International Development Grant
Indonesia Agribusiness Development
Project Number: CA-3-D000331001
Status: Closed
Country/Region:
Maximum Contribution: $10,000,000.00
Start Date: March 05, 2014
End Date: December 31, 2021
Duration: 7.8 years
Project Description
The project aims to reduce poverty among smallholder farmers by supporting the development of sustainable agribusiness (the business of agricultural production including crop production input supply and marketing of agricultural products). The project aims to increase the incomes of smallholder farmers increase investment in agriculture and rural communities and increase demand for sustainably produced agricultural commodities. Project activities include: (i) developing business models for sustainable agricultural production post-harvest handling and marketing; (ii) training and advising private sector buyers and input suppliers to train and provide services to smallholder famers; (iii) training bank staff on new financial products for smallholders; (iv) training plantation staff on sustainable community investment; and (v) training consumer products firms about market opportunities of sustainable products.
Expected Results
The intermediate outcomes for this project include: (i) increased income of women and men smallholder farmers from sustainable agricultural production; (ii) increased gender-responsive investments in agriculture and rural communities; and (iii) increased demand for sustainably produced agricultural commodities.
Progress & Results Achieved
Results achieved as of the end of the project (December 2021) include: (1) trained 44 683 farmers (18 522 women) in sustainable and climate-smart agricultural production and post-production practices. Provided them with risk mitigation tools and confirmed that 20 921 farmers (5 541 women) are practicing these methods; (2) reported an increase in net farmer income of US$16.3 million per year from a total of 11 716 farmers who received project training and adopted recommended practices resulting in increased yield; (3) facilitated access to financing for 1 588 women and men farmers at a value of US$19.2 million; (4) four farmer group associations received Roundtable for Sustainable Palm Oil (RSPO) certification. The associations include 2 092 farmers and over 1 220 hectares of land; (5) secured and sold 4 595 metric tons of certified sustainable palm oil from the four participating RSPO-certified farmer group associations to major multinational companies; (6) four participating RSPO-certified farmer group associations received US$445 552 payment for their RSPO-certified sustainable palm oil credit; (7) two projects of the international companies on cocoa supply chain and agro-input retails reached 25 102 women and men farmers for an improved access to inputs and/or technology through value chain actors such as agro-retailers; (8) new agri-insurance product for cocoa farmers supplying an international company in Sulawesi using soil moisture index was approved by Indonesian Financial Services Authority and piloted; and (9) the International Finance Corporation completed its engagement for the strategic community investment development with a private sector company. The company staff has now been able to start the method and use the financial valuation tool and the strategy development.
Key Information
Executing Agency:
IFC - International Finance Corporation
Reporting Organization:
Global Affairs Canada
Program:
OGM Indo-Pacific
Last Modified:
September 19, 2025
Development Classifications
DAC Sector:
Aid Type: Contributions to specific-purpose programmes and funds managed by implementing partners
Collaboration: Bilateral
Finance Type: Aid grant excluding debt reorganisation
Selection Mechanism:
Department-Initiated