Asian Agri, in collaboration with the Institute for Development of Economics and Finance (INDEF), is studying a core-plasma partnership program for farmers.
The results of the study are outlined in a book titled ‘Developing Agricultural Partnerships: Lessons Learned from the Asian Agri Farmer Partnership Model’, reported Sawit Indonesia.
At the book launch, Asian Agri Corporate Affairs Director cum INDEF Researcher Fadhil Hasan said the purpose of the study was to understand other perspectives about partnerships.
Fadhil explained that there were three important factors in partnerships: trust, social capital and certainty. The program is the key to Asian Agri’s success in establishing partnerships with farmers.
Plasma farmers who partner with Asian Agri can produce 21.4 tons per hectare per year – a number which is not far from
Asian Agri’s own plantation productivity which reaches 23.5 tons per hectare per year.
Fadhil said that the partnership program was a priority as it has become part of the economic process which benefits the company.
“The partnership provides guarantees when it comes to aspect of palm fruit supply. Besides that, the company is more efficient through the partnership scheme,” he said.
Also in attendance at the book launch event was Ahmad Erani Yustika, Director-General of Rural Area Development at the Indonesian Ministry of Villages, Disadvantaged Regions and Transmigration, who underscored three points from an environmental perspective. First, farmers should be given space to expand capabilities, one of which involves knowledge transfer.
Secondly, farmers must be able to develop economic sovereignty and independence, as every village has a trove of potential economic resources. Third, the empowerment of each farmer should not stray from the cultural values and local knowledge in each region.