Maintain Positive Growth Momentum in the Agricultural Sector Amid the Pandemic
Detiktoday.com – The agricultural sector is the highest contributor to national economic growth in the second quarter amid the Covid-19 pandemic. The achievement of the agricultural sector which is able to grow 16.24 percent today must be maintained and used as a momentum to improve the welfare of farmers and fishermen.
On various occasions, President Joko Widodo has often discussed farmer and fisherman corporations with the aim of improving their lives and realizing economic transformation. While chairing a limited meeting on the same topic on Tuesday, October 6, 2020, through a video conference from the Bogor Presidential Palace, West Java, the Head of State again touched on this as well as conducted a more detailed discussion with the relevant ranks.
“I have often said that farmers and fishermen need to be encouraged to group in large numbers and be in a corporation so that an efficient economy of scale can be obtained which can make it easier for farmers and fishermen to access financing, information technology, and increase efficiency and strengthen their marketing,” he said.
To make this happen, it is also necessary to change the mindset from initially only focusing on agricultural cultivation affairs to at the same time thinking about the commercialization and marketing aspects of agricultural products. So what must be done in the future is to build an integrated business process starting from production to the post-harvest process.
The Head of State himself sees that the farmer and fishermen corporate system is still not running optimally in the field. Many farmer and fishermen groups have sprung up, but they are still not seriously working on business processes and models that have a sustainable ecosystem and are connected to BUMN or even the private sector.
“Therefore, I emphasize a number of things. First, I ask us to focus on building one or a maximum of two business models for farmer corporations or fishermen corporations in a province until they really work so that this can later be used as an example by other provinces and other farmers and fishermen groups. , “said the President.
The President believes that if there is one successful example from a farmer and fisherman corporation that already has a business model, there will be more farmer and fishermen groups who want to follow and develop similar things in their respective places.
In addition, the Head of State also instructed the role of BUMN and the private sector not only to be limited as buyers of crops, but also to assist these farmer groups in order to develop further together.
“The role of BUMN, large private sector, or BUMD is not merely as an offtaker, but also to assist them. Accompanying farmers and fishermen corporations to develop a business model that really works. This is what does not exist yet,” he said.
The business model to be built includes the processing of crops starting from packaging, branding, marketing strategies, including connecting all of these with the banking system, technology innovators, and management who are able to manage everything well. After all these things can be formed, the next step that must be taken is to strengthen the business ecosystem through supporting regulations.
“Third, what we are strengthening is the business ecosystem which is carried out in an integrated manner. Therefore, I ask the ministries and institutions to strengthen the ecosystem that is conducive to the development of farmer and fishermen corporations through the preparation of supporting regulations in that direction,” he said.
