Agri-Co-operative for A Better Indonesia

Poverty and Farmer sadly become two strongly related words. When we
talk about poverty, farmer becomes the poorest among all jobs, even when
consumers pay a high price in rice and even they called Heroes by Former
Indonesia President Mr. Susilo Bambang Yudhoyono. It’s happened because the
rice supply chains in Indonesia are extra-long and complicated. First, traders buy
rice directly from local farmers. The traders sell the unhusked rice from the
farmers to ‘processor’ and ‘broker’ traders who own rice milling facilities. In turn,
the ‘processor’ and ‘broker’ traders supply their rice to large buyers. In turn, such
large buyers, who have big capital, sell the commodity to the rice markets where
small traders purchase the commodity. And finally, the rice is bought by the
consumers.1

Indonesia also known by its communal work name ‘Gotong Royong’, it’s a
traditional form of mutual assistance practiced in the villages of Indonesia,
embodies a high-level social solidarity based on morality, shared sentiments, and
general consensus.2 Based on that, Indonesia adopts co-operative as Indonesia
economic pillar, but in practice co-operative becomes underestimated. People
think co-operative just a small business that has no profit because people don’t
know co-operative’s great system and potential.

Agri-Co-operative is the solution for poverty among the farmers. An

extraordinary co-operative run by the farmers collaboration with the local college
students in an online system. So all transactions record in an application, and
members can estimate how much money they can get through their phone. This
online system also solves a major co-operative problem in Indonesia, bad
transactions record that leads to corruption. Not just it, Agri-Co-operative also
have innovative programs that make this co-operative extraordinary. Other co-

1
Jegho, Leo. 2016. Why Rice is Expensive but Farmers are Poor in Indonesia.
http://www.globalindonesianvoices.com/25204/why-rice-is-expensive-but-farmers-are-poor-in-
indonesia/
2
Kidd R, Colletta N, ed. 1980. Tradition for development: indigenous structures and folk media in
nonformal education. [Toronto, Canada], International Council for Adult Education.
operative only buy the harvest or lend money. We realized that is not enough to
make Farmers prosperous. Farmers who not prosperous usually have small field
(0.3 hectares). Therefore, buying all their harvest with the high price it’s still not
enough.

So Agri-Co-operative makes continuous programs. One, co-operative

selling farming material with the cheaper price. Two, co-operative lends money at
a small rate. Three, provides farming consultant to help the farmers control their
field. Four, lends farming equipment including rice milling machine, that members
can register online and borrow it. But Agri-Co-operative doesn’t stop on those
programs, co-operative also has extraordinary programs. Co-operative buys
farmers rice, packing the rice and gives brand on it. So rice can sell directly to the
customer or enter great supermarket; Co-operative also doing research on what
tarsier product that can be made from rice or grain, makes that product and sells
it. Agri-Co-operative extraordinary programs are going to make a lot of profit so
farmers can get money from selling their harvest and dividend and college
students get money from the dividend.