NoZ forever: Agro tourism as a choice for Diversifying Revenue Sources in Agribusiness Sector, case experience of Batu City *

Agro tourism as a choice for Diversifying Revenue Sources in Agribusiness Sector, case experience of Batu City *

NoZ

By: Teguh Suprijanto (my father)

I. Introduction
Indonesia, the largest archipelago and the fifth most populous nation in the world, has total of 17,508 islands, of which about 6,000 are inhabited. Indonesia extends 3,198 miles (5,150 km) between the Australian and Asian continental mainland’s and divides the Pacific and Indian Oceans at the Equator. With the total land area of 767,777 square miles (1,919,443 sq.km), its 234 million inhabitants (July 2003 est) are made up of 300 ethnic groups who speak an estimated 583 different languages and dialects. There are five main islands in Indonesia. These are: Java, Sumatra, Kalimantan, Sulawesi and Irian Jaya (Papua). As an agrarian country in which more than 50 percent of the labor force still works in agriculture, Indonesia will not be able to make much progress in improving public welfare without rapid agriculture development.

The mission of the constitution is politically clarified by the Guidelines for National Development (GBHN), mentioning the national economic development has the following mission: (1) To develop global oriented economy in line with the advancing technology by creating competitive advantage through the existing comparative advantage in terms of agriculture and marine resources, base on the regional competence and product priorities (especially agriculture in the broad sense); (2) Empowering small scale, medium and cooperative enterprises to become more efficient, more productive, and acquire competitive strength through a conducive business climate and expanding business opportunity; (3) To strengthen food security system based on diversified food commodities, local culture and institution; (4) To increase acquisition, development and utilization of science and technology, including local technology developed by the people in small scale, medium and cooperative enterprises to improve the competitive strength of the product using local resources; (5) Accelerate the development of an effective and resilient regional economy by empowering the actors and actuating the regional potential, so that equitable economic growth can be achieved along with the implementation of regional autonomy; (6) Accelerate rural development within the context of empowering of the rural people, especially farmers and fishermen through the provision of infrastructure, and the development of agribusiness, small scale and handicraft industries.

Considering the fact that the resources owned by the people are generally agribusiness resources (human resources, land, irrigation, biodiversity, and so on) and almost 90 percent of small scale, medium and cooperative enterprises is within the domain of agribusiness, and hence the most suitable national economic development to meet the mission of the constitution is agribusiness system development

The reality that the role of agriculture sector very important as a main basic of the national economy to tackle a crisis impact. For the regional economy development will be realized with the application of agro tourism and agribusiness concept in regional economy development or local economy development

In agro tourism concept, service center will be given by village level and a place near with farmer stay, for the agriculture activity service, working capital credit and market information.

Agricultural tourism (also known as agri tourism and agro tourism) can have significant benefits for farmers and communities in the agropolitant of Batu City. Agricultural tourism has substantial economic impacts on local economic. In addition, agro tourism provides opportunities for diversification and economic incentives for farmers, promotes economic development and helps educate the public about the important contributions of agriculture to the country’s economy and quality of life.

II. Batu City
It’s about 19 km from Malang City and about 2 hours drive from Surabaya, the second largest city in Indonesia. Batu is located at 680 – 1,700 meter above sea level and it has already known as the tourists destination. Surrounded by mountains and volcano, such as Mt.Panderman (2,040 m), Mt.Arjuno (3,339 m), Mt.Welirang (active volcano, 2,156 m), Mt. Anjasmoro (2,277 m) and Mt.Kawi (2,651 m). Batu offers hot springs, a variety of sports (para gliding, hiking, climbing, etc), agro tourism, rest and relaxation, natural object (tropical rain forest, water fall, etc), and historical (the old temple from Majapahit Kingdom era). Batu is well known for its delicious fruits and vegetables, especially apples, citrus, strawberry, onion, potatoes, and cabbage. The area of Batu is 20,280 hectares and the agriculture land for cultivation is about 7,262,051 hectares. The apple orchard/farm coverage area 2, 574 hectares, with its production reached 9,134 ton

Tourism and agriculture are the main business in Batu, ranking first and second respectively as the city income. Batu has a resident population of around 165,546, and takes in a tourist population of more than five times the resident population over year. Current trends in the tourist industry show increasing demand for experience, nonconventional/mass commercial tourism activities. This trend has extended into the agricultural sector because the appeal for agricultural and farm-based tourism attractions is also increasing. The relative importance of local tourism and agricultural industries may result in agro tourism becoming an important segment of Batu City’s tourism product mix. In addition to conventional tourism, the city’s tourist industry also markets nature-based tourism. Marketing agro tourism as a separate segment of tourism industry could have substantial benefits for local agriculture.

Agro tourism is defined as any business conducted by a farmer for the enjoyment or education of the public, to promote the products of the farm and to generate additional farm income (Hilchey 1993). It includes a variety of facilities and activities that are increasingly available in Batu City, such as farm visits (pick the apple, oranges, strawberry or tomatoes), agro industries, accommodation, etc. Combining the conventional tourism industries with the uniqueness and diversity of local agriculture may offer a whole new set opportunities for farmers to diversify their operations and their revenue source.

The potential benefits of agro tourism for local agriculture are varied. First, agro tourism may generate diversification opportunities for local farmers to increase revenues and enhance the viability of their operations. Second, it may be excellent tool to educate the public about the importance of agriculture and its contribution to the country/cities’ economy and quality of life. Third, it may stimulate the farmer’s culture for producing high quality of agricultural products. Finally, agro tourism may enhance the appeal and demand for local products, foster regional marketing efforts and create value-added and direct-marketing opportunities that may stimulate economic activity and spread the benefits to various communities in the country.

Agricultural tourism is one alternative for improving the incomes and potential economic viability of small farms and rural communities.

Location of batu city: