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Fostering Sustainable Agriculture & Financial Literacy with Closed-Loop Loan & Agri Input Ecosystem

Closed-Loop Loan & Agri Input Ecosystem Signing -

Jakarta, 26th June 2023 – Smallholder farmers play a pivotal role in our global food system, driving economic development from the ground up in regional economies. However, limited access to finance and agri-inputs threatens to undermine smallholders’ livelihoods and the resilience of our food systems.

For Indonesia’s smallholder cocoa farmers, the intertwined struggle for finance and quality agricultural inputs creates a self-reinforcing cycle of obstacles and limits their ability to unlock the untapped potential of their farms.

As a leading agri-tech company, Koltiva is seamlessly integrating AgriTech, FinTech, and ClimaTech to facilitate a transformative shift in the agribusiness landscape. Our holistic digital solutions are helping to re-imagine global value chains and promote traceability, inclusivity, and climate-smart agriculture. Through our innovative solutions, we aim to bridge the gap between financers and smallholder producers.

KoltiPay, the e-wallet feature integrated into our FarmCloud application, plays a vital role in promoting financial inclusion in rural areas. With KoltiPay, we enable smallholder producers in remote regions to access digital financial services, providing them with a convenient and secure platform for their financial transactions. This e-wallet empowers users to send and receive payments, save money, crop transaction, and eLoans, and access a range of PPOB financial services.

On the other side of the spectrum, local cooperatives and micro-financial institutions can access the KoltiPay Loan web feature to manage loan distribution and assess farmer profiles through an all-in-one dashboard management system.

One of the critical components of this Closed Loop Loan & Agri Input Ecosystem is the provision of agri-inputs (fertilizer, compost, biochar, seedlings, etc) loans to producers. Recognizing that high-quality agri-inputs are vital for enhancing crop productivity, we support our agribusiness clients and financial institutions in collaboration with our distributor subsidiary, Kudeungo Sugata.

Agri Input Distribution -

Sugata facilitates the accessibility of agri-inputs to thousands of cocoa and coffee farmers in South Sumatra and Aceh through a network of more than six local cooperatives. This collaboration fosters inclusivity in the supply chain, ensuring producers can obtain high-quality agri-inputs at affordable prices. The cooperatives play a crucial role in the program, serving as fertilizer distribution points to the producers and facilitating loan repayments. Together, we have initiated fertilizer loan programs that have reached over 2,500 farmers in South Sumatra and Aceh

After successfully harvesting their crops, producers have the opportunity to sell their produce to the cooperatives. Koltiva’s FarmGate application simplifies this process by enabling cooperatives to record all transactions and make payments to producers through convenient payment methods such as KoltiPay, bank transfers, or even split payments. On the other side, producers can receive ePayment through the FarmCloud mobile application and access authorized retailers, thus reducing their dependence on unreliable or costly intermediaries. This streamlined approach ensures transparency and efficiency in the payment system, benefiting both the cooperatives and the producers involved in the program. The program's success relies on the continuous involvement of all stakeholders.

Our agribusiness clients utilize our traceability solutions, KoltiTrace MIS, an integrated multi-crop platform ecosystem for multinational businesses and SMEs to connect with their global upstream and downstream supply chains. KoltiTrace MIS helps our clients assess the producers' productivity and determine their eligibility for program benefits. Moreover, the Field Agents (the boots on the ground) also play a crucial role in collecting accurate data on producers and their farms (KYC – know your customer), ensuring that even farmers without a smartphone can reap the benefits of the platform and gain easier access to loans.

The Closed Loop Loan and Agri Input Ecosystem have emerged as a transformative approach to address agri-input distribution and producer financing challenges. By creating streamlined supply chains and providing fertilizer loans, this system empowers producers, enhances farm productivity, and strengthens the agriculture sector as a whole. Rather than being trapped in a perpetual cycle of limited access to finance and high-quality agri-inputs, producers globally are now positioned to unlock growth and prosperity - a testament to the transformative potential of a truly integrated digital ecosystem.

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