THE IMPACT OF THE AGROPOLITAN PROJECT ON AGRIBUSINESS ACTIVITIES IN WALIKSARIMADU, CENTRAL JAVA PROVINCE, INDONESIA - USING CHILI FARMERS AS AN EXAMPLE

The Agropolitan project focuses on the development of agribusiness systems through supporting agribusiness activities within selected rural districts in Indonesia. Waliksarimadu is regarded by government as an outstanding example of an agropolitan district in Indonesia. This research examines the perceptions of the local community towards the agropolitan project, paying particular attention to the perceptions of chili growers in the project and its impact on their business activities. The results of the study show that the project brought significant improvements in chili quality due to the enhancement of individual grower’s skills in performing postharvest handling and marketing. As a result, growers were able to access supermarkets, food processing firms and export companies directly. However, the growers had difficulty in accessing financial support, and also felt that they were in a disadvantaged position when dealing with modern retailers, food processors and exporters.