On July 10th, 2019, the IsDB RHI team, accompanied by specialists from the Reverse Linkages Division in IsDB HQ, had a kick-off meeting, hosted by the Ministry of Agriculture (MoA), for the Reverse Linkage Validation Mission for Development of Integrated Farming Systems in Upland Areas Project, with the participation of representatives from the Ministry of Finance (MoF), and National Planning Agency Bappenas.
The proposed Reverse Linkage (RL) activity is part of the larger USD 70 million Development of Integrated Farming Systems in Upland Areas Project, which aims to increase agricultural productivity and farmer’s income in upland areas through the development of land and water infrastructure, introducing modern agricultural cultivation techniques and holistic integrated agricultural management systems.
The project will be financed through IsDB OCR, with a LLF concessionality built in, as well as an ISFD loan. The RH-I was able to leverage USD 50 million from IFAD as co-financing for this local commodity value chain enhancement project.
Issues discussed with the Government of Indonesia (GOI), during the Validation Missions, were numerous project related issues, including, but not limited to: (i) validating the detailed RL activities, (ii) outputs and outcomes, (iii) detailing the financing plan including the counterpart contributions, (iv) Detailing the fund mechanism arrangements, and (v) Monitoring and Evaluation (M&E) and reporting. The reverse linkage component of the project will have the sole purpose to increase the export and value added for four commodities (Mango, Mangosteen, Organic Rice, and Potatoes) supported by the project.