The MoU was signed on Oct. 18 at the ministry’s office building in Kalibata, South Jakarta, by the ministry’s general-secretary, Anwar Sanusi, and APP Sinar Mas director Suhendra Wiriadinata. The signing was witnessed by Villages, Disadvantaged Regions and Transmigration Minister Eko Putro Sandjojo and Sinar Mas managing director G. Sulistiyanto.

According to Sinar Mas managing director G. Sulistiyanto, there had been an overlap between APP Sinar Mas and the ministry’s mission in developing villages across Indonesia, making both parties ideal partners to conduct the program.

One of the program’s main objectives is to overcome economic inequality. “The main social problem faced by our nation, as in other parts of the world, is economic inequality. The ministry’s program is in line with our mission to improve welfare in villages where our concession areas are located,” he said.

The MoU outlined a development program targeting more than 100 villages across Indonesia. One of the highlights of the MoU is the economic growth acceleration in Indonesian villages to mitigate inequality through the establishment of village-owned enterprises (locally referred to as BUMDes).

According to the Village Law No. 6/2014, the establishment of the BUMDes sought to boost economic activities and growth in villages by optimizing village assets so that they could contribute to the improvement of local people’s livelihoods as well as the improvement of the economic potentials of villages.

Since 2015, APP Sinar Mas had been involved in a number of activities empowering village residents who live in its concession areas by teaching them sophisticated agricultural skills in order to attain self-sufficiency. The company implemented the program by taking care of both its upstream and downstream aspects, including equipment and seed procurement, mentoring as well as marketing strategies.

Eko said he had been grateful for APP Sinar Mas’ initiative in contributing to and synergizing with the government’s mission as written in the third point of the nawacita (nine key programs) that sought to build Indonesia from its fringe areas, including villages, to support national advancement.

“The involvement of Sinar Mas in this program could serve as a positive role model for other businesses to demonstrate how they can support the government’s program in accelerating economic growth in villages. Through the help of the company’s resources, hopefully we can create new job opportunities for village residents [through this program],” Eko added.

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