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Achievement , Impact, L esson L earned and B est P ractices of a CSR Program in Indonesia

Achievement , Impact, L esson L earned and B est P ractices of a CSR Program in Indonesia. BY: ANGGRA E NI IRAWATI HERMANTYO Director Of Bina Swadaya Konsultan 19 October 2011. COMMUNITY INVESTMENT PROGRAM. PROJECT OVERVIEW. Community Investment Program (CIP):

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Achievement , Impact, L esson L earned and B est P ractices of a CSR Program in Indonesia

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  1. Achievement, Impact, LessonLearnedand BestPracticesof a CSR Programin Indonesia BY: ANGGRAENI IRAWATIHERMANTYO Director Of BinaSwadayaKonsultan 19October 2011 COMMUNITY INVESTMENT PROGRAM

  2. PROJECT OVERVIEW Community Investment Program (CIP): Towards Sustainable Community’s Livelihood and Natural Resources British Petroleum and Rio TintoIndonesia Funding Period April 2008 - April 2011 • Kaliorang sub-District, • KutaiTimur District, • East Kalimantan Province, covering 3 villages: Location • Kaliorang • Selangkau • Bumi Sejahtera

  3. PROJECT LOCATION

  4. 30% 15% • To increase 15%of farmers’ production • To increase 30%of farmer’s product added value PROJECT GOALS

  5. PROJECT APPROACH Technical Management Marketing COMMUNITY Financing Networking

  6. PROJECT ACTIVITIES INSTITUTION PRODUCT LINKAGE Training and capacity building Accompaniment Demonstration plot Introducing appropriate technology Post harvest handling (packaging, labeling) Stakeholders Involving Policy dialogue Market linking Finance access developing Handling over

  7. ACHIEVEMENTS Product Increase: 15% Paddy seeds breedings: per Kg = IDR3,500 Following the agreement with PT SHS, selling price per Kg Rp 4.250,- (increased 21.5%) Paddy : production: 2-3 ton per Ha, after CIP: 4-5 ton per Ha • Additional Value increase: 30% Soymilk: Soybean price per Kg IDR8,000,- after it's processed into soymilk, Price per Kg Rp 20,000, it has increased 150%. Processed banana (flour, chips, cookies): price increased 30-50% Processed Fish (Shreded fried fish or abon, fish crackers) = price increase 10-20% VCO = 10 coconuts= IDR15,000 processed into 1 litre of VCO = IDR170,000 • Developing Farmers’ Institution • 24 SHGs, 3 SHG Forum, 1 CLC-Cooperative

  8. ACHIEVEMENTS • Developing 5 main Excellent Commodities • banana, cacao, rice, compost, seaweed • Market Chain: MoU with BUMN Sang Hyang Seri : certified rice seed and certified soybean seed purchasing FaircoSawit: agreement on packaged rice purchasing Cooperative KPC: agreement on processed food product purchasing from farmers • Finance access • SHGs (village level) and CLC-Cooperative(Sub District level)

  9. using VPA (Vectorial Project Analysis) PROJECT IMPACT SURVEY • This survey had a purpose to identify the development and change in livelihood and mindset aspect of SHGs members, after 3 years of facilitation.Survey was carried out 4 times, starting from preparation phase, growing phase, developing phase and self-reliance phase. • Survey carried out by interviewing 120 respondents from 24 SHGs which were selected purposively.

  10. PROJECT IMPACT SURVEY Indicators • LIVELIHOOD • Income • Work Opportunity • Food Consumption • Sanitation and Hygiene • MINDSET • Activity in the group • Level of technology adoption • Saving habit • Self Confidence • Education • Gender Mainstreaming • Business Practice

  11. IMPACT

  12. IMPACT

  13. BEST PRACTICES Administration • It was important to put strong institutional basic to the community groups in the early phase/stage of program. BSK implemented it through 5 key results area in each facilitated SHG, which covered basic of organization management development: • Organization Administration, Capitalization, Entrepreneurship, and Acceptance/Network Organization SHG Capitalization Network Entrepreneurship • In the beginning, SHG member learned to manage organization in a small level organization, like working group,therefore, by the end they would be able to manage bigger organization, namely CLC-Cooperative.

  14. BEST PRACTICES Self reliance was characterized in the capability of self-financing. This was one of the principle that was believed by BSK in each community empowerment program. Since the beginning of program design, BSK ensured that community would learn self-reliance aspect through capitalization (one of the key result area) activity. It was started in SHG saving Andloan activity SOLIDARITY ECONOMY at the SHG level

  15. BEST PRACTICES A strong household economy was the basic of strong economy in the wider scale: Household – SHG – Village (Inter-group Cooperation Forum) – Sub-District (CLC/Cooperative). Basic principles that were built consisted of saving habit and household budgeting SOLIDARITY ECONOMY at Sub District level

  16. BEST PRACTICES • All stakeholders should participate in building CLC-Cooperative cadres confidence. It could be started by assigning them, and gradually put them in the position as business partner. SOLIDARITY ECONOMY At District level

  17. CIP in Picture training and capacitybuilding

  18. CIP in Picture introducingappropriate technology:composting

  19. CIP in Picture appropriatetechnology:chili nursery using bamboo pot as media, cacao fermentation, side grafting

  20. CIP in Picture introducing appropriate technology:chili cultivation using mulching

  21. CIP in Picture introducing appropriate technology: cacao post harvestingusing fermentation

  22. CIP in Picture sea grass cultivation training

  23. CIP in Picture introducing appropriate technology: SRI (System of Rice Intensification) method

  24. CIP in Picture farmersare practicingmaking liquid bio fertilizer using materials of banana stem

  25. CIP in Picture developingcooperative

  26. CIP in Picture productpackaging

  27. CIP in Picture cooperative

  28. Thank You …”There is no more powerful institution in society than business... The business of business should not be about money, it should be about responsibility." – Anita Roddick, the Founder of The Body Shop

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