COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/85/SET.M.EKON.3/2/2022

Agribusiness Closed Loop Partnership Program Creates an Efficient and Integrated Ecosystem

Jakarta, February 22nd, 2022

Entering the beginning of 2022, the Government believes that coordination and synergy between all stakeholders in implementing the economic recovery strategy will allow the economy to grow in the range of 4.0% - 5.0% (yoy) in Quarter I-2022. This will support the achievement of the economic growth target of 5.2% (yoy) by the end of 2022.

"Indonesia's economy grew by 3.69% in 2021, the positive economic growth in 2021 was supported by growth in several sectors, one of which was the agricultural sector which grew 1.84%. In addition, the contribution of the agricultural sector to GDP is also quite large, namely 13.28%, the second highest after the processing industry at 19.25%," said Coordinating Minister for Economic Affairs Airlangga Hartarto virtually when launching the Smart Book of Closed Loop Horticultural Agribusiness Partnerships, Tuesday (22/02).

The agricultural sector as a sector that continues to grow positively needs to be supported so that its large contribution to GDP can also have an impact on the welfare of farmers. The government continues to strive to encourage multistakeholders collaboration initiatives through the development of an efficient and integrated upstream-downstream technology-based agribusiness ecosystem, so that the competitiveness of agricultural commodities can be increased and able to meet domestic needs at affordable prices.

Coordinating Minister Airlangga said that one model that has been initiated and is running well is a closed loop horticultural agribusiness partnership involving farmers, cooperatives, banks, off takers and business people from upstream to downstream, which is carried out with assistance to realize the independence and welfare of farmers.

“This Smart Book of Closed Loop Agribsinis Horticulture provides an overview of the multi-stakeholder collaboration model involved in partnerships and business processes in building an integrated upstream and downstream agribusiness ecosystem. closed loop horticulture partnerships throughout Indonesia," explained Coordinating Minister Airlangga.

On that occasion, Deputy for Food and Agribusiness Coordination Musdhalifah Machmud directly opened the Focus Group Discussion (FGD) event with the theme Development of the Horticultural Agribusiness Closed Loop Partnership and expressed his gratitude to all stakeholders who have participated in the horticultural agribusiness closed loop partnership program. It is also hoped that the closed loop can be replicated and fully supported by the Regional Government, so that the agribusiness partnership program can run well and be successful.

"I invite Regional Heads and business people to make changes and breakthroughs in more efficient ways to increase business scale, productivity, quality, and added value of agricultural commodities through collaborative initiatives and closed loop agribusiness partnerships that are mutually beneficial, so that farmers will be more enthusiastic and productive. Business people from upstream to downstream can develop and the ecosystem continues to move forward so that agriculture can increasingly contribute to accelerating national economic recovery," concluded Coordinating Minister Airlangga.

The launching of the Smart Book of the Closed Loop Horticultural Agribusiness Partnership was carried out in a hybrid manner (online and offline) and attended by Echelon 1 related Ministries/Institutions and their representatives, Regents and their staff, Deputy Chairperson of KADIN for Agriculture, Representatives of BUMN and BUMD, Academics, parties private sector and stakeholders. The event was then continued with a FGD with the theme of Closed Loop Horticultural Agribusiness Partnership Development which presented speakers from the Garut Regent, President Director of PT Paskomnas and, Chair of the Eptilu Producer Cooperative to Build Indonesia in Garut Regency with Prof. Bungaran Saragih, as well as representatives from the Ministry of Home Affairs, Bappenas, and Bank Indonesia. (dep2/frh/ltg/alr/fsr)

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Head of Bureau of Communications, Information Services, and Meetings
Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Haryo Limanseto

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