Corinne Roberts l Palladium - Dec 17 2024
PRISMA’s Lasting Legacy: Improved Productivity for Indonesia’s Smallholder Farmers

Vivi Yulaswati, MSc., Deputy Minister for Maritime Affairs and Natural Resources Bappenas in a high-yielding, climate-smart rice field in Central Java.

“The biggest impact is a sense of optimism,” says Muhammad, smallholder cattle farmer from the flatlands of Gerung in Indonesia’s West Lombok region.
Since 2013, PRISMA has been working to make farming easier and more productive for Indonesian small farmers like Muhammad by introducing better tools and services.

Through partnerships with the private sector, systemic market changes and policy advocacy, PRISMA has impacted 1.48 million smallholder households, improving incomes, livelihoods, and resilience.

For Muhammad, the changes to his day-to-day have been significant. Instead of having to collect or buy grass for fodder every day, he now uses concentrated feed for his cattle. As a result, he is saving himself from an arduous, time-consuming task and has seen significant growth in his cattle. With the profits he has earned, he has expanded his business from rearing just two cows to six.

“Farmers in NTB (the province) should all learn about modern rearing techniques and apply good feed management with a combination of balanced concentrate feed and animal health management for cattle farming. It means I have more time for my family,” he explains.

“In a nutshell, PRISMA helps businesses to expand into remote and rural areas by reducing the risks involved,” explains Mohasin Kabir, PRISMA CEO. “We support companies to conduct their own market research, customer outreach, and demonstration plots, and this ensures that new technologies are not only available but that farmers can see and understand their benefits before adopting them. This helps to convince farmers and supports business sustainability at the same time.

The market intervention is never intended to be permanent, and after an initial partnership, PRISMA steps back.

“Overall, we found more than three-quarters (78%) of our partners continued the business model even 3 years post-collaboration,” adds Kabir.

Systemic Market and Policy Changes

In 11 years, PRISMA has leveraged AU$39 million in private sector investment to expand businesses and improve marketing, directly benefiting smallholder farmers. As a result, the eco-system surrounding farmers has evolved, with 15,000 agri-retailers now adopting higher-productivity practices and overall private sector partners generating close to AU$150 million in revenue. 273 partnerships have been forged, and more than 100 businesses crowded-in, copying the business model and expanding impact.

PRISMA’s experience on the ground working with the private sector and provincial governments, has also been an extremely useful mechanism for supporting government policy changes.

“Thanks to PRISMA’s advocacy and partnerships, the Indonesian government has revised standards for cattle feed, making high-quality feed more accessible and affordable for smallholder farmers, like Muhammed,” proudly explains PRISMA’s Chief Technical Officer, Ferdinand Rondong.

"In 11 years, PRISMA has leveraged AU$39 million in private sector investment to expand businesses and improve marketing, directly benefiting smallholder farmers."

Before PRISMA’s intervention, only 2% of farmers used concentrate feed; today, 64% of farmers in East Java and 33% in Central Java benefit from these improved products – this adds up to a staggering 655,632 smallholder farmers.

“By emphasising the potential of smallholder farmers as entrepreneurial agents and cultivating sustainable ecosystems, PRISMA has achieved a remarkable result,” says Vivi Yulaswati, Deputy Minister for Maritime Affairs and Natural Resources from Indonesia’s Ministry of National Development Planning.

Proliferating Climate-Smart Agriculture Approaches and Practices

More than half of PRISMA interventions included a climate change element. Livestock feed is one example, as it reduces fattening time and resulting emissions. Another is rice, a critical crop for food security, with improvements in yields boosting farmer resilience and reducing emissions.

Siti, a rice farmer from Central Java, experienced these benefits firsthand. The lush and mountainous Karanganyar regency of Central Java is an area known for growing rice, yet despite its reputation, farmers can have low productivity.

While irrigation infrastructure has improved, a lack of access to high-yielding seeds and advice on good farming practices persists.

“I’ve often faced challenges in keeping my harvest stable while keeping costs low. My rice fields have frequently struggled with issues like poor plant growth, slow development, and pest attacks,” explains Siti.

She recently switched to investing in a high-yielding climate-smart seed from seed producer CV Fiona. This seed is more pest-resistant and requires less water and fertiliser, and it is known as climate-smart for its lower resource use and higher yields.

“After using the new rice seed variety, I no longer need to borrow money for my next rice cultivation. I’ve also been able to renovate my kitchen and improve my family nutrition,” she says.

“My field is now disease-free, and my harvests have increased by 50% compared to previous seasons.”

Since 2019, just over 2.01 million smallholder farmers have adopted climate-smart agriculture practices.

Benefiting All

Two key facts stand out when considering smallholder farming communities: women farmers comprise more than 25% of all smallholder farmers, and close to half of people with disability in Indonesia rely on agriculture for their livelihood.

This knowledge has shaped PRISMA’s approach to supporting businesses in incorporating gender, disability, and inclusive considerations in their internal strategies, including marketing strategies.

There is a social obligation to better serve these communities, and they also represent a market opportunity for businesses if targeted effectively. The PRISMA legacy is a business community that has had a shift in mindset when considering its customers, which has empowered communities who might otherwise not have access.

A Lasting Legacy

With a lasting impact on both individuals and the broader agricultural ecosystem, PRISMA has not only elevated smallholder farmers, but also paved the way for a more resilient, inclusive, and prosperous agricultural future for Indonesia.

Rondong emphasises the high regard for the program from leaders across Indonesia:

“The scale of PRISMA’s impact and the model that underpins it has made a lasting impression on our government counterparts. In response, we have developed guidelines for the government on our approach and together explored the practical implementation of the program’s key features in a government setting.”

Kabir highlights the significance of PRISMA’s outcomes in the context of the Government of Indonesia’s priorities for food security and independence.

“Self-sufficiency is a goal, requiring rapid ramp up of local production. PRISMA’s support for key food products including animal protein (milk and meat) and the approach to achieve this has been significant and something we are proud to be a part of.”


Read more in PRISMA’s End of Program Package. PRISMA is a partnership between the Government of Indonesia (Bappenas) and the Government of Australia (Department of Foreign Affairs and Trade), implemented by Palladium with technical support from Swisscontact, Zurich.