Coffee farmers in Garut get attention from Regional Financial Access Acceleration Team (TPAKD) of West Java to get easy access to finance in order to increase production and the capacity of the commodity business from upstream to downstream.
Commissioners Board of the Financial Services Authority, Ilya Avianty said TPAKD Jabar will facilitate access to finance for coffee farmers to be more productive.
“It also shorten the distribution chain that has been a barrier,” said Ilya by on Tuesday , 24 Mei 2016.
She said Garut coffee had been proved to have a prestigious award at the contest of coffee in Seattle, United States. On the other hand the production process and the welfare of farmers in Garut district had not received attention.
Access to finance is still not adequate. She considered to have the presence of the government to support and awaken the potential of the area.
“Great potential in the field of coffee is tried to become a mainstay product area and promote the welfare of farmers,” added Ilya.
FSA (OJK) Chief Regional 2 Jabar Sarwono stated coffee production in Garut Regency reached hundreds of tons each year, but access and lending for them are only Rp 3 billion in 2015. It was still very small when compared to the result of hundreds billions rupiah.
“So We of TPAKD Jabar push four banks namely BRI, Mandiri, BNI and Bank BJB to intervene and facilitate the financial access to them,” said Sarwono.
He mentioned the great value of hundreds of billions of rupiah can get greater access to financial credit anyway. He considered that there were other parties that provide access to credit through a boss in production practices of coffee farmers.
TPAKD Jabar also cooperate with Indonesian Economists Association (ISEI) of West Java to conduct research and map of potential coffee in Garut. Besides the four banks also down do field research for financial facilitation of farmers.
BJB also will provide support access to finance through the services of warehouse receipts which become one of the efforts to increase the value-added products. Through the warehouse receipt system, the coffee produced by farmers is stored in the warehouse and the bank issue warehouse receipts that can be cashed, while payments is done after the coffee is sold when prices are profitable for farmers.
“We will facilitate through the warehouse receipt system. The system has been effective in rice production center in West Java and become an alternative to obtain finance for working capital and production,” said Commercial Director BJB Suwartini.
One coffee farmer Garut, Agus, welcomed the presence of TPAKD Jabar along with the FSA as well as banking and financial institutions in West Java which opens opportunities for the facilitation of financing.
He said coffee farmers in Garut are almost in all districts totaling 42 districts in Garut. But so far they have not received significant benefits from banking.