The Australia-Indonesia Partnership for Promoting Rural Incomes through Support for Markets in Agriculture (PRISMA) is a development partnership between the Government of Australia (Department of Foreign Affairs and Trade, DFAT) and the Government of Indonesia (Bappenas). The multi-year development partnership aims to accelerate poverty reduction through promoting inclusive economic growth.
The Australia-Indonesia Partnership for Rural Economic Development (AIP-Rural 2013-2018), represented the first phase of the program and included a suite of four different market systems development programs comprising of SAFIRA (an agricultural finance program), TIRTA (a tertiary irrigation program), ARISA (an applied research program in agriculture) and the flagship program, PRISMA. Phase II combines the four-projects into a single, integrated program under the name PRISMA and, by building on the results of Phase I, Phase II seeks to improve market efficiency and economic returns in agricultural value chains over the next five years (2019-2023).
PRISMA works to increase smallholder farmers’ competitiveness and access to new markets, better inputs, know-how and technology. It focuses on the agriculture, horticulture, livestock and aquaculture sectors which have strong growth potential and are the main source of incomes for a large number of Indonesia’s smallholder farming households. In the first phase, the program operated in five provinces in Indonesia – East Java, East Nusa Tenggara (NTT), West Nusa Tenggara (NTB), West Papua and Papua. In the second phase, PRISMA will continue to operate in these provinces and also expand into Central Java – bringing the number of provinces in Phase II to six.
PRISMA will continue to utilise a Market Systems Development (MSD) approach by working with various market players to address key constraints that hinder agricultural productivity. PRISMA partners with multiple stakeholders to generate sustainable benefits to a range of market actors, including poor farmers and the wider community, as well as the intermediary market players and the private and public sector partners. This approach stimulates broader systemic change in the market and the agribusiness environment, which can then be sustained beyond the lifetime of the program.
At the end of Phase I (December 2018), the program had exceeded its target and achieved a 252% increase in the net incomes of 345,001 smallholder farming households. In Phase II (2019-2023), PRISMA aims to achieve a minimum 30% increase in incomes for an additional 700,000 smallholder farming households in the target provinces by the end of the program. The goal of this ten-year Development Partnership between Australia and Indonesia is to achieve a sustainable 30% increase in the net incomes of a total of one million smallholder farming households by 2023.