Loesdarwanto vividly remembers the difficult life of farmers in his hometown, Bojonegoro, East Java, during his childhood. Every year, they faced the same threats: pest attacks, floods, and plummeting prices during the harvest season. Now, he has a solution.
LOESDARWANTO was born in Bojonegoro, East Java, 45 years ago. A city known by many names: the Oil City, the Teak City, the Tobacco City, and also the Flood City.
Loes explained that it is called the Oil City because, within its 2,384.02 km² area, there are oil reserves estimated by world geologists to be among the largest in Asia. The volume reaches 5 million metric tons, which could be exploited for more than 300 years.
It is called the Teak City because nearly 30% of Bojonegoro's forest area consists of teak forests. Some residents, around 2% of the total 1,472,805 population, depend on teak for their livelihood—ranging from collecting twigs and leaves, trading teak logs, to crafting furniture and other artistic works.
If some call it the Tobacco City, it is because many farmers use their land to grow tobacco. During the dry season, most rice fields are converted into tobacco plantations. Many major tobacco companies in the country have special warehouses for tobacco in Bojonegoro. “Some of these warehouses were even established during the Dutch colonial era,” said the father of two.
The name Flood City comes from the fact that Bojonegoro is traversed by the Bengawan Solo River, which overflows every rainy season. Flash floods are a common occurrence in this small city.
“Imagine the fate of farmers when that happens, especially if rats or brown planthoppers attack the rice fields, or leaf flies damage the tobacco plants. Their situation becomes even more heartbreaking,” he lamented.
Not to mention that during harvest season, the prices of unhusked rice and tobacco often plummet. “Usually, due to urgent financial needs, farmers cannot resist the persuasion of middlemen. They are forced to sell, even if it means little to no profit, or even losses. The life of farmers during my childhood was truly heartbreaking,” recalled the alumnus of the Faculty of Economics at Airlangga University.
Now, a strong desire has arisen in the heart of this food and travel enthusiast to help farmers. It is fitting that Loesdarwanto was recently appointed as the Head of the Warehouse Receipt System Guarantee Division at Perum Jamkrindo. The father of two is actively encouraging farmers to utilize nearby warehouses to store their goods.
By using warehouses with a Warehouse Receipt System, farmers can avoid falling into the traps of middlemen. And if they need funds to start the next planting season, they can use their Warehouse Receipts as collateral for loans from banks or non-bank financial institutions. “Because a Warehouse Receipt is as valuable as a security document. It can be used as loan collateral,” he emphasized. (*)