KemenKopUKM Kembangkan Rantai Pasok Komoditas Sereh Wangi di Ponorogo

According to Globalnews.id, The Ministry of Cooperatives and SMEs (KemenKopUKM) in collaboration with the Ponorogo Regency Government and PT Bintang Toejoe inaugurated the Micro Business Supply Chain program for citronella and red ginger commodities in Ponorogo Regency.

"This is an effort to develop the micro business supply chain of agricultural commodities from upstream to downstream on citronella and red ginger commodities," said Deputy for Micro Business at the Ministry of Cooperatives and SMEs, Eddy Satriya representing the Minister of Cooperatives and SMEs, at the Launching of the Micro Business Supply Chain Development Program in Ponorogo, some time ago.

This activity is a follow-up to the Memorandum of Understanding between the Deputy of Micro Business at the Ministry of Cooperatives and SMEs and PT Bintang Toedjoe on the Empowerment of Micro Business through the Agricultural Commodity Supply Chain Development Program on 12 July 2022.

"This collaboration, collaboration between the Government and the business industry is to improve the welfare of the community, especially for the citronella and red ginger farmers," said Eddy.

At the event which was attended by the Regent of Ponorogo, Deputy Regent of Ponorogo, President Director of PT Bintang Toedjoe, and Deputy Director for the East Java Region of Employment Social Security Program (BPJS Employment), Eddy said that the processed product of citronella commodity is always in demand by the world as well as being rich in benefits.

The benefits of citronella oil are very various, which are as a raw material for the soap, perfume, cosmetic, antiseptic, aromatherapy, and active ingredients for vegetable pesticides. "The broad development of citronella can encourage growth in the agricultural sector," said Eddy.

The agricultural sector is one of the pillars of Indonesia's economic growth. BPS noted that in the second quarter of 2022, the Indonesian economy grew by 5.44 percent, of which the agricultural sector contributed 12.98 percent.

“Although the agricultural business is very promising, we know that currently farmers generally do not live in prosperity, many are ensnared by middlemen. So, they do not have a strong bargaining position,” said Eddy.

Generally, said Eddy, farmers also do not own land, only work as laborers. “The land owned by farmers is very small. The average land ownership of Indonesian farmers is 360 square meters," he said.

In this cooperation program, the Ponorogo Regency Government facilitates the use of Perhutani land in Pulung District covering an area of ​​65 hectares for fragrant lemongrass and red ginger farmers, referring to Government Regulation Number 65 of 2019 concerning Guaranteed Agricultural Land Areas.

PP 65/2019 provides convenience for the community to obtain state land for agricultural activities, which is given in the form of exploitation, management, or utilization.

"I really appreciate the efforts made by the Ponorogo Government by facilitating the use of Perhutani land for citronella and red ginger farmers," said Eddy.

On this occasion, there was also a symbolic planting of citronella and the signing of a Cooperation Agreement (PKS) between the Koperasi Mitra Kreatif (Creative Partner Cooperative) and PT Bintang Toedjoe as well as cooperation between Creative Partner Cooperative and the Pulung Forest Village Community Institution.

Then followed by the symbolic gesture of handover between the Strategic Program at the Ministry of Cooperatives and SMEs (Revolving Funds LPDB KUMKM, KUR, NIB, Halal certificate) and BPJS Employment Death Insurance Claims.

The pattern of cooperation carried out through the Supply Chain Program is a partnership between lemongrass farmers through cooperatives that become commodity suppliers or aggregators. Meanwhile, the business actor, namely PT Bintang Toedjoe, is the offtaker and the local government is the provider of land for farmers.

“The role of cooperatives is as an aggregator as well as a forum for developing member businesses, in this case farmers. Today we have seen that cooperatives can become representatives of citronella farmers in entering into a cooperation contract with PT Bintang Toedjoe, who is the offtaker,” said Eddy.

At the same time, the Regent of Ponorogo, Sugiri Sancoko, in his speech said that despite being faced with various challenges, the citronella commodity has the potential to continue to be developed.

One of them is through the signing of a cooperation contract between the Pulung Forest Village Community Institution and PT Bintang Toedjoe with lemongrass farmers who are members of the Creative Partner Cooperative.

"The hope in the future is that the price of citronella can be more stable, easy to distribute and expect support from the central government through the state budget and other related agencies," said Sugiri.

Meanwhile, President Director of PT Bintang Toedjoe Fanny Kurniati said that her party was committed to advancing MSMEs, improving welfare, and improving the community's economy.

She explained, agricultural products from SMEs have been widely used as the main ingredients of traditional herbal medicine. "MSME products in the form of fragrant lemongrass in the global market are considered very promising as the main ingredients for herbal herbal products," said Fanny.

Fanny emphasized that her party is ready to collaborate with farmers and MSMEs in Ponorogo Regency to participate in marketing MSME products in the form of fragrant lemongrass as a superior Indonesian herbal product.

This year's collaboration with PT Bintang Toedjoe will be implemented in 3 regencies, namely Ponorogo, Pacitan, and Wonogiri.