Consultant for Learning Document on the Agriculture Financing Business Model for Corn Farmers in Sumbawa Island



Since late December 2014, in partnership with Syngenta Indonesia, Bank Andara, BPR Pesisir Akbar, ACA Asuransi, and Grain traders, Mercy Corps Indonesia’s AgriFin Mobile Program has facilitated access to bundled services for corn farmers in Bima District, the City of Bima, Dompu District, and Sumbawa District. These bundled services consist of micro credit, agricultural inputs (seeds and chemicals), crop microinsurance against harvest lost due to drought or cyclone, financial literacy training, SMS Reporting service to ask questions and receive answers about the “Begin It Right” (ADB) technology and to report harvest activities, and a payment system using AndaraLink for sales of crops to grain traders. A corn farmer who has signed a micro credit agreement with BPR Pesisir Akbar automatically receives each of these services. By the end of January 2017, after three planting seasons, 805 farmers with a total farm area of 1,506 HA have borrowed a total of Rp 12.5 billion and accessed the service bundle. Based on production data per HA and the selling price of corn during two planting seasons, the average production increase per HA is 20% and the average increase in farmers’ income is 16.5%.


The Agri-Fin Mobile Program will end in May 2018, and currently there is some interest in promoting and replicating the business model of agricultural financing for corn farmers in Sumbawa Island. In line with the implementation of the Aksi Pangan Program launched by the Indonesia Financial Services Authority (OJK) in late March 2017, in mid May 2017 the OJK  was conducted field trip and corn harvest at the location of the corn farmers in Dompu District who received loans from BPR Pesisir Akbar. In order to encourage the provision of loans to the agriculture sector in Indonesia, as follow-up to the implementation of the Aksi Pangan Program in Dompu District, the OJK has consistently been promoting the business model of financing for corn farmers both to other commercial banks and to the regional government. At the same time, because corn is a strategic commodity in the economic development of the province of West Nusa Tenggara, through cooperation with the Association of Rural Bank in the Province of West Nusa Tenggara (PERBARINDO NTB), it is planned to conduct outreach on the business model of financing for corn farmers in the Sumbawa Island to all members of PERBARINDO NTB in Sumbawa Island and Lombok Island.


In order to promote and support the planned replication of the agricultural financing model for corn farmers on Sumbawa, Mercy Corps Indonesia plans to publish a learning document in connection with the cooperation that has been undertaken between Bank Andara and BPR Pesisir Akbar for corn farmers over three planting seasons. For this purpose, Mercy Corps Indonesia needs a consultant.



Purpose and Target Audience

Financing for corn farmers on Sumbawa is provided by Bank Andara through the mechanism of a two-step loan, first from Bank Andara to BPR Pesisir Akbar (through an executing scheme) and then from BPR Pesisir Akbar to the corn farmers. The purpose of the learning document is so that the managements of BPR or owners of BPR (individuals or regional governments) that are interested in replicating the agricultural financing business model will have knowledge about how to implement it and what factors need to be considered in the context of risk mitigation so as to ensure that the process of repayment of farmers’ loans can be executed at the specified time, the model is commercially sustainable, and it reaches a large number of farmers. Included in the learning documentation will be an explanation on the obstacles that have been faced, both by Bank Andara and by BPR Pesisir Akbar, and important learnings obtained from the implementation of financing over three planting seasons.



Key Activities

  • Document the business process in disbursement of agricultural financing for corn farmers, both from Bank Andara to BPR Pesisir Akbar and from BPR Pesisir Akbar to the corn farmers;
  • Document the risk mitigation strategy to ensure that the repayment of loans, both from the farmers to BPR Pesisir Akbar and from BPR Pesisir Akbar to Bank Andara, could be on time;
  • Document the models of promotion/ outreach carried out by BPR Pesisir Akbar to reach corn farmers from the first planting season through the fourth planting season, which will take place in November 2017;
  • Document the models of assistance provided by BPR Pesisir Akbar to farmers so that the purpose of provision of the loans could be achieved and repayment of the loans could be on time;
  • Document the monitoring processes, both those done by BPR Pesisir Akbar and by Bank Andara, to ensure sustainability of the financing and ability to reach a large number of farmers;
  • Document the use of digital channels in supporting financing for farmers, from the identification process to the monitoring activities;
  • Document the internal and external factors (including policies of owners and policies in the agriculture or finance sectors) that create obstacles and/or are supporting factors in the implementation of financing;
  • Document learnings that need to be noted by every BPR that intends to replicate the agricultural financing business model for corn farmers on Sumbawa, whether in other regions or for other types of crops.




  • Work plan, in-depth interviews instruments in English and Bahasa, and list of who will interview by December 1st, 2017. The instruments developed for interview with OK Bank/Bank Andara and BPR Pesisir Akbar;
  • Conduct In-depth interviews by December 8th, 2017;
  • Submit a Draft Learning Document (around 20-25 pages include an executive summary) for comment by December 15th, 2017;
  • Final Document (around 20-25 pages include an executive summary) on December 29th, 2017;
  • All other work product, including meeting notes and data, and other.



Necessary Skills/Qualifications

  • Prior experience working in Indonesia and the banking/microfinance sector and/or agricultural sector.
  • Experience working with private sector and experience with commercial bank and rural bank would be an advantage.
  • Proven written communication skills.
  • Proven written learning document.




The Consultant shall complete the duties described in the scope of work from November20th – December 29th, 2017. Mercy Corps Indonesia will provide the consultant with all existing documentation related to the SOW upon request.


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