Australian Initiative Gives Boost to Peanut Farmers in Eastern Indonesia

Eighteen thousand peanut farmers are set to benefit from Australia’s innovative program designed to increase rural growth and household incomes in Nusa Tenggara Barat (NTB).

Under the A$38 million Australia Indonesia Partnership program of Smallholder Agribusiness Development Initiative (SADI), leading peanut-based food manufacturer PT Garuda Food Putra Putri Jaya (GarudaFood) will work with peanut farmers to increase the supply of fresh raw peanuts in NTB.

GarudaFood will provide peanut seeds, technical assistance and market guarantees to 18,000 peanut farmers in NTB under a nucleus-plasma scheme.

This new project, officially launched in Mataram today, is expected to increase farmers’ incomes by giving them the opportunity to reduce operating costs and improve the quality and quantity of their production.

Farmers are expected to produce approximately 12,500 tons of fresh raw peanuts per harvest and sell them to GarudaFood as a guaranteed buyer.

Head of the Australian Agency for International Development (AusAID) in Indonesia Blair Exell said, “This partnership between the private sector and small farmers will significantly improve household incomes and contribute to local economic growth.”

“I am pleased Australia’s partnership with the Government of Indonesia is able to contribute to so many local communities in Lombok,” he said.

Peanut farmers will achieve benefits through strengthened private sector agribusiness development being implemented by the International Finance Corporation (one of the program partners) as well as expected community-supported investments in equipment.

These investments are being facilitated by the National Program for Community Empowerment (PNPM) with the support of the Australian Centre for International Agricultural Research (ACIAR) working with local research organizations to improve peanut seed stock and extension services in NTB.

Media Enquiries:
Sarah Finney (AusAID Public Affairs Officer) mob. 0812 105 6953