From Setbacks to Productivity: Makmur Palawija Farmers Thrive Thanks to MedcoEnergi
A group of Palawija farmers in Desa Tampang Baru, Kecamatan Bayung Lincir, Kabupaten Musi Banyuasin, South Sumatra, has recovered from a downturn thanks to mentoring by PT Medco Energi Internasional Tbk (MedcoEnergi), through its subsidiary Medco E&P Grissik Ltd, under the Local Business Development (LBD) programme.
Representative Sumpal Palawija Makmur Suyanto said the farmers had previously suffered lower yields due to harvests not being optimal. However, after the mentoring began, productivity rose significantly, with production increasing from 16 tonnes to 23 tonnes. Besides improvements in cultivation techniques, the programme also expanded market access and boosted farmers’ confidence in developing their business.
“We were previously in a slump because our harvests were not optimal. After the mentoring from MedcoEnergi, our yields increased, and the market has become broader. This programme has helped us rise up and gain the confidence to grow our venture,” Suyanto said during a session at the Indonesia Petroleum Association Convention & Exhibition 2026 in Tangerang, on Wednesday 20 May.
He explained that since joining the programme in 2023, the farmers’ group has received extensive training, ranging from organic cultivation to strengthening business management. The support provided by the company also includes production facilities and on-the-ground technical mentoring.
“We praise be to God that these have been provided and have helped us,” he said.
Suyanto also noted that the group’s income has continued to rise year by year in line with improved production and business management. The latest harvest is projected to again achieve optimal results.
“If nothing gets in the way, on the 25th we will harvest again, which keeps us motivated,” he added.
Today, the group is able to record an income of around Rp90 million and markets around 23 tonnes of watermelon outside the district.
The LBD programme has been implemented gradually since 2023 to address various farmer challenges, ranging from limited capital, low productivity, limited technical knowledge of cultivation, to restricted market access. Medco E&P Grissik Ltd, as the Contractor under the Cooperation Contract (KKKS) for Corridor Block, provides support through technical mentoring, provisioning of production facilities, and marketing facilitation.
Field Relations & Community Enhancement Manager for Corridor Asset Sudewo emphasised that the programme is not merely aid, but an effort to strengthen community capacity so they can be more independent and sustainable.
Through the Local Business Development Programme, MedcoEnergi continues to deliver empowerment that is not only in the form of assistance but also builds community capacity to manage independent and sustainable businesses.
“We see this group has great potential to continue growing and become an example of strengthening the local economy around our operating area,” Sudewo said.
He explained that the mentoring is comprehensive, covering seed and fertiliser distribution, land management, cultivar selection, fertilisation, environmentally friendly pest control, and strengthening marketing partnerships.
Sudewo also stressed that the programme’s impact is evident from the group’s rising income. Before the intervention in 2022, the group suffered losses. But after mentoring, income rose gradually to Rp4 million (2023), Rp15 million (2024), and around Rp90 million in 2025, with harvests of 23 tonnes of watermelons marketed beyond the district.
“The success demonstrates that a community development programme conducted consistently can have a tangible economic impact,” Sudewo said.
He added that MedcoEnergi is committed to continuing support for targeted community development to create independence and sustained economic vitality.
“Through strengthening local enterprises like this, we hope communities will become more independent, more competitive, and able to create lasting economic benefits,” he concluded.