cooperating with BB Padi include PT. Dupont Indonesia, which has been given the Maro variety license and Hipa-8 variety license which is now being processed.

PT. Source Alam Sejahtera was given the Rokan variety license and PT. Syngenta had the Hipa-3 variety license. In addition, there are two foreign companies developing new varieties. They are Metahelix Life Science, which is based in India and Advanta International from Australia.

Hybrid seed requirement to increase

Requirement of hybrid food crop seeds particularly rice and corn seeds are expected to increase in the futures as the country will continue to need to increase production of the two food commodities to meet domestic consumption.

Improvement of productivity is the most efficient and possible way to increase production rather than expansion of plantations. Expansion of plantations will grow more difficult from year to year as it will need encroaching land of other functions such as forest lands. Currently the country has 12.66 million hectares of rice fields and 4.25 million hectares of corn fields.

The fields will needs 360,000 tons of rice seeds a year and 72,000 tons of corn seeds a year. In 2008, only 300,000 hectares of the 12.66 million hectares of rice fields were grown with hybrid rice seeds. Around 4,500 tons of hybrid seeds would be needed for the 300,000 hectares of rice fields.

In 2009, hybrid rice seed requirement is forecast to rise to 7,500 tons with fields to be grown with hybrid rice seeds to expand to 500,000 hectares. Hybrid rice seed requirement per hectare averages 15 kg.

In the coming five years, rice fields to be grown with hybrid rice seeds are expected to expand rapidly. In 2014, the rice fields are forecast to reach 1.5 million hectares needing 22,500 tons of hybrid rice seeds or an annual increase of 25%.

In 2008, corn fields totaled 4.25 million hectares and around 2.41 million hectares of which were grown with hybrid corn seeds and the remaining 1.84 million hectares for composite corn.

Hybrid corn seed requirement in 2008 was 37,000 tons or around 65% of the total certified corn seed requirement. In the coming years the requirement is expected to increase on plantation Plantation, city (1990 pop. 66,692), Broward co., SE Fla., a residential suburb of Fort Lauderdale; inc. 1953. The city has grown rapidly along with the development of S Florida.  expansion and growing number of farmers using hybrid corn seeds.

Based on the forecasts, hybrid corn seed requirement will rise to 42,000 tons in 2009 and will increase further by 15% annually until 2014.


In the past several years, food crop seed breeding industry in Indonesia has expanded rapidly notably rice and corn seed production. The expansion was attributable partly to the revitalization program in the agricultural sector launched by the government in 2005 including in the form of subsidy on seeds for farmers.

Seeds especially non hybrid rice and composite corn seeds are produced by two state companies PT. Sang Hyang Seri (SHS) and PT. Pertani. The seeds are also produced by production units of the government run Seed Centers. SHS is the largest producer of non hybrid rice seeds with production reaching 84,000 tons in 2008.

Meanwhile, hybrid rice and corn seeds are produced by state and private companies. The largest producer of hybrid rice seeds in Indonesia is PT. Bisi Internasional with production reaching 574 tons in 2007 and 3,000 tons in 2008. The country still has high potential to increase its production of hybrid rice seeds as the government through the Rice Plant Research center (BB Padi) still has many hybrid line not yet developed. According to according to
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

 plan, BB Padi will cooperate with the private sector to produce new varieties.

The government has encouraged the production of seeds to reduce imports. Importers are allowed to continue importing seeds for two years. After two years they are required to produce seeds locally. It is expected that in the next five years, the country's hybrid seed requirement especially rice and corn seeds will increase rapidly. The hybrid corn seeds have been used widely in the country.

The use of hybrid rice seeds is still in the starting phase, but in five years hybrid rice seeds are expected to use widely by farmers.

The main problem faced by farmers in increasing the use of hybrid seeds is their weak buying power Buying Power

The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available.

Also referred to as "Excess Equity.
 as hybrid seeds are much more expensive.
Producers seed rice, corn and capacity in Indonesia

Producers             Rice             Corn

PT. Sang Hyang        SL 8, SL 11      SHS 1, SHS
Seri (Persero)                         2, SHS 11,
                                       SHS 12

PT. Pertani           Andalas 4, N-
(Persero)             35, NT 10

PT. Benih Inti        Intani-1,        CPI-1, CPI-2,
Subur Intani (BISI)   Intani-2         Bisi1--Bisi
Internasional                          18

PT. DuPont            PP 1, PP2        P 1-P 27
Indonesia (Pioneer)

PT. Bayer             Hibrindo R1,
Indonesia             Hibrindo R2

PT. Syngenta                           NK-22, NK-
Indonesia                              33, NK-55,
                                       NK-66, NK-
                                       77, NK-81,
                                       NK-82, NK-
                                       88, NK-99

PT. Sumber Alam       Bernas
Sutera                Prima,
                      Bernas Super

PT. Monsanto                           DK-2, DK-3,
Indonesia / PT.                        DK 9910, DK
Branita Sandhini                       979

PT. Karya Niaga       Batang Samo
Beras Mandiri         (Hib. KL77)
                      dan Batang
                      Kampar (Hib.

PT. Makmur            Segara Anak,
Sejahtera             Brang Biji

PT. Primasid          Mapan-02,
Andalan Utama         Mapan -05

PT. Mitra                              B-88, B-99,
Kreasidharma                           B-50, B-52,

PT. Jagung                             Jaya 1, Jaya
Hibrida                                2, Jaya 3,
Sulawesi                               NKRI, Al,
                                       A3, A5, A6,
                                       SHS 3, SHS

PT. Bangun            Long Ping I,
Pusaka                Long Ping II

PT. Triusaha Sari     Adirasa 1,
Tani                  Adirasa 64

PT. Biogene           Sembada B3,
Plantation            B5, B8, B9

PT. Java Seed                          PAC 984,
Indonesia/ PT. Java                    PAC 105

PT. Johny Jaya                         Makmur 1,
Makmur                                 Makmur 2,
                                       Makmur 3

PT. Lingkungan                         AS 3, AS 4,
Lestari                                AS 6

PT. Kondo             Miki-1, Miki-
International         2, Miki-3,
                      Manis 4,
                      Manis 5

Producers                          Capacity     Location

                      Rice         Corn

PT. Sang Hyang                     10.000       Jakarta
Seri (Persero)

PT. Pertani                                     Jakarta

PT. Benih Inti        10.000       50.000       Jakarta
Subur Intani (BISI)

PT. DuPont                                      Jakarta
Indonesia (Pioneer)

PT. Bayer

PT. Syngenta                                    Jakarta

PT. Sumber Alam

PT. Monsanto                                    Jakarta
Indonesia / PT.
Branita Sandhini

PT. Karya Niaga                                 Riau
Beras Mandiri

PT. Makmur                                      Mataram

PT. Primasid                                    Jakarta
Andalan Utama

PT. Mitra                                       Jakarta

PT. Jagung                                      Jember

PT. Bangun

PT. Triusaha Sari                               Jakarta

PT. Biogene                                     Gresik

PT. Java Seed                                   Tangerang
Indonesia/ PT. Java

PT. Johny Jaya                                  Jakarta

PT. Lingkungan                                  Jakarta

PT. Kondo                                       Jakarta

Source; Agriculture Ministry

Production of certified rice seeds, 2003-2008 (Tons)

                             Growth      Conventional      Growth
Year       Conventional       (%)        (pink label)       (%)

2003            111.627                          3199

2004            116.246          4,1             3025         -5,4

2005            117.881          1,4             2434        -19,5

2006            120.683          2,5              528        -78,3

2007            146.132         21,9              161        -69,5

2008 (*)        176.776         23,1                0            0

              Hybrid         Growth                        Growth
Year                          (%)          (Total)          (%)

2003                 72                       114.898

2004                 51          4,14         119.322           3,9

2005                  8          1,41         120.323           0,8

2006                202          2,38         121.413           0,9

2007               1231         21,09         147.524          21,5

2008 (*)           4624         20,97         181.400          23,0

Note: (*) Estimate

Source: Agriculture ministry , Data Consult

Production of hybrid rice seeds and producers, 2003-2008 (Kg)

Producers                   2003      2004      2005

PT. BISI                   69000     43100

Sang Hyang Seri


Balai Besar Penelitian
Tanaman Padi                 550      2354      1000

Sumber Alam Sutera

Karya Niaga Beras

Bayer Indonesia

Triusaha Sari Tani

PT. Bangun Pusaka           2520      5880      6720



Kondo International          320

Makmur Sejahtera

Biogene Plantation

Total                      72390     51334      7720

Growth (%)                          -29,1     -85,0

Producers                   2006      2007      2008

PT. BISI                  104000    542000   3000000

Sang Hyang Seri                     573240   1204690

DuPont                     30000     22000    294000

Balai Besar Penelitian
Tanaman Padi                 760      5950     81180

Sumber Alam Sutera                   30000

Karya Niaga Beras
Mandiri                    34300     15000

Bayer Indonesia            27000     28000

Triusaha Sari Tani          1761      5820     17500

PT. Bangun Pusaka           3780      7270     16560

Syngenta                      70      2000     10000

Primasid                                          60

Kondo International

Makmur Sejahtera

Biogene Plantation

Total                     201671   1231280   4623990

Growth (%)               2512,3     510,5     275,5

Source: Agriculture ministry

Production certified corn seeds, 2003-2008 (Tons)

              Pink        Growth
Year         label         (%)         Hybrid

2003            2217                     14045
2004             579        -73,9        14942
2005             366        -36,8        18677
2006            8417       2199,7        20650
2007            5576        -33,8        23542
2008 (*)          --           --        37100

             Growth                    Growth
Year          (%)           ES          (%)

2003                         3333
2004             6,4         2090        -37,3
2005            25,0         7525        260,0
2006            10,6         1797        -76,1
2007            14,0         9231        413,7
2008 (*)        57,6        20166        118,5

Year         Total         (%)

2003            5550
2004           17611        217,3
2005           26568         50,9
2006           30864         16,2
2007           38349         24,3
2008 (*)       57266         49,3

Note: (*) Estimate
Source: Agriculture ministry , Data Consult

Volume of exports of certified rice and corn seeds,
2005-2008 (tons)

Year   Rice   Growth (%)   Corn    Growth (%)

2004     71          --     1414           --
2005     --          --      730           --
2006     20                  221          -70
2007    102       412,2      706          220
2008    371       262,2     2364          235

Source: Agriculture ministry

Volume of imports of rice and corn seeds (tons)

                Growth            Growth
Year    Rice      (%)     Corn      (%)

2003     0,5               2665
2004     8,2      1500     2075    -22.1
2005                        455    -78.1
2006      182
2007     3973     2083      743
2008     2127    -46.5     1315       77

Source: Agriculture ministry

Reference prices of non hybrid rice seeds and composite
corn seeds, 2007

Areas                     Non hybrid     Composite
                          rice seeds     corn seeds

Sumatera                  Rp 4.700/kg    Rp 8.500/kg
Jawa                      Rp 4.650/kg    Rp 7.700/kg
Bali dan Nusa Tenggara    Rp 4.720/kg    Rp 8.780/kg
Kalimantan                Rp 4.920/kg    Rp 8.750/kg
Sulawesi                  Rp 4.670/kg    Rp 8.230/kg
Maluku dan Maluku Utara   Rp 5.220/kg    Rp 9.500/kg
Papua dan Irjabar         Rp 6.700/kg   Rp 10.700/kg

Source: Agriculture ministry

Projected requirement of hybrid rice and corn seeds,
2009-2014 (,000 tons)

       Projected requirement of
       hybrid seeds

Year   Rice seeds   Corn seeds

2009         7,5         48,3
2010         9,4         55,5
2011        11,7         63,8
2012        14,6         73,4
2013        18,3         84,4
2014        22,8         97,1

Source: Data Consult/ICN
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Publication:Indonesian Commercial Newsletter
Date:Apr 1, 2009
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