Old Station Road has completed joint venture agreements with Indonesia’s largest credit union cooperative KSP Kopdit Pintu Air to establish Flores Island Coffee.
The scope of the relationship between OSR and Pintu Air is aimed at improving the livelihoods of Flores Island coffee farmer over a long-term multi-project platform.
In terms of the challenges in aggregating large numbers of smallholder farmers and channeling of micro-finance and wider financial solutions, partnering with cooperative unions and credit unions can be an effective solution.
Old Station Road Limited is a New Zealand based brand owner, project developer and investor operating in Australia, Singapore and Indonesia within the agriculture, food and beverages sectors.
Kopdit Pintu Air is Indonesia’s largest credit union. With 71 credit union bank branches throughout Flores. Currently 370,000 members with 222,000 or 60% as smallholder farmers with agricultural landholdings totalling around 400,000 hectares.
Pintu Air Highlights
- 370,000 cooperative membership of which 230,000 are smallholder farmer members representing around 400,000 hectares of tropical agriculture.
- 2025 ambition is 1 million smallholder farmer members throughout Indonesia.
The ambition of the Flores Island Coffee partnership is to achieve the aggregation of 3% of the 75,000 Flores smallholder coffee farmer households into a high quality, globally significant production and knowledge centre within 3 years, and to reach a target of 6% of these farmer households within 5 years.
For more information about this release please contact haigan@oldstationroad.com
