The farmer driving the economy alongside MedcoEnergi

In a blue-hued Palembang traditional outfit, Suyanto, representing the Kelompok Sumpal Palawija Makmur, proudly shared his success in developing a watermelon farming business with MedcoEnergi. In 2025, the farming group located in Desa Tampang Baru, South Sumatra, successfully marketed 23 tonnes of watermelon for sale outside the local area, with reported revenue of around Rp90 million. The group’s watermelon production rose from about 16 tonnes in 2024. The success did not come out of thin air. MedcoEnergi has contributed to increasing production numbers through its Local Business Development (LBD) programme under PT Medco Energi Internasional Tbk (MedcoEnergi) via its subsidiary Medco E&P Grissik Ltd. Yanto said he received training in land cultivation, making organic fertiliser for seed beds, and receiving assistance in the form of seeds, fertilisers, and market access. He first joined MedcoEnergi’s LBD programme in 2023. He explained his initial interest in joining LBD was prompted by village officials offering him training in organic fertiliser production. He thought he could cut farming costs if he could make his own fertiliser. Now, after guidance and training in organic fertiliser production for seed beds, Yanto has achieved watermelon growth rates of 80–90 percent. Interestingly, not only did the LBD programme boost watermelon production figures, but the confidence of farmers around Yanto to develop food-related businesses also rose. “Certainly, after joining LBD, self-confidence increased,” said Yanto. He admitted that farmers are often looked down upon. Farmers, he said, are considered to be a dirty job with modest incomes. Moreover, Yanto had previously suffered a setback due to suboptimal harvests and limited market access. However, after receiving mentoring from MedcoEnergi and successfully managing the watermelon farm, his income also rose. Yanto said his entrepreneurial self-confidence also rose, and the feeling spread to those around him. Driving the wheels of the economy: “They used to look on with curiosity, then say they wanted to be educated,” said Yanto, describing growing local interest after watching his success in the watermelon business. In response, Yanto embraced those around him and shared the knowledge acquired from MedcoEnergi’s LBD programme, still under MedcoEnergi’s supervision. The effort bore fruit. Grateful, he spoke of his success in mentoring people around him. Not only can he manage his own land, but one of his mentees even harvested peppers yielding more than 1 tonne. Yanto’s success in sharing his knowledge with MedcoEnergi demonstrates the multiplier effect of the LBD programme. Economic benefits are not only felt by the Kelompok Sumpal Palawija Makmur but also by the surrounding community. Realising the importance of MedcoEnergi targeting regional potential and local communities effectively, Manager Field Relations & Community Enhancement Corridor Asset, Sudewo, emphasised the importance of collaboration between MedcoEnergi, local government, nearby institutions, and the community. He was able to meet Yanto thanks to the LBD programme’s outreach by village officials. Thus, for Sudewo, the presence of the local government up to the grassroots level is very important to ensure the LBD programme meets community needs. “We do not take over the role of local government, but the programme becomes a strong synergy,” Sudewo said. During the briefing, Sudewo also stated that MedcoEnergi’s focus at present is to drive the community’s economy, as it has tangible impacts for the people. One of MedcoEnergi’s economy-driving projects is the food security programme. In line with government initiatives, MedcoEnergi is working to realise food security. Developing food commodities such as watermelon, chilli peppers, and others is one of MedcoEnergi’s key steps to ensure that the community’s food needs can be met independently. Not only fruit, MedcoEnergi also supports community groups developing vegetable farming, fisheries, and other enterprises. Buyers of the food products assisted by MedcoEnergi vary. Some are channelled to markets, absorbed by companies, or consumed by the communities themselves. In fact, one of MedcoEnergi’s protégés located in Musi Banyuasin Regency, South Sumatra, supplies catfish to the MBG kitchen, albeit on a limited basis. The catfish supplied to the MBG kitchen is aligned with the productivity of MedcoEnergi’s beneficiaries. Furthermore, Sudewo said they are exploring new opportunities for beneficiaries to become MBG suppliers. This step is also part of collaboration with local agencies around MedcoEnergi’s operating areas to stimulate the community’s economy. Both Yanto and Sudewo hope that the LBD programme continues and reaches more beneficiaries. Sudewo emphasised MedcoEnergi’s commitment to continuing to deliver impact.