Blog
Published on November 22, 2023

Mobilising SDGs Financing through Sustainable Agriculture


An inspiring story that demonstrates the impactful role of the joint programme on small and medium enterprises (SMEs) in Lombok comes from Mr Zul Adha, the owner of  UD. Sasak Tani is an enterprise specializing in the production of quality seedlings for farmers. Upon learning about the joint programme, Mr. Zul recognized the immense potential to increase awareness of organic farming and its positive impact on the environment and farmers' economic well-being. He decided to take the lead in introducing organic farming practices to his networks, a group of more than 200 farmers across the island. He began by establishing a nursery with high-quality seedlings and started to educate the farmers about good agricultural practices that factor in seasonality problems, market demands, and the use of organic fertilizers as a solution for high chemical fertilizer prices. As a result of his continuous guidance and training,  the farmers in his cohort have witnessed a positive transformation in their crop yields and soil health and have embraced organic farming methods.

 

f

The government of West Nusa Tenggara therefore recognized the exceptional efforts of Mr. Zul in spreading knowledge and supporting farmers by awarding him with a grant of 75 million rupiahs. Mr Zul decided to spend the grant on agricultural learning centre expansion to make it a place where farmers could come to learn and exchange ideas about organic farming practices. He also wants to apply the technical knowledge gained through the JP to design new products and develop organic fertilizer, serving not only as a commercial business potential but also as a sustainable contribution to better farmland across the island. In addition, the joint programme will support Mr Zul in developing a comprehensive curriculum for the learning centre, covering all aspects of organic farming and sustainable agricultural practices. This activity will result in a pipeline of environmentally conscious farmers who are eligible for Sustainable Development Goals (SDGs)-linked loans. 

 

Inspired by Mr Zul’s approach and positive impacts, the BRI Bank has shown its interest in formulating a micro-loan specifically designed for the agriculture cluster that caters to the needs of more than 200 members of farmers, empowering them to invest in their agricultural activities and expand their operations. The first cluster micro-loan has already been disbursed with a total amount of 250 million Rupiahs for 10 smallholder farmers. The loan is also expected to enable them to purchase organic inputs, upgrade their farming equipment, and expand their agricultural activities.  This partnership between the SME, the joint programme, and BRI Bank is creating new opportunities for small farmers, empowering them to thrive in the organic farming sector as a win-win solution for economic, social and environmental sustainability.
 

This impact story highlights the transformative influences of the joint programme on SMEs and its contribution to the adoption of sustainable agricultural practices and mobilisation of finances towards achieving SDGs. Through technical assistance, educational initiatives, and collaborative partnerships, UD. Sasak Tani in Lombok has not only improved the livelihoods of more than 200 local farmers but also attracted the attention and support of government and financial institutions, accelerating SDGs financing in the agri-food sector. This holistic approach has created a positive ripple effect, fostering a more sustainable and prosperous agricultural sector in not only the region but Indonesia at large.

For further Information please contact: L.rosida [at] unido.org (L[dot]rosida[at]unido[dot]org)

 

Note:

The Joint SDG Fund's joint programmes are under the prestige leadership of the Resident Coordinator Office and implementing United Nations Agencies. With sincere appreciation for the contributions from the European Union and Governments of Denmark, Germany, Ireland, Italy, Luxembourg, Monaco, The Netherlands, Norway, Portugal, Republic of Korea, Spain, Sweden, Switzerland and our private sector funding partners, for a transformative movement towards achieving the SDGs by 2030.