The Ministry of Cooperatives and SMEs encourages the expansion of access to capital for producer cooperatives, including the Gunung Luhur Berkah (GLB) Producer Cooperative in Subang, West Java, which manages the coffee business.
Secretary of the Ministry of Cooperatives and SMEs, Arif Rahman, during a visit to GLB Producer Cooperative in Cisalak Village, Subang Regency, West Java, Sunday (4/8/2024), said that producer cooperatives are very important to get expanded access to capital in order to increase their business scale.
Moreover, cooperatives that manage coffee commodities, Arif said, have tremendous potential to continue to be developed because they have guaranteed market certainty at home and abroad.
Therefore, partnering with GLB Producer Cooperatives is a symbiotic mutualism.
GLB Producer Cooperative is a national primary cooperative that focuses on Arabica and Robusta coffee cultivation, which has successfully exported coffee directly to several countries (without intermediaries) such as Saudi Arabia, Egypt, Lebanon and the United States.
The cooperative was established in 2016 and has around 800 members with a total of 1200 hectares of coffee land and 300 hectares of rice fields. Unfortunately, the cooperative has experienced capital constraints.
"This is a very potential cooperative, which even has a warehouse managed by warehouse receipt, but there are obstacles to capital even though the market demand is large," Arif said in his official statement, Sunday (4/8/2024).
Arif explained that the GLB Producer Cooperative currently not only manages its own plantations from its members but also as an aggregator in plantations in West Java which have an area of around 200 hectares.
"In the future, we will add another 50 hectares, so today we invite investors to be involved in building partnerships with the GLB Producer Cooperative," Arif said.
Arif said that everyone has the opportunity to partner with the GLB Producer Cooperative.
"Everyone can be an investor," he said.
On the same occasion, Chairman of the Dharma Bhakti Astra Foundation (YDBA), Rahmat Samulo welcomed the initiative of the Ministry of Cooperatives and SMEs (KemenKopUKM).
"I personally see this as very prospective for investment and also empowering the community here to be more advanced because the commodities exist, the market also exists," Rahmat said.
In the same place, Chairman of the GLB Producer Cooperative Miftahudin Shaf appreciated the various policies and support from KemenKopUKM for the development of cooperatives in running businesses, especially for the Gunung Luhur Berkah Producer Cooperative.
"Alhamdulillah, this is very good for the prospects of our members, especially to overcome our current obstacles related to capital for additional plantations in order to achieve the target of one person (farmer) controlling at least 3 hectares so that it enters the economic scale," said Miftah.
The calculation, with an investment of Rp65 million per hectare, includes the cost of seeds, planting, maintenance, and harvesting.
"It will produce when it enters the age of 2 years, and in the third year the capital can be returned," said Miftahudin.
Entering the third year, said Miftahudin, it will have entered the profit revenue sharing stage of 30:70 for investors. "Every year, the price of coffee always increases, never decreases," said Miftahudin.
Moreover, said Miftahudin, the GLB Producer Cooperative already has offtaker partners in Egypt (Alpostan Company), Saudi Arabia (Al-Sahabh Trading Company and Abdul Wahid Trading Co), Lebanon (Arc Build/Ghaleb K Faour), and Indonesia (PT Perusahaan Perdagangan Indonesia, PT Sulotco Jaya Abadi, and Mayora).