In IFC Jakarta:
Novita Wund
Phone: (+62) 8118400438

E-mail: NWund@ifc.org

In AusAID Jakarta:
Sonya Neufeld
Phone: (021) 25505609
Email: sonya.neufeld@ausaid.gov.au


Makassar, Indonesia, May 12, 2009—IFC, a member of the World Bank Group, is working with the Australian and Indonesian governments to help small peanut farmers in Indonesia’s South Sulawesi province increase their incomes by linking them to the country’s largest peanut-based food manufacturers. This is part of the Australia Indonesia Partnership’s Smallholder Agribusiness Development Initiative (SADI) to improve the livelihoods of small farmers in rural areas.

As part of this effort, IFC and the Australia Indonesia Partnership (AIP) today hosted a one-day workshop to share results of a study on the potential for developing the peanut industry in South Sulawesi and to present strategies for tapping that potential. The event was attended by about 70 stakeholders, including peanut farmers, traders, researchers, peanut processors, and government officials.

“South Sulawesi has the potential to be a major competitive supplier of peanuts for Indonesia’s snack-food industry,” said Ernest Bethe, IFC Program Manager for Agribusiness Linkages in Indonesia. “By linking smallholder farmers to leading firms, we could help farmers and rural households in South Sulawesi improve their incomes and help reduce poverty.”  

The workshop is part of the initial stage to launch a development program for the smallholder supply chain in South Sulawesi. This is a continuation of a program previously conducted by AIP, IFC, and the Garuda Food in West Nusa Tenggara. The new program will incorporate environmentally sustainable agriculture practices.

Jacqueline L. Pomeroy, AIP Program Director for the Smallholder Agribusiness Development Initiative, said: “Our experience working with IFC and Garuda Food demonstrates the economic value of building enduring links between smallholder farmers and larger firms. We are ready to support similar activities in South Sulawesi.”

Australia and Indonesia are committed to working together to help reduce poverty and improve rural livelihoods. IFC has made agribusiness a priority by providing financial and advisory support to the sector along the full value chain directly to companies and indirectly through intermediaries such as agro-processors, traders, and financial institutions. IFC’s agribusiness linkages program in Indonesia is funded through the Australia Indonesia Partnership

About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit www.ifc.org.

About the Australia Indonesia Partnership
Through the Australia Indonesia Partnership, the two countries are committed to working together to reduce poverty and promote regional peace, stability, and prosperity. This includes improving the livelihoods of smallholders and others in rural areas. Development assistance in is provided by the Australian Agency for International Development (AusAID) in partnership with Indonesia’s National Planning Agency (BAPPENAS). For more information, visit www.ausaid.gov.au.