JAKARTA-Saudi Arabia is committed to pouring an investment of Rp1.4 trillion to develop applications that will be used by Indonesian farmers and fishermen.
This was said by the Minister of National Planning and Development / Head of the National Development Planning Agency (Bappenas / PPN) Suharso Monoarfa while witnessing the signing of a memorandum of understanding in the context of implementing the RPJMN strategic priority project – strengthening business guarantees and 350 corporate farmers and fishermen.
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“So this is in the framework of increasing the workings of farmers and fishermen in the digitization process. Farmers and fishermen are also not left behind in the process from on farm to off farm. The value [of investment] is Rp1.4 trillion. The funding is from Saudi Arabia,” he said. at the Bappenas Building, Menteng, Monday (02/10/2020).
He said the development of digital infrastructure for farmers and fishermen was in accordance with President Jokowi’s direction. According to him, Bappenas helped to realize a marketing center (marketplace) that could reach millions of farmers and fishermen in Indonesia.
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Thus, Suharso hopes that the existence of the marketplace can cut the length of the distribution chain, which has made it difficult for farmers and fishermen to get additional income. Bappenas is targeting 350 corporate farmers and fishermen to take part in the project. For the initial stage, there are two corporations that have agreed, namely PT Indonesian Mecca Tower and PT Bayarind Artha Interusa.
The Farmer Corporation Major Project Program includes the establishment of business entities, financial support, postharvest production and handling, and marketing of food and agricultural commodities.
“Major projects or business strengthening are expected to answer various problems. The target [this system] is to increase farmers’ income by 5% per year and an average income of 10% per year,” he explained.
This is a strategic follow-up step from the mandate of Government Regulation No. 17 of 2017 concerning Synchronization of the National Development Planning and Budgeting Process, the Ministry of PPN / Bappenas takes an important role in strengthening creative financing, namely by exploring sources of financing that do not only come from the Budget State Revenue and Expenditure (APBN).
One effort to strengthen the Major Project’s business guarantees is the e-Wallet based e-Wallet digitization of food supply chains. Sharia E-Wallet is an electronic payment system using digital applications that will make it easy for farmers and fishermen to be able to buy their daily needs and production needs, without having to wait for income from the harvest and capture.
This application system does not charge fees and only get rewards from sharia-based revenue sharing methods. The implementation of the system is considered in line with the policy directions formulated by the Ministry of PPN / Bappenas in creating opportunities for farmers and fishermen as well as becoming shareholders of sharia-based companies and efforts in strengthening financial inclusion for the entire community.