Indonesian Political, Business & Finance News

Farmer Corporations Penetrate Export Markets and Strengthen Local Food Security

| | Source: MEDIA_INDONESIA Translated from Indonesian | Agriculture
Farmer Corporations Penetrate Export Markets and Strengthen Local Food Security
Image: MEDIA_INDONESIA

The Development of Integrated Farming System in Upland Areas (UPLAND) programme has officially entered its exit strategy phase in 2026. The strategic project initiated by the Ministry of Agriculture has recorded success in transforming subsistence farmers into 46 independent corporate entities that have successfully penetrated export and domestic markets. Funded by the Islamic Development Bank (IsDB) and the International Fund for Agricultural Development (IFAD), the UPLAND programme has completed interventions in 14 districts with a total development area reaching 14,216 hectares. Director General of Agricultural Land and Irrigation at the Ministry of Agriculture, Hermanto, explained that the project’s greatest achievement is not merely physical development, but the institutional transformation of farmers in areas that initially faced logistical constraints. “We have laid vital infrastructure foundations for productivity, including irrigation, dry land pipanisation, reservoir construction, and farm roads as the arteries of agricultural distribution. The greatest success lies in the institutional transformation of the farmers,” Hermanto stated in a press release in Jakarta on Thursday (25/6/2026). Ministry data shows a significant surge in trade volume for selected assisted farmer corporations on the international stage. In Magelang Regency, a farmer group successfully increased coffee exports to Dubai dramatically from 18 tonnes to 80 tonnes this year. A similar achievement was recorded by a corporation in Purbalingga which shipped 300 tonnes of pepper, and farmers in Subang who successfully exported 3 tonnes of premium mangosteen to the Chinese market. Meanwhile, in the domestic market, organic rice products from Magelang have penetrated modern retail markets and become a regular supplier for KFC fast-food restaurant chains in the region. In Tasikmalaya, a farmer corporation has even built a strategic partnership with the district government to supply organic rice for civil servants. “The achievements of corporations that have successfully penetrated international and local markets are an important milestone. They serve as a pilot for other corporations in terms of professional management and compliance with quality standards,” Hermanto added. The implementation of the UPLAND programme is part of the manifestation of President Prabowo Subianto’s instruction regarding the acceleration of national food self-sufficiency. In line with this, Minister of Agriculture Amran Sulaiman confirmed that policy focus is directed at value chain efficiency through mechanisation. As a result, planting intensity in intervention areas such as Magelang has now surged to five harvests within a two-year period. Ahead of the funding phase closure in 2026, the Ministry of Agriculture is now shifting its focus to managerial assistance. Hermanto stressed that the central and regional governments are committed to not abandoning the farmers. “Existing infrastructure will be maintained as productive assets, and we are integrating these corporations with the banking ecosystem and private partnerships so that access to capital and markets remains secure,” Hermanto concluded.

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