Increase Bali Foreign Exchange Through Kusamba Salt, This Is What LPEI Do

Inauguration of Kusamba Salt Foreign Exchange Village. (Photo: Doc. LPEI)

JAKARTA - One indicator of a country's economic growth, namely exports, needs to be developed from upstream to downstream. The Indonesian Export Financing Agency (LPEI)/Indonesia Eximbank which is a Special Mission Vehicle (SMV) of the Ministry of Finance of the Republic of Indonesia in increasing national exports in addition to providing financing, guarantees, insurance also has a mandate to develop people's capacity to be able to export through a consulting service program.

One of the LPEI consulting service programs is the Foreign Exchange Village assistance program. This program is an assistance to groups/clusters that have the potential to carry out sustainable commodity production activities with the aim of increasing the capacity of local communities and developing village superior commodities.

In a written statement received by VOI, Tuesday, November 9, LPEI said that after Gresik with its weaving, now Klungkung Regency with its salt commodity became the 26th Foreign Exchange Village. The collaboration between the Directorate General of State Assets (DJKN) of the Ministry of Finance of the Republic of Indonesia, the Klungkung Regency Government, and LPEI which was previously stated in the Memorandum of Understanding and became the axis of the Kusamba Klungkung Salt Foreign Exchange Village program which has a vision to bring quality local salt to become more global.

"Kusamba salt has been known since the time of the Klungkung Kingdom so it needs to be developed as a foreign exchange earner. The Kusamba Salt Foreign Exchange Village Program will provide various assistance from production aspects to marketing abroad. The benefits will be felt by more than 100 salt farmers in Kusamba Village and Pesanggrahan, Klungkung Regency," said LPEI Executive Director, James Rompas at the "Inauguration of the Kusamba Salt Foreign Exchange Village" on November 6, 2021.

The salt produced by farmers who are members of the Mina Segara Dana Cooperative has premium quality traditionally processed, dried on coconut stalks which are split into two parts as a drying medium, resulting in a savory taste, white color, smooth texture and low salty taste. The assistance provided to further improve product quality is the production of Bali Sea Salt Rub, Branding Development, trade shows, business matching, and product certification.

DJKN Ministry of Finance Bali Nusra as one of the initiators in the Foreign Exchange Village program is also enthusiastic about the continued commitment of a number of parties to advance Kusamba Village in Klungkung. His party stated that they are ready to support Kusamba Salt products to become more recognized and of good quality

On the same occasion, the Governor of Bali, Wayan Koster expressed his appreciation for the Foreign Exchange Village program which is in line with its focus on salt commodities in Bali. He is optimistic that the quality potential of Kusamba Salt can be optimized through programs and collaborations between the regional and central governments. So that Kusamba Salt, which is a legacy of Klungkung's ancestors, is becoming increasingly competitive at the local, domestic and international market levels and its success can also be felt by salt farmers in the Klungkung area, Bali.

The Foreign Exchange Village Program started in 2019 with the Cocoa Foreign Exchange Village Cluster in Bali. Jembrana became the first foreign exchange village to have a superior commodity in the form of fermented cocoa beans, then there was the handicraft foreign exchange village in Bantul, Yogyakarta with its unique and environmentally friendly handicraft products so that it has been able to export sustainably to European countries.

Likewise, from the beginning of 2021 to November 2021, the Indonesian Export Financing Agency (LPEI) / Indonesia Eximbank has launched the Foreign Exchange Village program in West and East Java, namely the Subang Coffee Foreign Exchange Village, Ijen Banyuwangi Foreign Exchange Agrotourism Village, and Gresik Weaving Foreign Exchange Village. The total beneficiaries of the program so far have reached 2,894 farmers/weavers/craftsmen and will continue to increase in the future.

Through the Foreign Exchange Village Program, it is hoped that local Indonesian products can become global export commodities and have a positive impact on improving the economy, social and environment for the local community. In the future, LPEI will continue to synergize with related parties to develop villages through the Foreign Exchange Village Program.