The Success of “Program Makmur” for Farmers’ Welfare, Be Part of It!

Minister of State-Owned Enterprises (BUMN) Erick Thohir officially launched “Program Makmur” (Prosperous Program) in Subang on August 28, 2021. The program was initiated by PT Pupuk Indonesia (Persero) and its subsidiaries to increase agricultural productivity and farmers’ welfare. 

Program Makmur gives supervision and intensive assistance to farmers and technology-supported agricultural cultivation. This program provides many benefits, including the increase of agricultural productivity, the increase in farmers’ profits, the adoption of superior agricultural practices, and the use of non-subsidized fertilizers to meet farmers’ needs. 

The program consists of various aspects that help farmers and agricultural cultivation, starting from the management of sustainable crop cultivation, information and assistance on agricultural cultivation, digital farming and agricultural mechanisms, access to capital, agricultural risk protection, to offtakers or market guarantees for farmers. 

Previously known as Agrosolution, Program Makmur has been implemented throughout the country. In 2021, the target area of the program is 50,000 hectares. It focuses on commodities such as rice, corn, chili, palm oil, cassava, coffee, pepper, cocoa, shallots, sugar cane, tobacco, pineapple, and mangosteen. Up to July 2021, the program had recorded 29,619 hectares of planted area and acquired 25,775 farmers.

As mentioned in its official website, PT Pupuk Indonesia is targeting to realize 250,000 hectares of total planted area spread throughout Indonesia with the sales of non-subsidized fertilizers expected to reach 125,000 tons. The target area will be increased gradually until 2024 to reach 4,000,000 hectares. Meanwhile, the number of farmers involved in 2024 is targeted to reach 4,000,000 people. 

The Implementation of Program Makmur by PKT

As part of Pupuk Indonesia Holding Company, PT Pupuk Kalimantan Timur (PKT) participates in implementing and overseeing the success of Program Makmur through the increase of agricultural productivity and expansion of food crop area in line with the improvement of farmers’ welfare. 

The program is one of PKT’s efforts to motivate people to become food heroes and contribute to the transformation of a better food agriculture system, through the increase of agricultural productivity in realizing national food independence. 

Being a solution to increase agricultural capacity, Program Makmur was made based on three limitations that farmers face, namely market access, finance and technology. This program is realized through intensive and sustainable assistance, involving supply chains that are supported by technology which is based on the triple bottom line 3P (people, planet and profit). 

Through this program, farmers are not only facilitated with capital to obtain seeds, fertilizers and pesticides, but also insurance to anticipate losses during crop failure. 

The Success of PKT’s Program Makmur in East Java 

According to President Director of PKT Rahmad Pribadi, Program Makmur implemented by PKT and  Pupuk Indonesia has shown significant results in various commodities, especially rice and corn with the productivity reaching 140%–145% in PKT’s areas of responsibility. 

“Program Makmur is implemented in a number of PKT distribution areas, such as East Java, Kalimantan and Sulawesi. This program also becomes PKT’s effort to increase the use of domestic non-subsidized fertilizers, by creating an ecosystem to boost productivity and Indonesian farmers’ welfare,” said Rahmad in an official statement on October 17, 2021. 

One of the successes of the program can be shown from the increase in rice productivity in Banyuwangi, East Java in September 2021, which reached 9 tons per hectare from 5 tons per hectare previously. The income of rice farmers also increased by around Rp24 million per hectare, from only Rp10 million per hectare at maximum. 

Based on the realization in QIII/2021, PKT’s planted area for Program Makmur reached 13,796 hectares or 115% of the target at 12,000 hectares. This amount was made up of 2,452 hectares for rice, 3,085 hectares for corn, 6,220 hectares for palm oil, and 2,039 hectares for other commodities such as chilies, shallots, garlic, cocoa and sugarcane. 

“As for farmers, Program Makmur has partnered with 6,557 farmers out of a target of 9,000 people or about 72.8% of the target,” he explained. 

In terms of productivity, the average productivity of rice farmers increased by 145% with a profit of 147%, and corn productivity reached 140% with a profit of 157%. “In the near future, we will also harvest a number of agricultural commodities with millennial farmers who are also developed by Pupuk Kaltim through Program Makmur,” Rahmad added. 

He is optimistic that the national agricultural sector will continue to improve, given that food productivity is supported by the quality of fertilizers and the market access for farmers will be better maintained through the program. “Pupuk Kaltim will continue to develop Program Makmur in the future, with a target of a much larger planted area for various primary commodities in Indonesia,” he concluded. 

The Success of PKT’s Program Makmur in East Kalimantan

The increase in community agricultural productivity is also shown by PKT’s Program Makmur for melons and watermelons in Sebuntal Village, Marangkayu District, Kutai Kartanegara Regency, East Kalimantan. 

The two horticultural commodities can achieve productivity of 120% per hectare for one harvest period. This success was marked by a harvest by the Board of Directors and Management of Pupuk Kaltim, together with the Marangkayu District Government and related stakeholders on October 26, 2021. 

Landowner of Pupuk Kaltim’s Program Makmur Rudi Prambudi said that the average productivity of melons and watermelons has reached around 40-50 tons per hectare, from 30 tons per hectare previously, with a total planted area of 5 hectares. 

“This program uses non-subsidized NPK Pelangi 16-16-16 fertilizer and Ecofert biological fertilizer,” said Rudi. 

A total of 30 assisted farmers from the surrounding community joined the Harapan Jaya farmers group. The members of the group are dominated by millennial farmers, with a high productivity level and the results have shown a significant impact on the welfare of local farmers. This is in line with an increase in the number of assisted farmers who joined the Harapan Jaya farmers group, with periodic assistance from Pupuk Kaltim to strengthen the capacity of group members. 

“The marketing and prices continue to increase. Collectors are also committed to buying agricultural products continuously at above average prices,” he added. 

PKT also provides assistance in the form of agricultural UMK funding at Rp220 million and a unit of hand tractor for the Harapan Jaya farmers group, so that the productivity of farmers could increase and the productivity of land processing is optimally worked on. 

Director of Finance and General Affairs of Pupuk Kaltim Qomaruzzaman said that in addition to reducing farmers’ dependence on the use of subsidized fertilizers, Program Makmur aims to increase the productivity of the community’s agricultural sector, in line with the farmers’ welfare in supporting national food security. This program has been also PKT’s effort to motivate younger generation to farm and develop agricultural potential in Indonesia. 

In this program, farmers are facilitated to get capital and seeds with various conveniences, including the certainty of buyers for agricultural products on an ongoing basis. “The realization of this program has also reached more than 13,000 hectares over the past year, and we will continue to expand it in the future,” said Qomaruzzaman. 

PKT is also targeting potential land development in Marangkayu and Kutai Kartanegara in general, followed by a significant increase in the number of farmers working on various commodities. This is also the continuation of PKT’s efforts to promote agricultural productivity and community welfare in Program Makmur, which has made success in various areas of corporate responsibility. 

“We must develop the productivity of East Kalimantan’s agriculture optimally, because the potential is very large. This is Pupuk Kaltim’s concern, so that our farmers can feel the benefits of Program Makmur,” he added. 

_{Written by: Renat}