Overcoming Financing Product Challenges at Indonesian Farm Kiosks

Spire consultant, Deda Annasia Yuliastri highlights farm kiosks in Indonesia are facing challenges in securing funding to develop products.  

In rural Indonesia, agriculture remains a fundamental livelihood. Agricultural kiosks or stalls are vital players, not only providing input and equipment but also acting as capital sources, enhancing productivity through loans and improving agricultural inputs. 

However, many of these kiosks struggle to extend loans. Spire Research and Consulting’s study of kiosks in West Java, East Java, Lampung, and South Sulawesi found that only 59% offer loans, with merely 15% providing capital loans to farmers. 

Challenges persist in distributing financing products, including low financial literacy among stall owners, some farmers’ income being tied to seasons hindering their loan repayments, lack of access to remote banking, and complex bureaucratic procedures to obtain loans. 

Collaborating with informal institutions like suppliers and cooperatives can ensure equitable product distribution, catering to agricultural sector needs. Financial institutions can help farmers‘ bridge the access gap by collaborating with accessible agents, simplifying disbursement, offering larger loan limits, and flexible tenures. 

The vast potential in the agricultural sector offers financial institutions opportunities to provide tailored financing solutions, enhancing agricultural kiosk support and Indonesia’s productivity

Click here to read the full article at TechnoBusiness

For media enquiries, please contact:

Marie Teo
Manager, Group Marketing Communications
YAMADA Consulting & Spire
Phone: +65 6221 7727
E-mail: [email protected] 

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