Understanding the “Ijon” Practice: Pre-Harvest Selling That Traps Farmers in Poverty

The term ijon has long been known in Indonesia’s agricultural sector. According to the Indonesian Dictionary (KBBI), ijon refers to the sale of agricultural products before harvest. In practice, farmers borrow money or goods from middlemen ahead of harvest time. In return, they commit to selling their crops to the lender at a predetermined price—one that is often far below the market value at harvest. This situation strips farmers of potential profit and traps them in ongoing cycles of debt.

Limited Access to Formal Financial Institutions Is the Main Cause

Data from Statistics Indonesia (BPS) through the Inter-Census Agricultural Survey (SUTAS) 2018 and 2023 shows that many farmers still rely on middlemen for planting capital. Accessing formal financial institutions remains difficult due to complicated administrative requirements and the need for collateral. The Bank Indonesia (2019) report on the People’s Business Credit (KUR) confirms this issue. According to BPS data (2022), around 70 percent of farming households still lack access to formal financial services.

Farmers Receive Quick Cash but Lose the True Value of Their Harvest

Studies by the Indonesian Institute of Sciences (LIPI) and IPB University (2019) also reveal that middlemen often provide capital on the condition that farmers sell their harvests at prices 20 to 50 percent lower than market rates. This pattern perpetuates poverty. Farmers might receive cash quickly, but they lose the fair value of their crops and often end up borrowing again for the next planting season.

To break free from ijon, farmers need accessible capital, financial-management skills, and strong local cooperation through community-based cooperatives. Bapak Irmawati, a local champion supported by Human Initiative, demonstrates this approach through Koperasi Bumi Tani Lestari. He encourages farmers to pool resources, manage production collaboratively, and sell their harvest collectively so profits can be distributed more fairly. You can read more about his story at human-initiative.org.

Initiatives like this need to grow across more communities. Let us work together through solusipeduli.org to create broader, lasting impact for families across Indonesia.

Source: Statistics Indonesia (BPS)