BUM Des in Kobar Prospering Palm Oil Farmers

It is like Subli, 55, a newcomer from Bojonegoro regency, East Java, who now lives in Amin Jaya village, Pangkalan Banteng sub-district, Kotawaringin Barat regency, Central Kalimantan.

He admitted that there has been much progress in the village since palm oil became its main commodity.

However, the palm oil farmers are out of option when the middlemen set the sale price of the palm oil.

Moreover, many farmers take loans from the middlemen for their capital.

Witnessing the unfavorable condition, on March 1, 2014, all the farmers and the residents of Amin Jaya village agreed to establish a village-owned business entity (BUM Des) named Karya Jaya Abadi.

The Secretary of Karya Jaya Abadi BUM Des, Muchtar, added that the establishment of the BUM Des was aimed for the interests of the village people, particularly for helping with the transportation and sales.

"The BUM Des was developed for the welfare of its members, the farmers. For that reason, we feel that it is necessary to have a legal entity that handles our activity," he said, Thursday (27/10).

With support from village government funds, the BUM Des also did a contract with the factories around the village.

The farmers can sell the crops from their plantation straight to the factories.

"The payment is made by the BUM Des whenever the farmers want to get paid. As long as there is a voucher issued from the factory, the price will be stable. It is not like the old times when the farmers sold their yields to the middlemen and the price was dictated by them," he explained.

Currently, when the farmers drop their yields at the factory, they will receive a statement of receipt from the factory.

The term for it is red plus.

It also serves as the payment at the BUM Des.

The bookkeeping for the payment is done using an online app.

"So the bookkeeping for the payment and sales of the farmers' palm oil to the factories is clear. The plantation companies will pay the BUM Des every month or every two weeks," he added.