The ‘selfie elbow’ is the latest in tech injuries

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The Straits Times
Asia News Network
HOME ASEAN&BEYON AEC THU, 7 JUL, 2016 2:17 PM

Selfie addicts take note. Overindulging can result in ‘selfie elbow’, a new term to add to growing list of tech injuries that have surfaced in recent years.

There is only one reported case so far, in American journalist Hoda Kotb, but the prevalence of selfies would suggest that there are many more undiagnosed cases in our midst.

Kotb, a popular TV anchor known for her love of selfies, has recently complained of an achy elbow.

When the 51-year-old consulted her orthopaedist, he asked if she was playing tennis or table tennis. It turned out that the pain was due to her constant selfie taking, Elle.com said.

“When you take the picture, your arm is up, bent in a weird way and you just click, click, click-think about how many you take: 20, 30, or 40. Selfie elbow, everyone has it!” she told the fashion magazine.

Tendonitis occurs when the tendon becomes inflamed, while carpal tunnel is caused by the compression of the median nerve in the wrist, usually due to overuse of the hand.

Doctors told the magazine that more patients have come to them for tech-related injuries.

Earlier, doctors saw cases of ’Blackberry thumb’, from overuse of the smart phone. The ’iPad hand’ is another manifestation of such overuse. Gaming for long hours have also caused tendonitis.

“You get tennis elbow from playing too much tennis-or having poor form-and you get selfie elbow from taking too many selfies,” said Dr Jordan Metzl, a sports medicine physician at New York’s Hospital for Special Surgery. “You put too much stress on the muscle and it irritates the area where the muscle comes off the bone.”

Selfie lovers can avoid such a predicament by switching the arms they use to snap their photos, he advised.

They can also use a selfie stick, or take photos the old-fashioned way – asking someone else to take the shot.

But if you do get ’selfie elbow’, some painkillers, ice and some stretching should help alleviate the condition. Of course the cure would be to stop taking so many selfies.

Singapore factory activity shrinks for 12th straight month in June

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A printed circuit board assembly factory in Singapore. Domestic and export orders shrank last month. /Reuters

 

Chia Yan Min
The Straits Times
HOME ASEAN&BEYON AEC THU, 7 JUL, 2016 1:01 AM

SINGAPORE – Factory activity shrank for the 12th straight month in June as the lacklustre global economy continued to weigh on Singapore’s beleaguered manufacturing sector.

Elsewhere in the region, manufacturing experienced a small lift in some economies but analysts say the uptick will be short-lived and that long-term prospects remain anaemic.

Singapore’s Purchasing Managers’ Index (PMI) – an early indicator of manufacturing activity – came in at 49.6 last month, down slightly from the 49.8 reading in May. A reading below 50 indicates contraction.

The fall came as domestic and export orders shrank alongside declines in employment and production. The data is compiled by the Singapore Institute of Purchasing and Materials Management, from a monthly poll of purchasing executives at about 150 industrial companies.

Manufacturing, which makes up a fifth of the economy, has been hit hard by tepid global growth and ongoing restructuring. The industry has been in recession for over a year, according to some economists.

There will be “no light at the end of the Singapore manufacturing tunnel” in this half of the year, said OCBC economist Selena Ling.

“Domestic business confidence is likely to remain subdued in the near term, especially in the wake of the Brexit-induced uncertainties,” she added.

DBS economist Irvin Seah said PMI readings are expected to “inch gingerly higher in the coming months” due to seasonal effects, as manufacturers ramp up production to meet orders for the year-end festive season.

However, there could be fewer orders this year than last year.

“Without a sustained improvement in global demand, it is still a bleak outlook for the manufacturing sector after all,” added Mr Seah.

Manufacturing showed tentative signs of life elsewhere in the world. Key data in the United States showed positive signs, while South Korea and Taiwan – Asia’s industrial bellwethers – logged expansionary PMI readings for June.

“Look closely, however, and it’s doubtful there’ll be much follow- through,” said Mr Frederic Neumann, co-head of Asian economics research at HSBC, in a research note. “China is softening again, global new export orders continue to contract, and new orders in Asia aren’t improving. It all feels wobbly. And Brexit isn’t helping.”

China’s official manufacturing PMI edged down in June to reach 50, from the 50.1 logged in May and April.

A separate private survey of China’s manufacturing activity – the Caixin Manufacturing PMI – fell to 48.6 last month, from the 49.2 reading in May.

Instant noodle sales rise in Vietnam

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Customers buy instant noodles at a supermarket in Hanoi./Viet Nam News

 

Business Desk
Viet Nam News
HOME ASEAN&BEYON AEC THU, 7 JUL, 2016 1:01 AM

HANOI – Vietnam has a huge domestic market for instant noodles with sales of nearly 20 trillion dong (US$888.9 million) per year.

According to Euromonitor, a foreign research firm, Vietnam’s instant noodle market had a value at VND24.3 trillion in 2015, 10 per cent higher than 2014.

The value was expected to grow to VND25.7 trillion in 2016 and VND26.6 trillion in 2017.

There are 50 enterprises engaged in producing instant noodles in Vietnam. Seventy per cent of the revenue has come from Acecook, Masan Consumer and Asia Foods, the three largest instant noodles producers.

Acecook Vietnam is the largest domestic producer of instant noodles, accounting for 40 per cent of the market. The company registered a revenue of VND9 trillion in 2014 and VND9.3 trillion in sales in 2015.

The second largest enterprise, Masan Consumer, held 25 per cent of the local market share in 2015. It gained VND5 trillion from packed instant noodle sales.

Meanwhile, the World International Noodle Association (WINA) has reported that consumption of instant noodles in Vietnam reduced over the past two years following a downtrend on the world market. Consumption dropped from 5.2 billion packets in 2013, to 5 billion in 2014, and 4.8 billion in 2015.

Inaccurate information about the product has made customers wary and resulted in reduced sales, the association reported.

However, Kajiwara Junichi, general director of Acecook Vietnam, said consumption of instant noodles had recovered in the first half of this year.

In the first six months of this year, Acecook Vietnam sold 1.3 billion packets and exported 100 million packets, 9 per cent higher than the same period last year, he said. The company expected sales of 2.9 billion packets this year.

Vietnam has the best production costs so the company produces its instant noodles here and exports it to 46 countries and territories, he said. In the future, the company would promote cup noodles due to its high demand.

Vietnam is the fourth largest consumer of instant noodles in the world, after China, Indonesia and Japan, according to the association.

AEC to spur growth of Brunei transport sector

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Cruise on Brunei River./The Brunei Times
Koo Jin Shen
The Brunei Times
HOME ASEAN&BEYON AEC THU, 7 JUL, 2016 1:00 AM

spur BANDAR SERI BEGAWAN – The creation of an Asean Economic Community (AEC) should encourage Brunei to develop its transport sector, according to business intelligence and analytic company the Oxford Business Group.

The OBG said in its latest report the transport industry is expected to help Brunei diversify its economy.

While the single market and production base envisioned by the AEC has not been fully realised, physical infrastructure and its integrity within each individual country were vital in doing so.

“Developments to cross-border roads, power lines, railway and maritime transport will all be crucial in turning the aspiration into a reality and improvements in these areas will boost new and existing value chains and production networks”, OBG said.

OBG highlighted recent progress in aspects of the country’s transport sector, noting areas such as the road network, strategic waterways, air freight and ports as well as the Temburong Bridge megaproject will be important economic contributors in the upcoming future.

“The extent to which the various transport and logistics related initiatives being pursued by the private sector, the government and Asean as a whole will be a boon to the economy remains to be seen,” OBG said. “However, the government appears to be taking the challenge of transforming the sector into a regional powerhouse seriously, as evidenced by the potential drivers for growth it has created in the last few years.”

OBG said foreign investors and the private sector are also beginning to recognise that the transport and logistics sectors are now ripe for investment.

OBG said the coastal highway backbone that runs eastwards from Kuala Belait in the northwest to Muara Port in the northeast is part of the pan-Borneo transport network connecting Brunei to Malaysia and Indonesia.

OBG said Brunei’s position adjacent to the sea lanes of the South China Sea made 209km of its waterways and 161km of its coastline logistically important.

“Under the Kuala Lumpur Transport Strategic Plan 2016-25, Brunei has agreed to contribute to the establishment of an Asean Single Shipping Market and to promote maritime safety, security and strategic economic corridors within Asean,” OBG said. It also noted that under that strategic plan, Brunei will engage in regional maritime transport cooperation to develop strategic maritime logistics corridors within ASEAN.

OBG said Brunei’s recent efforts for airport modernisation, noting that the move to transform the terminal into a passenger and cargo gateway should be an asset with the roll-out of the Asean Open Skies policy and competition between the region airlines increases.

The open skies policy which came into effect in January 2015 has been ratified by Brunei despite concerns of increased competition to the national carrier Royal Brunei, said the report and will see all airline companies from the 10 member-states of Asean to be able to fly freely from their home country to any city within the bloc.

Taisho group buys 24% of Vietnam’s DHG

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Business Desk
Viet Nam News
HOME ASEAN&BEYON AEC THU, 7 JUL, 2016 1:00 AM

HANOI – Japanese drug manufacturer Taisho Group has acquired more than 21.3 million shares or a 24.4 per cent stake in Hau Giang Pharmaceutical Joint Stock Company (DHG), the group announced yesterday.

The group believes the transaction and alliance with DHG, as the leading drug maker in Vietnam, will enable it to share knowledge, technology and experience in the pharmaceutical business with DHG, resulting in an increase in sales and further growth for both company’s businesses in Asia.

In addition, synergy is expected between DHG, with its strong presence in Vietnam, and Taisho Group. The group is committed to enhancing its pharmaceutical business in Asia and is striving to grow various business segments in the continuously expanding Asian market.

According to data from the Vietnam Securities Depository, the Japanese drug maker bought the shares from 34 foreign shareholders, including Dragon Capital, VinaCapital and other stakeholders such as Fullerton, Nikko New Age Asia Equity, KITMC, Mekong Portfolio Investments Limited and Vietnam Holding. The foreign ownership percentage in DHG has almost reached its maximum level, with only 0.01 per cent remaining.

The value of the deal was not disclosed, but based on June 30 data, with each DHG share ending at 103,000 dong, the deal should be worth nearly 2.2 trillion dong (US$98 million).

Based in Can Tho province since 1974, DHG Pharmaceutical Joint Stock Company is one of the leading drug makers in Vietnam. As of March 2016, State Capital Investment Corporation, with 43.31 per cent of the stake, was DHG’s largest shareholder, followed by Franklin Templeton Investment funds – Templeton Frontier Markets Fund, with 9.44 per cent, and Portal Global Limited Holding, with 7.7 per cent. When Portal Global Limited announced the sale of DHG shares to Taisho, the other two shareholders announced no change to their own stake.

DHG reported marked net revenue of 3.6 trillion dong in the fiscal year that ended on Dec 31, 2015, posting a year-on-year decrease of 8 per cent. Of this amount, the company’s net revenue in Q4 of 2015 reached 1.149 trillion dong. After Q1 this year, DHG rose 22 per cent in sales, reaching 815 billion dong. Its net profit also soared 26.3 per cent, reaching 368 billion dong. For the entire year in 2016, the company aims to earn 3.7 trillion dong in revenue and 750 billion dong in pre-tax profit.

After the announcement of the 35 per cent dividend for 2015 in May, DHG shares surged by more than 23 per cent from a value of 82,000 dong to some 100,000 dong each on the HCM City Stock Exchange.

Taisho Pharmaceuticals, headquartered in Tokyo, is a leading Japanese pharmaceutical company specialising in the manufacture of pharmaceutical products and non-prescription dietary supplements under well-known brands. In Southeast Asia, Lipovitan-D (energy drink with vitamins) is the company’s most famous brand. In 2015, the parent company recorded revenue of $2.7 billion and profit after tax of $210 million. In the local market, Taisho founded an $11.8 million investment company that manufactures and distributes Lipovitan drinks.

(US$1 = 22,605 dong as of 7/6/2016 via oanda.com)

Japan eyes TPP investment in Vietnam’s agriculture sector

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Business Desk
Viet Nam News
HOME ASEAN&BEYON AEC THU, 7 JUL, 2016 1:00 AM

HANOI – Japanese agricultural businesses are making a beeline for Vietnam since the Trans-Pacific Partnership (TPP) is set to open up their country’s market and bring import tariffs down to zero, according to a source from Vietnam Investment Review newspaper.

A report by Japanese investment consulting firm Seiko Ideas Corp. said Japan would have to allow imports of even the most sensitive items from all TPP members.

This would put Japan in a disadvantageous situation since its agricultural production is small and expensive, it said.

Japanese firms therefore decided to step up investment in the Vietnamese agriculture sector since the latter is also a TPP member.

They could then export products from Vietnam to their country paying zero tax. The TPP stipulates that to enjoy the zero tariff, a product must have 70 per cent content from member countries.

Seeing the writing on the wall, Kato Group began to collaborate with Binh Dinh province last year to invest US$771,000 in tuna fishing through 2020.

It has helped the central province master the technologies used in sea tuna fishing and on-board storage so that the products meet quality requirements when exported to Japan.

The province has bought five sets of Japanese tuna fishing equipment at a cost of 1.5 billion dong (US$66,355) for training its fishermen.

Shudensha Company has been implementing an $820,000 project to improve water quality at aquaculture farms.

OTA Kaki Company is collaborating with the central highlands province of Lam Dong to develop a flower market with an effective distribution system.

Also in Lam Dong, Nikko Foods Company is working on a $820,000 high-quality tomato farming project.

The Japan International Co-operation Agency (JICA) said it would step up support to the Vietnamese agricultural sector through various projects in which Japanese firms would invest.

Mori Mutsuya, former head of JICA Vietnam, said that Vietnam’s agriculture sector had massive potential.

“For instance, our survey in Lam Dong found that if farmers replace coffee trees with flowers, their income will rise nine fold.”

Scouring the country

Nguyen Do Anh Tuan, head of the Institute for Policy and Strategy for Agriculture and Rural Development, told Vietnam News Agency that Japanese investors had already started going around the country looking for opportunities to invest in hi-tech farming.

Some had already begun production, including of vegetables in the central highlands province of Lam Dong and mangoes in the Mekong Delta province of Dong Thap and through a hi-tech project in the northern province of Vinh Phuc.

He underscored that Vietnam and Japan saw great opportunities for agricultural co-operation, especially after signing a number of bilateral and multilateral free trade agreements, including the TPP, which has comprehensive commitments.

Once it takes effect in 2018 the TPP is expected to give a push to Vietnam-Japan agricultural investment and trade by opening the market for 38.4 per cent of their agricultural products, 64.8 per cent of aquatic products and 17.2 per cent of wooden products, according to Tuan.

Japan will immediately remove tariffs on 78 per cent of Vietnamese agricultural exports and the figure will rise to 88.5 per cent in the next five or six years.

This is a good opportunity for Vietnam to expand its exports, increase its access to major markets around the world and join global supply chains.

Japanese firms can invest in Vietnam’s agricultural sector to take advantage of tariff incentives, abundant natural resources and cheap labour.

With their advantages in technology and market access in Vietnam, Japanese businesses can invest in making agricultural machinery, fertilisers and pesticides.

They can also look at support industries like packaging, preservation equipment, glass and net houses, and processing.

Tuan said Japanese companies should join hands with their local counterparts to develop large-scale fields and complete value chains and brands for the domestic and international markets.

But to boost such investment flows, Vietnam should provide policy support for investors to resolve difficulties, develop land funds and build infrastructure, he said, adding that local governments should be more proactive in supporting businesses.

The country should focus on fostering small and medium-sized enterprises which can co-operate with Japanese companies in production, processing and distribution, he said.

Figures from the Foreign Investment Agency show that last year Japan was the third largest investor in Vietnam with $1.84 billion, accounting for 8.1 per cent of the total.

Agriculture was among the sectors to attract the largest amounts of investment.

In the central highlands province of Lam Dong, 10 Japanese companies have invested in agriculture, primarily growing clean vegetables.

Others such as Yanmar, Maruyama MFG, Marumasu Kikai, and Nankai Kinzoku are interested in not just investment in high-tech agricultural projects but also want to import farm machinery.

Laos’ trade with Asean flourishing

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Bounfaeng Phaymanivong
Vientiane Times
HOME ASEAN&BEYON AEC THU, 7 JUL, 2016 1:00 AM

VIENTIANE – Trade between Laos and Asean has reached US$4.5 billion, covering 64 percent of the whole trade value of Laos in 2015 following the inception of the Asean Economic Community (AEC) integration, according to a trade official.

Last year, the total trade value of Laos was recorded at US$6 billion and Asean countries were the top trade partners.

Deputy Director General of the Foreign Trade Policy Department Mr Saysana Sayakone briefed a seminar on ‘Turnin g Vision into Reality for a Dynamic Asean Community’ and ‘the current Lao trade relations with countries around the would, including the Asean member states’ that the AEC is now steadily creating positive impacts on Laos and the other Asean member countries.

“Laos has trade relations with more than 50 countries globally and had bilateral trade agreements with more than 15 countries worldwide in 2015,” Mr Saysana said.

In the same year, Intra-Asean trade was worth more than US$2 trillion, covering over 20 percent to 25 percent of the total trade value of Asean. It is projected that its trade value will continue to rise over the years to come, he said.

Meanwhile Intra-Asean investment stood at US$22 trillion, equal to 17-18 percent of the total value of Aseaninvestment in 2015.

The governments of Asean, especially the Lao government, as one of the new Asean members including Cambodia, Myanmar and Vietnam, has been gearing up to eliminate the barriers to facilitating trade relations with the region and globe.

As part of the elimination, non-tariff barriers and measures have been eliminated to boost trade and the connectivity of various sectors.

So far, Laos has achieved 92.3 percent of the measures.

Laos will continue to push for the implementation of the pending 90 measures, or a little over 7 percent, in 2016 as part of its immediate priorities.

According to the Asean Blueprint 2015, its regional trade agreements aim to turn the Asean bloc into a single market and production base where goods, investment, capital and skilled labour can flow freely.

In addition, the region is also set to become a highly integrated and interconnected economy over the next 10 years.

Ho Chi Minh City targets 500,000 enterprises by 2020

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Viet Nam News

HOME ASEAN&BEYON AEC WED, 6 JUL, 2016 1:01 AM

Ho Chi Minh City – The has set a target of implementing administrative reform to reach the target of having a total of 500,000 enterprises by 2020.

At the meeting over the weekend with representatives of 150 enterprises, Dinh La Thang, secretary of HCM City’s Party Committee, said that it was realistic to set such a target within the next four years.

The city’s advantages and potential have not been exploited well, he said, adding that the business community should work with the government to reach the target.

Thang urged the city government to speed up administration reform, cutting red tape to create the most favourable conditions for enterprises.

Entrepreneurs at the meeting, however, said the target would be hard to reach because of red tape and the existing number of companies was still low.

Statistics released from the People’s Committee show that the city has 270,000 enterprises, while the tax authority has recognised only 170,000 of them.

Nguyen Quoc Anh, chairman of the HCM City Rubber Plastic Manufacturers Association, said the city administration should support enterprises in accessing capital, land and building production chains as well as other administrative procedures and policies to help them develop their business.

Nguyen Van Be, chairman of the HCM City Business Association, said enterprises needed land, capital and technology for expansion, but a transparent business environment was also necessary.

Unnecessary certificates and administrative procedures should be eliminated, he said.

During the past two years, administrative procedures requiring additional certificates have not improved and the one-door policy has not been applied well.

Nguyen Loc, general director of Vietnam Electric Cable Corporation, said that more than 30 per cent of the city’s registered enterprises were not actually operating.

Anh said he agreed with Loc that the target to reach 500,000 enterprises was not feasible.

According to the HCM City Department of Planning and Investment, the city in the first quarter recorded GDP of nearly VND477 trillion (US$21.2 billion), an increase of 7.4 per cent compared to the same period last year.

New taxes on ‘fatty’ food, luxury goods

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AEC

“FATTY” food, luxury items as well as casino and lotto winnings would be slapped taxes if the Duterte administration’s proposed tax policy reform programme, which would result in a net revenue gain of P368.1 billion to the government by 2019, is approved by in Congress.

Documents obtained by the Inquirer showed that among the new revenue generating measures being eyed for implementation within the next three years were “fatty food tax;” luxury tax on cars, jewelry and yachts; mining tax; carbon tax, as well as casino and lottery tax.

The Duterte administration also intends to revisit the sin taxes on tobacco and alcohol products.

The document did not specify what constituted fatty food and the additional amount of taxes to be imposed on luxury items.

This package, which the documents said should be passed by Congress “as needed” will bring about 109.4 billion pesos in net revenue gains, as these will mostly be new taxes.

By 2019, mining tax would generate 3.5 billion pesos (Bt6.58 billion), luxury tax, 7.7 billion pesos; sin tax, 38.2 billion pesos, and 20 billion pesos each from fatty food tax, carbon tax, and lottery and casino tax, according to rough estimates of the Department of Finance.

The Duterte administration’s proposed tax policy reform programme, which is currently being firmed up for submission to Congress next month, will have four main packages: personal income tax and consumption; corporate income tax and incentives; property tax, and capital income tax.

The first tax policy package, aimed for passage in January , will adjust personal income tax brackets to correct so-called income creeping; reduce the maximum personal income tax rate over time to 25 per cent from 32 per cent at present, and shift to a simpler, modified gross system.

To compensate for the foregone revenues arising from the lowering of personal income taxes estimated at 139 billion pesos, the Duterte administration wanted to expand the value-added tax (VAT) base by limiting exemptions to raw food as well as other necessities such as education and health; increase the excise tax on petroleum products and index it to inflation; impose a 5 pesos per kilo tax on sugary products (domestic raw sugar, refined sugar as well as imported sugar and sugar substitutes); relax bank secrecy law for fraud cases, and include tax evasion as a predicate crime to money laundering.

In terms of revenue impact, the first package will bring about a net gain of 220.7 billion pesos, as the loss from reforming the personal income tax system will be compensated by gains of 163.4 billion pesos from VAT base expansion, 178.2 billion pesos from higher oil excise tax, and 18.1 billion pesos from “sweet tax.”

The second tax reform package eyed for the passage in June next year will reduce the corporate income tax rate over time to 25 per cent from 30 percent at present and simplify provisions to improve compliance.Offsetting measures for lower corporate income tax include rationalizing fiscal incentives to make them transparent, targeted, performance-based and time-bound; putting sunset provisions to existing incentives; expanding the coverage of the Fiscal Incentives Review Board to include all incentive recipients beyond state-run corporations; replacing the 5-percent gross income earned tax rate to a reduced corporate income tax rate of 15 percent; strictly limiting VAT zero-rating to direct exporters; giving full VAT refund in cash, and abolishing tax credit certificates.

The second revenue package, however, will result in a net loss of P1 billion, as the projected loss of P34.8 billion from lower corporate income tax is more than the estimated P33.8-billion gain from fiscal incentives rationalization.

The third package will lower the rate of the estate and donor’s tax as well as transaction taxes on land (DST, transfer tax and registration fees), while rationalizing the valuation of properties, increasing valuation closer to market prices, as well as reviewing valuation every three years and adjusting it accordingly.

This package on property tax is eyed for approval in June 2018, and will bring P40 billion in net revenue gain.

The fourth tax policy package, hoped to be passed by Congress in January 2019, will cut the tax on interest income earned on peso deposit and investment to 10 percent from 20 percent at present. To compensate, the government plans to harmonize capital income tax rates for dollar deposits and investment, dividends, equity as well as fixed income rates toward 10 percent, while also increasing the tax on stocks traded in the stock market to 1 percent on gross selling price from 0.5 percent at present.

The capital income tax package will result in a P1-billion net revenue loss.

Technology startups for farm sector

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AEC

A man operates a quadcopter to detect agricultural disease in a rice field in Sui Itik village, West Kalimantan, on Wednesday. The Swandiri Institute of Pontianak is testing the drone to help local farmers, supported by the UN Development Program.

A man operates a quadcopter to detect agricultural disease in a rice field in Sui Itik village, West Kalimantan, on Wednesday. The Swandiri Institute of Pontianak is testing the drone to help local farmers, supported by the UN Development Program.

INDONESIA’S Communications and Information Ministry recently launched the 1,000 Digital Startup Movement initiative in cooperation with KIBAR, the country’s technology star-up ecosystem builder in Indonesia.

Through this programme , the government wants to realise Indonesia’s potential for the Digital Energy of Asia by 2020 through the creation of 1,000 tech start-ups, which are expected to help overcome problems by utilizing digital technology. This initiative should be appreciated, given the global digitalization trend in all aspects of life. Nonetheless, most of these start-ups have not touched traditional sectors, such as agriculture.

According to the start-up ranking issued by TechInAsia, the top 15 start-ups in Indonesia are still dominated by e-commerce. This indicates that Indonesian private consumption is very high. But if we look at the national agricultural sector, the condition is inversely proportional to feed its population.

In the midst of growing food demand, it is unlikely that the Indonesian agricultural sector will be able to provide sufficient food. Although such start-ups would be identical to those in information technology and digitalisation, this does not mean they only dwell in the two realms.

Many lines of business could be developed by start-ups, including agriculture.

The effort to synthesise digital start-ups in agriculture has been made in several countries. In 2010, some Silicon Valley-based programmers initiated a meeting with investors to discuss how a start-up and investors could benefit agriculture, which later gave birth to the term Agriculture 2.0.

Another country that has continued to develop its agricultural start-ups is India. Narendra Modi’s government is currently trying to increase investment in the agricultural sector, which is able to employ half of India’s workforce.

For Indonesia, based on the purpose of the movement and definition of a start-up itself, the role of an agricultural start-up could be crucial. Based on the 2013 Agriculture Census, the national agricultural industry is still dominated by the home industry, with a total of about 26.14 million households, while the number of agricultural companies totalled only 4,165.

This means that the majority of Indonesian farmers are working on a small scale with undeveloped technology and limited access to education and information. If start-ups can work well in agriculture, they will not only grow new companies but also strengthen millions of small farmers in Indonesia.

Furthermore, the census also showed a decreasing number of industrial farming households compared to the 2003 census. Indonesia has lost about 5 million farmers due a lack of support and low profits.

Nonetheless, the current hype to reinforce agriculture has been taken by some start-ups, such as I-Grow and Limakilo, which empower local farmers to eliminate the role of brokers while providing professional management. In software development, names like Matadaun, PEKA and Duty Plant have been established to assist farmers with planting, financial management and agricultural knowledge.

This could be a new hope since they bring science, digital technology, as well as access to information and global networks for the local farmers to utilize and compete globally.

A few things need to be undertaken, starting with building awareness and providing knowledge about the needs of start-up farming. It is important for founders, investors and public officials to understand the necessities of agricultural start-ups.

This is essential given the current start-up trend, which is dominated by the service sector and sales.

Second, comprehensive policy support, ranging from licensing issues, access to capital and incentives, is needed. Licensing facilities are in line with the government’s goal to improve its ranking in ease of doing business.

Access to capital is not just about access to banks but also the ease of investment. A government-established incubator is a good starting point because it facilitates access to capital and advocates for policy support.

Last but not least is the approach to farmers and local administrations. Literacy technology, particularly in IT for farmers, is very important. Without it, they cannot use the services and software provided by start-ups.

Local government support is also crucial since they are dealing with farmers and the locus of agriculture. For example, cooperation between start-ups and local administrations to arrange village funds to develop agricultural products and empower farmers. Without involving farmers and local governments, agricultural start-ups will only be a discourse at the urban level.