OJK NTB Designates Cocoa as Priority Commodity for Economic Development

Mataram (ANTARA) - The Financial Services Authority (Okan) of West Nusa Tenggara (NTB) has designated cocoa as a priority commodity to drive regional economic growth and enhance the welfare of local farmers.

“We have established cocoa as a priority commodity because it holds great potential for increasing farmers’ income and regional economic growth,” stated the Head of OJK NTB, Rudi Sulistyo, in a statement in Mataram on Sunday.

Rudi noted that the selection of cocoa as a priority commodity is based on the vast opportunities for business development still available within the West Nusa Tenggara region.

West Nusa Tenggara began developing cocoa commodities through the Regional Agricultural Development and Extension Project (P4D) around the 1980s. Some of the region’s superior cocoa varieties include Ijo Kajuman, Beneng Jomot, and Inderti DM01.

OJK has coordinated with various stakeholders, including cocoa farmer groups in North Lombok, to help build a sustainable plantation business ecosystem.

OJK is mapping various key needs that remain challenging, ranging from access to financing and market certainty to business protection for cocoa farmers.

Furthermore, some farmers still face limited access to financing for agricultural business development and require off-taker companies to ensure a more secure cocoa supply chain.

Rudi assessed that farmers’ understanding of the benefits of insurance remains relatively low. However, insurance protection is crucial for mitigating the risks of crop failure or production disruptions that could affect business sustainability.