KONCO (Javanese for “FRIEND”) is a sharia compliant contract farming product aimed at enabling higher …
Indonesian smallholder farmers are unable to grow out of poverty due to market inefficiencies in credit distribution, rural supply chain logistics, and knowledge gaps.
BARRIERS TO CREDIT
Established financial institutions cannot disburse loans to farmers that work rented land or do not own clear land titles. Rural loan sharks that charge high interest rates become the default source of credit trapping farmers in a cycle of poverty and debt
Farmers have difficulty acquiring quality inputs in the quantities that meet their needs in time for optimal planting schedules
Vital information gap on low-cost farming technologies and practices that are easily implemented and significantly improve farming yields
Debtors are forced to sell harvests to loan sharks at below market prices. Independent farmers coerced to sell harvests to loan sharks as well, as they typically control the machinery and trucks required for harvesting
Vasham designed and developed an innovative solution to help Indonesian smallholder farmers to grow out of poverty. We serve as an aggregator working with financial institutions, agriculture companies. government and non-government organisations to deliver beneficial products and services to smallholder farmers through a single, end-to-end solution.
To serve over 18 million smallholder farmers
Expansion to all over Indonesia
Extend closed-loop model to other crops, most notably soybean and rice
Partnering with other aggregator companies in the agriculture value chain