President Jokowi Launches Agricultural Entrepreneurship Program in West Java

President Jokowi visits PT MBB factory, which 49% of its shares owned by farmers, in Majasari Village, Sliyeg District, Indramayu Regency, on Thursday (7/6). (Photo by: Oji / PR)

President Joko “Jokowi” Widodo on Thursday (7/6) launched the Agricultural Entrepreneurship Program and the Digitalization of Agricultural System in Majasari Village, Sliyeg District, Indramayu Regency, West Java Province.

On that occasion, President Jokowi said that it is important for farmers to unite in groups, as in Farmers Group (Poktan) or Joint Farmers Group (Gapoktan) and added that to win competition, the group should be as big as companies or corporations.

“I have trust and confidence that if companies can do it (to win the competition), farmers can do it as well. But there are conditions, that is farmers must be willing to be united in a large organization, ” the President said.

President Jokowi also praised the establishment of PT. Mitra Bumdes Bersama (MMB), a joint company between Gapoktan and State Owned Enterprises (SOEs), at Sliyeg District, Indramayu Regency. “This is the first example. I will monitor it and observe for the next 6 months. If this company goes well, we will apply the same system throughout the country to organize farmers,” the President said.

Following the operation of the company, according to President Jokowi, farmers can sell rice in good packaging and rice yield will rise with minimum grain damage.

Farmers can also classify their rice into premium product and sell it directly to the market, instead of  through middleman and their incomes are expected to rise with this industrial scheme, the President added.

President Jokowi further said that 49% shares of PT. Mitra Bumdes Bersama are owned by Farmers Group while the 51% shares are owned by state-owned enterprises.  “Although farmers only own 49% of its shares,  80% of the profits of the company will be given to them and the remaining 20% will be given to the SEOs for operational costs, ” the President said, adding that if the system is not profitable in the next 6 months, it will be discontinued.

Also attending this event were Minister of State Owned Enterprises Rini Soemarno, Minister of Agriculture Amran Sulaiman, Minister of Industry Airlangga Hartarto, member of Presidential Advisory Board (Wantimpres) Agum Gumelar, Coordinator of Presidential Special Staff Teten Masduki, and Governor of West Java Ahmad Heryawan. (RSF / OJI / ES) (STU/EP/Naster)