Organic Quasi-Cooperative System: A Case Study of Cijambu's Farmer Association, Indonesia
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Organic Quasi-Cooperative System: A Case Study of Cijambu’s
Farmer Association, Indonesia
Muhammad Iqbal Hafizon¹, Adhi Wicaksono², Joshua³, Muhammad Yasser Ibrahim4, and
Hamdi Hakeem5
1 Department of International Relations, Faculty of Social and Political Sciences, Universitas Padjadjaran; email: muhammad16142@mail.unpad.ac.id
2 Department of International Relations, Faculty of Social and Political Sciences, Universitas Padjadjaran; email: adhi16003@mail.umpad.ac.id
3 Department of International Relations, Faculty of Social and Political Sciences, Universitas Padjadjaran; email: joshua16001@mail.unpad.ac.id
4 Department of International Relations, Faculty of Agriculture, Universitas Padjadjaran; email: Muhammad18183@mail.unpad.ac.id
5 Department of Management, Faculty of Economics of Business, Universitas Padjadjaran; email: hamdi17001@mailunpad.ac.id
Abstract
As with much of the world, the issues of growing inequality and poverty have become the centerpiece for
Indonesia’s policy debate for both international stage and domestic arena. In spite of the recent trend showing
small but continuous positive improvement, Indonesia’s gini ratio remain one of the more unequal amongst the
economies of the world, with national gini ratio of 0.382 and widely varies between areas, with regions that’s
widely populated such as West Java peaking beyond 0.40 ratio. In condition as dire as this, it is prudent to re-
consider the economic structure of today. While cooperative system provides more means for the low-income
families to be economically resilient in face of economic downturn, the condition at the field simply does not
support the creation of cooperative. Nonetheless, the gini ratio of the rural area is significantly lower than
nationwide, reaching the level of 0.317. One of the reason may be the local farmer associations which is well
suited and adapted when facing obstacles that faced by the more constructed bodies like co-operative, This case
study examines one of these farmer association, specifically in Cijambu region of West Java named Simpati
Mukti.
Keywords: Cooperative, Farmer Association, Food security, Multiple-cropping
.
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1
Introduction
2019 has became the year of uncertainty, as OECD outlook report show that the global
expansion continues to lose momentum as growth has been in the slump for almost all G20
economies. Many things are cited to be the ultimate culprit: the ongoing trade tensions of many
countries against each other’s, policy uncertainty, and the crumbling business and consumer
confidence are all contributing to the slowdown by slowing down global trade growth which
has turned down growth and investment
The silver lining of 2019 is the benign growth of Inflation, kept down by lower oil prices. Early
2020 political crisis has proven even that is not a certainty, with oil prices spiked up to a level
unprecedented before. For Indonesia, who is in the last quarterly report has been cited to be
sensitive for external headwinds for foreseeable future, this new crisis could prove detrimental
to future growth of the country’s economy as risk aversion rose and capital outflows renewed.
Moreover, the higher interest rates that will come from this would in the end weigh down on
domestic demand and public consumption, which will inevitably brought down living standard
especially for low-income household.
As with much of the world, the issues of growing inequality and poverty has become the
centerpiece for Indonesian’s policy debate for both international stage and domestic arena. It
can be assumed that this trend of falling living standard for the low-income household will not
dissuade the debate in the near future. In general, Indonesia’s disposable income gini has been
slowly and steadily risen for the past 10 years. And though recent trend has shown small but
continuous positive improvement, Indonesia’s gini ratio remain one of the more unequal
amongst the economies of the world, with national gini ratio of 0.382 and widely varies
between areas, with regions that’s widely populated such as Yogyakarta and West Java peaking
beyond 0.40 ratio.
With such high income inequality between the citizens of the country, the increasingly
decreasing living standard for the low-income household would now risk millions to the edge
of the pit of uncertainty and insecurity. Already the low-income household in Indonesia face
various difficulties such as access to health and education, the present situation would limit
them even further to attain a proper living condition. It’s also not reassuring that in
macroeconomics scope Indonesia has been facing the constant risk of increasing food price in
amidst of global uncertainty and climate change which led to imminent risk towards food
2security. Using top down approach methodology and finding the related factor to food security
there can be highlighted several indicators to serve as basis to determine the state of risk in
food security.
Considering the high gini ratio level in the region, we pinpoint West java to be the center of
our research, Using top down approach methodology and finding the related factor to food
security there can be highlighted several indicators to serve as basis to determine the state of
risk in food security. CPI in Food and Indonesia monthly expenditure/capita on food and
vegetables has shown us the negative trend with volatile movement from 2013 and 2018. The
increasing minimum wage in west java and growing CPI in food has ended toward negative
growth in Avg. monthly vegetables consumption.
Graphic 1 – Indonesia Macroeconomics and Consumption indicator
Indonesia & West java Macroeconomics Analysis
40%
30%
20%
10%
0%
-10%
-20%
2013 2014 2015 2016 2017 2018
West Java Min. Wage Growth
Indonesia CPI: Food Growth
Indonesia Avg. Monthly Vegetables Consumption Growth
Source: World Bank 2019 and CEIC Data 2019
Moreover according to Harvard Dataverse Indonesia has the highest food production index
toward their peers countries in SEA Pacific which projected to lead from 2030 to 2050.
Although Indonesia has the figure of higher food production index, we explain our further
research by comparing food production index with number of people that will be exposed to
hunger in Indonesia and her peers. in Indonesia there will be 12,9 million people exposed to
3hunger in 2030 contribution to 25% of hunger exposure in South East and Pacific. The higher
food production index doesn’t guarantee the safety of the people from hunger. Other variables
such as accessibility, government policy, climate change, demographic condition and etc. could
significantly contribute to changes.
In condition as dire as this, it is perhaps prudent to re-consider the economic structure of today.
It is undeniable that high gini ratio is resulted from consolidation of wealth in the hands of
concentrated few who own the means of either production or distribution of goods, as OECD
report stated that the share of national income going to labor has declined and the highest
earners have captured an increasingly large portion to the detriment for those at the bottom who
have seen their shares decline significantly. Therefore, some has suggested to widen the
ownership of various enterprises to the workers as a means to better equate the relation between
various levels of income such as those in the form of Cooperatives.
Cooperative has been cited to offers a distributed ownership model that shares prosperity with
a much broader population and create economies of scale for economically disadvantaged
groups by giving platform where businesses owned and run by their members: their workers
and costumer alike as people-centered enterprises that takes account their common economic,
social, and cultural needs and aspirations by adhering to the values of self-help, self-
responsibility, democracy, equality, equity, and solidarity. This values manifested in the form
of collective ownership and leadership of an economic organization. Thus, Cooperative are
typically more economically resilient than many other forms of enterprise, and Cooperatives
frequently have provided a safety net as well as various social goals which they aim to
accomplish by investing a proportion of trading profits back into their communities and
members.
There are many success stories of cooperative, such as Mondragon Corporation, Ace
Hardware, and Coop Food. However, these examples are primarily cooperative that located in
the first world countries and has branched itself to encompass more than one sector of the
economy. When it is implemented in an agrarian country like Indonesia around areas such as
West Java region where many families still come from low-income, low-education
background, the cooperative system faced numerous obstacles. Setbacks such as small
production scale, limited area of lands and capital, weak member participation, tunnel focus in
production of goods, and limited managerial capacity are the factors that contribute to the
demise and slow decline of various cooperative bodies in West Java.
4Therefore while cooperative system are more inclusive and provide more means for the low-
income families to be economically resilient in face of economic downturn. The condition at
the field simply does not support the creation of sustainable and modern cooperative bodies
that could protect them in preventing food insecurity when the national economy is
experiencing difficulties Yet looking at the data, the gini ratio of the rural area is significantly
lower than even national level, reaching the level of 0.317. This stark difference thus draw a
question: what did Indonesian’s farmers do to reach this level of income equality?
The answer we found is a form of a loose and not a legal entity, but well-coordinated farmer
association in the villages that make up West Java’s rural area. These association, ranges from
15 to 25 people form a basis of organization seemingly based on co-operative values but itself
is not a co-operative, instead a mere association from which the farmers of Indonesia form to
better allocate the resources that are available to them with their neighbors, friends, and
surrounding community. Formed organically from local community, these farmer associations
are well suited and adapted when facing obstacles that faced by the more constructed bodies
like co-operative, and create a platform for Indonesian’s farmer from which they can use to
equip themselves with sustainable policy.
This case study would look at one of these farmer association, specifically in the Cijambu’s
region of West Java named Simpati Mukti, to better understand the intricacy, the work, their
relation and comparison to regular co-operative, and how they provide for their community
that makes up of them.
Methodology
This study uses qualitative research, namely research conducted by observing the behavior or
attitudes of research objects so that the meaning of the phenomenon under study can be found.
Qualitative research relies on the analysis of non-numerical data both in textual and oral form
carried out with in-depth study of issues, phenomena, regions, countries, organizations, and
individuals to understand the meaning and processes that occurs.
Particularly the study would use interpretative form of qualitative research, which explain that
the researcher intervenes in, or creates, observed social realities through their own role in
knowledge production and thus alters the object under study. The researcher and the research
subject are mutually constituted through intersubjective understanding, and therefore the object
of research does not have its own objective existence outside this mutually constituted
5relationship (Klotz and Lynch, 2007: 12) Lamont wrote there are three ways of collecting
qualitative data that are useful in research, namely document-based research, interviews, and
internet-based research. These three techniques will be used by researchers in gathering
information as primary data that supports research, with interviews becoming the top priority
in finding facts.
Data obtained through interviews particularly can be very useful in qualitative analysis and will
provide new insights on various aspects Thus in this research we utilize various collection of
the secondary information both on the internet and the document available on the general
situation of farmer groups, cooperatives in general and agricultural cooperatives in particular,
along with the current of cooperative models. As for the interview needed for first-hand
information, we directly interviewed the representatives of the farmers in Cijambu and
members of the Farmer Association itself in order to understand their situation, their
advantages, disadvantages and expectations. Based on information collected, analysis will be
conducted and conclusion shall be reached that reflect the situation of Cijambu’s Farmer
Association model as well as to determine their prospects.
Literature Review
Food Security
The concept of food security was originated in the mid-1970. The term of food security first
coined in World Food Conference to defined food security in terms of food supply. Thus, the
definition of food security at that time is to assuring the availability and price stability of basic
foodstuffs at the international and national level. This showed by the statement from that
conference
“Availability at all times of adequate world food supplies of basic foodstuffs to sustain a
steady expansion of food consumption and to offset fluctuations in production and prices”.
(FAO, 2006)
Then, in 1983 FAO defined the term of food security based on the balance between demand
and supply side of the food security equation. The analysis conducted by FAO in 1983 also
focused on physical and economic access to basic food. (FAO, 1983) This changed in 1986,
when the FAO include the individual and household level, in addition to the regional and
6national level of aggregation. This evolution was also influenced by World Bank Report on
Poverty and Hunger, which focused temporal dynamics of food insecurity. With this report,
the distinction between chronic food insecurity and transitory food insecurity has been
introduced. (P. Pingali, 2005)
In 1996, food security transformed into a multidimensional concept, which include food access,
availability, food use and stability. After the transformation, the policy could be focused on the
promotion and recovery of livelihood. In other words, the concept of food security could be
applied in emergency contexts and include the concepts of vulnerability, risk coping, and risk
management. Hence, the social and political construct has emerged in the analysis of food
insecurity. More recently, the concept of food security has included the ethical and human
rights as one of other dimensions. From these transformations, finally in 2006 FAO include
four dimensions, with each definitions, of food security. These dimensions are:
1. Food availability
The availability of sufficient quantities of food of appropriate quality, supplied through
domestic production or imports (including food aid)
2. Food access
Access by individuals to adequate resources (entitlements) for acquiring appropriate
foods for a nutritious diet. Entitlements are defined as the set of all commodity bundles
over which a person can establish command given the legal, political, economic and
social arrangements of the community in which they live (including traditional rights
such as access to common resources).
3. Utilization
Utilization of food through adequate diet, clean water, sanitation and health care to
reach a state of nutritional well-being where all physiological needs are met. This brings
out of non-food inputs in food security.
4. Stability
To be food secure, a population, household or individual must have access to adequate
food at all time. They should not risk losing access to food as a consequence of sudden
shocks (e.g. an economic or climatic crisis) or cyclical events (e.g. seasonal food
insecurity). The concept of stability can therefore refer to both the availability and
access dimensions of food security.
7Food Vulnerability
While, food security defined as the condition of “exists when all people, at all times, have
physical and economic access to sufficient, safe and nutritious food that meets their dietary
needs and food preferences for an active and healthy life” (World Food Summit, 1996), the
food vulnerability in food security context defined by the FAO as probability of a person or
household falling or staying below a minimum food security threshold within a certain
timeframe. By that definition, food vulnerability attach a forward-looking perspective, that is
used to predict if the well beings of individuals and households is likely to change in future.
Thus, the people who lived in precarious condition, or “living on the edge”, is the subject to
vulnerability of food insecurity
Cooperative
According to International Co-operative Alliance, a worldwide co-operative union that was
founded in 1895, a cooperative is an autonomous association of persons united voluntarily to
meet their common economic, social, and cultural needs and aspirations through a jointly-
owned and democratically enterprise (International Co-operative Alliance, 2020). As a legal
entity, cooperative owned and democratically controlled by its members, which often the
producers, consumers, or employees of the enterprise. Different with any other business entities
which merely focus on economic means, cooperatives also aim to improve social goals by
investing their profits back into their members. The economic benefits gained by the
cooperative are distributed proportionally to each member’s level of participation in the
enterprise through democratic consensus. The roots of cooperative can be traced as far back as
18th century. In 1761, the Fenwick Weavers’ Society was formed in Scotland to sell discounted
oatmeal to local workers. Fenwick Weavers’ Society services then expanded to savings and
loans, among other services. (Carrell, 2007) Similar movement also implemented by Robert
Owen with his partners in 1810, which sell discounted products for the employees and
introduce better labor standards.
In 1844, Rochdale Society of Equitable Pioneers, which often used as a model for modern
cooperative, was founded by a group of artisans in Rochdale (Cannon, 2009). With its 28 initial
cooperative member, Rochdale Society of Equitable Pioneers successfully open their own store
selling food items. The success of Rochdale Society of Equitable Pioneers inspired thousands
of people across the United Kingdom to form a similar enterprise. As an enterprise, the
Rochdale Society of Equitable Pioneers has their own principles. These principles are
8guidelines by which the Rochdale Society of Equitable Pioneers put their values into practice.
(Rodgers, 2015)
1. Voluntary and open membership
Cooperatives are voluntary organizations, open to all persons able to use their services
and willing to accept the responsibilities of membership, without gender, social, racial,
political or religious discrimination.
2. Democratic member control
Cooperatives are democratic organisations controlled by their members, who actively
participate in setting their policies and making decisions. Men and women serving as
elected representatives are accountable to the membership. In primary cooperatives
members have equal voting rights (one member, one vote) and cooperatives at other
levels are also organised in a democratic manner.
3. Member economic participation
Members contribute equitably to, and democratically control, the capital of their
cooperative. At least part of that capital is usually the common property of the
cooperative. Members usually receive limited compensation, if any, on capital
subscribed as a condition of membership. Members allocate surpluses for any or all of
the following purposes: developing their cooperative, possibly by setting up reserves,
part of which at least would be indivisible; benefiting members in proportion to their
transactions with the cooperative; and supporting other activities approved by the
membership.
4. Autonomy and independence
Cooperatives are autonomous, self-help organisations controlled by their members. If
they enter into agreements with other organisations, including governments, or raise
capital from external sources, they do so on terms that ensure democratic control by
their members and maintain their cooperative autonomy.
5. Education, training, and information
Cooperatives provide education and training for their members, elected representatives,
managers, and employees so they can contribute effectively to the development of their
co-operatives. They inform the general public - particularly young people and opinion
leaders - about the nature and benefits of co-operation.
96. Cooperation among cooperatives
Cooperatives serve their members most effectively and strengthen the cooperative
movement by working together through local, national, regional and international
structures.
7. Concern for community
Cooperatives work for the sustainable development of their communities through
policies approved by their members. (International Co-operative Alliance, 2020)
The Rochdale Society of Equitable Pioneers’, also known as the Rochdale Principles, has been
adopted as modern cooperatives principles. The enormous number of cooperatives worldwide
approved that Rochdale Principles is an effective guidelines to operate an enterprise. Currently
there are many fields that applicable with cooperative economy, namely agriculture and food
industries, banking, insurance, health, education and social care, wholesale and retail trade, et
cetera. With Rochdale Principles, enterprise could maximize its revenue and share their income
democratically. In 2018, the total turnover of 2,018.2 billion US$ produced by the top 300
cooperatives worldwide. (Roelants, 2018)
According to a national survey conducted by the United Kingdom in 2017, the cooperative
economy contributed 35 billion pounds to the national economy produced by approximately
6000 cooperatives throughout the United Kingdom, with an estimated membership of around
13 million members. In 2017, it was noted that the British cooperative economy absorbed
around 226,000 employees and 118,000 new workers. In the European Union, the economic
contribution of cooperatives is far more significant with a contribution value of 1.3 trillion
euros per year, or around 2000 euros per capita from the regional economy. Not only in Europe,
the cooperative economy also developing rapidly in the Asian region, such as East and
Southeast Asia. Vietnam is one of the countries in Southeast Asia that is most involved in
planning and implementing policies related to the cooperative economic ecosystem in order to
maximize the economic potential of cooperatives to further contribute to the national economy
Therefore, the Vietnamese government introduced three cooperative models that adapt to
cooperative output products, including: (Hang, 2015)
1. Model of agricultural service cooperatives: These models account for 70% of total
agricultural cooperatives, they mainly perform basic service stages for the production
of farmers. The cooperatives only provide services suitable for their requests, these
services include: Inputs for agricultural production (supplying materials, plant seeds),
10Services in stages of agricultural production (preparing lands, irrigation, plant
protection, agricultural extensions, applying technological advances to production,
veterinary), Outputs for agricultural production (processing and distribution of
agricultural products).
2. Model of agricultural services and integrated business cooperatives: these cooperatives
not only provide services to members, but also raise capital to organize production and
integrated business to generate higher profits
3. Models of specialized cooperatives: In the agricultural sector, there are some
cooperatives such as livestock cooperatives, flower and ornamental plant cooperatives,
safe vegetable cooperatives, they appear to meet production requirements of the market.
With the connected production chain and business units in the new model co-operative system,
it is possible for cooperative economic actors, both members and consumers, to manage the
potential for post-production product diversification. In addition, the cooperative model that is
integrated with the production unit and its business may sell products with large scale,
committing to the quality and brand of products.
For Indonesia, cooperative itself referred as, in accordance of Law No. 17 of 2012 article 1, a
legal entity established by an individual or a legal cooperative entity which fulfills common
aspirations and needs in the economic, social and cultural fields in accordance with the values
and principles of cooperatives. Cooperatives are established based on Pancasila and the 1945
Constitution. This means that in carrying out their business, cooperatives must comply with
the rules in Pancasila and the 1945 Constitution.
Cooperatives are run with the principle of kinship. That is, cooperatives do not aim to benefit
only one person, but achieve mutual benefits. This for Indonesia distinguishes cooperatives
from other business entities. There’s a lot of obligation and rights associated with being a
member of cooperative, including to comply with the statutes and bylaws of the cooperative as
well as all decisions that have been mutually agreed upon in a member meeting, to participate
in business activities organized by cooperatives, to request a member meeting held according
to the provisions in the articles of association, and to make use of cooperatives by getting the
same service among fellow members.
11Multiple Cropping
Over centuries, people always been trying to fulfill their needs to survive and to exceed that
demand, a lot of ways done by various individuals, society, and institution in reaching stability
of food which is one of the most important needs in life before they aware and address their
next level of need (Maslow,1943). Thus, enormous efforts are driven towards better
agricultural system since the majority amount of food come from agricultural sector. There are
numbers of ways society did to improving both the quality and quantity of this sector, from
genetically enhancing its favorable trait, managing pests and disease, remediating soil quality
and implement cultivating system which offering significant benefit to agricultural yield.
Multiple cropping often used in creating a better agricultural system that could exceed the
needs of society, since there are hundreds or even thousands kind of crop, uses, seasons and lot
more combination of those components, multiple cropping system term is referred to
distinguish those difference. Generally there are 3 types of multiple cropping :
1. Sequential Cropping
In this system every year one or two crops are grown in sequence on the same field so
in other words when the preceeding plants have been harvested the succeeding plant is
ready to be planted thus intensification is done in time dimension only and farmer only
manage one crop at a time. Types of this cropping system are : (a) double cropping; (b)
triple cropping; (c) quadruple cropping; (d) ratoon cropping/stuble cultivation which
basically determine how much crops grown in a year (two crops in a year on double
cropping, and so on) whereas ratoon cropping is regrowing stubble after crop harvest.
2. Intercropping
This system emphasizing on time and space dimension where on the same field two or
more crops grown simultaneously every year and farmer will manage two or more crops
at a time. This system have some types : (a) mixed intercropping, two or more crops
planted with no distinct row arrangement; (b) row intercropping, two or more crops
planted simultaneously with a row; (c) strip intercropping, two or more crops planted
simultaneously on strips proportionally designed to cultivate plants independently but
wouldn’t make different crops react agronomically; (d) relay intercropping/ over
lapping cropping, during part of each one’s life cycle two or more crops planted
simultaneously (e.g. when a crop reached its reproductive phase, the next crop is
planted but before the first crop ready to be harvested); (e) alley cropping, involving
12trees in a particular row where a gap or alleyway between those row are planted with
certain crops which bring benefits such as diversifying farm income, enhancing
protection against pest and disease, and improving crop production ; (f) ley farming, a
rotating crop system that involves legume and pasture grass in terms of improving soil
quality and reducing pest and disease outbreak.
3. Multi story cropping
A system that combines plant with different height in the same field, varying root
patterns, heights, and duration to cultivate at the same time. It is done for some
purposes, such as producing tree and wood products in addition to agronomic crops or
forage, improving crop or forage quality and quantity by enhancing microclimatic
conditions, improving utilization and recycling of soil nutrients for crop or forage use,
reducing excess subsurface water or control water table depths, and providing favorable
habitat for species beneficial to crops or forage (USDA).
Observation
Cijambu and the Farmer Association
Cijambu is a village located in Mount Jambu, Tanjung Sari, West Java, bordered with Subang
and Rancakalong. This makes Cijambu the farthest village in Tanjung Sari, also the
northernmost village in the district. With an altitude of 1193 meters above sea level, this area
suitable for agricultural and plantations purposes. (Badan Pusat Statistik, 2017)
Topographically, the village area has an expanse of land consisting of hills. Administratively,
Cijambu village is divided into two hamlets, Pasanggrahan and Jaganala. The total area of the
village is 200.9 hectares, with a total of 158 hectares used as agricultural land.
The agricultural land is divided into two types, wet agricultural land and dry agricultural land.
The wet agricultural land total area is 91.7 hectares, while the dry land total area is 66.3
hectares. The remaining 42 hectares are used as settlements, yards, forests and public facilities.
According the data of Center Statistics Agency, demographically the population of Cijambu
Village was inhabited by 3887 people, with 2009 male and 1878 female. (Badan Pusat Statistik,
2013). The average education level of the village is junior high school.
Approximately, the number of households in the Cijambu village is 1288 families, with a
population per capita of 406 people per km2. Mostly, the residents of Cijambu Village work in
the agriculture sector. Most of the rice fields and plantations in the village of Cijambu are
13watered from springs that flow through the river of Ciherang. The majority of the residents of
Cijambu village work as farmers and farm laborers, while the rest is working in other sectors.
Some of agricultural products of Cijambu Village are rice, corn, cassava, peanuts, and sweet
potatoes. And the plantations products consist of avocado, dukuh, durian, guava, orange,
sapodilla, soursop, melinjo, petai, papaya, banana, jackfruit, mango, and rambutan, leeks,
potatoes, cabbage, chili, tomatoes, kale, beans, red beans, chayote, and eggplant. In the
livestock sector, the products are cattle, dairy cows, sheep, chickens, and ducks.
There is also home industry sector which processes food and beverages, wood and metal, and
woven. As a village that mostly work as farmers, Cijambu village has 7 farmer groups, with an
approximate member of 15-25 people. Farmer groups have a central role, as producer and
distributor of agricultural products to the market. The status of Cjiambu Village as an
agricultural center is increasingly strengthened by the harmonious relations between farmers
and other stakeholders. There are at least four stakeholders who have an important influence
in advancing agricultural sector in the village, which are: the government, champions, retail
traders, and farmers groups. The role of the government in the development of the agricultural
sector in Cijambu Village is quite significant, to supervise and stabilize the farm product
prices.
Wawan, a member of the Simpati Mukti Farmers Group, explained the role of the government
in stabilizing prices. The government market operations and the appointment of "champions"
of each farming business group, significantly stabilized the agricultural products prices.
Market operations can be interpreted as activities carried out by the government to control and
maintain price stability, by buying or selling agricultural products, if prices on the market are
too low or too high. (Rahmasuciana, 2015) Government efforts to stabilize prices are closely
related to the next stage, namely "champion farmers". Champion farmers is the term used to
refer to coordinated farmers by the Ministry of Agriculture together with the Department of
Agriculture to become a locomotive for other farmers in their area. (Lestari, 2018)
Champion also has an important role to coordinate farmers in managing cropping patterns.
(Lestari, 2018)The next stakeholder who has an important role in developing the agricultural
sector in the village of Cijambu is the retail trader. The number of retail traders in Cijambu
village was 30 people. The role of the retail trader is to absorb agricultural products, so that the
agricultural products do not have to be sold bulk, but also in retail condition, from 5 kg to 2
14quintals. In addition, the role of retail traders also allow farmers to compete with middlemen,
so that farmers do not have to depend on middlemen, both from seeding, financing, to selling.
The mutual relationship between farmers in Cijambu village with other stakeholders is greatly
influenced by the emergence of farming groups. He further explain the important role of farmer
groups is creating collaborative relationships between farmers and other agricultural sector
stakeholders, such as the government, "champions", middlemen, and retail traders. (Wawan,
2020)
The role of the farming group itself is to equalise the position of famers to other stakeholders
such as traders, middlemen and the government. This is what then encourages the formation
of mutual relations between relevant stakeholders, the independency of the farmer groups.
(Wawan, 2020) Therefore, in the following section, the researchers will focus on providing an
overview of Simpati Mukti Farmers' Business groups which are the main research objects in
this research.As a farmer village, Cijambu has around 25 farmer groups. Simpati Mukti Farmer
Group is one of them. Established in 2016, Simpati Mukti has 23 members. Simpati Mukti
focuses on horticultural products such as chili, cabbage, tomatoes, eggplants and carrots.
Functionally, the Simpati Mukti Farmers Group involved in almost every agriculture activities,
encompassed from production to distribution, such as seeding, planting, harvesting,
distribution of farm products, and crop failure prevention phase. Simpati Mukti Farmers Group
organizationally uses the principle of kinship, community over profit.
This principle supported by its membership policy that open to any farmer. The advantage that
can be obtained by becoming a member is the open access for farmers to deal with the relevant
agencies. In Indonesia, the form of agricultural assistance cannot be distributed individually,
but rather through the Farmers Group. The cash assistance received by the Simpati Mukti
Farmers Group used as joint capital for seeding. Seedlings is one of priorities for farmers to
compete with middlemen, especially in determining prices. Beside, if the farmer groups cannot
obtain the seeds, the farmers must buy the seeds from the middlemen. This situation will
improve farmers' dependency toward middlemen. In addition, the advantage of joining a
farmer group membership is that farmers will be accompanied by a mentor appointed by the
government, which has a role to improve capacity building for the farming group. The farmers
group will also trained to pest management which threatens the quality and quantity of
agricultural products.
15As a producer of agricultural products, the presence of the Simpati farmer group is proven to
help meet market demand for agricultural products. With its location that near to big cities
with high demand for agricultural products such as Bandung, Jakarta, Bogor, Tangerang,
Bekasi, and others, agricultural products produced by the Simpati Mukti Farmer Group always
sold out. According to Wawan's statement, the success of this sale was supported by the
presence of stakeholders such as the government, champions, retail traders, and farmer groups
themselves.
As a kinship organisation, Simpati Mukti farmers group often involved to fulfill the society
needs. For example, when one of the members need cash loans, the group will voluntarily help
him/her. The loans then can be paid by agriculture products during harvest or by cash. As a
primary need, the price of agricultural products can be very volatile. In order to maintain price
stability, the Simpati Mukti farmer group cooperates with the government. If the government
gives a number of seeds to the simpati mukti farmer group, then the price of the product from
the seed given is sold at a price determined by the government. generally, if the price of an
agricultural product experiences a significant increase, the government will determine the
selling price to the farmer groups assisted, in order to maintain access to the product. Based on
his experience, Wawan once sold 30% of his agricultural products at a price determined by the
government, in accordance with the number of seeds provided by the government. Then, these
"discounted" products only can be sold to champion farmers.
Multiple Cropping
Regarding to those systems, agicultural practices done in Cijambu village are based on
sequential cropping with some horticultural crops, such as chili,cabbage,tomato,and shallot.
This cropping system is executed on monthly basis (e.g chili is planted for 3-4 months before
cabbage is prepared to be cultivated and so on) with a relative amount of time depending on
the commodity. Local agricultural unit which usually practices cultivation of chili with
cabbage,tomato or shallot suggests sequential cropping based on benefits in terms of improved
crop yield and technical cost efficiency. A study case involving two agricultural systems
(sequential cropping and intercropping) will show the efficacy of sequential cropping in
various commodities, based on a research conducted by Aziz,et al. which mainly discuss the
necessity of intercropping and by Diman Mukherjee (2010) which explains sequential cropping
with its effect to productivity,profitability,and nutrient balance, showing a difference on their
yield. Wheat and maize were cultivated with both intercropping and sequential cropping, which
16resulting in a pretty distinct number as 4,6 tons/ha of wheat came from sequential cropping
model and 3,47 tons/ha of wheat acquired by intercropping (Yang,et al.,2010).
a. Yield components under sequential cropping model
Table 1 – Cropping System Percentage Under Sequential Cropping Model
Source: (Yang,et al.,2010)
b. Yield components under intercropping model
Table 2 – Cropping System Percentage Under InterCropping Model
Source: (Yang,et al.,2010)
Thus, considering yield components of the target crop that are highly advantageous with the
sequential cropping model, the system used in Cijambu village is indeed efficient enough in
adequating needs of people around the area.
Analysis
17The Simpati Mukti Farmer Group organizationally uses the principle of kinship, community
for profit. This principle is supported by its membership policy which is open to farmers. With
such a system, the Simpati Mukti Farmers Group succeeded in creating a mutually beneficial
relationship between its members. This can be seen through the cash system that is owned by
Simpati Mukti, which Simpati Mukti has a reserve fund that is jointly managed specifically to
fulfill the seeds for each member. Impact, no one left a member of the Simpati Mukti Farmers
Group who took seeds from the middlemen, making the price of farm products produced by
Simpat Mukti able to compete with prices determined by the middlemen.
Such a system is in fact quite effective to equalize the position of farmers, middlemen, and the
government as an external party that influences the implementation of farming business. The
independence of farmers through farmer groups is also increasingly guaranteed, considering
the Simpati Mukti Farmers Group also has the capability to access markets, without going
through middlemen. Farm products that are sold do not have to be in bulk, but also in retail
form. Regarding harvest targets ranging from 800 quintals-3 tons can always be relied upon at
harvest. The "winner" collected as an actor increases the capacity of the actor and concurrently
stabilizes the price of agricultural products in the market.
The sustainability of farmers' businesses is a guarantee for members who are members of the
Simpati Mukti Farmers Business Group. Issuance with mutual agreement and commitment
among members regarding multi-planting methods, planting schedules, until seed assistance
and delivery of crop yields are received regarding members who correct crop failure. In
addition, the income earned by each member is also determined based on the merit system,
which is also determined by the effort of each member. Although not introducing themselves
as a Cooperative, the Simpati Mukti Farmers Group has received 7 basic cooperative unit
indicators that have been approved, discussed: Voluntary and open membership, Democratic
member control, member economic participation, Autonomy and independence, Education
based, Education based, Coordination between cooperatives, and concern for the community.
Another interesting thing from the Simpati Mukni Farmers Group is their relationship with
other farming groups. Family relations are still the basic foundation of Simpati Mukti in making
connections with other farmer groups. For example, in using aid funds provided by the central
government to village governments
18Figure 1 – Interaction between Simpati Mukti and other stakeholders
Simpati Mukti
Middleman Government
Other farmer
association
Source: own research
There is an agreement between farmer groups to prioritize assistance to farmer groups that have
product compatibility so that the assistance can be optimally absorbed. In addition, planting
time is also scheduled in such a way, coupled with different types of plants between farmer
groups, making perfect market conditions avoidable. With the guaranteed sustainability of the
production activities of the members, making the Simpati Mukti model worthy of being an
inspiration to develop agricultural business in rural areas, which certainly contributes as a
provider of capital for its members and impacts on the elimination of members from food
vulnerability. The next section will give a look on the connection between the quasi cooperatve
system "sympathy mukti" and efforts to reduce threats in food security.
19Figure 2 – Interaction between Simpati Mukti and other stakeholders
Market
Government “Champion”
Simpati Mukti
Farmer
association
Overall demand for products
Member Member
Member Member
Source: own research
Cijambu village has fulfilled the four dimensions of food security given by FAO. These
fulfillment supported by environment and social conditions of the village. Cijambu village, as
a agricultural village, has sufficient availability to food. This is driven by the extent of land and
the large amount of production, which causes the rest of agricultural production to be consumed
by local residents. The close distance between agricultural land and the settlement of local
residents also helped the quality preservation of agricultural products in the village of Cijambu.
Cijambu village also has open access to nutritious food. considering the cultivation of various
agricultural products, such as carrots, chilies, fruits and vegetables that can meet the nutritional
needs of the villagers. access is also open to the whole society regardless of economic,
political, and other backgrounds. Open access for all groups is supported by the family
principle, which is carried by several farmer groups in Cijambu village. in the dimension of
utilization, Cijambu village has good sanitation and transportation access. In addition, with the
20establishment of several rivers, such as the Ciherang river, Cijambu village has an adequate
level of utility to sustain the nutrition of the local population. In stability dimension, Cijambu
village also has resistance to food insecurity. If Cijambu experiences a crop failure, the location
of the Cijambu village is close to other agricultural producing villages. Wawan said the trade
in agricultural products with residents from other villages had taken place routinely.
Conclusion
Based on the research conducted by the researchers, it is concluded that current global
economic climate can lead to a condition of food vulnerability, made more threatening by high
number of Gini coefficient in some regions, which made many of low-income population
especially at risk. However, after researching the practice found in Cijambu village, the
researches felt confident to believe that the system implemented by the farmers there is able to
alleviate the disparity and tackle vulnerability for rual community. This system practiced by
local farmer group named Simpati Mukti, has similarity with cooperative economy. That is,
Simpati Mukti also implemented the Rochdale Principles, the principles that become a basic
values and guide for all of the modern cooperative economy.
Through this implementation, Simpati Mukti fulfill the four dimensions of food security, which
are food availability, food access, utilisation, and stability. This fulfillment not only occurred
to its members, but also to all of the local residents of Cijambu village. The model also suited
the sequence cropping and intercropping techniques that the local farmer use to better their
livelihood. While independent, the group also able to cooperates with many agricultural
stakeholders in the area, such as government, retailers, and “champion” farmers, contributing
food security for the population outside the village.
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