IFAD President Alvaro Lario and Indonesia’s Minister Of Agriculture Syahrul Yasin Limpo Confirm Support to Small-Scale Farmers and Rural Communities
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IFAD President Alvaro Lario and Indonesia’s Minister Of Agriculture Syahrul Yasin Limpo Confirm Support to Small-Scale Farmers and Rural Communities14 November 2022
Jakarta, 14 November - President Alvaro Lario of the International Fund for Agricultural Development (IFAD), head of the United Nations rural development agency, met Indonesia’s Minister for Agriculture Syahrul Yasin Limpo today to deepen the successful partnership between the Republic of Indonesia and IFAD in securing decent lives and livelihoods for small-scale farmers.
The meeting builds on more than 40 years of mutual support and investment in rural areas. Since 1980, more than 3.9 million poor, remote and disadvantaged rural households have benefitted from IFAD's partnership with Indonesia. IFAD will continue to play a leading role in promoting productive, competitive and high-value small-scale agriculture and fisheries, and ensuring effective public investment in rural areas.
Today, Indonesia’s small-scale farmers face multiple challenges including volatile food and fuel prices and the effects of climate change," Lario said. “We will continue to support Indonesia to help small-scale farmers to improve their resilience to shocks, by boosting agricultural productivity and tapping into new market opportunities,” he added. Minister Limpo responded, “We really appreciate IFAD's longstanding support to Indonesia so far. During our G20 Presidency, we raised our strong collaboration as one of the successful development cooperation models.”
IFAD has worked closely with the Ministry of Agriculture to identify, promote, validate and scale-up viable agriculture innovations, in partnership with other strategic partners and stakeholders, including the private sector. Successful examples include the Rural Empowerment and Agricultural Development Scaling up Initiative (READSI)– which pioneered a private sector collaboration with Mars – and the Young Entrepreneurship and Employment Support Services programme (YESS), which leverages the private sector, including fintech and impact investment, to promote youth-owned agri-businesses. The President and his delegation will visit YESS and the Development of Integrated Farming System in Upland Areas (UPLANDS; co-financed with the Islamic Development Bank), which focuses on strengthening upland agriculture value chains, and interact with project participants to hear about their experiences.
Minister Limpo also conveyed some key points related to the escalation of agricultural business development, by encouraging and creating agricultural businesses; supporting young entrepreneurs in agriculture; providing assistance to agricultural businesses for medium and large export businesses; conducting trainings and assistance for the development of digital agricultural businesses; and establish Regional Agricultural Business Enterprise (BUPD) and Campus Agricultural Business Enterprise (BUPK). He hoped that further collaboration with IFAD could be expanded by involving universities too.
“IFAD and Indonesia have a long history of engagement and we consider IFAD to be a key partner in achieving our development priorities, reaching the Sustainable Development Goals and boosting Indonesia’s role in international development,” said Limpo. “This visit cements IFAD as a development partner of choice for Indonesia. We need to strengthen our cooperation, especially to overcome global current challenges, especially for youth and women,” he added.
READSI, YESS and UPLANDS are three of IFAD’s four current investments in Indonesia. Apart from these, IFAD and the Asian Development Bank also co-finance the Integrated and Participatory Development and Management of Irrigation Project (IPDMIP), which introduces a more sustainable approach for irrigated agriculture investment in Indonesia, one that puts the farmer at the centre, creating incentives for farmers to create business, manage risks, and sustain infrastructure. Since 1980, IFAD has financed 21 rural development programmes and projects in Indonesia, investing $790.50 million, or nearly $2.9 billion when co-financing is included. IFAD supported the preparation of Indonesia’s Vision 2045 and the preparation of the new Medium-Term Development Plan 2020- 2024. Indonesia currently sits on IFAD's Executive Board and Governing Council.
Note to editors:
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IFAD is an international financial institution and a United Nations specialized agency based in Rome – the United Nations food and agriculture hub. IFAD invests in rural people, empowering them to reduce poverty, increase food security, improve nutrition and strengthen resilience. Since 1978, we have provided US$23.2 billion in grants and low-interest loans to projects that have reached an estimated 518 million people.
A wide range of photographs and broadcast-quality video content of IFAD’s work in Indonesia’s rural communities are available for download from our Image Bank.