Strengthening MSEs in the Agricultural Sector and supporting SDG'S Point 8, Pertamina Provides Business Capital Assistance for Farmers

Jakarta, June 21, 2021 – PT Pertamina (Persero), as one of the strategic SOEs in Indonesia, supports energy security in all sectors. One of them is food security by involving Pertamina's fostered micro and small enterprises (MSEs) in the agricultural sector. Through the MSE Funding Program, Pertamina assists them to become an upgraded MSEs.

Acting SVP Corporate Communications & Investor Relations of PT Pertamina (Persero), Fajriyah Usman, explained this role was manifested in a significant number of MSEs in the agricultural sector fostered by Pertamina. "From 1993 to 2021, Pertamina has fostered more than 8 thousand small businesses engaged in agriculture," she said.

Fajriyah added that this sector includes guidance for rice, corn, chili, and various other agricultural products farmers, which support food security efforts. Mentoring and coaching are also given directly to farmers and groups that foster these farmers.

"This method is done so that there are more beneficiaries of this MSE Funding Program. Pertamina synergizes with several institutions that oversee farmer development. One of them is the synergy of capital financing with the Al Ittifaq Agribusiness Islamic Boarding School in West Java, which distributes to 37 fostered farmers," explained Fajriyah.

Another result to be achieved in this synergy is by achieving several criteria to be an upgraded MSEs. It includes getting a business certificate/permit, increasing the number of workers, increasing production capacity, increasing turnover. Therefore, they can market their products abroad or Go Global.

One of the farmers who have benefited from the program is Yareli. The chairman of the Deli Serdang Juli Tani Group has been a foster partner of Pertamina since 2018. In 2018 his land area was under 27 hectares. Now it is 35 hectares. "With the final output in 2018, which is 19 tons/ha, while currently 21 tons/ha. The addition of group members from 16 people to 29 people. Thank you, Pertamina for all the help," he said.

In addition, there is also Khoirur Rozikin. This rice farmer in Banyuasin Regency has also experienced an increase in his business after being assisted by Pertamina. "The original area was only 1 ha with a yield of 3 tons of rice. After becoming Pertamina's MB, the land area became 4.5 hectares with a rice yield of more than 6 tons. The addition of casual workers was originally only two people to 5-6 people. And it doubles during the harvest period," he explained.

According to Fajriyah, through the UMK Funding Program, Pertamina wants to provide energy that can drive the wheels of the economy--energy that fuels and energy that produces sustainable growth.

Pertamina also supports SDGs (Sustainable Development Goals) point 8 achievements. Namely increasing inclusive and sustainable economic growth, productive and comprehensive employment opportunities, and decent work for all through implementing ESG (Environmental, Social, and Governance)-based programs in all operational areas. It is part of the environmental and social responsibility to realize economic benefits in the community.**