The Objectives and Scope of the first two years of the HPSP have been laid down in the Gentlemen’s Agreement between the Principals Cordaid, Agriterra and DGIS-RNE. Rabobank Foundation has added support to the programme since 2007. For the second two years, the objectives are proposed to be continued. Based on the experiences in the past two years, a number of changes are proposed in the scope of the Programme, of which the most important are : 1) Expansion to Fruits, and 2) Stronger Emphasis on Projects Initiated by Farmer Groups. Also some other changes are proposed, as well as some initiatives to create co-operation with other programmes.

General objective of the partnership programme is to strengthen business development in the horticultural-sector in Indonesia through a multi-disciplinary approach with emphasis on the improvement of the primary producers, especially small farmers, for successful participation in the local Indonesian market and maybe in the longer run also the (regional) export market and for the improvement of their economic performance and well being. The partnership will support initiatives for collaboration between primary producers and private sector, that will aim at a more efficient production chain and that will be mutually beneficial to the chain-actors. It is recognised that at present small producers often do not only have limited knowledge and skills but they also have unequal conditions and bargaining power to come to a fair deal / agreement with the private sector. Strengthening the position of primary producers, by improving their technical skills as well as their organisational strength and bargaining power, is therefore foreseen as a crucial element to make partnerships successful. The pilot (implementation) phase is considered to be an experimental phase for a period of one-and-a-half year during which a limited number of partnerships between primary produces and private sector will be supported, with the idea not only to support concrete initiatives but also to gain (more) experience in cooperation with the private sector. The specific objectives of this partnership are: to establish a minimum of 5 partnerships between organised primary producers, especially small farmers, and private sector (processing industry, purchasers/wholesalers/retail) leading to a more efficient production chain, benefiting all chain-actors, to enhance the capacity of primary producers in the horticultural sector to produce market conform and deliver according to consumer / customers demand, to enhance the capacity of all chain partners in integrated chain development leading to accessing new market segments or increased market potential to find appropriate and effective mechanisms to promote, assess, implement and monitor partnerships between primary producers and private sector, to find appropriate mechanism for the capacity building, especially training and technical assistance, by making use of local (and if needed foreign) expertise, to draw conclusions from the partnership by sharing and discussing the lessons learned with Indonesian and Dutch stakeholders For the implementation of the partnership an institutional framework consisting of 3 bodies is foreseen: a small secretariat a steering committee (1 farmers representative, 1 private sector, 1 donor) a multistakeholder platform.