P PULAR REP RT 2014
Content List Content List....................... 3
Java.................................. 18
Foreword............................4
Flores................................ 20
About VECO Indonesia ......... 6
Sulawesi............................ 22
Program Area...................... 8
Collective Marketing............ 24
Summary............................10
Finance............................. 26
Activities........................... 12
Testimonial........................ 28
Kerinci.............................. 14
Contact............................. 30
Jakarta.............................. 16
Foreword
Production In 2014 VECO Indonesia started implementing the new program 2014-2016. The value chains program continue with several additional partners and Structural Change Agendas (SCA) have been introduced. The experience and learning from the pilot chains will become evidences to be used by SCA partners at the national level to contribute to SCA’s (policies, practices) that are more favourable to smallholder farmers. The target group (direct beneficiaries) in 2014 is 23,898 farmers (15% female), increased by 49
Farmers Organisation percent from 2013. The wider program coverage area and higher trust of farmers in farmer organisations contribute to this increase. The new program areas are: Luwu Utara, Parigi Moutong, and Sikka for cocoa chain, Ende for coffee chain, and Tasikmalaya for rice chain. Cocoa program in Flores Timur has also expanded to Adonara Island and in Ende to Liu Timur Sub-district. Our new farmer organisations (FO) are: Cahaya Sehati, Parimo, FO Ende, FO Sikka, Simpatik, and P3LL.
Agribusiness VECO Indonesia has facilitated partnerships between farmer organisations (FOs) and private actors for Cocoa Sulawesi, Cocoa Flores, Coffee Sulawesi, Coffee Flores, Rice Flores, Rice Central Java, Rice West Java and Cinnamon Kerinci with the objective of improving the business capacity of FOs to engage and comply with the requirement of modern markets. In general there has been an increase in the yearly incomes of farmers, thanks to a large degree to the higher price of the commodities. Increasingly
unpredictable weather conditions pose risks to the production, especially rice. Farmers’ resilience to cope with this condition continues to be tested. In this Popular Report, you can read more about our achievements together with partners in 2014. We hope you enjoy reading it and learn from it as well.
Rogier Eijkens
Regional Representative VECO Indonesia
About VECO Indonesia
The inclusion of smallholder farmers
Main Program
Sustainable rice production of good standard quality
8 Regional Offices Globally
Head Office in Leuven, Belgium
Part of Vredeseilanden
Increasing the capacity of business and organization of farmers
Improving the capacity of partners and local institutions
Goals of Program Continuously increasing the capacity if VECO Indonesia staff
Strengthening farmer organizations
Program Area
Kerinci
Jambi
Solo Boyolali Greater Jakarta
Polman Enrekang
West Java Central Java
East Java
Tasikmalaya Malang Lumajang
Denpasar
Gianyar
INDONESIA Parigi Moutong
North Toraja
West Sulawesi East Luwu
South Sulawesi
North Luwu
Makassar Palopo Tana Toraja
Ende
NTT East Flores Sikka Nagakeo
Manggarai
Ngada East Manggarai
Legends Office
Rice
Cocoa
Healthy Food
Coffee
Cinnamon
Summary
85%
Direct Beneficiaries
20,313
15% 3,685
Total
23,898 farmers increased by 49% from 2013
Partners Farmer Organisations
NGOs and Forums
Private Sector
Local Government
Total
70
Partners
18 18 16 18
Facilitating improved production of farmers
2014 was a year of change for Indonesia and for this organisation, VECO Indonesia. In this year, Indonesia got a new leader and a new cabinet. For VECO Indonesia, 2014 marked the beginning of change with a new programme.
Building the business capacity of farmer organisations
Main Activities 2014
Last year, we started a more intensive phase of introducing farmer organisation as business entities. So, during 2014, we focused more on programmes to build the business capacity of farmer organisations.
Facilitating quality standard training
Supporting gender integration
Linking private companies and smallholder farmers
Facilitating links with financial institutions
Performing monitoring and evaluation
Organising business meetings between farmers and private companies
Facilitating specific training to strengthen business
Promoting farmer products
Facilitating trademark packing and labelling workshops
Kerinci
Jambi Kerinci Commodity: Cinnamon
In 2014, TAKTIK officially became a farmer organisation with legal status that focuses on sustainable agriculture development activities and programmes. Having this legal status makes it easier for TAKTIK to build partnerships with others, such as buyers and government.
Partners
TAKTIK farmer organization
PT Agripro Tridaya Nusantara
Mitra Aksi Foundation
Partnerships Members
70%
The partnership between TAKTIK and PT Agripro Tridaya Nusantara (ATN) included the purchase of 8 tons of cinnamon and working capital support.
(707 of 1,014)
of TAKTIK members Have adopted organic farming practices. Using organic fertiliser and pesticide. Creating terraces to save water and prevent erosion.
Increase farmers' income
Achievements
Semester I:
Gross Income
13.5 million per1.5 hectares
IDR
Semester II:
Gross Income
16,5 million per 1.5 hectares
IDR
Jakarta
Jakarta
The programme focused on advocacy related to the multi-quality national standards for rice, strengthening the national rice producer organisation, inclusive retail business, and raising consumer awareness about healthy food.
Alliance of Indonesian Farmers (API)
Partners
Indonesian Consumer Foundation (YLKI), Perkumpulan Indonesia Berseru (PIB), Environment Education Centre (PPLH) Bali, Healthy Food Foundation of Indonesia (YAPSI), Organic Alliance of Indonesia (AOI), Specialty Coffee Association of Indonesia (SCAI), dan Cocoa Sustainability Partnership (CSP).
Farmer organisations have a good relationship with the district governments. They have been invited to take part in dialogues on sustainable agricultural themes.
2014 SCAI Coffee Auction: 144 speciality coffees registered, 31 samples got high scores, five of them from VECO Indonesia partners, Permata (Ngada), Asnikom (Manggarai) and Benteng Alla (Enrekang).
Achievements The government agreed to get involved the Cocoa Sustainability Partnership activities and in harmonising the CSP Cocoa Roadmap with government plans for cocoa.
On 17 September 2014, 17 farmer organisations established the Indonesian rice farmer association Amartapadi in Boyolali, Central Java. The aim of the organisation is to provide a forum and enhance the negotiating position of rice farmers.
Java West Java Tasikmalaya
Central Java Boyolali
Solo
East Java Malang
Lumajang
The programme focused on rice development by farmer organisations in Boyolali, Central Java, and in Tasikmalaya, West Java. VECO Indonesia has also just started a coffee development programme in Lumajang and Malang, East Java.
Commodities:
Rice and Coffee
Partners
Asosiasi Petani Padi Organik Tasikmalaya (Simpatik), Asosiasi Petani Padi Organik Boyolali (APPOLI), Aliansi Petani Organik Boyolali (APOB), Paguyuban Petani Pengelola Lahan Lestari (P3LL)
Simpatik and APPOLI formed a cooperative in 2014. As legal entitities, these cooperatives are platforms for marketing organic rice on the domestic and foreign markets.
Lembaga Studi Kemasyarakatan dan Bina Bakat (LSKBB), Gita Pertiwi Indonesian Retail Merchant Association (APRINDO), PT Bloom Agro
Farmer organisations signed contracts with private companies: APPOLI with Sembada Inti Pangan, BSN, Quasinde and SMESCO, and Javara and Simpatik with Bloom Agro.
Achievements Volume of rice sold through collective marketing (in tons):
APPOLI APOB Simpatik P3LL
110.34 8.9 120.37 16.15
Total
255.76 tons
Two farmer organisations received organic and fair trade certification. Simpatik received organic certification from IMO, and APPOLI received fair trade and national organic standard certification.
Flores
Flores
East Manggarai Ngada Manggarai
Nagakeo
East Flores Ende
Sikka
The focus of the programme in Flores is development of coffee, cocoa and rice in seven districts on Flores Island. The main support is for building the business capacity of farmer organisations in this area.
Partners
Yayasan Tana Nua Flores (YTNF), Mitra Tani Mandiri (MTM) Ngada, Ayu Tani, Delsos Ruteng, and Lembaga Advokasi dan Pendampingan Masyarakat (Lapmas) Ngada
Jaringan Petani Wulan Gitang (JANTAN), Asosiasi Petani Kakao Nangapenda (SIKAP), Asosiasi Tani Organik Mbay (ATOM), Asosiasi Petani Kopi Organik Manggarai (Asnikom), Perhimpunan Petani Watuata (Permata), Farmer Organisation in Ende and Sikka.
Support from the Finnish Embassy for ATOM of
Comextra Mayora, PT Indokom Citra Persada, PT SBN, and Volkopi
Memorandum of Understanding (MoU) between VECO Indonesia and Bank NTT to support rice, cocoa and coffee farmer organisations in Flores.
IDR 601,184,000
Achievements
IDR 300 million support for cocoa processing facilities from the Ministry of Cooperatives for JANTAN multi-business cooperative.
Support in the form of coffee grinding and other equipment for ASNIKOM coffee processing unit in Manggarai, and a commitment to provide working capital to buy coffee in 2015.
Sulawesi Parigi Moutong
West Sulawesi Polman
North Toraja
North Luwu
Tana Toraja Enrekang
South Sulawesi Makassar
East Luwu
Central Sulawesi The programme focused on cocoa development in three provinces (West Sulawesi, South Sulawesi and Central Sulawesi) and on coffee development in Tana Toraja, North Toraja, and Enrekang, South Sulawesi.
Mitra
Amanah, Masagena, Cahaya Sehati, Perhimpunan Petani Kopi Toraja (PPKT), dan Benteng Alla
Amanah, Masagena and Cahaya Sehati received certification from Rainforest Alliance for sustainable cocoa. They covered the cost of certification themselves.
Wahana Sukses Pertanian Terpandang (Wasiat), Jalesa Toraja ECOM, PT Mars Symbioscience Indonesia, Continaf/Nedcommodities, Sulatco, Toarco Jaya
Farmers' price negotiating skills are improving. Sulatco and Toarco Jaya provide PPKT daily price information. Benteng Alla receives a higher than market price.
Achievements Net income per month per hectare Volume of coffee marketed collectively:
Polman:
332 Benteng Alla 18.8 tons PPKT
tons
North Luwu: East Luwu: Parimo:
IDR 2.5 million IDR 2.9 million IDR 576,000 IDR 946,000
Collective Marketing in 2014 Amanah
276
Masagena
181
Cahaya Sehati
161.7 Parimo
202.4
Jantan
43.5 Sikap
PPKT
Permata
Sikka
Benteng Alla
Asnikom
332
22.5
18.8
0.22 Total cocoa of Sulawesi
821.14
Total cocoa of Flores
66.22 in tons
Total coffee of Sulawesi
350.8
13.86
35.77 Total coffee of Flores
49.63
Appoli
110.34
APOB
8.9
P3LL
16.15
Total rice of Flores
13.43
Total rice of Central Java
135.39
Total rice of West Java
120.38
Total cinnamon of Kerinci
8.83
Finance Triple 11
2.09% 515,751,210
TRDS
CORDAID
1.96% 482,057,838
ZUIDDAG
0.89% 218,990,007
2.68% 660,000,000
NOVIB
5.33% 1,313,226,578
FAO
0.76% 188,179,387
MISEREOR
Income (in IDR)
DGD (Belgium)
64.49% 15,900,942,452
8.58% 2,116,169,368
DFAT / AUSAID
13.23% 3,262,040,241
General operation
4%
825,991,302
Training and meeting
25%
4,752,064,404
Personnel
19%
3,602,624,333
Expenses (in IDR)
51%
Partners Activities 9,725,720,001
1%
Investment 98,709,000
Testimonial Initially, JANTAN and SIKAP had no knowledge of good quality cocoa beans. However, thanks to support from VECO Indonesia and Comextra Mayora, in 2014 they learned to produce very good quality cocoa beans.
With support from VECO Indonesia, we are able to produce better quality cinnamon.
Junaidi , Romanus Nong Rewo,
Vice Lead, Coordination Team, PT Comextra Mayora, Maumere
Farmer in Kerinci, Jambi
On behalf of the district government, I would like to thank VECO Indonesia for motivating coffee farmers to improve the quality of their coffee; Benteng Alla coffee now meets the market standards to be sold as speciality coffee.
Muslimin Bando ,
Regent of Enrekang, South Sulawesi
Contact Regional Office
FA Jawa
Jl Kertadalem No. 7 Sidakarya Denpasar, Bali 80224 Telp +62 361 727378 Faks +62 361 723217
Perumahan Galaxy Permai Blok B No. 9 (Utara Terminal Boyolali), Boyolali, Jawa Tengah HP: 08113854464
FA Kerinci
FA Sulawesi
Jl. Depati Parbo, Rt. 03 Desa Kumun Mudik Kecamatan Kumun Debai, Sungai Penuh, Jambi HP: 08117454330
Jl. Gunung Rinjani I no 7 Perumahan New Jasmin Tanjung Bunga Makassar, Sulawesi Selatan HP: 08113854464
FA Jakarta
Jl. Gatot Subroto no 7 Ende, Flores, Nusa Tenggara Timur HP: 08113854463
Jl Saleh Abud No. 18-19 Otto Iskandardinata Jakarta HP: 08113854465
FA Flores
This report printed in 50 percent of recycle paper as commitment of VECO Indonesia to environment.