Indofood is a member of PISAgro, a joint initiative between the government and various agribusiness stakeholders to support national food security and improve the welfare of farmers through sustainable agricultural practices. Indofood also chairs the Potato Commodity Working Group, whose mission is to train 2,500 potato farmers responsible for 5,000 hectares of land; and is a member of the Soybean Commodity Working Group, whose mission is to engage with 4.3 million soy farmers responsible for 2 million hectares of land.
PISAgro aims to achieve a 20% increase in Indonesia’s agricultural yields, a 20% reduction in carbon emissions, and a 20% improvement in farmers’ income by 2020. To support these targets, PISAgro has been working with several financial institutions to provide business loans to the farmers through the farmer cooperatives. It also has a Memorandum of Understanding (“MOU”) with the Ministry of Agriculture to strengthen the curriculum of the agricultural education program to entice interesting in agricultural careers and to encourage capacity building for young Indonesians.
In 2019, the Agri-Finance and Information and Communication Technology Working Group was formed to advise relevant ministerial offices on farmer lending programs, and to explore new opportunities for improving end-to-end financial support to smallholders.