Teten: Cooperation Between KUMKM And GDA LPDB Helps Increase RI's Fresh Milk Production

Menkop UKM Teten Masduki (photo: dock Kemenkop UKM)

JAKARTA - The Ministry of Cooperatives and SMEs (Kemenkop UKM) through the KUMKM Revolving Fund Management Agency (LPDB) signed a collaboration (MoU) with PT Global Dairi Alami (GDA), which is a MilkLife producer company. This collaboration is carried out to develop a cooperative-based dairy cow ecosystem.

"This collaboration is expected to help increase the production of fresh cow's milk in Indonesia," said Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki, who was present to witness the signing of the MoU between LPDB-KUMKM and GDA, quoted from his written statement, Monday, October 9.

In this collaboration, LPDB-KUMKM provides financing to cooperatives of IDR 5 billion as working capital for the provision of quality cattle seeds, provision of green feed for dairy cows, and also for financing the production facilities of farmers who join cooperatives.

Teten assessed that the LPDB-KUMKM cooperation with GDA is an excellent cooperation project, in which the Kemenkop UKM provides financing through LPDB, to distribute it to cooperatives that will become supply chains from GDA.

"Because there is certainty about the price and certainty of the market. So, it is impossible for bad credit to occur in LPDB. We also have KUR Clusters that are developed bigger than this cooperation," said Teten.

He added that there are two important things that farmers work with with GDA. First, farmers can supply food needs of around 50 percent of cows from corn silase. Second, with cooperation in providing GDA superior cattle seeds to farmers.

According to Teten, in strengthening milk production in the country, there are various challenges that are not easy. Starting from access to superior seeds to a good supply of food (production).

"For example, in Subang, there are around 6 thousand hectares (ha) of land owned by farmers to plant corn in the context of developing livestock food partnerships in increasing milk production. So, the dairy industry is really increasing," he said.

In facing all these challenges, said Teten, cooperation between the government, the dairy industry, and farmers is the key to success.

"We continue to be committed to working with all parties, overcoming problems related to milk production and achieving the target of milk independence in Indonesia," he explained.

On the same occasion, the President Director of LPDB-KUMKM Supomo said, MoU and GDA provide working capital to farmers of different sizes.

"We are working with cooperatives here with financing of around Rp. 5 billion. It is targeted that by December 2023, the need for a greenish license at GDA can be supplied as much as 50 percent by cooperatives," he said.

Supomo said that this number continued to increase from the first collaboration which was only able to supply around 30 percent.

"This December there will also be a second financing. We do continue to expand this cooperation, because there are advantages for cooperatives and farmers," he said.

Meanwhile, the CEO of PT GDA Ihsan Mulia Putri said that her party was strengthening capital cooperation for its business partners with LPDB-KUMKM, starting with the MoU regarding the import of 200 Heads dairy cattle for the Partner Breeder Cooperative. Then, Corn Tebon Business Credit for the Partner Farmer Cooperative.

"Through this collaboration, GDA has participated in assisting the government in increasing the production of Domestic Fresh Milk (SSDN). We hope that GDA as a national milk player together with the government can realize this goal," he added.

Ihsan added that his party targets to be able to produce 30 liters of milk this year. However, about 15 liters still have a shortage due to the lack of quality feed.

"So, in meeting the target of 30 liters (of milk production), we cooperate with farmers' cooperatives," he concluded.