The loan is projected to yield direct advantages for 25,000 impoverished and nearly impoverished farming families, including 5,000 female farmers. The project is designed to bolster climate resilience, sustainability, efficiency, and profitability within horticultural production across dryland areas spanning several provinces in Indonesia.

Jiro Tominaga, ADB's Director for Indonesia, highlighted that this initiative comes at an opportune time as Indonesia experiences an upsurge in domestic demand for horticultural products. Simultaneously, the country's agricultural sector is confronted with the challenges posed by climate change.

"By aiding the enhancement of productivity and resilience within the horticultural sector, this project will contribute to increased employment opportunities and the stimulation of new enterprises in rural communities," Jiro stated on August 23, 2023.

Challenges face by Indonesia's horticultural sector

Indonesia's horticultural sector faces multiple challenges, including limited access to affordable, quality seeds, inadequate infrastructure and technology, and insufficient logistical support.

Therefore, he emphasized that bolstering the agricultural sector in Indonesia is crucial to meet the escalating food requirements and assist small-scale farmers in gaining profits.

Financed through this ADB loan, the project will interconnect with other initiatives funded by international financial institutions.

However, the ADB project uniquely introduces climate-resilient land, soil, and water management systems, establishes a systematic process for private sector engagement along the supply chain, enhances women and youth participation in horticulture, and introduces digital services.

The ADB loan will aid in providing certified, high-quality planting materials for farmers. Additionally, funds will be allocated to introduce climate-adaptive farming practices, including grants for farmers to procure raw materials and agricultural equipment.

The project will also foster the augmentation of agricultural supply chain value and improve farmers' market access. This endeavor will be achieved by reinforcing partnerships between small and medium-sized enterprises (UMKM) and private entities, alongside investments in post-harvest facilities managed by farmer groups.