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Agro Ekonomi Vol. 28/No. 1, Juni 2017

A POTENCY AND CHALLENGE OF WAREHOUSE RECEIPTS SYSTEM
(WRS) IMPLEMENTATION IN NIAGA MUKTI COOPERATION,
CIANJUR
Potensi dan Tantangan Sistem Resi Gudang (WRS) Implementasi
pada Koperasi Niaga Mukti, Cianjur
Ukhwatul Khasanah1, Dwidjono Hadi2, Slamet Hartono2, Liana Fatma Leslie Pratiwi1
Student in Master of Agribussiness Management, Gadjah Mada University,Yogyakarta
2
Lecture in Master of Agribussiness Management, Gadjah Mada University, Yogyakarta
Jl. Flora, Bulaksumur, Kec.Depok, Kabupaten Sleman,
Daerah Istimewa Yogyakarta 55281
kh_sanah@yahoo.com
1

Diterima tanggal 1 Juni 2017 ; Disetujui tanggal 15 Mei 2017
ABSTRACT
Declining of agricultural commodity prices during the harvest season has become detrimental

to farmers. It often makes farmers not harvest their crops because the cost of harvesting is more
expensive than the selling price of the product. The government makes a Warehouse Receipt
System (WRS) program to help farmer to solve the cost of farm business and anticipation of low
price of farmer income in harvest time. The goal of the research is to analyze and to describe
regarding the potency and challenge of warehouse receipts system implementation in Niaga
Mukti Cooperation, Cianjur. The method used was descriptive analysis with the subject of
Niaga Mukti Cooperation as the sample of WRS for rice commodity. The result of the research
shows that warehouse receipts system has potency to become collateral credit document to
obtain farming budgeting for the member of Niaga Mukti cooperation with 6% per year or 1,5%
per month after receiving government grant. In conducting WRS program, the cooperation
confronts various challenges such as economic society empowerment through WRS, warehouse
empowerment receipts as alternative finance, finance instruments and agricultural marketing.
However, it requires coordination and correlation among the government, regions, farm
cooperation, endeavor and finance institutions.
Keywords: challengers, Niaga Mukti cooperation, potential, warehouse receipt system
INTISARI
Penurunan harga komoditas pertanian selama musim panen telah merugikan petani.
Seringkali membuat petani tidak memanen hasil panen usahaninya karena biaya panen
lebih mahal dari harga jual produk tani. Pemerintah membuat program Warehouse Receipt
System (WRS) untuk membantu petani dalam menyelesaikan masalah biaya usahatani dan

mengantisipasi rendahnya pendapatan petani pada saat panen. Tujuan dari penelitian
ini adalah untuk menganalisis dan mendeskripsikan mengenai potensi dan tantangan
implementasi sistem resi gudang pada Koperasi Niaga Mukti, Cianjur. Metode yang
digunakan adalah analisis deskriptif dengan subjek Niaga Mukti Cooperation sebagai sampel
sistem resi gudang (WRS) untuk komoditas padi. Hasil penelitian menunjukkan bahwa sistem
resi gudang berpotensi sebagai dokumen kredit jaminan untuk mendapatkan pembiayaan
peternakan bagi anggota koperasi Niaga Mukti dengan bunga 6% per tahun atau 1,5% per

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113

bulan setelah mendapat hibah dari pemerintah. Dalam melaksanakan program sistem resi
gudang (WRS), kerjasama tersebut menghadapi berbagai tantangan seperti pemberdayaan
masyarakat ekonomi melalui sistem resi gudang (WRS), pemberdayaan penerimaan gudang
sebagai alternatif pembiayaan, instrumen keuangan dan pemasaran untuk pertanian dan
memerlukan koordinasi dan korelasi antara pemerintah, daerah, kerjasama pertanian,
usaha, dan Lembaga keuangan.
Kata kunci : competitor, koperasi Niaga Mukti, potensi, sistem resi gudang
INTRODUCTION

The condition is caused by some

Agriculture sector is one of the

problems of agriculture sector. According

components of national construction

to Apriyantono (2004), some of agriculture

toward food supremacy to remove

problems in Indonesia are modal and price.

poverty. After five years (2010-2014)

Farmer (modal side) is confronted by the

agriculture sector gives a big contribution

less of endeavor capital and price, less

after industrial sector and cultivation.

of mind of banking system to the farmer,

The superior commodity of agricultural

unavailability of agriculture assurance,

sector is food plant. On the other hand,

and ijon system. On the other hand, farmer

Bappenas, Indonesia as agriculture

(price side) obtains inappropriate

country is the tenth biggest producer

fluctuating, based on trader, and lost.

agriculture in the world. Based on

Farmer is confronted by the decreasing

agriculture census in 2013, agriculture

cost in harvest time while the need of farm

sector still absorbs the biggest employee

must be fulfilled.

cost,

with the percentage of 34,6% from

Farmers are still dealing with classic

total number of employee, while the

problem that is seeking finance for farming

contribution to gross domestic product

and declining output price during the

is 15%. In the mean time, agriculture

harvest season. Access to capital assistance

product import in 2003-2013 is big from

from banks is still very difficult because

US$ 3,34 billion up to US$ 14,90 billion.

farmers often have difficulty to find

The important roles of agriculture

collateral as a requirement for loans (Elias,

sector in national cultivation are to
absorb the employee, to contribute Gross
Domestic Product (GDP), to increase

2016).
Contribution of agriculture sector
toward GDB can be seen in Table 1.

country currency exchange to be used as

In addition, declining of agricultural

the source of industry basic commodity,

commodity prices, especially during the

food and nutrition and to be used as the

harvest season, has become a definite

promoter of other economic sector.

problem that is detrimental to farmers. In

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Table 1. GDB Structure According to Business Enterprise Area Based on Valid Price of
Percent
Business enterprise
Agriculture, Livestock, Forestry and Fishery
Mining and Excavation
Cultivation industry
Electricity, Gas, and Hygienic Water

Construction
Trading, Hotel and Restaurant
Transportation and Communication
Finance, Real Estate and Company expense
Expense
GDP

2010
15,29
11,16
24,80
0,76
10,25
13,69
6,57
7,24
10,24
100

2011

14,70
11,85
24,33
0,77
10,16
13,80
6,62
7,21
10,56
100

2012
14,44
11,78
23,04
0,79
20,45
13,90
6,66
7,26

10,78
100

2013
14,43
11,24
23,69
0,77
9,99
14,33
7,01
7,52
11,02
100

2014
14,33
10,48
23,71
0,80
10,05
14,24
7,39
7,64
10,98
100

Source: Statistic Center Committee (2014)
fact, it often makes farmers not harvest

exchange system including technology

their crops because the cost of harvesting

after harvest. The fourth is the ability of

is more expensive than the selling price of

farmer to afford their limited farm business

the product (Muhi, 2011 cit. Listiani and

so that the productivity is far from potential

Bagas, 2013). Actually, farmers can make

productivity. The fifth is the continuity of

a strategy by delaying to sale a product to

agriculture business administration that

avoid losses due to low prices during the

causes farmers become unable to enjoy the

harvest season. However, farmers do not

better price because trader has taken the

have strong bargaining position not to sell

biggest profit from trading product.

their products. The condition occurs since

Income level of farmer is generally

most farmers consider that their harvest

influenced by total production, cost, and

product as “cash crop”. It means, farmers

farm business cost. The income of farmer is

need cash money in that time to fulfill their

generally low, yet they conduct of endeavor

household needs and also to prepare their

in agriculture such as rice. One of the basic

farming in the next planting season (Ashari,

reasons is rice which is the primary food

2011 cit. Listiani and Bagas, 2013).

of Indonesia. Therefore, rice farm business

According to Nugrayasa (2012),

is one of the commodities which have a

there are five basic reasons of agriculture

prospect to increase the income of farmer.

in Indonesia. The first is decreasing quality

According to Suryadi et al. (2008), the

and resource quantity of agriculture field.

main challenge of the rice productivity

The second is limited availability of

and productivity improvement program is

infrastructure agriculture support that is

how to make rice farming more efficient,

construction and reservoir development.

so that it has competitiveness and is viable

The third is the weakness of technology

as a sustainable source of income. The rice

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115

production improvement program still faces

of agricultural commodity prices (Pargami

a number of obstacles, including low rice

et al., 2013).

prices at farmers level, very low grain / rice

The government through trading

exchange rates, ineffective implementation

minister makes a program to help farmer

of rice import tariffs to protect domestic

to solve the cost of farm business and

rice prices, food procurement credits

anticipation of low price of farmer

using commercial interest rates and Food

income in harvest time. The program

Security Loans (KKP) that has not been

is Warehouse Receipt System (WRS).

channeled smoothly, limited ability of

Warehouse receipt system is the activity

farmers to store grain to get the desired

of publishing, changing, guaranteeing

selling price, and dependence on rice as a

and finishing of transaction of WRS

source of carbohydrate is still high enough

which is then changed into the law No.

that is 120-130 kg / capita / year.

9 in 2011. In its implementation, WRS

However, rice farm business is one of

is organized through the regulation of

the commodities which has a prospect to

government No. 36 in 2007 regarding the

increase the income of farmer. It motivates

implementation of Regulation No. 9 2006.

them to increase their production with the

Warehouse receipt is the document of the

high income in harvest time to fulfill their

ownership evidence toward commodity

daily need. Farmer often confronts the

that is saved in warehouse receipt system.

fall of commodity price in harvest time.

Warehouse receipt is published by manager

However, they need money to their modal

of warehouse used to obtain scheme of

of farm business or the debt before fulfilling

warehouse receipt grant. It is a credit for

their need.

the holder of warehouse receipt that obtains

Predicted agricultural commodity

the grant from government with guarantee

prices become one of the important

of commodity saved. Credit of S-WRG is

marketing factors for farmers, especially in

able to be offered to finance institution of

the process of warehousing (storage). This

non bank with an agreement.

is because price plays an important role in

Tosun, Savran et al. (2014) in a

the optimization of market formation and

study entitled “The evaluation of the

marketing strategy. On the other hand, price

warehouse receipt system for agro-food

formation is important for the government

products in Turkey states” suggests that the

in taking policy. Government policies are

agribusiness structure in Turkey is small,

established and implemented based on the

especially in terms of production. This

prediction of economic variables in the

causes the farmers sell the crops directly

short and long term, including the variables

for the next farming purposes. With the

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Warehouse Receipts System provides

guarantee. Through the credit loan with

benefits for Turkey farmers in terms of

WRG scheme, farmer is only burdened for

obtaining credit from banks and improve

6 percent per year from total of the debt

efficiency in time and cost.

because the government gives a grant with

Onumah (2010) in his research

the quarrel between valid interest income

entitled “Implementing Warehouse

and the burden interest income that must be

Receipt System in Africa Potential and

paid farmer as the debtor. Concept of WRG

Challenges states that the implementation

is expected to give motivation of endeavor

of Warehouse Receipts System in Africa

development for the farmer.

was successful, especially in Tanzania”

Another objective of the SRG

stated that Warehouse Receipts System

program is to help farmers irrespective

can reduce transaction costs and strengthen

of the problem of low commodity

local and regional market capacities.

prices during the harvest season with

Warehouse Receipts System activities

delay mechanisms. The postponement

can also absorb surpluses so as to increase

mechanism provides an opportunity for

output and avoid loss of price margins

farmers to store their crops to Warehouse

that are producer incentives. Some of the

Receipts System warehouse for a certain

challenges faced can be solved by the

period of time until an estimated price

cooperation between the government and

increase occurs. This mechanism can also

the private sector. The biggest challenge

help control fluctuations in prices due to

is policy uncertainty. Warehouse receipt

seasonal commodities. The phenomenon of

financing is often unsuitable for rural

price fluctuations caused by unscrupulous

producers, especially small farmers in

in this case the owner of the warehouse

Africa, warehouse receipts are used

deliberately stock up commodities in the

primarily by some large borrowers usually

warehouse with the aim to boost prices

importers under collateral management

in the market, consequently there is a

arrangements involving international

massive sale especially when prices rise

inspection firms.

in the famine season. This action will

The implementation of scheme

push the price down to a lower level.

warehouse receipt grant is founded by

Therefore, Warehouse Receipts System

the regulation of trading minister No

serves as a provider of price information,

66/M-DAG/PER/12/2009. Based on the

buyers and updated pricing information and

regulation, the activity of productive of

examines factors that will affect future price

agriculture sector is able to be paid through

fluctuations. Onumah (2010) revealed that

S-WRG by using warehouse receipt as the

as a long-term goal, Warehouse Receipts

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117

System can contribute to increasing the

to investigate, although Cianjur District

income of rural farming by promoting trade

is very potential to be developed but the

in agricultural commodities and increasing

interest of some people to utilize WRS is

access to loans for farmers.

still low.

Implementation of Warehouse Receipt

The introduction of warehouse

Program in Indonesia start since 2008 with

receipt (WR) was expected to reduce

four pilot districts namely Kabupaten

these problems within smallholder farmers.

Banyumas, Jombang, Indramayu and

(Anitasari, 2015). However, WRS is still

Gowa. The next few years, Cianjur regency

unavailable to the major of smallholder

chosen to be a pilot area of Warehouse

farmers who face cumbersome lending

Receipts System implementation for

procedures (Towo, 2014).

grain and rice commodities with Niaga

The goal of the research is to analyze

Mukti Cooperative as warehouse manager

and describe the potency and challenge

under the supervision of Bappebti. Then,

implementation of warehouse receipts

Warehouse Receipts System developing

system in Niaga Mukti Cooperation,

in 2009 until 2014 with increasing number

Cianjur.

of Warehouses and the number of farmers,
farmer groups and cooperatives that utilize

Warehouse Receipts: Facilitating

Warehouse Receipts System (WRS).

Finance and Commodity Markets

West Java Province is the second

The warehouse receipts system, also

highest rank of rice producers in 2014.

known as inventory credits, can facilitate

One of the fastest WRS sites developing is

financing for inventory or products held

in Kabupaten Cianjur. In 2011 to 2015 the

in storage. These receipts, sometimes

number of warehouse receipts in Cianjur

known as warrants, when backed by legal

Regency is 98 warehouse receipts under

provisions that guarantee quality, provide a

the management of PT. Pertani and 139

secure system whereby stored agricultural

warehouse receipts managed by Niaga

commodities can serve as collateral, be

Mukti Cooperative. From the number of

sold, traded or used for delivery against

warehouse receipts issued, as much as 98%

financial instruments including futures

used by farmers collaterally in the bank

contracts. These receipts are documents that

BJB to obtain credit farming. However,

state the ownership of a specific quantity of

the number of grain commodities that

products with specific characteristics and

participated in the WRS program has not

stored in a specific warehouse (Hasnain,

been maximum compared to the potential

et.al., 2014).

of these commodities. It is very interesting

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Warehouse receipt finance can be

of the receipt as collateral depends on many

provided under different warehousing

factors, particularly the legal and regulatory

arrangements (Hasnain, et.al., 2014):

regime in the country, and the financial

•

In a private warehouse, manufacturing

status and integrity of the warehouse

and warehousing take place under

operator.

the same roof, and both activities

•

are controlled by the same company.

The Roles of Diverse Actors (Hasnain,

The warehouse is just a part of the

et.al., 2014) :

overall company operations, which

A successful warehouse receipts

may be manufacturing, wholesaling

scheme relies on clear division of

or retailing. It is very risky to use

responsibility and clear co-ordination

commodities in private warehouses

between the public and private sector.

as collateral for loans: other than spot

Role of public authorities: public

checks by the bank, there is little to

authorities need to shift their role from

ensure that the goods are really present.

intervening in prices through altering

A field warehouse is an arrangement

supply and demand towards creating the

where a collateral management or

necessary institutional framework. The

credit support company takes over the

key steps required of the government in

warehouse of a depositor (producer/

this respect are:

customer) or a public warehouse by

a. to pass and implement legislation on

leasing it (or part of it) for a nominal

warehouse receipt law and the standard

fee, and becomes responsible for the

conditions for licensed warehouses

control of the commodities to be used

b. to set up a licensing and inspection

as collateral
•

A public warehouse is normally a
large storage area that serves many

system for the licensed warehouses
c. to set up a performance guarantee
system

businesses, for example in a port or

d. to work with the private sector to

major transit centre. It is owned (or

establish viable quality standards

rented for a long period) and operated
by a warehouse operator, which stores

Such a shift in roles –from guaranteeing

commodities for third parties for a fee

stable price levels to guaranteeing efficient

and acts as the commodities’ custodian.

markets is a politically difficult move since

Public warehouse operators often

food prices are obviously an important and

issue warehouse receipts that are acceptable

sensitive issue and some farmers are used

as collateral by banks. However, the quality

to have risks covered by the government in

Agro Ekonomi Vol. 28/No. 1, Juni 2017
the form of Market Intervention.
Role of farmers and processors:

119

performance guarantee schemes and draw
on best practices in other countries.

consultation with farmers and processors is

Role of local banks: when the

essential to ensure that the planned system

scheme has been set up, the role of the

suit s their needs and constraints, and to

local banks is critical to ensure that it is

ensure that they understand and support

operable. This requires training bank staff

the new legislation. Ongoing feedback once

and establishing clear internal procedures

the scheme has started is also important to

including a system for weekly monitoring

help fine -tune its operation. As a result,

of prices of commodities being used as

the scheme should be planned through

collateral. Warehouses that already have

a bottom-up consultative process, not

an established relationship with financial

devised as a top - down bureaucratic

institutions are most likely to be seen as

proposal.

credible participants of the scheme at the

Role of local banks: when the

outset, with acceptability widening to more

scheme has been set up, the role of the

warehouses once the scheme is shown to

local banks is critical to ensure that it is

operate reliably.

operable. This requires training bank staff

Role of international institutions:

and establishing clear internal procedures,

these can greatly accelerate the

including a system for weekly monitoring

establishment of warehouse receipts systems

of prices of commodities being used as

by supporting the institutional development

collateral. Warehouses that already have

to assist in providing technical assistance

an established relationship with financial

in establishing quality standards, training

institutions are most likely to be seen as

to warehouse operators and inspectors,

credible participants of the scheme at the

advising on draft legislation, help set up

outset, with acceptability widening to more

performance guarantee schemes and draw

warehouses once the scheme is shown to

on best practices in other countries.

operate reliably.
Role of international institutions:

METHODS

these can greatly accelerate the

Descriptive research is aimed to

establishment of warehouse receipts systems

explore and clarify regarding to the

by supporting the institutional development

phenomenon or reality social, by describing

to assist in providing technical assistance

some variables concerning problems and

in establishing quality standards, training

examined unit. The type of research used

to warehouse operators and inspectors,

is descriptive qualitative which studies

advising on draft legislation, help set up

about the available problems and describes

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everything happen right now. In other

and warehouse manager. The burden of

words, descriptive research analysis aims to

guarantee toward warehouse receipt is

obtain the information focusing on reality.

made with agreement certificate guarantee.
The guarantee of warehouse receipt is

RESULTS AND DISCUSSION

classified in commodity guarantee which

The potency of warehouse receipt system:

means a direct relation toward certain

Study of Niaga Mukti Cooperation

commodity and able to be defended to

The availability of modal is very
necessary to the businessman to guarantee

anyone and able to be transferred by hand
to someone else.

the condition of his business, especially to

The agreement of warehouse receipt

the farmer and middle-small endeavor in

warranty is arranged in the regulation

agriculture sector. Farmer or middle-small

of WRS Pasal 14 ayat (1) describes

endeavor often confronts the difficulty in

that warehouse receipt is the agreement

financing and modal problem. It is caused

accessoir, that is additional agreement

by the limitation of access and credit

and related to primary agreement. The

guarantee in the bank. Some problems push

primary agreement from it is credit

Bappebti to make a decision that is called

agreement between debtor and bank. In

with warehouse receipt system. The goal is

other words, if the credit agreement is

to have a solution to the farmer and middle-

canceled, the warranty of agreement is

small endeavor to obtain the convenience

automatically canceled. The warranty

in financing of agriculture sector.

of warehouse receipt that is published

Farmer who saves rice in the

contains the identity of donator side

warehouse will obtain a document that is

and receiver the guarantee, data primary

called as warehouse receipt. Warehouse

agreement guaranteed, warehouse receipt

receipt can be used as the guarantee of

specification used, value of money

credit if it fulfills the requirement in the

guaranteed and value of commodity

regulation of WRS. Warehouse receipt is

based on the price of market when the

published by Warehouse Manager, Niaga

commodity is in the warehouse.

Mukti Cooperation that has obtained

The government of Bappebti will

agreement from supervisor committee. On

give interest income grant to the farmer,

the other hand, warehouse receipt is only

farm community, association of farm

able to be burdened one debt guarantee

community and cooperation to obtain

and the receiver of guarantee must inform

credit facility or financing from bank with

a contract of warehouse receipt association

warehouse receipt grant. The requirement

as the guarantee to the registration center

of credit which obtains interest income

Agro Ekonomi Vol. 28/No. 1, Juni 2017

121

grant with the amount of warehouse receipt

of warranty toward the authority through

is determined in the regulation of Financial

auction sale or immediate selling.

Minister No. 17/PMK.05/2009 concerning

Based on the result of interview, the

scheme of Warehouse Receipt Grant. The

execution of warehouse receipt warranty by

requirements are:

banking is not conducted yet. Practically,

a. The highest big credit plafond is 70%

there is no debtor case yet. During this

from the value of warehouse receipt.
b. The big plafond is determined by Bank
or finance institution with Plafond max
Rp 75.000.000, 00

time, credit has been paid before credit is
in the due date, so that warehouse receipt
warranty is returned to the debtor.
The important thing of the success

c. Maximum plafond is based on

implementation of WRS in Cianjur is not

total farmer in farmer community,

free from the intensive socialization to the

cooperation and the association of

farmer and there is synergy cooperation

farmer community.

either regional government or government

d. Maximum plafond is able to be observed

center and there is a trading minister. On

every time based on suitability analysis

the other hand, warehouse ability (the

of farm business that is suggested by

description of regulation No. 9 2011) is

minister of technique.

one of the keys of success implementation
of WRS. Based on the data from bappebti

If it is farmer in the reality of debtor

(2011) has been built the warehouse with

that is not able to repayment toward credit

fiscal stimulus of trading department (in

given by bank, bank has a right to execute

34 regions), APBN-P (in 11 regions), and

toward warehouse receipt warranty. It is

DAK 2011 (15 units).

arranged in the decision of Pasal 16 ayat

The support of finance institution

(1) the regulation of WRS that the receiver

becomes a factor of success of the

of warranty has a right to sell the object

implementation of WRS through either

Figure 1. The Development of Warehouse Receipt System Value

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commercial skim or program. It has been
supported by Ashari (2011) tells that skim
program, finance ministry has issued the
regulation of finance minister No. 171/
PMK.05/2009 about the scheme of grant
WRS. While, to the implementation of
scheme WRS has been published the
regulation trading minister No. 66/M-DAG/

The analysis of GKG is 35.000 kg
for 3 months:

− The price of entire warehouse Rp 4.620
x 35.000 kg =Rp 161.700.000

− Interest income for 3 months (1,5%) =
Rp 2.425.500

− Saving cost, service, bongkar muat,
contain = Rp 5.250.000

PER/12/2009. According to the interview,

− Assurance, registration center, quality

from 2013 the cooperation of Niaga Mukti

test Rp 2.425.500 +Rp 5.250.000 = Rp

cooperated with BJB bank in providing

7.675.500

the farm business finance has developed
till 2015. It can be seen in graphic below:
This scheme shows that the value
of publication of warehouse receipt or
financial value is fluctuating. It is caused
by the characteristic of rice in different
weather so that the price of rice that

Total : Rp 169.375.500

− The price of outcome Rp 5.500 x 35.000
kg = Rp 192.500.000

− The income of farmer : Rp 192.500.000
- Rp 169.375.500 = Rp 23.124.500
- Rp 23.124.500 : 35.000 kg = Rp 660/
kg

is determined by cooperation is also
fluctuating. The characteristic of rice

The additional income obtained with

commodity encourages farmer to save

the advantage of delay selling is Rp 660/kg

the harvest in warehouse receipt to obtain

for 3 months saving.

the income during saving. Generally, the

Based on the calculation above, it can

saving period of rice for first-three months

be seen that by applying warehouse receipt

and the period of rice saved in warehouse,

system, farmer will get a higher income

farmer obtains document warehouse receipt

margin than they sell to the commission

published by Niaga Mukti Cooperation that

agent. On the other hand, the larger impact

is able to be guaranteed in BJB to obtain a

by applying WRS to the farmer in Cianjur

credit to further operational activity. Thus,

is increasing the productivity and quality

farmer will obtain double advantages that

of rice produced and more organized well

are able to obtain modal and get the higher

of management business because farmer

price of rice.

is able to determine planting schedule

There is an example of the calculation

and its marketing. According to Nana

of the advantage of WRS to the farmer in

Sukatna as the manager of Niaga Mukti

Cianjur in Niaga Mukti Cooperation.

Cooperation warehouse, the passion of

Agro Ekonomi Vol. 28/No. 1, Juni 2017

123

farmer in Cianjur to conduct delay selling

in Cianjur encourages farmer and farm

system is increased. It can be proven by

community to save rice in Niaga Mukti

the use of warehouse receipt for 98% used

Cooperation and makes warehouse

as the guarantee of bank to obtain business

receipt as warranty in bank to cost

farm credit.

further operational business.
c. To empower warehouse receipt is

The challenge of implementation of

finance instrument and marketing tool

warehouse receipts system

to the farmer and endeavor.

The implementation of WRS, Niaga

Warehouse can be called as the

Mukti Cooperation must confront some

replacement of cash money after

challenges that are:

marketing rice. It is different when rice

a. To empower economic society through

is sold through a commission agent so

Warehouse Receipt System

that they could not get the cash from the

The implementation of WRS

product. On the other hand, the profit of

incidentally is the endeavor to empower

warehouse receipt is able to transfer some

economy for the society. It has a rule

money to the other farmers so that they

of sharecropping between cooperation

can do the transaction in Bank with the

and farmer. By delay selling system

warehouse receipt warranty. Warehouse

farmer or farm community obtains the

receipt is to ease the trader to obtain the

price of selling rice and cooperation

suitable commodity with the best quality

obtains the profit from marketing

based on the trader’s criteria.

system or rice distribution either to the
big seller or to the exporter.
b. To empower Warehouse Receipt is the

d. It is necessary to coordinate with
strong synergy between government
center and region, farmer, farmer

alternative finance

community, farmer community

Warehouse receipt is able to be

association, cooperation, businessman,

guaranteed to obtain credit in BJB.

food resistance agent, warehouse

By using the document, farmer can

manager and financial institutions/

easily to obtain business farm credit

banking and BUMN.

without giving any grant of estate,

The success of this program

house, vehicle and others. Farmer will

implementation is the good cooperation

obtain low interest income financing

either government region, center, farmer,

that is 6% per year after getting the

community, cooperation or bank. Those

grant from government. The payment

institutions have a cooperation and bank

system and getting a profit for farmer

and well contribution to encourage the

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Agro Ekonomi Vol. 28/No. 1, Juni 2017
increasing income of farmer in Cianjur

obtained by farmer before saved for

that is by applying delay selling system

3 months.

such as PEMDA in Cianjur, trading agent

i. Able to operate and maintain rice dryer

and industry cooperate with Bappebti

machine

to do socialization and treatment to

Dryer machine is one of the profits of

the candidate of warehouse manager

Niaga Mukti Cooperation. Therefore,

concerning WRS program. It is also

human resource of warehouse manager

the same with bank under control of

must able to operate and maintain

Bappebti to cooperate with cooperation

machine.

as manager of warehouse to publish
WRS, to provide, and to increase the

CONCLUSION AND SUGGESTION

obligation of farmer.

1. The potency of WRS implementation

e. To provide the cost of operational

is that farmer obtain high rice price and

cultivation and maintenance

the warehouse receipt is able to be used

The cost of operational that must be

as the grant of collateral credit in Bank.

available are the cost of construction,

BJB as the cost provider cooperated

transportation or WRS operational

with Niaga Mukti Cooperation gives

need, while the maintenance cost is

the easy way to get a credit farm

based on treating and dryer rice tools.

business to the farmer. It is proven that

Those are well contribution in the

98% warehouse receipt is used as the

implementation of WRS in Cianjur.

grant in BJB by farmer in Cianjur.

f. To provide transportation in WRS

2. Some of the challenges in WRS

It is important to facilitate marketing

implementation are centered on economy

system. By having the accommodation,

of the society empowerment; WRS as

it will facilitate warehouse management

the alternative cost; warehouse receipt

to distribute commodity from one

as financial instrument and marketing

region to others. However, farmer will

for farmer or endeavor; the importance

get the burden of transportation yet it

of coordination between farmer

will not the problem for them to save

community, cooperation, government

their rice in warehouse.

of region/center, banking and BUMN;

g. To build the faith and Honesty

to provide cultivation operational cost

h. Faith and honesty is the main character

and maintenance and transportation in

buried in Niaga Mukti Cooperation to

warehouse; to build the faith and honesty

facilitate consumer (trader and farmer)

and able to operate and maintain rice

such as the price of rice that must be

dryer machine.

Agro Ekonomi Vol. 28/No. 1, Juni 2017
ACKNOWLEDGEMENT
Thanks to my partner and my friends
in master of agribussiness mangement
UGM, my thesis supervisor, Bappebti
(Minister of Trade) who has provided
information of warehouse receipts system
in Cianjur and all those who have complete
the research.
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