Public Private Partnership (Public and Private Partnerships) in the Agricultural Sector

Public and private partnerships (KPS) or public private partnerships (PPP) are needed to answer problems such as increasing production capacity, productivity, quality of production, increasing market access, and encouraging the downstream process of multi-stakeholder cooperation in increasing the efficiency and competitiveness of the food and agriculture sector . PPPs appear not only to increase productivity and growth in the agricultural sector but rather because of the lack of the government’s ability to fulfill its duties in maintaining food security with its own resources. The resources in question are not only in terms of funding but also technology, networks and so on.

Partnerships between agricultural companies and small farmers are assessed as one of the most prospective approaches can raise the economy of farmers. It is assumed that with these partnerships small farmers can be scanned to get a greater share of added value from an agricultural business. It’s just that this kind of partnership approach is still often applied in a reductive manner in contractual farming or contract farming.

The first style presents a network or relationship structure or contractual relationship of interests between actors in an agricultural business. The second pattern, share farming, is a special contractual agriculture that presents a relationship structure that shares the duties, responsibilities and risks of agricultural business as a manifestation of contractual relationships.

On the basis of the importance of lifting the practice of PPP implementation in the regions, Perkumpulan Prakarsa conducted research in three regions, namely: Sragen Regency, Mojokerto Regency, and Malang Regency. Sragen Regency represents rice farming areas, while Mojokerto and Malang districts represent corn farming areas. This study reviews the social, economic and political dynamics that influence the policy environment. Research “Public Private Partnership in the Agricultural Sector: Study of Rice and Corn Commodity Sub-Sector” This is a research that was made to photograph the phenomenon of economic activity between the government, the private sector and farmers to ensure justice in the supply chain under the PPP scheme.

This research report can be a learning material for we are in the framework of developing policies and safety nets in agriculture. However, it needs to be looked at further about the impact of the partnership between the public and the private sector, because until now there has not been a partnership scheme established to guarantee the rights and obligations of each actor in it.

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