Solidaridad facilitates tie-up between Indonesia’s largest public sector fertilizer company (PKT) and Keling Kumang Group

07 July 2017

Based in Bontang, East Kalimantan, Pupuk KalTim (PKT) is Indonesia’s largest producer of urea, ammonia, Nitro Phosphate Kalium (NPK), bio-fertilizers and bio-pesticides. PKT supplies and fulfills the needs of fertilizers across the country. As a government owned enterprise they mainly work together with government bodies. Solidaridad has now become their first ever NGO partner in Indonesia. We facilitated a process to assess and discuss possible collaboration between PKT and Keling Kumang’s producer cooperative K77 to support farmers in Sintang.

K77 is a producer cooperative that was created as a part of the deliverables under Solidaridad’s “Improved Livelihoods for Small Holders in West Kalimantan” programme. K77 plays the role as distributor to provide bio-fertilizers and bio-pesticides for farmers in West Kalimantan. Provision of and access to bio-fertilizers and bio-pesticides are important issues to address within the area.

For this particular agreement with PKT, K77 would act as the appointed agent of PKT products in Sintang area that would distribute the subsidized as well as non-subsidized fertilizers to the farmers in the five districts of Sintang, Sekadau, Sanggau, Melawi and Kapuas Hulu. It is part of Keling Kumang Group and established to answer the needs of Keling Kumang Group members for their agricultural inputs and for marketing their produce. Established in 2012, K77 works in Sintang, Sekadau and Melawi districts. At the moment, K77 has businesses in agro-inputs supply, and renewable energy. It also implements a marketing channel for rubber and oil palm nursery supporting independent smallholder farmers.

The joint commitment between PKT, Keling Kumang Group, K77 and Solidaridad includes the establishment of demonstration plots, agreements on supply of fertilizers, and support for farmer’s trainings for oil palm, rubber, and other crops.

The Action Plan for the engagement was signed together between PKT, Keling Kumang Group, K77 and Solidaridad. Some of the activities will be carried out immediately such as the establishment of demonstration plots. The demonstration plots established by PKT would be dovetailed to complement the efforts on the ground of the training teams. This will help to create a movement among independent smallholders to understand the importance of good agriculture practices such as timely and optimal use of fertilizers and bio-soil-ameliorants. The bio-pesticides will ensure an environment friendly approach to controlling pests such as coptotermes curvignathus, oryctes rhinoceros, cordyceps militaris and fungal diseases such as ganoderma. The bio-fertilizers will help to improve the soil structure and organic matter content to improve the uptake efficiency of NPK. K77 will be the exclusive distributor of PKT products in West Kalimantan.

Solidaridad feels privileged in joining hands with Pupuk Kaltim and facilitating the tie up with K77 towards addressing smallholder issues in their journey towards sustainability and increased productivity. This is a small but a positive step forward towards contributing to meeting the Government of Indonesia’s goals of producing 40 million tons of palm oil by 2020.”

Kulbir Mehta, Country Manager of Solidaridad Indonesia.

Yohanes RJ, The Managing Director of KKG welcomes the joint commitment and gladly expressed that K77 will be the main distributor of PKT in West Kalimantan.

Burmansyah, Business Development & Strategy of PKT, said he is happy to have support from KKG and K77, since their distributors are mainly in Pontianak and it’s difficult to reach farmers in this area.

Having K77 as PKT business partner will help PKT and farmers itself to get better access to fertilizer. Today, farmers need to wait for 2 to 3 months to get their supplies. I am grateful to Solidaridad for having facilitated this tie up. Solidardad is the first NGO PKT has ever worked with and we look forward to a long term association and across other commodities too.”

Burmansyah, Business Development & Strategy of PKT

To formalize the cooperation, PKT and Solidaridad have signed a Memorandum of Understanding on June 8, 2017 in Yogyakarta. This MoU was signed by the Managing Director of Solidaridad South and South East Asia, Shatadru Chatopadhayay and the Director of Commercial of PT. Pupuk Kalimantan Timur, Gatoet Gembiro Noegroho in the presence of the Executive Director of Solidaridad Network, Nico Roozen. It affirms the partnership of delivering a shared vision between the two organizations. Both Solidaridad and PKT will start the joint programme in early July 2017.