Foreign Exchange Village Launched in Sidoarjo, Focusing on Seaweed Export

TheIndonesia.id - The Indonesian Export Financing Institution, or LPEI, inaugurated the Foreign Exchange Village program in Kupang Village, Sidoarjo, East Java, to encourage export of the abundant seaweed.  

Through the program, LPEI will provide aids and assistances to the village, which produces more than 10,000 tons of seaweed a year, to further develop their export activities,

“LPEI is preparing an integrated and blended program to develop and improve the capacity of seaweed farmers as well as members and committee of Koperasi Sumber Mulyo [local cooperative],” LPEI’s managing director II Maqin U. Norhadi said during the inauguration event on Saturday, December 18.

Among the mentoring and some of trainings that will be provided in the program are on cooperative management, farming and processing technique, marketing, market expansion, export licensing, certification, and financial reporting.

By producing high-quality products and commodities that meet the required standard, farmers in Kupang Village are expected to eventually enjoy financial and welfare improvement.

Foreign Exchange Village program in Kupang Village is centered in Sumber Mulyo 5758 cooperative, and Norhadi said seaweed production in the village is very promising as the area is blessed with supporting geographical and weather conditions.

Furthermore, upon the trainings, farmers are expected to become more independent exporters within a year.

“In 2020, production from cooperative members reached 4,800 tons, which means on average, one member can produce up to 6.8 tons per year. By participating in the program, 59 seaweed farmers who are also member of the cooperative will possess the capabilities to increase production and to become independent exporter in a year,” he said.

LPEI also collaborates with the Association of Indonesia Seaweed to work together with farmers to improve the quality of production as well as to determine the overseas market.

As of now, the products sold through the cooperative is dried seaweed for local buyers and exporters, where product is processed into powder and exported to Europe and East Asia.

Kupang Vilage is the 27th inaugurated and mentored by LPEI under the Foreign Exchange Village program, and 2,894 farmers/craftsmen/weavers have been participating and taking part in the trainings.