Airlangga's Men Call Closed Loop Agribusiness Partnership Improves Farmers' Welfare

Illustration. (Photo: Doc. Coordinating Ministry for the Economy)

JAKARTA - Closed Loop is an upstream to downstream agribusiness partnership model developed in a digital-based ecosystem, Good Agricultural Practices cultivation techniques, good logistics systems, as well as market guarantees and competitive prices by off takers. The partnership program aims to improve the welfare of farmers through assisting the cultivation process and ensuring market access.

To ensure the Closed Loop Partnership Program has been running well and bringing benefits to farmers, Coordinating Minister for Economic Affairs Airlangga Hartarto, represented by the Deputy for Coordination of the Digital Economy, Employment, and MSMEs, Mohammad Rudy Salahuddin, visited the Eptilu Educational Garden in Garut Regency, West Java Province, Friday 26 November.

This location is the location of the first pilot project in the development of the Horticultural Agribusiness Closed Loop Partnership Program initiated by the Coordinating Ministry for Economic Affairs. On that occasion, cayenne pepper was harvested, a visit to the Closed Loop farmer's product exhibition booth featuring fresh and processed products was held, and a discussion with the Eptilu Farmer's Group.

Deputy for Food and Agribusiness Coordination Musdhalifah Machmud represented by Assistant Deputy for Horticultural Agribusiness Development Yuli Sri Wilanti reported that as many as 22 farmers have joined this partnership program with a total land area of 13 hectares. After undergoing a partnership for approximately one year, farmers' income increased by an average of 10 percent to 15 percent.

Furthermore, the Deputy Regent of Garut Helmi Budiman who was also present on the occasion thanked the Central Government for making Garut Regency the location of the first pilot project for the development of the Closed Loop Partnership Program. The agricultural sector is the leading sector and provides the largest contribution to the GRDP of Garut Regency and is expected to further encourage the regional economy and create millennial farmers.

In the dialogue session, one of the farmers said that the Closed Loop Partnership Program has provided many benefits. By joining farmers in this partnership, there is already certainty of prices with off takers, so that farmers can focus on cultivation.

During the visit, Bank Rakyat Indonesia (BRI) conducted symbolic distribution of KUR to three farmers by Bank Rakyat Indonesia (BRI). In addition, the Garut Regency Government also handed over assistance in the form of a truck for the delivery of Garut Closed Loop farmers' crops to off takers and between regions.

Also present on the occasion, DPR RI Commission Member Ferdiansyah and stakeholders of the Garut Regency Horticultural Agribusiness Closed Loop Partnership Program, namely representatives from the Ministry of Agriculture, PT BRI (Persero) Tbk, PT Pupuk Kujang, PT Kereta Api Logistik, PT Indofood CBP Sukses Makmur Tbk, PT Paskomnas Indonesia, PT East West Seed Indonesia, Mercy Corps Indonesia, and PT Eden Pangan Indonesia.