Biotech Updates

Economic Potential of GM Corn in Indonesia

November 28, 2008

A 10 percent increase in corn production as a result of the adoption of transgenic corn in Indonesia can result in 145 thousand tons and 226 thousand tons more for feed and food, respectively. This is result of a study conducted by the Centre for Alternative Dispute Resolutions, Regulations and Policy Analysis, and Community Empowerment (CARE IPB). In the long term, decreasing corn price will stimulate corn demand either by feed industries or direct consumers. If the 10 percent productivity increase is followed by a 10 percent increase in demand, the positive impact will also be more significant.

The ex-ante study also revealed that the main factors for transgenic technology development include institutional (especially regulation), environment, social and economic variables. The successful key for technology adoption is public perception.

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