Pandawa Agri Indonesia (PAI), an agri life science company focused on pesticide reductant development, partners with Rabo Foundation, establishing Mbay Rice Ecosystem Development initiative. During this planting season, PAI facilitates 123 smallholders with a total land area of 97 hectares in Mbay Sub-District, Nagekeo Regency, East Nusa Tenggara. This smallholders sustainable agriculture initiative will continue and is targeted to cover up to 225 hectares of agricultural land by the end of 2022.
“PAI has always been committed to creating sustainable agriculture through various innovations. We hope the PPAI (Plant and Soil Health, Productivity, Assistance, and Innovation) technology we present in this Mbay Rice Ecosystem Development can increase agricultural productivity so farmers’ income will also increase,” said CEO and Co-founder of PAI, Kukuh Roxa. “In addition, we hope that this initiative can gradually reduce synthetic input residues, hence improving the environmental quality of rice farming in Nagekeo.”
The PPAI technology includes seven intervention steps, which include the selection of certified seeds, the use of complete micro fertilisers, mycorrhizae, silica fertilisers, and straw decomposers to increase organic elements and micronutrients in the soil, as well as the application of herbicide and insecticide reductants. In addition, farmers who participate in the Mbay Rice Ecosystem Development will also have access to financing supported by the Rabo Foundation.
“In addition to limited access to quality agricultural inputs, financial capital is one of the major challenges faced by farmers. The presence of Rabo Foundation as a partner in providing financing for farmers in Mbay is expected to alleviate the financial constraints experienced by farmers in Nagekeo,” said Kukuh.
Rabo Foundation supports smallholder farmers in 23 countries by providing access to finance, technical assistance, innovation and access to markets via Rabobak’s global network. The foundation supports various organisations by providing working capital loans, ranging from purchasing raw materials, loans for agricultural production facilities, to trade financing for export companies.
In Indonesia, Rabo Foundation maintains a diverse portfolio, from cooperatives, SMEs, NGOs, to multinational companies to support and expand the production of coffee, milk, rice, fisheries, spices, soybeans, cocoa, and many other food and agricultural products in a sustainable manner.
“Through intermediaries like PAI we are able to expand our reach and positive impact to smallholder farmers in rural areas who have limited access to finance. PAI’s practical and holistic approach is very much in line with our strategic objectives that encompass; climate-smart agriculture, reduction of post-harvest losses, and reinforcing the value chain. We are delighted to partner with PAI and take part in sustainable agriculture and strengthening financial inclusion for smallholder farmers in rural areas,” said Diva Tanzil, Impact Finance Consultant Rabo Foundation.
The Mbay Rice Ecosystem Development Program was first established by PAI in collaboration with the local government in 2021. “Rice from Mbay has similar quality as premium rice, but its productivity tends to stagnate. The assistance provided by PAI has proven to increase agricultural productivity, increase farmers’ incomes and secure food supplies. More than 75 per cent of the assisted farmers have increased their productivity by up to 30 per cent”, said the Regent of Nagekeo, dr. Johanes Don Bosco Do, at the program inauguration ceremony on Friday, June 24 in Mbay.
As a company that has a vision to create sustainable agriculture, PAI consistently presents various innovations to create an agricultural industry that is not only profitable, but also environmentally friendly. To date, pesticide reductants, PAI’s flagship products, have contributed to reducing up to 2 million litres of pesticide use in Indonesia.
About Pandawa Agri Indonesia
Pandawa Agri Indonesia is the first life-science-based company from Indonesia and currently the only one that has innovation in the development of pesticide-reducing products (pesticide reductants). Starting from this innovation, Pandawa Agri Indonesia is committed to helping agricultural business actors to realize agricultural practices that are sustainable, environmentally friendly, safe for users, and also cost-efficient.
About Rabo Foundation
The Rabo Foundation was founded in 1974 as Rabobank’s social fund and since then, the foundation has grown to become an international impact fund provider with a mission to promote economic, social and ecological progress in developing countries. In carrying out its mission, Rabo works closely with various stakeholders from large companies to small companies that work with grassroots farmers. To this day, their work has extended to millions of people in Africa, Latin America, and Asia. Their philanthropic work in Indonesia began in 1980-1999 initially as part of the Rabobank International Indonesia office to provide financial support to expand impact across Indonesia.