Get to know the Program Makmur and its Benefits for Indonesian Farmers

PT Pupuk Kalimantan Timur (Kaltim), part of Indonesia’s biggest producer of fertilizer initiated the Program Makmur or Prosperous Program back in 2020.  The program is focused on creating a supportive agricultural ecosystem that is designed with integrated development starting from market research, innovation, product, to collaboration with various parties. All of this is done with the aim to improve farmer empowerment and agricultural productivity in Indonesia. 

“In addition to intensively assisting farmers in their daily operational process, we also continue to strengthen end-to-end collaboration with various parties such as financial institutions, government agencies, and corporations. Through this effort, Pupuk Kaltim can not only increase farmer productivity but also encourage the achievement of the financial welfare for farmers.” Stated Pupuk Kaltim Director Finance and General Affairs Qomaruzzaman reported from Antara News.

In 2022 Pupuk Kaltim is optimistic to expand the development of the program area by five times, especially in the Indonesia Eastern region. The Project Manager of the Makmur program Adrian R.D Putera said that the eastern part of Indonesia presents its own challenges in implementing the Makmur program. Part of it includes the terrain of agricultural land, availability of facilities, and human resources. 

“The Makmur program continues to be developed based on geographical characteristics and superior commodities in each development area. One of them is to explore the potential of alternative superior commodities that can provide more economic value for farmers such as oil palm.” Stated Adrian reported from Detik Finance.

Realization of the Pupuk Kaltim Makmur program

Entering its third year, the realization of the Makmur program keeps increasing. Throughout 2021, the program managed to get 9,870 farmers to join, exceeding the 2021 target of 9,000. The program has also managed to produce significant results in many commodities, specifically rice and corn with productivity reaching 140%-145% in the Pupuk Kaltim area of responsibility. 

The increase of productivity can be seen in the increase of rice productivity in Banyuwangi, East Java. Reported from Kontan, the productivity reached 9 tons per hectare from the previous 5 tons per hectare. The income for rice farmers also increased by around Rp 24 million per hectare, from the previous maximum of Rp 10 million per hectare. 

The same productivity increase can also be seen in the productivity of potatoes in Ngantru Village, Ngantang District, Malang Regency, East Java. The potato’s productivity reached 125%, with an average net yield of 19 tons per hectare from the previous maximum of 15 tons per hectare. Reported from Kontan, SEVP Business Support of Pupuk Kaltim Meizar Effendi said that the successful Makmur program this time was carried out on an area of 124.5 hectares, with a total of 110 farmers involved from the Ngantang District Farmer Group. It uses non-subsidize Pupuk Kaltim fertilizers such as the NPK Pelangi, Ecofert biofertilizer, and Biodex decomposer in the process.

Another realization for the program is the increase of the planting area. In the third quarter of 2021, the Pupuk Kaltim planting area for the Makmur program reached 13,796 hectares, or 115% of the target of 12,000 hectares. The amount is divided into 2,452 hectares of rice commodities, 3,085 hectares of corn, 6,220 hectares of palm oil, and other commodities such as chili, shallots, garlic, cocoa, and sugarcane covering an area of ​​2,039 hectares.

Goals and Benefits of the Makmur program

Pupuk Kaltim, as a subsidiary of a state-owned enterprise (BUMN), is mandated to play a role in advancing the country’s agricultural sector through the Program Makmur. Its aim, other than improving the welfare of farmers and increasing productivity, is to support national food security. The program is being intensively implemented by Pupuk Kaltim with Pupuk Indonesia through the synergy of BUMNs in various regions so that it is proven successful in increasing community agricultural productivity with various commodities.

In this program, Pupuk Kaltim not only ensures the availability of fertilizer but also facilitates various benefits for participating farmers. Ranging from access to capital through the State-Owned Banks Association (Himbara), providing agricultural input like seeds, crop failure insurance, to assistance and offtake guarantees for the continuous purchase of produce.

The assistance to the farmer mentioned includes soil analysis, ergonomic and cultivation assistance, fertilizer recommendations, along with technology and agricultural mechanization through the IFARM-RMS application to carry out a digital plant monitoring process and access ecosystem from upstream to downstream (supply chain). 

_{Written by: Safaanah}