Foreign Companies Eyeing Indonesian Farmers
VIVAnews - International Finance Coorporation (IFC) urged that global companies open their market for agricultural products. It is aimed at securing supply chain for agricultural products.
Program Manager of Agribusiness for the International Finance Corporation's (IFC) Indonesia Advisory Services, Ernest E Bethe III, revealed that the main obstacle faced by small-sized enterprises is the limited access to either domestic or global market.
"Shops and supermarkets in Indonesia import foreign products a great deal despite the many available domestic products. The problem is that the market is has yet to give signal to accept farmers' products," he said on Friday, March 6.
According to Bethe, a partnership with several global companies is important to maintain supply security of farmers' products. The program set out by early March, according to him, was an attempt to penetrate into either domestic or international market by connecting companies with farmers.
The partnership program is planned to invite two to four top multinational companies. It is expected that other multinational companies will see the potential chances that will follow.
Bethe cited two world-class companies willing to be farmers' business partners: London-based Armajaro, and Singapore-based Petro Food Delfi Incorp.
IFC managed to apply the agricultural development program in other countries. He hoped that the program will have the equal success in Indonesia.
In addition, IFC Indonesia Head Advisory Services, Brigit S Helms, said, taking into account the importance of supply chain security among farmers, IFC provides investment to improve the capacity of small farmers.
"Small farmers will be granted incentives to boost their productivity. This will maintain the security of food supply," he said.
Brigit stressed that the development is prioritized for small farmers due to the fact that most farmers are involved in small- and medium-sized agricultural sector.
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Translated by: Bonardo Maulana Wahono