Achieving National Food Self-Sufficiency: Bank Jatim and the Ministry of Agriculture Synergize via Agricultural Machinery Credit.
Date: 26 november 2024Categories :
JAKARTA, November 26, 2024. PT Bank Pembangunan Daerah Jawa Timur Tbk (bankjatim) signed a financing cooperation agreement with the Directorate General of Agricultural Infrastructure and Facilities of the Ministry of Agriculture of the Republic of Indonesia on Tuesday (26/11). The agreement pertains to an interest/margin subsidy scheme for agricultural machinery business credit (Kredit Usaha Alsintan or KUA). Held at the Ministry of Agriculture Office, the agreement was signed by bankjatim’s Director of Micro, Retail, and Medium Business, R. Arief Wicaksono, and the Director of Land Protection and Provision of the Ministry of Agriculture, Atekan. Also in attendance was the Director of Financing of the Directorate General of Agricultural Infrastructure and Facilities, Tedy Dirhamsyah.
Arief explained that this collaboration was established to support the national food self-sufficiency program mandated by the President of the Republic of Indonesia. Through this partnership, bankjatim will disburse KUA financing with a highly competitive interest rate, where farmers only bear a 3 percent interest cost, while the government subsidizes the remainder. This synergy is designed to assist farmers who have feasible businesses but remain "unbankable" in securing the credit necessary to increase their operational capacity.
“We are committed to the success of this program to drive regional economic growth in alignment with government food security initiatives. This is also a clear manifestation of bankjatim’s dedication to enhancing farmer productivity and welfare,” Arief stated.
The KUA is a financing program specifically for the procurement of agricultural machinery (Alsintan) targeted at farmers, farmer groups, combined farmer groups (Gapoktan), and Micro, Small, and Medium Enterprises (MSMEs) in the agricultural sector. “We believe that with the spirit of collaboration between the government and agricultural stakeholders, this program will deliver a positive impact on farmer welfare and strengthen the regional economy,” Arief emphasized.
Furthermore, Arief noted that the collaboration between bankjatim and the Ministry of Agriculture is a strategic step for the company to consistently contribute to Indonesia’s agricultural sector. ”We are confident that the agricultural sector holds immense potential to drive the national economy. Through this agreement, we hope to continuously increase financing disbursement so that farmers across East Java and Indonesia can become more independent and productive," he added.
Meanwhile, Tedy Dirhamsyah explained that the KUA is a credit initiative for agricultural machinery funded not only through the government budget but also by involving the banking sector as a solution for farmers and agricultural entrepreneurs. With access to KUA, he continued, farmers can acquire the machinery needed to increase productivity, making their operations more efficient. ”By adopting technology and increasing mechanization, we can overcome various challenges in the agricultural sector, supporting time efficiency, production cost reduction, and optimizing the process from upstream to downstream,” he concluded.
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