DESIGN OF SMALLHOLDER FARMERS PARTNERSHIP MODEL AND FINANCIAL ANALYSIS WITH THE CONCEPT OF CREATING SHARED VALUE

Approximately 90% of Indonesias local beef supply is supplied by smallholder farmers who practice traditional and inefficient management. PT X is one of the companies that has assisted smallholder farmers through a partnership system that includes banks and insurance companies. However, smallholder farmers continue to require assistance due to complex requirements, such as interest charges. This study aims to measure and analyze the performance of partnerships at PT X, design an interest-free Creating Shared Value (CSV) partnership model, and run financial analysis simulations, namely Net Present Value and Benefit-Cost Ratio. Meanwhile, the importance-performance analysis is used in the design of the partnership model. The studys findings indicate that the PT X partnership performs quite well. However, eight performance variables must be improved and used to create CSV partnerships. All partnership patterns applied using the interest-free CSV concept produce the largest NPV and BCR values. Even in the breeding partnership pattern, the highest NPV value was IDR 3,430,000, and the largest Net BCR was 1.26%. Thus the partnership with the CSV concept can be implemented and provide mutual benefits to partner smallholder farmers and PT X by creating shared value. Further research is recommended to avoid the risk of moral hazard and partnership failure.