Young, Competent Village Start-ups

KOMPAS/REGINA RUKMORINI

A courier shows a vegetable order form from one of the customers of PesanSayuran.com, Sunday (15/8/2021).

Young people living in rural villages no longer consider the agriculture sector dirty or “rustic”. Through innovation and technology, they are initiating agrobusinesses, while at the same time empowering local people.

The unpleasant experience of catching Covid-19 and enduring self-isolation inspired Zakiy Firosi As Syahid, 26, Zahid Fauzi Rahmawan, 26, and Khairul Marzukin, 28, residents of Magelang city, Central Java, to start a business. The difficulty to go out only to buy vegetables gave them the idea of forming a start-up, PesanSayuran.com to provide an online vegetable and food store and delivery service.

“We originally began this business out of empathy, to help relieve the troubles of those undergoing isolation. Therefore, we also offered a ’bonus’ to consumers in isolation in the form of 3 kilograms of rice and vitamin C,” said Zahid at the end of October.

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The business is run along with their peer Lambang Prayogi, 23, who was already involved in another direct vegetable sale and delivery service. Customers could order through his website, over the phone or via his chat application.

They cooperated with vegetable traders introduced to them by Lambang, and with the vegetables made available, they began to employ administrative, purchasing and packaging personnel as well as couriers. PesanSayuran.com now has a total of 12 employees.

Their consumers range from households and restaurants to Islamic boarding schools. From this business, their turnover amounts to around Rp 2.3 million (US$160.80) to Rp 3 million per day.

The aid was directly delivered to those in self-isolation when they made orders via PesanSayuran.com.

When the pandemic was peaking, the start-up also functioned as a platform to raise donations from organizations, communities and individuals wishing to contribute food or vitamins to Covid-19 patients. The aid was directly delivered to those in self-isolation when they made orders via PesanSayuran.com.

Pandemic opportunities

The difficulties of the pandemic also prompted Zaki Ramadhan, 21, a resident of Windusari district, Magelang regency, to start his own business in agriculture. After having run a screen printing business for a year, at the end of 2019 he turned to mushroom cultivation.

The business was under the guidance of Zaki’s father, who had also previously run a mushroom cultivation enterprise. However, unlike his father, who bought the baglog (mushroom growing medium), Zaki produces his own to meet his cultivation needs, and to sell.

KOMPAS/REGINA RUKMORINI

One of the farmers shows his production of oyster mushrooms, Sunday (11/14/2021)

The frequent activity restrictions during the pandemic increased mushroom baglog demand. While the demand was normally about 9,000 to 10,000 units per month, it has risen to 14,000 units per month with demand coming from Magelang and other cities in Central Java like Tegal, Temanggung, Kendal and Wonosobo.

Over half of Zaki’s demand comes from new customers who want to start their own mushroom cultivation businesses. As many of them still have technical difficulties, Zaki frequently visits his customers to assist them in their mushroom cultivation.

Changing image

The dirty and smelly image of agriculture has been dispelled from the minds of young people living in villages. One campaign that had sought to change this perception was by Rayndra Syahdan Mahmud, 25, when he initiated his farming and breeding business in Magelang regency.

“I want to create the image that working as a farmer does not necessarily mean being dirty. This is important for regeneration,” he said on Thursday (18/11/2021).

It began when he studied at the State Vocational High School 1 of Ngablak, Magelang, in the Department of Poultry Agribusiness between 2011 and 2014. As he was interested in farming and breeding, he continued his studies at the Agricultural Extension College of Magelang in the Department of Animal Husbandry from 2014 to 2018.

KOMPAS/FERGANATA INDRA RIATMOKO

Puput Setyoko (28) prepares to harvest mushrooms at the Borobudur Mushroom house, Wanurejo Village, Borobudur District, Magelang Regency, Central Java, Monday (9/11/2020).

“I noticed a fairly big opportunity in agriculture. Amid the challenge of regenerating farmers or breeders, rivalry is relatively slim. It can also be developed by cultivation technology,” he said.

The business concept developed by Rayndra was integrated farming, by integrating the breeding sector with agriculture. The excrement from the sheep and cattle breeding is processed into manure for corn planting. Corn plant waste is then used to feed cattle. The manure is also used in coconut plantations.

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As a millennial farmer, he has used social media for marketing over the last two years. “For Facebook and Instagram, I still use my personal accounts. But we maximize it on YouTube. Thank God, the highest response comes from YouTube,” said Rayndra.

He is also developing the concept of partnerships with local people. Cooperating with nine residents, he provides each with capital up to Rp 100 million. Rayndra wants to dismiss the assumption that a breeder can only raise five to 10 heads of cattle.

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Rayndra Syahdan Mahmudin was invited to become a member of the Magelang Regency PKK Mobilization Team. He often provides training in simple organic farming and entrepreneurship to PKK members in villages in Magelang Regency.

“We want to prove that in the modern era, 50-100 head can be raised,” added Rayndra, who in 2022 plans to build a research village in Semen hamlet, in the Magelang village of Trenten.

Banking support

The various start-ups created by these young people enjoy the support of Bank Jateng, which has disbursed Jateng Partner Credits (KMJ) for millennial start-ups since August.

Retail Business and Sharia Business Unit director of Bank Jateng, Irianto Harko Saputro, said up to the end of October, Rp 3.2 billion had been absorbed by 152 millennial start-up borrowers.

The businesses undertaken ranged from industrial and culinary ventures to agricultural enterprises. The credit program ceiling is Rp 25 million with low interest, at 7 percent per year, or equivalent to the fixed interest of 0.27 percent. There is also an installment discount if repayments are made on time.

According to Irianto, the fund, called the Millennial Start-ups KMJ, has a target to channel Rp 18 billion in 2021, aimed at 720 young borrowers.

The credit application requirement is a minimum age of 21, or already married, to the maximum age of 45. According to Irianto, the fund, called the Millennial Start-ups KMJ, has a target to channel Rp 18 billion in 2021, aimed at 720 young borrowers.

“We will be entering youth communities, including students. Previously, we were going door-to-door to explore all the business potential. But after checking, most of the businesses had already obtained facilities from other banks,” said Irianto.

The Millennial Startups KMJ is expected to boost young people’s economy. The bank guides borrowers through weekly monitoring and they also provide training, such as in product packaging.

KOMPAS/NINO CITRA ANUGRAHANTO

President Director of Bank Jateng Supriyatno (left) symbolically gives the recipients of the Millenial "Startup" Central Java Partner Credit, at the Bank Jateng Surakarta Branch Office, Surakarta City, Central Java, Monday (23/8/2021).

Young people in Magelang have proved that village youth are not inferior to their city peers in creativity. Through agribusinesses they are able to develop their competence and meaning in life.

(This article was translated by Aris Prawira).