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ADB Approves USD85 Million Loan to Support Horticulture Sector in Indonesia

Economics editor Wahyu Dwi Anggoro
22/08/2023 17:39 WIB
The Asian Development Bank (ADB) has approved an USD85 million loan to promote the development and profitability of the horticulture sector in Indonesia.
ADB Approves USD85 Million Loan to Support Horticulture Sector in Indonesia. (Foto: MNC Media)
ADB Approves USD85 Million Loan to Support Horticulture Sector in Indonesia. (Foto: MNC Media)

The project will build on past and ongoing agriculture initiatives in Indonesia supported by international financial institutions. It will introduce climate-resilient land, soil, and water management systems, establish a systematic process to engage with the private sector along the value chain, increase participation by women and youth in horticulture, and introduce digital services. 

The project will provide farmers with high-quality and certified planting material for horticultural crops that are suited for agroclimatic conditions at project locations. It will also introduce climate adaptive on-farm practices, including grants to farmers to purchase inputs and farm equipment to increase climate resilience.

Horticultural value chains and access to markets are expected to be improved under the project by establishing and strengthening micro, small, and medium-sized enterprises (MSMEs), promoting partnerships between MSMEs and the private sector, and investing in post-harvest facilities managed by farmers groups.

In addition, the project will introduce relevant government agencies to best practices in horticultural development, including mainstreaming climate change adaptation in horticulture.

The International Fund for Agriculture Development will also extend a USD40 million loan to the project to be partially managed by ADB. (WHY)

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