Impressed donor invests private money in our work

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20 months in, our Pancer Tani program in Indonesia is getting a major boost. A generous private donation will enable considerable further growth. 

Pancer Tani is the Indonesian equivalent of our Farmers’ Hub program elsewhere. Its aim is to increase smallholders' income and benefit the community, while also enabling a local entrepreneur to generate sustainable profits. Visiting Pancer Tani in 2019 deeply impressed Indonesian philanthropist Dana Karya (photo, left). This month, he signed an agreement to help establish an additional 160 such hubs over the next two years. Karya is donating more than $70,000 to make this possible. 

“Dana Karya is an entrepreneur himself”, explains Teddy Tambu (seated, right), who runs our local activities in the newly created organization YASI. “In South Lampung last year, he saw how Pancer Tani adds value, and how we empower the people who run the hubs to serve smallholders. He got the message at once and was so convinced that he is putting his own money into the program.”

The donation enables YASI to build up several hub services. These include buying and selling fresh produce, running seedling nurseries and ag shops, as well as a post-harvest program. “We’re immensely grateful to Mr. Karya”, declares Agriservices Manager Ronny Setyawan, who has been closely involved in preparing the agreement. “This is our first experience of working with a private donor. With his support, we can give more smallholders more opportunities to improve their livelihoods.” YASI estimates that some 48,000 farmers stand to benefit from the additional Pancer Tani outlets. 

This expansion will add to already impressive growth. “The first Pancer Tani pilot started in January 2018 in East Java”, Ronny continues. “Today, we have 55 hubs serving some 24,535 smallholders across several provinces.” Running a Pancer Tani is good business for each entrepreneur as well: the hubs’ total sales are $161,325, with an average profit margin of 26.4%. 

“We are delighted that our program has attracted a private donor”, says Teddy Tambu. “Pancer Tani opens up economic opportunities for rural communities, especially smallholders. It particularly helps young villagers, male and female, strengthening them both as growers and businesspeople.”