ABSTRACT
The Singapore-Riau leg of SIJORI is useful as a case study for analyzing agricultural exchanges in sub-regionalism. The 2000s saw the take-off stage of SIJORI with agri-businesses taking off in some of the Riau Archipelago’s constituents and there was also diversity in the types of produce and crops in their agricultural output. For example, Bulan Island (or Pulau Bulan in Malay, next to Batam’s western flank) became an agricultural hub by the early 2000s. It produced 400,000 pigs (which is approximately 50% of Singapore’s pork needs), a crocodile farm with 55,000 reptiles supplying edible meat and tanneries, chicken output that supplies Kentucky Fried Chicken (KFC) branches in the region and the globe’s biggest producer of orchids (Colombijin, 2003). In the same period, Singapore’s Agri-Food and Veterinary Authority (AVA) transferred technical knowledge in the areas of seeding, farming techniques, pest control and nutritional logistics from the Singapore to Riau (Ho, 2011, p. 159). By the 2020s, some Riau areas like Indragiri Hilir Riau Province has already developed 300,000 hectares of coconut estate, making coconut cultivation the single-most important crop for Indragiri Hilir (thus nicknamed ‘Lands of the Coconuts of the World’) (Wardan and Syaukat, 2021). To improve coconut cultivation, an upgraded watering system, the Trio Tata Air, was installed in the upstream areas which increased the productivity of the region’s agricultural outputs (Wardan and Syaukat, 2021). This appears to point towards a future that moves towards the important role of technologies in the agricultural sector, offering Singaporean agri-tech companies and agencies plenty of opportunities to work with the Riau local authorities to improve their agricultural output.
Keywords: SIJORI, Singapore, Riau, regionalism, ASEAN
INTRODUCTION
Regionalism has often been seen as a functional and constructivist concept in international (and regional) political economy (IPE). ASEAN is often seen as perhaps the second most successful regional organization in the world, perhaps after European Union (EU), given that the region has forged an ASEAN Economic Community (AEC) in December, 2015 and has made excellent progress in breaking down tariff barriers between ASEAN Member States (AMS). With over 600 million people (with a young and growing population), it is now one of the largest economic blocs in the world.
An important consequence of such achievements is fostering strong interdependence among states within regionalism. Interdependence among them can dissuade states in a regional organization from engaging in conflicts and incentivize them to work with each other. Such interdependence may come in the form of economic exchanges based on comparative advantages. Sub-regionalism is a microcosm of regionalism.
And a good example of sub-regionalism is the economic inter-exchanges among Singapore, Johore and Riau (SIJORI) growth triangle. One of the items in such exchanges is the agricultural sector. The Singapore-Riau leg of SIJORI is useful as a case study for analyzing this aspect in terms of agricultural exchanges. Singapore is one of the most high-tech countries in the world with an advanced developed economy that offers cutting-edge technologies, farming knowhow and capital for Riau’s economic development while Riau offers the promise of food self-sufficiency for the land-scarce island-state of Singapore.
1980S: GENESIS OF SIJORI (SINGAPORE, JOHORE, RIAU)
Singapore’s Founding Father and former Prime Minister (PM) Lee Kuan Yew led the initiative to form the SIJORI Growth Triangle in 1989 and one of the main incentives or attraction that SIJORI (the growth triangle made up of Singapore, Johore and Riau) has for Singapore is the availability of affordable land spaces and manpower, something especially important for its 600 square km land size (Colombijin, 2003). Riau could also become an important fruit basket for Singapore which is always aware of its vulnerability in food supply sufficiency, given that it is the only ASEAN (Association of Southeast Asian Nation) country without a substantial farming sector.
1990S: CONTINUED PROGRESS
After the SIJORI initiative took shape, the inaugural government statement on the conceptualization of the SJIORI growth triangle (Singapore, Johor and Batam) was first issued from former Singapore Prime Minister Goh Chok Tong in December 1989 (Ahmad, 1992, p. 414). It received the official endorsement of President Suharto and Prime Minister Dr. Mahathir Mohammad in June 1990 strengthened the concept of growth triangle area (Ahmad, 1992, p. 414). Both Suharto and Mahathir were the ‘wise men of ASEAN’ and pioneers in the formation of the regional organization. After the top leaders endorsed the statement and set the initiative in motion, technical experts took over the baton to forge this sub-regionalism within ASEAN.
In August 1990, Indonesia and Singapore inked a treaty to co-develop the Riau Archipelago coordinated and implemented by a joint ministerial-level committee (Ahmad, 1992, p. 415). The Indonesian members consist of the Indonesian Coordinating Team of Riau Province Development (Tim Koordinasi Pembangunan Propinsi Riau/KPPR Team formed through a presidential decree in July 1990) and the Batam Industrial Development Authority (BIDA) (Ahmad, 1997, p. 415) and they were given powers over the entire Riau archipelago within the growth triangle region through a presidential decree (Ahmad, 1992, p. 415).
Within the SIJORI plans, Natuna was designated as the agri-business hub and investment attractor (Ahmad, 1992, p. 415). Batam, however, turned out to be the most promising for the agricultural industry. Despite starting from a more underdeveloped base, Batam quickly caught up in the fishery and agribusiness industries with 13.2% growth annually from 1983-1988 (a promising track record just before the launch of SIJORI) and its overall economy also expanded faster than the overall Riau provincial economic growth (Ahmad, 1992, p. 418). With every successful initiative or scheme, there needs to be a period of self-evaluation and review for further improvements to the system. Therefore, in June 1991, a gathering of ASEAN economists and social scientists went through the progress and development of SIJORI (Singapore-Johor-Riau) growth triangle (Ahmad, 1992, p. 414).
THE 2000S: THE TAKE-OFF STAGE
The 2000s saw the take-off stage of SIJORI with agri-businesses taking off in some of the Riau Archipelago’s constituents and there was also diversity in the types of produce and crops in their agricultural output. For example, Bulan Island (or Pulau Bulan in Malay, next to Batam’s western flank) became an agricultural hub by the early 2000s. It produced 400,000 pigs (which is approximately 50% of Singapore’s pork needs), a crocodile farm with 55,000 reptiles supplying edible meat and tanneries, chicken output that supplies Kentucky Fried Chicken (KFC) branches in the region and the globe’s biggest producer of orchids (Colombijin, 2003). With regards to the last point, Singapore has outsourced the production of poultry for all Kentucky Fried Chicken (KFC) branches in the region to Riau (Colombijin, 2003) during that era.
THE 2010S: MATURITY IN DEVELOPMENT
In 2010, Batam and the greater Riau Islands in the archipelago were an economically-developed province regions in the Indonesian context (Hutchinson, 2017, p. 7). In nearby islands like Tanjung Pinang, a conservative shift in local politics appeared to favor agricultural development over rampant industrialization. In the 2010 provincial elections, the ex-mayor of Tanjung Pinang and Regent of Karimun Muhammad Sani was victorious by campaigning to shift away from industrialization and exports in favor of traditional economic activities like fishing, agriculture and other small-scale activities (Hutchinson, 2017, pp. 22-23). The Indonesian authorities made land spaces available while dispensing low interest loans to farmers (Ho, 2011, p. 159).
In the same period, Singapore’s Agri-Food and Veterinary Authority (AVA) agricultural initiatives resulted in positive contributions to the Riau islands in the form of a vegetable project that transferred technical knowledge in the areas of seeding, farming techniques, pest control and nutritional logistics from the Singapore (Ho, 2011, p. 159). The AVA activities also included the construction of packing facilities, boats with chillers for logistical transportation of vegetables to Singapore to supply its largest supermarket (NTUC Fairprice ran by the country’s umbrella union) and this resulted in a marked rise of farming incomes (Ho, 2011, p. 159). This was probably one of the most successful transfers of technologies and knowhow to Riau from Singapore within the SIJORI context.
THE 2020S: GROWING SOPHISTICATION AND THE WAY FORWARD.
Regent of Indragiri Hilir Riau Province (the largest regency in Riau Province) Dr. H. M. Wardan noted that Indragiri Hilir carries great potential for the SIJORI triangle of economic growth as a major section of his regency consists of lowland and peatlands that is good for agricultural cultivation (Wardan and Syaukat, 2021). He noted that cultivators in his location are dependent on coconut plantation development with above 300,000 hectares of coconut estate owned by locals, making coconut cultivation the single-most important crop for Indragiri Hilir (thus nicknamed ‘Lands of the Coconuts of the World’) (Wardan and Syaukat, 2021). Despite the well-developed coconut plantation industry, there are still some areas that are not fully utilized due to aging, damaged or dead plants found in them and Regent H. M. Wardan pointed out that he has done his best to sell those areas to developers: “I’ve offered to investors so those lands could be used but 10 years passed and it hasn’t been “sold”. One of the solutions to sell these lands is constantly introducing coconut potentials through various campaign events. The government of Indragiri Hilir Regency is continuously developing sustainable and integrated coconut estates. This is a part of our efforts to increase productivity and production quality to support the availability of raw industry materials so that it creates competitive prices resulting in prosperity for coconut farmers in Indragiri Hilir Regency. We want to maintain our identity as the land of coconuts of the world (Wardan and Syaukat, 2021).”
Moreover, after Regent H. M. Wardan’s election in 2020, yearly data indicated that coconut plantation lands gave way to palm tree estates and so he put into effect President Directive (Inpres) No 18/2018 to postpone dispensing business permits for palm tree estates and carry out continuous tracking and monitoring of the situation (Wardan and Syaukat, 2021). To improve coconut cultivation, the Indragiri Hilir Regency coconut plantations that are found mainly in creeks and peatlands can be improved further with upgraded watering system to overcome inconsistency in water currents and flows, thus a watering system, the Trio Tata Air, was installed in the upstream areas which increased the productivity of the region’s agricultural outputs (Wardan and Syaukat, 2021).
The coconut plantation hub of the Indragiri Hilir Riau Province appears to point towards a future where the Riau agricultural industry can develop alongside industrialization. Its use of an advanced watering system also points towards the important role of technologies for the future in the agricultural sector. This offers Singaporean companies and agencies plenty of opportunities to work with the Riau local authorities to improve their agricultural output and increase the quality of their yields. It points towards a future where Industry 4.0 technologies adapted for the farming sector can help to control water flows and track other readings vital for the crops’ optimal growth.
An almost no-detriment policy, there are no major detriments in working with Riau’s agricultural sector for resource-scarce Singapore. There is a minority of scholars who pointed out a possible challenge. One of them is Xu Xiaodong. He argued that the Indonesian government evaluated the agriculture industry as one of the “sensitive” or “strategic” sector, therefore erecting restrictions to protect them, hence Singapore did not have full access to the rich regional natural sources and this impeded the use of Singaporean capital, resulting in less optimal cooperation (Xu, 2019, p. 7).
This is a minority view, given that many scholars view the SIJORI cooperation as a win-win situation, as long as the initiatives continue to be market-driven and both sides continue to enjoy their comparative advantages. In fact, the cooperation is even existential in some ways because of Singapore’s land scarcity and exorbitant labour costs. Riau offers the exact affordable labour, space and resources that Singapore needed for its development and indeed its survival. The agricultural resources like pigs, crocodile farms and chicken are all useful sources of proteins to supply Singapore's needs while orchids met the demand for commercial cultivars in Singapore.
Tanjung Pinang’s pig supply to Singapore is a good example to demonstrate the Riau’s potential in contributing to Singapore’s food security. In 2020, the Tanjung Pinang Agricultural Quarantine Office revealed that one pig farm (PT Indotirta Suaka) alone is already sending up to 1,600 live pigs to the Singapore daily which meets approximately 30% of Singapore’s total demand for live pigs (Fadli, 2020). 304,509 live pigs worth approximately Rp 130.53 billion (US$9,085,814.76) were exported to Singapore in 2019 (30% more than 233,699 pigs valued at Rp 61.72 billion in 2018) (Fadli, 2020).
Singaporean capital and developmental capital proved to be highly useful for the Riau authorities in developing these farms. The post-pandemic situation is likely to see strengthened cooperation in such areas as Singapore continues to diversify its food sources to enhance food security. In this sense, the sub-regional SIJORI framework provides for Singapore’s food security while Singapore’s logistical investments, human capital training and technological knowhow that improves Riau’s food delivery capabilities to the city state can also be used as delivery mechanisms to other neighbouring markets.
In the near foreseeable future, Singapore may be able to transfer its advanced food technologies to Riau as well. It is already working with the Indonesians on the high-tech Temasek rice which can grow efficiently in vertical space-saving farms and with digital monitoring of its growth process and water-drip technologies for optimal growth. This is just one possible example of the spectrum of technologies that Singapore can offer the Riau’s agricultural sector in the near future. If this sub-regional cooperation works out optimally, it can serve as a model or have export potential to other parts of ASEAN which is forging ahead with the formation of a common market and constructivist/functionalist cooperation in sectors like agriculture.
REFERENCES
Ahmad, Mubariq. Economic Cooperation in SIJORI Growth Triangle: An Indonesian Perspective. LPEM FEB UI Universitas Indonesia Ekonomi dan Keuangan Indonesia Vol. 40 No. 4, 1992. Retrieved from https://www.lpem.org/repec/lpe/efijnl/199217.pdf, pp. 413-441.
Colombijin, Freek. Chicks and Chicken: Singapore’s Expansion to Riau. IIAS Newsletter #31, July 2003. Retrieved from https://www.iias.asia/sites/default/files/2020-11/IIAS_NL31_10.pdf
Fadli. Riau Islands company sees live pig exports to Singapore double after Malaysia's COVID-29 lockdown. The Jakarta Post, 1 April 2020. Retrieved from https://www.thejakartapost.com/news/2020/03/31/riau-islands-company-sees...
Ho, K.C. Arrested Agglomeration: The Spilling Out of Singapore’s Economic Activities into the Surrounding Sub-Region. Seoul National University e-Space Seoul Journal of Economics Vol. 24 No. 2, 2011. Retrieved from https://s-space.snu.ac.kr/bitstream/10371/81184/1/24-2_K.C._Ho.pdf, pp. 151-170.
Hutchinson, Francis E. Rowing Against the Tide? Batam's Economic Fortunes in Today's Indonesia. ISEAS - Yusof Ishal Institute, 2017. Retrieved from https://think-asia.org/bitstream/handle/11540/7461/TRS8_17.pdf?sequence=1
Wardan, H M and Yusman Syaukat. IPB University’s Guest Lecture “Exploring The Regional Development” Presents Regent of Indragiri Hilir Discussing Coconut Agroestate Success. IPB University Bogor Indonesia, 2 July 2021. Retrieved from https://ipb.ac.id/news/index/2021/07/kuliah-tamu-ipb-university-explorin...
Xu, Xiaodong. The SIJORI Growth Triangle: Progress, Problems and Prospect. Journal of Maritime Studies and National Integration 3 (1), 9 July 2019. Retrieved from https://www.researchgate.net/publication/334499577_The_SIJORI_Growth_Tri..., pp. 1-13
The Political Economy of Sub-Regionalism: SIJORI Agricultural Cooperation in the Riau-Singapore Leg
ABSTRACT
The Singapore-Riau leg of SIJORI is useful as a case study for analyzing agricultural exchanges in sub-regionalism. The 2000s saw the take-off stage of SIJORI with agri-businesses taking off in some of the Riau Archipelago’s constituents and there was also diversity in the types of produce and crops in their agricultural output. For example, Bulan Island (or Pulau Bulan in Malay, next to Batam’s western flank) became an agricultural hub by the early 2000s. It produced 400,000 pigs (which is approximately 50% of Singapore’s pork needs), a crocodile farm with 55,000 reptiles supplying edible meat and tanneries, chicken output that supplies Kentucky Fried Chicken (KFC) branches in the region and the globe’s biggest producer of orchids (Colombijin, 2003). In the same period, Singapore’s Agri-Food and Veterinary Authority (AVA) transferred technical knowledge in the areas of seeding, farming techniques, pest control and nutritional logistics from the Singapore to Riau (Ho, 2011, p. 159). By the 2020s, some Riau areas like Indragiri Hilir Riau Province has already developed 300,000 hectares of coconut estate, making coconut cultivation the single-most important crop for Indragiri Hilir (thus nicknamed ‘Lands of the Coconuts of the World’) (Wardan and Syaukat, 2021). To improve coconut cultivation, an upgraded watering system, the Trio Tata Air, was installed in the upstream areas which increased the productivity of the region’s agricultural outputs (Wardan and Syaukat, 2021). This appears to point towards a future that moves towards the important role of technologies in the agricultural sector, offering Singaporean agri-tech companies and agencies plenty of opportunities to work with the Riau local authorities to improve their agricultural output.
Keywords: SIJORI, Singapore, Riau, regionalism, ASEAN
INTRODUCTION
Regionalism has often been seen as a functional and constructivist concept in international (and regional) political economy (IPE). ASEAN is often seen as perhaps the second most successful regional organization in the world, perhaps after European Union (EU), given that the region has forged an ASEAN Economic Community (AEC) in December, 2015 and has made excellent progress in breaking down tariff barriers between ASEAN Member States (AMS). With over 600 million people (with a young and growing population), it is now one of the largest economic blocs in the world.
An important consequence of such achievements is fostering strong interdependence among states within regionalism. Interdependence among them can dissuade states in a regional organization from engaging in conflicts and incentivize them to work with each other. Such interdependence may come in the form of economic exchanges based on comparative advantages. Sub-regionalism is a microcosm of regionalism.
And a good example of sub-regionalism is the economic inter-exchanges among Singapore, Johore and Riau (SIJORI) growth triangle. One of the items in such exchanges is the agricultural sector. The Singapore-Riau leg of SIJORI is useful as a case study for analyzing this aspect in terms of agricultural exchanges. Singapore is one of the most high-tech countries in the world with an advanced developed economy that offers cutting-edge technologies, farming knowhow and capital for Riau’s economic development while Riau offers the promise of food self-sufficiency for the land-scarce island-state of Singapore.
1980S: GENESIS OF SIJORI (SINGAPORE, JOHORE, RIAU)
Singapore’s Founding Father and former Prime Minister (PM) Lee Kuan Yew led the initiative to form the SIJORI Growth Triangle in 1989 and one of the main incentives or attraction that SIJORI (the growth triangle made up of Singapore, Johore and Riau) has for Singapore is the availability of affordable land spaces and manpower, something especially important for its 600 square km land size (Colombijin, 2003). Riau could also become an important fruit basket for Singapore which is always aware of its vulnerability in food supply sufficiency, given that it is the only ASEAN (Association of Southeast Asian Nation) country without a substantial farming sector.
1990S: CONTINUED PROGRESS
After the SIJORI initiative took shape, the inaugural government statement on the conceptualization of the SJIORI growth triangle (Singapore, Johor and Batam) was first issued from former Singapore Prime Minister Goh Chok Tong in December 1989 (Ahmad, 1992, p. 414). It received the official endorsement of President Suharto and Prime Minister Dr. Mahathir Mohammad in June 1990 strengthened the concept of growth triangle area (Ahmad, 1992, p. 414). Both Suharto and Mahathir were the ‘wise men of ASEAN’ and pioneers in the formation of the regional organization. After the top leaders endorsed the statement and set the initiative in motion, technical experts took over the baton to forge this sub-regionalism within ASEAN.
In August 1990, Indonesia and Singapore inked a treaty to co-develop the Riau Archipelago coordinated and implemented by a joint ministerial-level committee (Ahmad, 1992, p. 415). The Indonesian members consist of the Indonesian Coordinating Team of Riau Province Development (Tim Koordinasi Pembangunan Propinsi Riau/KPPR Team formed through a presidential decree in July 1990) and the Batam Industrial Development Authority (BIDA) (Ahmad, 1997, p. 415) and they were given powers over the entire Riau archipelago within the growth triangle region through a presidential decree (Ahmad, 1992, p. 415).
Within the SIJORI plans, Natuna was designated as the agri-business hub and investment attractor (Ahmad, 1992, p. 415). Batam, however, turned out to be the most promising for the agricultural industry. Despite starting from a more underdeveloped base, Batam quickly caught up in the fishery and agribusiness industries with 13.2% growth annually from 1983-1988 (a promising track record just before the launch of SIJORI) and its overall economy also expanded faster than the overall Riau provincial economic growth (Ahmad, 1992, p. 418). With every successful initiative or scheme, there needs to be a period of self-evaluation and review for further improvements to the system. Therefore, in June 1991, a gathering of ASEAN economists and social scientists went through the progress and development of SIJORI (Singapore-Johor-Riau) growth triangle (Ahmad, 1992, p. 414).
THE 2000S: THE TAKE-OFF STAGE
The 2000s saw the take-off stage of SIJORI with agri-businesses taking off in some of the Riau Archipelago’s constituents and there was also diversity in the types of produce and crops in their agricultural output. For example, Bulan Island (or Pulau Bulan in Malay, next to Batam’s western flank) became an agricultural hub by the early 2000s. It produced 400,000 pigs (which is approximately 50% of Singapore’s pork needs), a crocodile farm with 55,000 reptiles supplying edible meat and tanneries, chicken output that supplies Kentucky Fried Chicken (KFC) branches in the region and the globe’s biggest producer of orchids (Colombijin, 2003). With regards to the last point, Singapore has outsourced the production of poultry for all Kentucky Fried Chicken (KFC) branches in the region to Riau (Colombijin, 2003) during that era.
THE 2010S: MATURITY IN DEVELOPMENT
In 2010, Batam and the greater Riau Islands in the archipelago were an economically-developed province regions in the Indonesian context (Hutchinson, 2017, p. 7). In nearby islands like Tanjung Pinang, a conservative shift in local politics appeared to favor agricultural development over rampant industrialization. In the 2010 provincial elections, the ex-mayor of Tanjung Pinang and Regent of Karimun Muhammad Sani was victorious by campaigning to shift away from industrialization and exports in favor of traditional economic activities like fishing, agriculture and other small-scale activities (Hutchinson, 2017, pp. 22-23). The Indonesian authorities made land spaces available while dispensing low interest loans to farmers (Ho, 2011, p. 159).
In the same period, Singapore’s Agri-Food and Veterinary Authority (AVA) agricultural initiatives resulted in positive contributions to the Riau islands in the form of a vegetable project that transferred technical knowledge in the areas of seeding, farming techniques, pest control and nutritional logistics from the Singapore (Ho, 2011, p. 159). The AVA activities also included the construction of packing facilities, boats with chillers for logistical transportation of vegetables to Singapore to supply its largest supermarket (NTUC Fairprice ran by the country’s umbrella union) and this resulted in a marked rise of farming incomes (Ho, 2011, p. 159). This was probably one of the most successful transfers of technologies and knowhow to Riau from Singapore within the SIJORI context.
THE 2020S: GROWING SOPHISTICATION AND THE WAY FORWARD.
Regent of Indragiri Hilir Riau Province (the largest regency in Riau Province) Dr. H. M. Wardan noted that Indragiri Hilir carries great potential for the SIJORI triangle of economic growth as a major section of his regency consists of lowland and peatlands that is good for agricultural cultivation (Wardan and Syaukat, 2021). He noted that cultivators in his location are dependent on coconut plantation development with above 300,000 hectares of coconut estate owned by locals, making coconut cultivation the single-most important crop for Indragiri Hilir (thus nicknamed ‘Lands of the Coconuts of the World’) (Wardan and Syaukat, 2021). Despite the well-developed coconut plantation industry, there are still some areas that are not fully utilized due to aging, damaged or dead plants found in them and Regent H. M. Wardan pointed out that he has done his best to sell those areas to developers: “I’ve offered to investors so those lands could be used but 10 years passed and it hasn’t been “sold”. One of the solutions to sell these lands is constantly introducing coconut potentials through various campaign events. The government of Indragiri Hilir Regency is continuously developing sustainable and integrated coconut estates. This is a part of our efforts to increase productivity and production quality to support the availability of raw industry materials so that it creates competitive prices resulting in prosperity for coconut farmers in Indragiri Hilir Regency. We want to maintain our identity as the land of coconuts of the world (Wardan and Syaukat, 2021).”
Moreover, after Regent H. M. Wardan’s election in 2020, yearly data indicated that coconut plantation lands gave way to palm tree estates and so he put into effect President Directive (Inpres) No 18/2018 to postpone dispensing business permits for palm tree estates and carry out continuous tracking and monitoring of the situation (Wardan and Syaukat, 2021). To improve coconut cultivation, the Indragiri Hilir Regency coconut plantations that are found mainly in creeks and peatlands can be improved further with upgraded watering system to overcome inconsistency in water currents and flows, thus a watering system, the Trio Tata Air, was installed in the upstream areas which increased the productivity of the region’s agricultural outputs (Wardan and Syaukat, 2021).
The coconut plantation hub of the Indragiri Hilir Riau Province appears to point towards a future where the Riau agricultural industry can develop alongside industrialization. Its use of an advanced watering system also points towards the important role of technologies for the future in the agricultural sector. This offers Singaporean companies and agencies plenty of opportunities to work with the Riau local authorities to improve their agricultural output and increase the quality of their yields. It points towards a future where Industry 4.0 technologies adapted for the farming sector can help to control water flows and track other readings vital for the crops’ optimal growth.
An almost no-detriment policy, there are no major detriments in working with Riau’s agricultural sector for resource-scarce Singapore. There is a minority of scholars who pointed out a possible challenge. One of them is Xu Xiaodong. He argued that the Indonesian government evaluated the agriculture industry as one of the “sensitive” or “strategic” sector, therefore erecting restrictions to protect them, hence Singapore did not have full access to the rich regional natural sources and this impeded the use of Singaporean capital, resulting in less optimal cooperation (Xu, 2019, p. 7).
This is a minority view, given that many scholars view the SIJORI cooperation as a win-win situation, as long as the initiatives continue to be market-driven and both sides continue to enjoy their comparative advantages. In fact, the cooperation is even existential in some ways because of Singapore’s land scarcity and exorbitant labour costs. Riau offers the exact affordable labour, space and resources that Singapore needed for its development and indeed its survival. The agricultural resources like pigs, crocodile farms and chicken are all useful sources of proteins to supply Singapore's needs while orchids met the demand for commercial cultivars in Singapore.
Tanjung Pinang’s pig supply to Singapore is a good example to demonstrate the Riau’s potential in contributing to Singapore’s food security. In 2020, the Tanjung Pinang Agricultural Quarantine Office revealed that one pig farm (PT Indotirta Suaka) alone is already sending up to 1,600 live pigs to the Singapore daily which meets approximately 30% of Singapore’s total demand for live pigs (Fadli, 2020). 304,509 live pigs worth approximately Rp 130.53 billion (US$9,085,814.76) were exported to Singapore in 2019 (30% more than 233,699 pigs valued at Rp 61.72 billion in 2018) (Fadli, 2020).
Singaporean capital and developmental capital proved to be highly useful for the Riau authorities in developing these farms. The post-pandemic situation is likely to see strengthened cooperation in such areas as Singapore continues to diversify its food sources to enhance food security. In this sense, the sub-regional SIJORI framework provides for Singapore’s food security while Singapore’s logistical investments, human capital training and technological knowhow that improves Riau’s food delivery capabilities to the city state can also be used as delivery mechanisms to other neighbouring markets.
In the near foreseeable future, Singapore may be able to transfer its advanced food technologies to Riau as well. It is already working with the Indonesians on the high-tech Temasek rice which can grow efficiently in vertical space-saving farms and with digital monitoring of its growth process and water-drip technologies for optimal growth. This is just one possible example of the spectrum of technologies that Singapore can offer the Riau’s agricultural sector in the near future. If this sub-regional cooperation works out optimally, it can serve as a model or have export potential to other parts of ASEAN which is forging ahead with the formation of a common market and constructivist/functionalist cooperation in sectors like agriculture.
REFERENCES
Ahmad, Mubariq. Economic Cooperation in SIJORI Growth Triangle: An Indonesian Perspective. LPEM FEB UI Universitas Indonesia Ekonomi dan Keuangan Indonesia Vol. 40 No. 4, 1992. Retrieved from https://www.lpem.org/repec/lpe/efijnl/199217.pdf, pp. 413-441.
Colombijin, Freek. Chicks and Chicken: Singapore’s Expansion to Riau. IIAS Newsletter #31, July 2003. Retrieved from https://www.iias.asia/sites/default/files/2020-11/IIAS_NL31_10.pdf
Fadli. Riau Islands company sees live pig exports to Singapore double after Malaysia's COVID-29 lockdown. The Jakarta Post, 1 April 2020. Retrieved from https://www.thejakartapost.com/news/2020/03/31/riau-islands-company-sees...
Ho, K.C. Arrested Agglomeration: The Spilling Out of Singapore’s Economic Activities into the Surrounding Sub-Region. Seoul National University e-Space Seoul Journal of Economics Vol. 24 No. 2, 2011. Retrieved from https://s-space.snu.ac.kr/bitstream/10371/81184/1/24-2_K.C._Ho.pdf, pp. 151-170.
Hutchinson, Francis E. Rowing Against the Tide? Batam's Economic Fortunes in Today's Indonesia. ISEAS - Yusof Ishal Institute, 2017. Retrieved from https://think-asia.org/bitstream/handle/11540/7461/TRS8_17.pdf?sequence=1
Wardan, H M and Yusman Syaukat. IPB University’s Guest Lecture “Exploring The Regional Development” Presents Regent of Indragiri Hilir Discussing Coconut Agroestate Success. IPB University Bogor Indonesia, 2 July 2021. Retrieved from https://ipb.ac.id/news/index/2021/07/kuliah-tamu-ipb-university-explorin...
Xu, Xiaodong. The SIJORI Growth Triangle: Progress, Problems and Prospect. Journal of Maritime Studies and National Integration 3 (1), 9 July 2019. Retrieved from https://www.researchgate.net/publication/334499577_The_SIJORI_Growth_Tri..., pp. 1-13