Journal Indonesia International Cocoa Conference 2014

field travel J O U R N A L

public relations & communication |Bali, May 2014

Visit to Cooperatives in Melaya Jembrana, Bali 14 May 2014

6th Indonesian International Cocoa Conference Nusa Dua, Bali 15 - 16 May 2014

Table of content Jembrana - May 14th, 2014 P. 3 Day 1 @Nusa Dua - May 15th, 2014 P. 5 Day 2 @Nusa Dua - May 16th, 2014 P. 9 Thank You Note P. 14

All texts, photos and graphic by SCPP - Public Relation (Aya & Megi)

Blue water and golden sands of Mengiat Beach, Nusa Dua. Right: Balinese Dancer

Swisscontact Country Office The VIDA Lantai 5, Room 01-04, Jl. Raya Perjuangan No. 8 Kebon Jeruk, Jakarta Barat 11530 Ph. +62-21-2951 0200 Fax. +62-21-2951 0210 SCPP Sumatra Office Komplek Taman Setiabudi Indah I Jl. Chrysant Blok E No. 76, Medan 20132 Ph. +62-61-8229 700 Fax. +62-61-8229 600 SCPP Sulawesi Office Gedung Graha Pena lantai 11, Ruang 1108-1109 Jl. Urip Sumoharjo No. 20, Makassar 60234 Ph./Fax. +62-411-421370

PR’s Notes

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t’s no secret that working as Swisscontact - SCPP Public Relations enables us to travel to beautiful places in Indonesia. This time, SCPP’s PR team was fortunate to be designated to Bali, the paradise island on earth that offers pleasures with its spectacular mountain scenery and beautiful beaches as well as a vibrant culture and exotic resorts.

On this famed island of the Gods, team was assigned to cover the once in three years event of the 6th Indonesian International Cocoa Conference and Dinner held on 15 – 16 May 2014 in Nusa Dua. In addition, to maximize the visit in Bali, Program inserted also an excursion on 14 May 2014 to Jembrana to visit two cooperatives and a demo plot of a Balinese cocoa farmer in the area as part of ongoing attempt to boost the function of cooperatives fostered by SCPP in the project areas in Aceh and Sulawesi. There, team was also in action, documenting the meetings.

SCPP Public Relations June 2014 1

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Jembrana - May 14th, 2014 A

fter a cozy overnight at Aston

Denpasar Hotel, around 7 AM, SCPP’s group headed to Jembrana District located about 100km from Denpasar. This time the group consisted of Swisscontact - SCPP staffs [Dirk Lebe, Suharman, Meri Juli Sianturi and Haerul Nangngareng]. Representing Regional Cocoa Forums that supported by SCPP, from Aceh and Luwu Raya Cocoa Forums [Drs. Hasanuddin Darjo, MM and Ir.H.Sam Sumastono,MM]. Representing Cocoa Cooperatives supported by SCPP from Pidie Jaya, Aceh Barat Daya and Kolaka [Ramli, Bustami MS and Jumardin]. Not to miss, the successful Program’s alumnus from South East Aceh [Astuty TS] also came along with us to visit “Kerta Samaya Samaniya (KSS) Cooperative” as our first destination on that day. After about 4 hours driving on hilly roads with big green trees on the roadsides, SCPP’s group reached KSS Cooperative office in Melaya Subdistrict in Jembrana.

Group was warmly welcomed by the Manager of KSS Cooperative, I Gede Made Wista, and other Cooperative’s members.

The meeting was begun with introduction session then followed with Q & A from both sides. KSS Cooperative Manager shared with the group how they can be in their current state after being legalized in 2006. “So far, we already sold 5 tons of certified cocoa beans to Barry Callebaut. The mentoring from governmental institution both local 3

and provincial is the key to the success of the Cooperative,” he uttered. Unfortunately, the Cooperative does not run micro finance activity as they have no authority to do so.

After 3 hours discussion and a short lunch break, we took the road and did laconic visit to a cocoa farm belong to a member of KSS Cooperative I Ketut Windia” situated in Candi Kusume Village, still in the area of Melaya Subdistrict. I Ketut shared that about 300 out of his 1200 ageing cocoa trees that planted first in 1990 have been rehabilitating with using local clone called ‘lindak’since 2012. At present, significant changes already can be seen in his farm. But, truth to be told, our farmers’ farms such as Astuty’s and Bustamy’s are not inferior than I Ketut’s in producing cocoa pods.

left to right: SCPP’s group having discussion with the board member of ‘Kerta Samaya Samaniya (KSS) Cooperative’ situated at Jembrana Bali | sweets and beverage serve during the talks at the office of Kerta Samaya Samaniya (KSS) Cooperative. | I Gede Mustika Adi Wirawan, Manager of Mitra Usaha Kecil’ Savings and Loans Cooperative, presenting the product services offered by the Cooperative

As the day got late, we made our way to our last destination to Blimbingsari Village still in Jembrana District. In this area, we met the board’s member of ‘Mitra Usaha Kecil’ Savings and Loans Cooperative who runs several kinds of credits services to public needed. “With supports from partners such as from NGOs and Banking, we intermediate public in person who needs capital to get credits to help running their small business-

left to right: SCPP’s group visiting cocoa farm belongs to a KSS Cooperative Member | SCPP’s group and board member of Mitra Usaha Kecil’ Savings and Loans Cooperative took a joint picture on front of the Cooperative’s office | SCPP’s group took joint picture after memorable dinner at Jimbaran beach

es either in livestock, plantation crops, and even in groceries sale,” shared the Cooperative Manager, I Gede Mustika Adi Wirawan.

“Unluckily, from above active 5000 out of approximately inactive 15,000 beneficiaries since 2008 we have no beneficiaries who run cocoa business yet. But with the coming of Swisscontact – SCPP group to our cooperative, we are motivated to consider helping cocoa farmers in Jembrana and it is not out of the realm of possibility that cocoa farmers in Jembrana will be our beneficiaries also in the near future,” he added gratefully.

With this meeting group was informed that banking sector such as BRI and BNI could have products that might help our farmers.

After one hour time of sharing knowledge about harvest cycle and maintenance system of cocoa crops to the cooperative’s board, we finally shared our farewell greetings.

Immediately after, the group made its way directed back to the city precisely to Nusa Dua where in the group stayed overnight for the next three days in Bali. On our way to Nusa Dua, the group stopped over at a decent beach restaurant in Jimbaran area to enjoy joint dinner as our tummy kept grumbling during the ride back. The beautiful ambience and waves splashing sound boosted our appetite. After the dinner, group took some shots on a Balinese decorated stage given in the restaurant to capture those once of a lifetime moments of togetherness.

before

after

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n that bright Wednesday, while a SCPP group on the other side of Bali Island, another team member stayed at the Westin Resort - the venue of 6th IICC 2014 - preparing the exhibition booth for the next day. Together with CSP team consisted of Rangga, Rison and Anis, PR team hand in hand juggled the simple quadrangle stand into a decent expo spot. Decorated with dried cocoa leaves, dried cocoa beans and layered with Sulawesi traditional clothes, the expo booth of Swisscontact and CSP beckons the thick nuance of Sulawesi, the center part of Indonesian known for its Sulawesi good cocoa quality.

Plus, the ranks of beautiful goodie bags under the display desks, tantalizing the guests to come by.

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industrial sector, as well as to improve the welfare and the capacity of smallholders.

Subsequently, on behalf of Indonesian Government, Minister of Commerce, Muhammad Lutfi in his opening address explained that Indonesian government continues to seek the presence of Indonesian cocoa on the international market. Indonesia is not only exporting of cocoa beans in order to help meet the global needs, but also to encourage the export of processed products which still have tremendous potential in the global market, especially cocoa products such as cocoa beans are fermented (fermented beans), cocoa powder, and liquor (liquors). As the third largest cocoa producer in the world, Indonesia has been very successful implementing trade policies which not only can increase the production of cocoa beans, but also increase exports of processed cocoa compared with cocoa beans. “I strongly support this event as one of the most effective platforms for international cocoa community to address the issue and hope this conference will create a fruitful outcome,” he concluded.

clockwise: Swisscontact - SCPP and CSP Booth | Representatives from Swisscontact - Nestle and BT Cocoa who attending the 6th IICC 2014 took joint picture at the PISAgro Cocoa Working Group’s booth | [right-left] Manfred Borer and Wisman Widjaja having small chat at the PISAgro’s booth at the 6th IICC 2014 | [left - right] Aceh Governor - dr.H.Zaini Abdullah, Manfred Borer from Swisscontact - SCPP and Ross Jaax from IFACS having a chit-chat before the event commenced

At 10 AM the event was paused to let the guests having a cocoa break before continued with presentations from conference speakers. During the break, the guests visited exhibition booths set at the foyer of Nusantara Room wherein the conference took place. Despite Swisscontact, CSP and PISAgro, other exhibitors were from ICCRI, ASKINDO/INCA, West Sulawesi Provincial Government, Delfi, Jakarta Futures Exchange, Haldin, Batik Keris and Ministry of Trade of the Republic of Indonesia.

Day 1 @Nusa Dua - May 15th, 2014 O

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n Thursday shining morning, after buffet breakfast PR team headed to the conference venue at the Westin Resort located not far from where the team lodged.

It was around 8 AM when team arrived and prepared the two exhibition booths in which Swisscontact – SCPP contributed.

At one booth we shared with the national cocoa platforms known as Cocoa Sustainability Partnership (CSP) while at the other booth we shared with Nestlé and BT Cocoa under Cocoa Working Group of Partnership for Sustainable Agriculture (PISAgro).

Association (INCA/ASKINDO) shared that this worldwide event of the 6th Indonesian International Cocoa Conference and Dinner attended by more than 800 guests coming from cocoa industry originated from more than 40 countries around the world. Represented at the conference are members of the chocolate and cocoa industry, governments, NGOs, academia, worldwide research institutes and all those associated in cocoa fields. The purpose was to exchange ideas and formulate solutions on the current state of cocoa, the future predictions, and how to empower smallholder cocoa farmers in Indonesia and certainly to increase the production of cocoa beans.

Meanwhile, at hotel’s lobby, conference participants registered themselves to collect goodie bags as well as conference materials before entering the Nusantara Room at the Westin Resort in Nusa Dua Bali.

The spoke person from Indonesian Cocoa

Conference

Around 9 AM, after welcoming dance, Chairman of ASKINDO on behalf of the Or-

top to bottom: Minister of Trade, Muhammad Lutfi hit the gong to officially opening the 6th IICC | A lineup of conference speakers and cocoa sector top leaders | Frank Mars, President of Mars Incorporated, delivering his keynote speech at the 6th IICC 2014

ganizing Committee, Zulhelfi Sikumbang, delivered his welcome speech and thanked all the guests for their presences at the 6th Indonesian International Cocoa Conference and Dinner 2014. Bringing out the theme of “Empowering Smallholders for a Sustainable Cocoa Industry,” Zulhelfi hoped that cocoa major issues can be addressed during the two-day discussions to achieve long term sustainable cocoa production for a thriving

At 10.30 AM, program continued with Session I moderated by Bill Guyton, President of World Cocoa Foundation. This session featured conference speakers who are top sustainability experts among others from MARS Symbioscience, Federation of Cocoa Commerce, World Cocoa Foundation (WCF) and Barry Callebaut. This session raised subject of challenges & opportunities of sustainability for smallholder cocoa farmers. Basically, farmers are still dwelling with 6

challenges due to farm conditions such as ageing cocoa trees, low farm productivity/ low soil fertility, pests and diseases, farming communities lack basic infrastructure, no innovation/technical development at farm level, child labour as well as little environmental protection. While in terms of competitiveness, farmers are struggling with lack of business awareness amongst them; unknowledgeable about their farm size, lack of regeneration of cocoa farmers, land tenure, very little farm level finance available as well as confused governmental policy. All these run the risk to future cocoa supply. “However, there are measures that can be done to achieve the sustainability for smallholder cocoa farmers. Through the provision of full package consists of farmer training, farm finance & full inputs package, seedling and planting materials, community infrastructure, as well as with the establishment of impact measurement system such as CocoaMAP and Geotraceability, the sustainability can be ensured, “ shared Nicko Debenham, WCF Chairman and Vice President Global Cocoa Sustainability at Barry Callebaut.

Unwittingly, it was 12 AM and time to break. All the guests were then invited to enjoy fancy lunch sponsored by MARS. After one hour lunch break, program continued with

clockwise: During break time, Zulhelfi Sikumbang, Chairman of Indonesian Cocoa Association, enjoying refreshment provided by Nestle | A conference guest visiting Swisscontact - CSP booth at the 6th IICC 2014 | Mercedes from UTZ glancing at the SCPP traning manuals displayed at the Swisscontact - CSP booth at the 6th IICC Bali 2014 | conference guests visiting PISAgro booth during the break

Session II themed ‘the Path to Sustainability’ and moderated by Ross Jaax, Independent Consultant, IFACS/Tetra Tech. This session featured guest farmers Astuty from Aceh and Andi Asri from Sulawesi. Our successful farmer from South East Aceh, Astuty TS, shared that secrets of her success in growing cocoa are sustainable and good farming practices (PsPSP – Frequent Harvest, Pruning, Sanitation, and Fertilizing) and rehabilitation of unproductive cocoa trees with using superior clones. All those I learnt during PEKA Field School facilitated by Swisscontact,” she uttered. Filling this session, series of presentations and open discussion covered topics of farm rehabilitation, quality improvement & market trends, cocoa enterprise financial management and the role of agri-finance in a sustainable farming, as well as role of a MultiStakeholder forum. At 16.30 PM, the first day of conference was closed with a singing titled ‘Ayo Rawat Kebun’ performed by Astuty.

Dinner

But the mingling time was not over yet. It was before sunset when all the guests were invited to the Welcome Cocktail sponsored by BT Cocoa at Garden Beach – Nusa Dua Beach Hotel and Spa. Over cocktails, beers or juices the cast of cocoa and chocolate from around the world exchanged their thoughts on improving cocoa world casually. Subsequently, all the guests moved to the other side of the hotel precisely to the open-air Budaya Cultural Theater wherein the Indonesian Night sponsored by Mondelez International took place. Starting the Indonesian Night, the Aceh Governor dr.H. Zaini Abdullah in his speech said that it is targeted in 2017 that Aceh will be the largest cocoa producer in western Indonesia.

“This optimism cannot be separated from the interests of investors who are giving much attention to Aceh. Commodities are developed not only palm oil and rubber, but also cocoa. Currently, cocoa plantation in Aceh is about 100,000 hectares with cocoa production up to 27,000 tons per annum, and there are still 120,000 hectares of idle land needed to be maximized. Therefore, please come abuzz to Aceh, witness the potential and do invest in Aceh,” he concluded.

Afterwards, all the guests were amused with performances of traditional Balinese dances ‘legong and ramayana dances’ and also singings. Completing the Indonesian Night, all the attendees including the team relished the dinner which was a buffet set on the top tier providing a selection of the delicious Indonesian dishes. After filled us in, around 10 PM the team called it a day.

top to bottom: Guests enjoying welcome cocktails sponsored by BT Cocoa | Ambience of Indonesian Night at the 6th IICC | Aceh Governor, dr.H. Zaini Abdullah delivering his speech at the Indonesian Night | A food counter attendant girl and a selection of Indonesian traditional dishes at the Indonesian Night | A beautful balinese dancer featuring a balinese traditional dance called Legong at the opening of Indonesian Night

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left: conducive ambience captures at the Nusantara Room thought it was the 2nd day of the 6th IICC 2014 | right: Indonesian Agriculture Minister, Suswono having press conference at the 2nd day of the 6th IICC 2014

Day 2 @Nusa Dua - May 16th, 2014 I

t was 8 AM hot Friday morning outside as the second day of the 6th Indonesian International Cocoa Conference (IICC) started. The event was opened with an unexpectedly performance of three sportive women featured some sporty dancing on the stage. The music encouraged all the guests to dance along and follow the steps of the dancer. It was surprisingly fun and relaxing.

Conference

The second day of IICC was filled in with a series activity of presentations, discussion, and talk show as well as conference conclusions/outcomes.

Within the Session I, Jean-Marc Anga, Executive Director of International Cocoa Organization (ICCO) shared his overview of the current status and prospects for the global cocoa market. It was followed then with a speech from Indonesian Minis-

ter of Agriculture, Suswono, exposing the state of cocoa commodity in the Indonesian development master plan. In his press conference in a separated room, Suswono said that in addressing the attack of CPB pest faced by many Indonesian farmers, soon there will be new clone that resists to CPB launched.

Next in the agenda were presentations on Global Perspectives on Production.

This Session II was moderated by Yeong Chye, ADM Cocoa Managing Director Asia.

Keynote speech was delivered by Jos de Loor, Cargill President Cocoa & Chocolate.

In order to fill the conference guests on another production perspective, Ebenezer Tei Quartey, Director of Research of Ghana Cocoa Board, presented the African aspect on cocoa production. Thereafter, Brandon Tay, Chairman of Cocoa Association of Asia (CAA) exposed the CAA view on Grinding in South East Asia and the Pacific. Based on CAA view, three current major grinder countries in Asia are Malaysia, Indonesia and Singapore, in which 80% close to actual grind in Indo-

left: [right - lef]] conference guests from Nestle Debora Tjandrakusuma and Ratih concentrating on the topics discussed | right: [left-right] conference participants [ Suharman from SCPP, Jacqueline Widjaja from ADM Cocoa and other cocoa stakeholders] paying attention to the 6th IICC 2014 conference speakers

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clockwise from the left: Manfred Borer moderating ‘Certification of Sustainable Cocoa production’’ session at the 2nd day of the 6th IICC 2014 | [right-left] Daniel Hazman from IDH; Manfred Borer Bustami MS, Dirk Lebe, Astuty | Swisscontact - SCPP group took a shot with Ross Jaax from IFACS at the second day of 6th IICC | a stand attendant girl from Delfi, expo participant offering delicious choco snacks to the guests | Conference guests having talks over cocoa or coffee drinks during cocoa break from SCPP’s group; and two other global cocoa casts posing for a joint picture during conference’s break time | Conference guests from Barry Callebaut

nesia. Then, on cocoa sector developments in South America, Juan Fenando Valenzuela from Compania Nacional de Chocolates presented the state of cocoa production in Colombia, Peru, Ecuador, Brasil, Venezuela and Bolivia. He explained that similar challenges as in Indonesia such as low productivity, low management skills, limited financial access, high incidence of pest and disease faced also in cocoa sector in those countries.

Around 11 AM after a short cocoa break, Session II regarding Certification of Sustainable Cocoa Production was commenced and moderated by Manfred Borer, Program Director of Swisscontact – SCPP. In his short speech, he explained the importance of cocoa certification as to verify that cocoa beans produced in such a way that is good for farmers, the environment and the industry. Therefore, Swisscontact through

Sustainable Cocoa Production Program (SCPP) is pursuing certification for SCPP beneficiaries. So far, in SCPP’s project area, cocoa farms belong to 2,451 Program’s beneficiaries in Aceh are UTZ Certified in November 2013 while in Sulawesi a total of 2,033 smallholder cocoa farmers’ fulfilled all requirements to grant UTZ Certified in April 2014. Next, Fay Fay Choo, Mars Asia Cocoa Director delivered her presentation on Mars’ Agenda that Mars now change the goal from “certified” to “sustainable” by focusing on end goal of sustainable production practices for sustainable supply chain instead of merely helping farmers passing audits. Subsequently, topics on ‘certifying sustainability and conformity assessment in West Africa’ and then ‘traceability’ presented respectively

by Michiel Hendriksz, ADM Cocoa Director of Sustainability, and by Piere Courtemanche, the Geotraceability CEO. Then during 10

A balinese traditional hat called ‘udeng’ attached around the head of male conference guests

Q&A regarding the necessity of cocoa traceability in certification, Manfred Borer shared what thus far SCPP has been doing to provide information on cocoa supply chain to all Program and Implementing Partners that include international brand companies such as Nestlé, Mars, ADM Cocoa, Cargill, Armajaro and Barry Callebaut. “SCPP is using a weband mobile based application called ‘Cocoa Trace’ which enables all partners’ staffs and Program’s field staffs to access, collect, edit, and review farmer data in the field and directly upload data to the backend server.

With this, cocoa producers can be engaged in a value chain and transparency in the supply chain can be ensured,” concluded he.

Breaking the session was again a fancy buffet lunch. This time lunch was sponsored by Barry Callebaut. After an hour break, event was continued with a Talk Show on The Way Forward for Smallholder Cocoa Farmers by Public and Private Sector Perspective hosted by Bill Guyton. Representing the sectors are Daniel Hazman from IDH, Andrew Harner – Mars, Taco Terheijden – Cargill, Daudi Lelijveld – Callebaut, Tejinder Singh Saraon – Olam International and Soetanto Abdoellah from Indonesian Cocoa Board. This session was hosted by Bill Guyton, President of WCF. Thereafter, Sikstus Gusli, Academic from Hasanuddin University shared the conference outcomes by saying that challenges of low supply faced by the cocoa sector nowadays especially in Indonesia can be overcome through strong cooperation and collaboration from all cocoa stakeholders. Also, innovative technology to boost the production should be developed. Closing the conference, President of WCF, Bill Guyton thanked all the attendees for their presences and contributions to the world of cocoa.

Dinner

That day, all the guests were invited to have pre-dinner cocktail sponsored by Guan Chong at Mangapura Foyer at the Westin Resort Nusa Dua Hotel. Themed with masquerade party, female guests were provided with elegant masquerade masks while the male guests were laced with Balinese turban called ‘udeng’. The ambience was very Indonesian as all the guests had batik outfits. Platters were served by beautiful girls in amazing masquerade costumes. Later on, all the guests entered Mangapura Hall that was sumptuous decorated to enjoy Cocoa Gala Dinner sponsored by Olam International. Before the dinner, event organizer and sponsors delivered their speeches and were given plaque of appreciation. To the success of cocoa world, all the guests made a toast. Then the guests were served with a selection of international dishes in parade. Whilst enjoying the dinner, various traditional dances and singings featured entertaining the guests.

It was indeed a glamorous gala dinner.

A food counter attendant serving platter food at the Pre-Cocktail Dinner

Michiel Hendriksz, ADM Cocoa Director of Sustainability, layered with Udeng around his head and a beutiful global cocoa cast with masquerade at the pre-cocktail dinner

[left-right] Haerul N from Swisscontact, Christopher Hervé from Cargill, Manfred Borer from Swisscontact and Michiel Hendriksz from ADM Cocoa posing on the red carpet of the 6th IICC Bali 2014

Conference guests devoured ‘tea smoked duck breast and salmon olive oil marinated mozarella cheese with sun ripe tomatoes and balsamic syrup’ as appetizer

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One fine Balinese sunset from Padang - Padang beach

Thank you note A

s it was a successful Bali trip, the Swisscontact – SCPP PR team would like to thanks to mentioned names as below: To SCPP team [Suharman, Meri J S, Haerul, Rahmayanti, Untung S., Ardiansyah, Nova, Robby, Vivi, Supinar and Edho] for the wonderful arrangements. To CSP team [Rini Indrayanti, Rangga, Anis, and Rison] as well as to Nestlé and BT Cocoa team [Elizabeth Wairatta, Ong Kang and Christian] for the good cooperation during the exhibition. top: ambience at the 6th IICC 2014 Gala Dinner bottom left: Nusantarara dances included several of Indonesian traditional dances from western to eastern Indonesia feautured at the Gala Dinner | right: Toast made by cocoa top leaders to the success of cocoa world at the Gala Dinner

Once again thank you everyone for the big efforts in making the trip advantageous!

SCPP - PR and Communication Team AS/MW

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n the next day, Saturday – May 17, some guests joined the Cocoa Golf Tournament

which sponsored by Cargill at Bali National Golf Club & Resort Nusa Dua. The idea was to open up more opportunities for the cocoa associated players to talk on developing cocoa over golfing. This tournament marked then the end of the 6th Indonesian International Cocoa Conference 2014 in Nusa Dua Bali.

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! n u b e k t a w a r o y A 14