Achievement, Impact, Lesson Learnedand Best Practices of a CSR Program in Indonesia

BY: ANGGRAENI IRAWATI HERMANTYODirector Of Bina Swadaya Konsultan

19 October 2011

COMMUNITY INVESTMENT PROGRAM

2

PROJECT OVERVIEWCommunity Investment Program (CIP):

Towards Sustainable Community’s Livelihood and Natural Resources

April 2008 - April 2011

Funding British Petroleum andRio Tinto Indonesia

Period

LocationKaliorang sub-District, Kutai Timur District, East Kalimantan Province, covering 3 villages: Kaliorang Selangkau Bumi Sejahtera

PROJECT LOCATION

To increase 15% of farmers’ production15%

To increase 30% of farmer’s product added value30%

PROJECT GOALS

PROJECT APPROACH

PROJECT ACTIVITIESINSTITUTION

Training and capacity building

Accompaniment

Demonstration plot

PRODUCT LINKAGE

Introducing appropriate technology

Post harvest handling (packaging, labeling)

Stakeholders Involving

Policy dialogue

Market linking

Finance access developing

Handling over

ACHIEVEMENTSPaddy seeds breedings: per Kg = IDR3,500Following 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

Product Increase: 15%

Soymilk: Soybean price per Kg IDR 8,000,- 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 = IDR 170,000

Additional Value increase: 30%

Developing Farmers’ Institution24 SHGs, 3 SHG Forum, 1 CLC-Cooperative

ACHIEVEMENTSbanana, cacao, rice, compost, seaweed

Developing 5 main Excellent Commodities

BUMN Sang Hyang Seri : certified rice seed and certified soybean seed purchasingFairco Sawit: agreement on packaged rice purchasingCooperative KPC: agreement on processed food product purchasing from farmers

Market Chain: MoU with

Finance accessSHGs (village level) and CLC-Cooperative(Sub District level)

using VPA (Vectorial Project Analysis)

• 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.

PROJECT IMPACT SURVEY

PROJECT IMPACT SURVEYIndicatorsLIVELIHOOD• 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

1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.000.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

7.12

7.58

VPA DISTRICT LEVEL OF KALIORANG

1-2 2-3

3-4 LINEAR

mindset

Live

lihoo

d IMPACT

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IMPACT

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

BEST PRACTICESAdministration

Organization

Capitalization

EntrepreneurshipNetwork

SHG

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.

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

And loan activity

BEST PRACTICES

SOLIDARITY ECONOMYat the SHG level

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

BEST PRACTICES

SOLIDARITY ECONOMYat Sub District level

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.

BEST PRACTICES

SOLIDARITY ECONOMYAt District level

training and capacity buildingCIP in Picture

introducing appropriate technology: composting

CIP in Picture

appropriate technology:chili nursery using bamboo pot as media, cacao fermentation, side grafting

CIP in Picture

introducing appropriate technology:chili cultivation using mulching

CIP in Picture

introducing appropriate technology: cacao post harvesting using fermentation

CIP in Picture

sea grass cultivation trainingCIP in Picture

introducing appropriate technology: SRI (System of Rice Intensification) method

CIP in Picture

farmers are practicing making liquid bio fertilizer using materials of banana stem

CIP in Picture

developing cooperative

CIP in Picture

product packagingCIP in Picture

cooperative CIP in Picture

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