Program History

About AIP-Rural

PRISMA started off its first phase as a program under Australia-Indonesia Partnership for Rural Economic Development (AIP-Rural, 2013-2018), a suite of development partnership program between the Government of Australia and the Government of Indonesia. The program worked in the areas of agricultural value chains, finance, irrigation, research and innovation. AIP-Rural aimed to improve the access of smallholder farmers to new markets, better inputs, know-how and technology. It focused on the agriculture sectors which had strong growth potential and were the main source of incomes for smallholder farming households. All of this was done with market players through co-investing in innovations that improved agriculture performance.

The goal of the program was to achieve a 30% increase in the net incomes of 300,000 smallholder farming households by December 2018.

AIP-Rural operated in East Java, West Nusa Tenggara, East Nusa Tenggara, West Papua and Papua.

AIP-Rural’s four programs are:

PRISMA phase 1 aimed to help spur growth along the value chain by reducing constraints and barriers to farmer productivity, performance and market access. As of December 2018, PRISMA phase one has increased the incomes of 320,833 smallholder farming households in eastern Indonesia with total additional incomes up to IDR 1.6 Trillion. PRISMA continues AIP-Rural’s works through PRISMA phase 2 and targets the income increase of an additional 700,000 smallholder farming households in Central Java, East Java, West Nusa Tenggara, East Nusa Tenggara, West Papua and Papua.

TIRTA aimed to increase smallholder farming households' access to water by encouraging investment in water management.By December 2018, TIRTA benefitted 11,394 smallholder farming households through irrigation access provision with total increased incomes of IDR 47 Billion. The irrigation sector is the continuation of TIRTA in PRISMA. The sector focuses on stimulating the private sector participation and investment across different stages of irrigation value chain. The aim is to promote more efficient water use in agriculture that will boost the farmers production and productivity.

SAFIRA aimed to expand smallholder farmer’s access to formal finance by developing and formulising value chain financing. On December 2018, 9,764 smallholder farming households have increased their incomes through access to agricultural finance with a total of IDR 48 Billion. PRISMA's finance sector is continuing the work of SAFIRA aiming to improve the offering of a broad range of accessible and appropriate financial services. The work will be implemented through product development of agricultural finance, technological innovation, better sourcing and service provision, improved promotion and marketing of products, and incorporation and linkages with and through input providers, kiosks, insurance providers, and off-takers.

ARISA aimed to improve the competitiveness of smallholder farming households through the adaptation and dissemination of research and new technologies. As of December 2018, 8,868 smallholder farming households have experienced increase in their incomes with a total of IDR 219 billion through the application of research and innovation. In PRISMA, ARISA's work is undertaken by the Applied Research Unit and transformed into a cross-cutting component of all sectors. The unit works with selected universities and public research institutes to improve their capacity and engagement mechanism with the private sector as well as support the sector teams in taking a more nuanced view of the wider constraints to the uptake of new technologies.

AIP-Rural Achievements

As of December 2018




IDR 682bn