Statement of President of the Republic of Indonesia at the Inspection of Orange-Producing Area in Orange Village, Karo Regency, North Sumatra Province, February 4, 2022

Reporter

What do you think of the oranges, Pak? Have you had the oranges, Pak? 

President of the Republic of Indonesia

Well, the oranges were sent to me to the Palace. I have tasted them. I will taste them again.

After observing on the ground, proper roads are highly needed because it deals with the cost structure of oranges. If the price of oranges is Rp5,000, the delivery fee must not reach Rp8,000. It will not add up.

So, we hope that with this production road repair, the cost structure, especially for logistics fees, logistics cost can decrease, so oranges can be sent to all cities with a competitive price and can compete with imported oranges. It will increase the profit of farmers because the transportation cost can be reduced. The cost to build the roads is very little compared to the impacts of the road repair.

So, I have told Minister of Public Works [and Public Housing] that there are many cases like the one in Karo regency. In all regencies, there are many production areas, production regions that are not supported by proper road infrastructure, which caused the cost structure very expensive and [prices of] goods not competitive. Eventually, say it costs Rp10,000 for imported [oranges], Rp20,000 for local oranges, everyone will buy imported ones. Therefore, we must be careful. Matters related to cost structure highly determine the competitiveness of goods.

Second, I have also ordered Minister of Tourism and Creative Economy to improve packaging, build better branding, check the quality of every orange. All of this will increase the sales prices of our farmers’ products.

Once again, it applies to not only oranges but also to other commodities. It has been calculated by Minister of Public Works [and Public Housing] that we need approximately 40,000 kilometers of production roads that need repairing, building so that the cost structure, especially logistics cost can fall to a truly normal price.

Reporter

Do you prefer eating the oranges here or those delivered to Jakarta?

President of the Republic of Indonesia

It’s just the same. They are both oranges. The difference is that the air is fresher here, that’s all. The oranges taste the same. How come they taste different from those in Jakarta? The oranges are from here too.

Reporter

Thank you, Pak.

President of the Republic of Indonesia

You are welcome.

(DH/MUR)