Cooperatives Build Makmur Farmers: New Hope From Cirumput Village For Horticulture Farmers

JAKARTA - Cirumput Village in Pandeglang, Banten, may not be heard much in the public's ears. However, from this small village, great hopes are growing not only for local farmers, but also as inspiration for cooperative-based national agricultural development.

Recently, a group of horticultural farmers in the village established a cooperative called the Bangun Tani Makmur Cooperative, with assistance from Agriterra, an international organization that focuses on strengthening farmer cooperatives in developing countries, including Indonesia. Currently, this cooperative has gathered 23 members, all horticultural farmers. Although still in the early stages, the potential is very large, it is estimated that it can reach more than 500 horticultural farmers in the region.

Interestingly, this farmer cooperative was built with a unique collaborative model and the direct impact felt by farmers. In contrast to most cooperatives that often start independently, Bangun Tani Makmur Cooperative was born with the initial support of private company partners who have been partnering with local farmers. This company not only absorbs crops, but also participates in injecting the initial capital of cooperatives, while strengthening the agricultural ecosystem at the local level.

This model is interesting because it shows that partnerships between farmers, cooperatives, and companies can run parallel. Agriterra sees this format as a good example that can be replicated elsewhere.

The cooperative model like this can be an inspiration for companies that are committed to empowering farmers. Through cooperatives, they not only help farmers individually, but also strengthen village economic institutions," said Aditya Mirzapahlevi Saptadjaja, Cooperative Advisor Agriterra, in his statement, Thursday, August 28.

The same thing was conveyed by Dadang, Chairman of the Bangun Tani Makmur Cooperative. He revealed that through this cooperative farmers get many benefits. Among them, in terms of production costs, cooperatives make the price of agricultural means (sapprotan) cheaper because purchases are made collectively.

Not only that, cooperatives also facilitate productive loans for members, with an adjusted financing scheme based on mandatory savings. This really helps farmers who have had difficulty getting access to financing from financial institutions such as banks, and often even depend on loans from high-interest organizations that actually burden their businesses.

In addition, in terms of income, farmers get a better selling price for their crops because they are marketed through cooperatives. They are also entitled to the remaining results of the cooperative (SHU) which are distributed every year. This is an additional income that they did not previously have. Cooperatives also paved the way for financial independence. In the future, small farmers who were previously considered "non-bankable" will be trusted by financial institutions, thanks to the track record of healthy cooperatives and transparent governance.

Horticultural farmers face many risks, from volatile market prices to crop failure. Through cooperatives, this risk can be managed together. Farmers are not alone in facing challenges, "added Aditya.

Agriterra itself considers that the horticultural sector is the future of Indonesian agriculture. The market is big, the cycle of fast planting, and the economic value is high. No wonder this organization is now starting to focus its assistance programs on horticultural farmer cooperatives.

We see horticulture as a very strategic sector. However, horticultural farmers often have difficulties due to the absence of strong institutions. With cooperatives, we can build from upstream to downstream from production, financing, to marketing," said Aditya.

Agriterra is not a new player in the world of farmers' cooperatives in Indonesia. Until last year, this organization has accompanied more than 30 cooperatives of farmers and fishermen in various regions. The total financing that has been mobilized has reached more than Rp500 billion, most of which are used for working capital and productive investment of farmers. On the export side, the contribution of Agriterra's assisted cooperatives reached more than Rp1.1 billion and more than US$3 million.

Not only is the financial aspect strengthened, Agriterra is also active in providing training in cooperative management, financial governance, and agricultural business strategies. Assistance is carried out intensively and participatively, making cooperatives not only grow economically, but also institutionally strong.

The next step for the Bangun Tani Makmur Cooperative is to expand membership and strengthen governance. Agriterra will continue to assist this cooperative to become a role model for sustainable horticultural cooperatives. Not only that, Agriterra has also encouraged the birth of more similar cooperative partnerships that prove that collaboration between parties can be the key to building a more just and efficient agricultural system.

This cooperative is a small step with a big impact. From Cirumput Village, the seeds of hope were planted. Who would have thought, maybe this village will also have a big change for the future of Indonesian horticultural agriculture.