Coffee Empowerment Program Increases Welfare of Banyuwangi Farmers

INDUSTRY.co.id - Jember - Minister of SOE Rini Soemarno visited coffee farming group in Gunung Gumitir, Sidomulyo Village, Silo Sub-district, Jember District, East Java, to support the improvement of farmer's welfare through partnership program with a number of SOEs.

"SOEs as an extension of the government in promoting the welfare of farmers, through partnership programs, financing and providing technical guidance to coffee farmers," said Rini.

In her working visit, Rini was accompanied by President Director of PTPN XII Berlino Mahendra Santosa, President Director of PT Bank BNI Tbk (Persero) Achmad Baiquni, President Director of Bank BTN Maryono along with four Deputy Ministries of HUMN looking closely at the coffee plantation.

Through synergy, the coffee farmers assisted by PTPN XII get financing through the community business credit program (KUR) and partnership program (PK) from BNI.

While PTPN XII as the coach of the coffee farmers of the people provide coaching coffee cultivation since breeding, maintenance and ensure farmers do a good coffee cultivation, as well as maintain the continuity of production of coffee crops while maintaining environmental sustainability. On the other hand, the level of farmers' farm security can continue to improve along with the increasing welfare of coffee farmers.

"With easy access to finance, access to markets and access to good cultivation training I am sure that the productivity and quality of peanut coffee will increase," Rini said.

In addition, farmers are also trained to be trained to be a barista reliable.

"I am happy that in addition to the empowerment program, the price of coffee purchased is also a price that benefits farmers," said Rini.

In order to facilitate access to finance for coffee farmers in East Java, BNI financed 1,577 smallholder coffee farmers with a total financing portfolio of Rp 12.8 billion. BNI financing in the form of KUR is given to 559 farmers with financing amounting to Rp 5.2 billion and partnership program of Rp 7.6 billion to 1018 farmers.

For KUR financing is done directly to every farmer in three districts in East Java namely Banyuwangi, Jember and Malang.

The partnership program was distributed to 109 farmer groups in Banyuwangi and Jember districts.