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A systematic information on the amount and the source of investment in agriculture sector is needed, especially in relation to the purpose of formulating the Repelita Vll of Agricultural Sector. The main objective of this paptur is to calculate total value of investment requirement in agriculture and to identify the sources and f he value of each source of its funding. The result of three approach of this study are demand driven predicts that the agricultural-sector real COP Growth in Repelita VU will be 95%/year, this historic trend showed 4.05%/ year, and government-targeted have ranges from 3.58-3,71%/year. Based on the demand driven approach, the total agricultural sector investment requirement in Repelita Vll is Rp 41 2 billion, the historical trend approach is Rp 24.8 billion and the government-targeted is Rp 29.8 billion. Output projection based on the demand driven approach is much greater than the projection obtained from the other two approaches. The last two approaches are basically supply side approach. The findings then can be interpreted that in Repelita Vll demand for agricultural output will be far higher than production capacity. Accordingly, if there are no systematic anticipation to this situation, import of agricultural products will increase very sharply. This, of course, will lead to a very strong balance of payment deficit pressure. The government is, therefore, required to set a new much higher agricultural sector GDP targets than presently set for Repelita Vll. |
