President Jokowi Appreciates Modern Farmer Cooperatives


SUKABUMI, – President Joko Widodo (Jokowi) has urged the modern concept of farmer cooperative PT BUMR (Badan Usaha Milik Rakyat/People’s business entity) Pangan Terhubung in Sukabumi to be used as a model for other cooperatives. This was said by the president while visiting PT BUMR Pangan Terhubung in Sukabumi, on Friday (9/1).

“I have heard about PT BUMR Pangan in Sukabumi since a long ago. This is what I often said how farmer cooperatives should be, yes it is,” the president told journalists after taking a look at the rice mill belonging to the cooperative.

He appreciated the cooperative for its thorough concept starting from processing to sales. This includes modern and attractive packaging that can go directly to the retail industry.

“It is done in a modern way with a large scale. The packaging is also very modern, very interesting. They can go directly to the retailers. The farmers are grouped into an industrial scale,” said the president.

The planting system is also done modernly by involving modern technology by paying attention to the soil condition, while the marketing used the online system.

“I think our farmers should be like that. So, I guess I’ll copy it. Maybe next week, Mr. Luwarso (Chairman of PT BUMR Pangan Terhubung) will be invited to the Palace to talk. I want this to be copied as an example for other places. Let Mr. Luwarso to guide it,” said the president.

Currently, about 1,000 hectares of agricultural land are already incorporated in the cooperative. With a such land size, it took about Rp48 billion to establish the cooperative. The president said he would make a concept like this, including to find the solution of the funding system.

“So, for 5,000 (hectares), it would need Rp254 billion. It must be like that. This is what I will figure out. How to borrow from the bank, how to pay the installments and how to involve all the farmers,” he added.

The president further said he would invite the Minister of Agriculture, Minister of Trade and Minister of Public Works and Public Housing to the Presidential Palace to develop the concept of modern cooperative.

PT BUMR Pangan Terhubung is a cooperative that processes rice from downstream to upstream by cooperating with farmers located nearby. The cooperative also provides capital loans for the planting activities. The harvesting and packaging are processed using modern technology, including sales that are distributed directly to the retailers as well as online. The proceeds will be shared with the farmers of the  cooperative members.

During his visit, the president was accompanied by Transportation Minister Budi Karya Sumadi, Presidential Chief of Staff Teten Masduki and West Java Governor Ahmad Heryawan. (BUMR/TPP)