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
12
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