Production and Marketing of High Premium Rice in Central Java

The position of Indonesian farmers in the supply chain is weak. It is hard for them to enter new markets. Existing business organizations of rice farmers are united in LDPM’s. However, there is room for improvement. Its structure is quite loose, they lack a B2B relationship among its value chain stakeholders, and the financial and marketing capacities is insufficient.

Public Private Partnership:
ICCO has identified potential partners, both public and private, to improve the production and marketing of high premium rice in Central Java. The Public Private Partnership (PPP) consists of one government body (Board of Food Security of Central Java), three private sectors (Bank Jateng, PT. UNS and PT. Smart Berdikari) and three NGOs (YJB, VECO and ICCO).
The objective of the PPP is to motivate, train, and coach 10,000 farmers to use certified seeds and organic fertilizers and pesticides amongst others. The annual growth rate in the market for high premium rice increases.

The LDPM program can make a difference:
Farmers can obtain a stronger position in the chain when the LDPMs becomes a strong business organization. A professional organization with know-how, capabilities, and influence. The program offers special attention to women. Women's work in the harvesting and post-harvesting period is all hand-labor and largely underpaid. They ought to become the owner of the harvest equipment, which can strengthen the position of women in LDPMs.

This program is part of FDOV, which is a program of the Netherlands Enterprise Agency (RVO.nl). The project received a subsidy of EUR 946,307 from FDOV.