Pandawa Agri Indonesia (PAI), a leading agri life-science enterprise devoted to improving the lives of smallholder farmers, is pleased to announce the publication of its second impact report. This report details the organization’s transformative impact on its closed-loop smallholders ecosystem in Mbay, Nagekeo Regency, East Nusa Tenggara.
In this latest impact report, PAI presents compelling evidence of its dedication to improving the smallholder ecosystem through extensive, sustainable farming practices. The organization has been steadfast in its commitment to enhancing farmers’ livelihoods, increasing productivity, and fortifying their resilience to climate change.
“Through this report, we would like to show our progress, achievements, and lessons learned on our ongoing mission to empower farmers and foster sustainable agriculture practices,” said Faris Nurmianto, Pandawa Agri Indonesia’s Head of Smallholders Initiative.
Since 2021, PAI has successfully integrated more than 400 farmers, with over 340 hectares of land, into its ecosystem. This substantial growth demonstrates the organization’s continued efforts to engage and support smallholder farmers.
“With PPAI (Plant and soil health, Productivity, Assistance, and Innovation) technology, farmers have witnessed their productivity soar to up to four times higher than before. Our focus on sustainable agriculture has also resulted in a 25% higher productivity compared to conventional farming methods, further improving farmers’ financial stability and economic well
being,” said Faris.
Faris added, the rise in both agricultural productivity and farmers’ income was also accompanied by an increase in environmental quality. This is evidenced by farmers who have reported a heightened state of health in their agricultural lands.
“The PPAI technology has been purposefully engineered to serve a multifaceted purpose, encompassing not only the augmentation of agricultural productivity but also the enhancement of environmental quality and bolstering plant resilience in the face of climate change. In the first growing season of the year, for example, rainfall is very high and pest infestation has increased compared to the previous season. However, the average productivity of our farmers has increased to 5.3 tonnes per hectare, above the national average,” said Faris.
Partnerships for the Goal
In nurturing the ecosystem, PAI partnered with Rabo Foundation to provide affordable financing for the farmers. Through this collaboration, they have collectively disbursed 6.6 billions rupiah in affordable financing and product offtaking. This substantial investment has empowered farmers with the resources needed to enhance agricultural practices, boost productivity, and ultimately improve their livelihoods.
Atika Benedikta, Investment Director of ANGIN, Rabo Foundation’s representative in Indonesia explained, “Our mission to reduce post-harvest losses, strengthen the value chain, and assist smallholder farmers in adopting climate-resilient practices aligns well with PAI’s goals. Collaborating with PAI allows us to extend our impact to rural areas lacking financial services, ultimately promoting financial inclusion for farmers in remote regions.”
In addition to Rabo Foundation, PAI partnered with ACA Insurance to provide crop insurance to equip farmers with the tools necessary to mitigate the impact of climate change. “In this collaborative effort, ACA’s crop insurance encourages farmers to implement comprehensive risk management strategies with the guidance of field assistants, enabling them to effectively mitigate risks related to pest and diseases attacks and natural disasters,” said Jakub Nugraha, Product Owner, ACA Insurance.
Jakub added, “This indemnity-based insurance not only safeguards lenders’ investments but also ensures farmers’ income stability during insured disasters. The scheme enables lenders to monitor farming practices and promotes the adoption of Good Agricultural Practices, fostering sustainable agriculture within a closed-loop ecosystem for the benefit of all stakeholders.”
According to Jakub, the integration of cultivation innovation and biotechnology products carried out by PAI enhances risk mitigation, reducing crop failure probabilities and bolstering farmers’ resilience to climate change-induced risks.
This multi-stakeholder partnership initiated by PAI also succeeded in helping the Nagekeo government win the second place in national Inflation Control Team award for Eastern Indonesia area from the Central Bank of Indonesia. “Their comprehensive approach to every aspect of farming, along with their active involvement in multi-stakeholder partnerships, has been instrumental in our remarkable achievement of winning the inflation control award,” said dr. Johanes Don Bosco Do, Regent of Nagekeo.
This impact report that was first presented at The ASEAN Investment Forum 2023 shows PAI’s dedication to sustainable agriculture, global partnerships, and impactful interventions continues to make a significant difference in the lives of smallholder farmers. The report not only underscores the organization’s commitment to its mission but also serves as a testament to the transformative power of integrated, science-based approaches.
For more information on PAI’s work and to access the full impact report, please visit https://bit.ly/pai-impactreport23.
