Boosting Horticultural Productivity in Malang, Bank Jatim Signs MoU with the Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Date: 04 september 2024Categories :
MALANG, September 4, 2024. In an effort to enhance the production and productivity of horticultural commodities in Malang Regency, on Wednesday (4/9), the Coordinating Ministry for Economic Affairs signed a memorandum of understanding (MoU) with 18 institutions, including bankjatim. The MoU concerns the Development of a Closed Loop Horticultural Agribusiness Partnership. Held at the Tawangargo Village Office in Malang, the MoU was signed by R. Arief Wicaksono, Director of Micro, Retail, and Medium Banking at bankjatim. Also in attendance were Malang Regent Sanusi and Yuli Sri Wilanti, Deputy Assistant for Horticultural Agribusiness Development at the Coordinating Ministry for Economic Affairs of the Republic of Indonesia.
Arief explained that bankjatim's role in the MoU includes verifying/checking farmers' documents during the financing application process, either through the People’s Business Credit (KUR) scheme or other credit models. Additionally, bankjatim provides assistance in agricultural business economic management and financial management for the use of KUR or other financing models. The bank also facilitates the strengthening of financial inclusion through KUR or other credit schemes for farmers to support horticultural agribusiness partnerships under the closed loop model. “Through collaboration with multiple stakeholders, this initiative will offer end-to-end solutions, ensuring a well-organized supply chain that positively impacts the welfare of farmers,” he stated.
According to Arief, financing plays a crucial role in creating profitable and sustainable agricultural businesses. Therefore, through this MoU, BJTM aims to support farmers’ welfare by facilitating affordable credit access. “Affordable financing support can greatly enhance the benefits farmers receive from the closed loop program. We hope this support can help the government improve the welfare of farmers in East Java,” he added.
Yuli Sri Wilanti stated that the closed loop horticultural agribusiness program is expected to increase agricultural productivity in Malang Regency and provide price stability for farmers, contributing to national food self-sufficiency. Currently, there are seven regions in East Java that have been selected as pilot projects for the closed loop horticultural agribusiness program, including Jember, Jombang, Pasuruan, Malang, and others. “Through this closed loop, we aim to build an end-to-end ecosystem—from the provision of production inputs such as fertilizers and seeds, financing, to proper farming guidance based on good agricultural practices and smart farming implementation,” she explained.
Yuli added that with the implementation of the closed loop program, farmers no longer need to worry about the planting process or marketing their agricultural products, as everything will be integrated through this partnership. “With this type of collaboration, planting schedules will be more aligned with market demand, preventing oversupply and subsequent price drops,” she concluded.
Sanusi also added that in the future, the success of the closed loop horticultural agribusiness partnership program in Malang Regency is expected to become a success story for horticulture sector development in East Java. Thus, the program can be expanded and replicated in other regions, resulting in widespread positive impact. “I would like to express my gratitude for the support given by the central government and stakeholders for the Closed Loop Horticultural Agribusiness Partnership program in Malang Regency. Hopefully, the development of the horticultural sector will continue to advance and thrive in Malang,” he said.
In addition to the MoU signing, bankjatim also symbolically handed over KUR (People’s Business Credit) to two debtors and participated in the planting of chili seedlings as part of the closed loop horticultural commodity partnership program in Malang Regency.
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