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CHALLENGES IN INDONESIA ties. Moreover, women’s work in harvesting • Improved market efficiency and sus-
In Indonesia the demand for rice is increas- and post-harvesting is heavy hand-labor tainability of the rice supply chain,
ingly growing, while the production area is and largely unpaid. through capacitated LDPM’s.
decreasing. With 240 million people and a • Inclusive business and increased ac-
population growth rate of 1.7%, food se- The key challenges addressed in this pro- cess to financial services with impact
curity and agricultural development are gram are the shortage of rice in Indonesia, on small farmers, LPDM employees and
main issues for the country. The short- and food insecurity of rural farmers in Cen- entrepreneurs.
age of rice and the low quality produce of tral Java, Indonesia. • Improving the position of women as en-
many Indonesian rice farmers result in the trepreneur, farmer, laborer and mem-
ASEAN free trade region threatening local PROGRAM OBJECTIVE ber of the LDPM’s.
rice farmers, since rice from e.g. Thailand This partnership will motivate, train and
and Vietnam is often of better quality and a coach 10,000 farmers in Central Java to “My own machinery gives me a stronger
lower price. The position of local farmers in improve the production and marketing of voice and more independency in my
the supply chain is weak, and therefore they high premium rice, using certified seeds work, but also in my household!”
face difficulties to enter new markets. The and organic fertilizers and pesticides.
existing business organizations of rice farm- • Increased production of high premium
ers (LDPM’s), are not functioning well, since rice by the farmers, to meet the increas-
they lack financial and marketing capabili- ing national demands.
Photo: Nadine de Vogel - ICCO Cooperation
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Priyo Budi Asmoro
E: Priyo.Asmoro@icco-cooperation.org
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