BACK ON OUR FEET by Virgi F. Tan

BACK ON OUR FEET

The Personal Stories

of Micro- and Small Enterprises Recovering from the Yogyakarta and Central Java Earthquake

INTERNATIONAL ORGANIZATION FOR MIGRATION – JAVA RECONSTRUCTION FUND Livelihoods Recovery Project

BACK ON OUR FEET The Personal Stories

of Micro- and Small Enterprises Recovering from the Yogyakarta and Central Java Earthquake

INTERNATIONAL ORGANIZATION FOR MIGRATION â&#x20AC;&#x201C; JAVA RECONSTRUCTION FUND Livelihoods Recovery Project

Acronyms

ADB BPBD EC IDR IOM JRF MSE USD

Published by International Organization for Migration (IOM), Yogyakarta Jl. HOS. Cokroaminoto 109, Yogyakarta 55253, Indonesia Ph. +62 274 619055-619056 Fax. +62 274 619012 www.iom.or.id

Asian Development Bank Regional Disaster Management Agency European Commission Indonesia Rupiah International Organization for Migration Java Reconstruction Fund Micro- and Small Enterprise United States Dollar

Welcome Message â&#x20AC;&#x201C; International Organization for Migration (IOM)

Of the past couple of years, I have made frequent trips to Javanese villages to meet first hand with beneficiaries being supported under the IOM-JRF Livelihoods Recovery Project. It has always been a highly pleasant experience, as Javanese people are quick to welcome you to their homes and show you their work places, and will for sure offer sweet tea and fried banana snacks. During these visits, I have also been pleased to note an increased level of vibrancy and sense of optimism in the communities. It is obvious that victims of the tragic earthquake, which occurred almost five years ago now, have made massive strides in rebuilding communities and restoring livelihoods, which had been so devastated by the onslaught of a sudden natural disaster. With the support of the multi-donor JRF grant facility, and in close co-operation with the Government of Indonesia, this IOM-implemented project has over the past three years been supporting 4,300 micro- and small enterprises (MSE) return to viability, a project which has made an important contribution in helping to restore livelihoods and incomes back to the pre-earthquake levels and better. With the Livelihood project coming to a close in the near future, Back on our Feet was compiled based on interviews with 11 beneficiaries representing different economic sectors. Their first hand accounts give valuable perspective on what this project has meant for them and how it has contributed to the achievements of MSEs in Yogyakarta and Central Java. I hope you enjoy their stories.

Denis Nihill Chief Of Mission IOM Indonesia

Welcome Message â&#x20AC;&#x201C; Java Reconstruction Fund (JRF)

Rebuilding lives after any disaster is a daunting task, and this is especially true for communities in Yogyakarta and Central Java which were hit by a major earthquake in May 27, 2006. In response to this, the Java Reconstruction Fund (JRF) was established to support the recovery and reconstruction efforts of the Government of Indonesia. The facility pools a total of about US$ 94 million in grant contributions from the European Union, and the governments of the Netherlands, United Kingdom, the Asian Development Bank, Canada, Finland, and Denmark. Following on the successful implementation of a transitional shelter initiative, which was also funded by the JRF, the International Organization for Migration (IOM), was once again selected as one of the two JRF implementing partners that support the recovery of livelihoods for micro- and small enterprises (MSEs). These MSEs had been severely impacted by the earthquake and were struggling to get back on their feet. Now in its third year of implementation, IOM has been effective in assisting 4,300 MSEs to recover their livelihoods. As evidenced by reactions from Government partners at the central, provincial, district and local levels, as well as representatives of the donor countries, the project is showing good results and is in line with the overall objective of achieving a lasting economic and social recovery. In these final months, as the project approaches its closing date in June 2011, IOM has been focused on further expanding government capacity and implementing its exit strategy to ensure continuity through Indonesian institutions. In the context of the impending project completion, I am pleased to present to you this booklet which contains firsthand accounts from the beneficiaries, including their candid perspective on achievements and progress as well as outlining their hopes for sustainability going forward. These stories demonstrate the remarkable resilience shown by the people of Central Java and Yogyakarta in rebuilding their lives following the disaster of 2006. It is my hope that these stories can serve as an inspiration for future livelihood recovery initiatives in post-disaster situations in Indonesia and worldwide.

Shamima Khan Manager Java Reconstruction Fund

Welcome Message â&#x20AC;&#x201C; Government of Yogyakarta Province

Thanks to God's blessings and our hard work, the recovery process after the devastating 5.9 Richter scale earthquake in Yogyakarta Special Region and Central Java has progressed smoothly and is considered to be the quickest post-disaster recovery in the world. Lives have been restored and in some ways have even improved. The key to success in this recovery process can has been the application of local wisdom to awaken and empower society, namely "gotong royong, saiyeg saeka kapti" or the spirit of togetherness and awareness in helping others. Also the prevailing mentality that, "all assistance is directed to helping communities so that they help themselves" has been important. Experience has shown that the most difficult aspect of recovery following the earthquake has been the economic aspect, especially with regard to the restoration of livelihoods, the re-establishment of micro and small enterprises (MSE), the facilitation of access to finance and the upgrading of work premises. However these difficulties have been overcome thanks to the support of the Java Reconstruction Fund (JRF), a multi donor institution under the administration of the World Bank which is funded by the European Commission, the Asian Development Bank, and the governments of the Netherlands, Canada, the United Kingdom, Finland and Denmark. JRF has funded rehabilitation, physical reconstruction and livelihood recovery projects implemented by the International Organization for Migration (IOM). The support of the IOM-JRF Livelihood Recovery Project to MSE has come in the form of technical trainings, livelihood related infrastructure rehabilitation, access to market, and capacity-building for local government and civil society. The project has presented encouraging results both in terms of quantity and quality. One of the most positive results has been the growth in the self-confidence and self-sufficiency of the project beneficiaries. This success should not simply falter after the IOM project is completed in June 2011. The sustainability of project gains needs to be considered, even without IOM assistance or JRF funding. Thus, an exit strategy needs to be prepared so this livelihood recovery project can be continued by anybody and with the support of funds from any source. It will not be easy but with good cooperation and hard work all difficulties can be overcome. So, all that remains for me to say is, thank you IOM and JRF.

Welcome Message â&#x20AC;&#x201C; Government of Central Java Province

As we all know, the IOM - JRF Livelihood Recovery Project will be completed on June 30th, 2011. The project has had many positive impacts for communities affected by the May 27th, 2006 earthquake. Therefore, on behalf of the government and entire community of Central Java Province, I would like to express my appreciation to all sources of international financial aid channeled through the Java Reconstruction Fund (JRF) and IOM as the implementing agency through its Livelihood Recovery Project, which has supported the post-earthquake economic recovery in Central Java Province. The Livelihood Recovery Project aims to rehabilitate and reconstruct the livelihoods of earthquakeaffected communities by enhancing the capacity of micro and small enterprises (MSE) through the following initiatives: access to microfinance, replacement of production tools, renovation of showrooms or workshops, and the provision of technical trainings such as design, business management and bookkeeping in order to boost market access and increase profits for MSE. As one of the JRF's implementing agencies, IOM has successfully implemented livelihood recovery projects in three districts: Klaten, Sukoharjo and Boyolali. The successful impacts and positive experiences from the implementation of the IOM - JRF Livelihood Recovery Project will serve as a good example for stakeholders and governments at all levels - national, provincial and district - when implementing this type of project in the future. We also need to prepare an exit strategy to ensure that project hand over is well-managed so that economic development continues within the framework of regional development in Klaten, Boyolali and Sukoharjo districts.

M. Natsir Noor Effendy, SH, M.Si Head of Rehabilitation and Reconstruction Section BPBD Central Java Province Ir. Bayudono, M.Sc Development Advisor for the Governor of Yogyakarta Special Region

Contents 11 IOM in Yogyakarta and Central Java: An Overview 12 Agriculture Sector 20 Food-Processing Sector 26 Handicrafts Sector 36 Livestock Sector

IOM in Yogyakarta and Central Java

Everything changed in a matter of seconds for thousands of Indonesians in the early morning of May 27, 2006. For 5760 people, life ended when an earthquake measuring 5.9 on the Richter scale wrecked havoc in Yogyakarta and Central Java provinces. For thousands more who were lucky to survive, livelihoods were destroyed. IOM has since been supporting tens of thousands of earthquake victims in Yogyakarta and Central Java provinces to rebuild their lives through targeted assistance in the fields of emergency aid, logistics, temporary and permanent shelter, infrastructure rehabilitation, livelihoods and disaster risk reduction. Apart from the JRF donors â&#x20AC;&#x201C; European Commission, Asian Development Bank and Governments of the Netherlands, Canada, United Kingdom (UK), Finland and Denmark, IOM also received significant funding from United States Agency for International Development (USAID), Humanitarian Aid department of the European Commission (ECHO), Australian Agency for International Development (AusAID), Queensland Government, Netherlands Red Cross and UK Department for International Development (DFID) with the total financial resources received by IOM Yogyakarta since 2006 in excess of USD 18 million. Following the successful implementation of an earlier temporary-shelter project funded through the multi-donor JRF, IOM was awarded additional JRF funding for the implementation of a comprehensive, multisector livelihood support project. This project will continue until 30 June 2011. Administered by the World Bank, IOM has been supporting the economic recovery of MSE in recovering their pre-earthquake operating capacities. Under the first phase of the IOM-JRF Livelihoods Recovery Project, beneficiaries in the livestock, crop production, food processing, handicraft and fisheries sectors were targeted for assistance. IOM supplied beneficiaries with essential productive assets to replace those damaged or lost in the earthquake, increased their capacities through technical and business development training and also facilitated their access to bigger markets. The project's extension phase until June 2011 will allow for a responsible and seamless handover of the project to local governments and communities through government capacity building, community-based disaster risk management and access to finance support for MSE.

AGRICULTURE

Sector

A new innovation is changing the way farmers grow their produce in rural Yogyakarta and Central Java. The Livelihoods Recovery Project has trained farmers to switch from conventional farming methods, which use costly and environmentally harmful chemicals, to organic farming methods, which utilise natural waste sourced locally. These organic farmers are now seeing their produce, along with their profits, grow. As their reliance on chemicals declines, fertility of their land plots has improved, resulting in better crop yields. The Livelihoods Recovery Project has also replaced vital infrastructure to secure the livelihoods of farmers. In Kebon Village, Klaten District, Central Java, a rehabilitated irrigation system is directly supporting more than 120 farming families, supplying water to 30 per cent more arable land and reducing water costs.

BENEFICIARY STORY Agriculture Sector

Soeharto Soeharto is doing away with chemicals and going organic. The notion of organic farming is growing on the 66-year-old and his fellow rice farmers in Sukoharjo Village, Central Java. As secretary of a group of 29 farmers assisted by the Livelihoods Recovery Project, Soeharto has adopted a more eco-friendly approach and now expects substantially improved results. Switching to fertilizers made of natural waste and sourced locally will not only benefit the environment, but also reduce costs and, in turn, boost profits. Such benefits would be a welcome relief for Soeharto whose house was severely damaged – his tiled roof collapsed – in the earthquake. “The shift to organic farming has shown a positive impact. Agricultural production is increasing and soil quality is improved by the usage of organic fertilizer. I hope to be able to apply the organic method more in the future,”

says Soeharto, while showing off some of the replacement tools he received through the project, such as hoes, straw choppers and equipment to produce organic fertilizer. Soeharto estimates that while the cost of chemicals continues to grow, he will save handsomely on production costs during the three annual harvests – adding to his IDR 1.8 million profit per harvest. Where he formerly paid IDR 240,000 for four small bottles of chemical fertilizer, he now expects to use four litres of organic fertilizer at IDR 10,000 per cultivating season. Inspired by technical trainings, Soeharto has gradually introduced organic fertilizer into his fields. Business development workshops have also changed the way he thinks about farming. “They have really helped us with tidying up bookkeeping and have taught us how to calculate spending and earnings, which is something that we weren't familiar with before.”

The training sessions have really helped us with tidying up bookkeeping and have taught us how to calculate spending and earnings, which is something that we weren't familiar with.

BENEFICIARY STORY Agriculture Sector

Yuni I dream of being able to supply organic vegetables in a bigger and more constant capacity, and have my own label so I can market them to supermarkets and retail markets.

A garden full of organic vegetables is not just a story of agricultural growth, but one of personal growth for Yuni, a treasurer of one of the four beneficiary groups in Sumberharjo. Like many of the women in her village of Sumberharjo, Yogyakarta Province, she is expanding her horizons into the business realm as an organic farmer supported by the Livelihoods Recovery Project. Yuni, who previously worked as a migrant worker overseas, believes she is now equipped with the appropriate business and technical skills needed to make the most of a rapidly growing market for organic vegetables. “Organic farming helps the local community and especially women because it provides an occupation that brings in extra income,” says Yuni, gazing out at her vegetable garden through the window at the front of her house. “The prospect for organic vegetables in the

market is quite bright because they are healthy and tasty.” The earthquake cracked parts of Yuni's house, forcing her family to live in emergency tents for a month. In early 2009, she began receiving training in organic farming methods and business development. Sales, in this early phase of her business, were adding an extra IDR 150,000 to monthly income. Today, restricted by the small size of her garden, she is selling her vegetables, including chilli, string bean, eggplant, lettuce, spinach and tomatoes, through a family contact at a college in Yogyakarta. But Yuni dreams of big plans for the future – plans as big as the ever increasing demand for organic products. “I dream of being able to offer a bigger and more consistent supply of organic vegetables, and of having my own brand so I can market them to supermarkets and retail markets.”

BENEFICIARY STORY Agriculture Sector

S. T. Waluyo Years of hard work can be lost in a matter of seconds – S. T. Waluyo, a rice farmer in Kebon village, knows only too well. Not only was his house destroyed in the earthquake, but the irrigation system on which his farming business relied was damaged extensively. With no place to live and unable to earn an income, his new life was not one he had ever imagined. “Farmers suffered trauma after the earthquake not only due to the fact that their houses were damaged, but also because of the deterioration of the infrastructure that supported their livelihoods, like irrigation channels.” Waluyo was one of many farmers who attended the official opening of the rehabilitated irrigation system in December 2009. It was built by the Livelihoods Recovery Project together with male and female labourers from the local community. The rehabilitated system is now providing water to 37 hectares of arable land, representing a 30 per cent boost in production. An

additional benefit is that operating costs are declining, which amounts to savings of IDR 400,000 per farmer per year. Waluyo hoards rice temporarily to exploit the price rises whenoverall supply decreases. And there is much more of it to hoard, he says while standing beside bags full of rice in the front room of his house. His previous harvest witnessed an increase in yield from 800 to 1,200kg. Strengthened further by the technical trainings they received from the project, Kebon's farmers are looking forward to future growth. “The improved irrigation channel helps us a lot. It easily supplies farmers with sufficient water in the third growing season (the last four months of the year), because at that time water is usually hard to find. Farmers' productivity, and therefore their income, will definitely increase.”

The improved irrigation channel helps us a lot. It easily supplies farmers with sufficient water in the third growing season

FOOD-PROCESSING

Sector

Technical skills trainings has yielded concrete benefits for 71 women in Terong Village, Bantul District, Yogyakarta Province. With the Livelihoods Recovery Project's focus on empowering women, Terong's women, previously dependent on crop production, have been supported in their expansion into the food processing sector. They now boast a range of products â&#x20AC;&#x201C; including bananas, cassava and peanuts â&#x20AC;&#x201C; under the 'NIKIMON' brand, which is soaring in popularity.

Terong's women are involved in a Village Promotion Team which has expanded market access in response to increasing demand. The Village Promotion Team opened a store in the village in June 2010. Partnering with local mini markets, the producer groups reached sales of IDR 31.5 million over a sixmonth period in 2010, adding some IDR 5.2 million per month to group and community incomes.

BENEFICIARY STORY Food-Processing Sector

Now, bit by bit, our business condition is improving

Wasiyem Wasiyem's tofu business had long been stalling and was struggling for survival, but now it's definitely on the move. Making tofu for a living was “uninspiring” work when she first started in the sector with her husband in Kaliwiru village, Yogyakarta, in the late 1980s. Due to limited market access, little was gained from early mornings of hard work in the production facility and long bicycle rides to the local market. Life became even harder after the earthquake, as the family's house and factory were damaged and they were forced to live in a tent. The business still requires early-morning rises, trips to the market – now using a motorbike – and hard work, but the future is looking brighter since they became beneficiaries of the Livelihoods Recovery Project. “Now, bit by bit, our business condition is improving,” says Wasiyem.

The replacement of tools and upgrade of the work premises have improved production efficiency and cleanliness. Technical training sessions helped improve the quality and diversity of their tofu products, while a change in packaging is attracting new customers. Wasiyem is also one of 41 tofu makers from the area who, with the help of capacity-building support, has been awarded a home industry certificate by the Health Department. Wasiyem, 42, is gradually applying the skills obtained in business development classes in the hope that business figures will change for the better. Today, their sales reach IDR 400,000 per day, but the high costs leave them with a profit of just IDR 50,000. “Previously I had never thought about how to develop our business. Now, at least, our horizons have been broadened and we know that there are opportunities to introduce innovation to our business.”

BENEFICIARY STORY Food-Processing Sector

Non-monetary aid is good because it encourages us to develop the business. Knowledge is such an eternal investment. That's how we feel about the sustainable impact of IOM's trainings here.

Ponisih An entrepreneurial spirit is in the air in Ponisih's home village Terong. The success of NIKIMON, a brand of snack food made by beneficiaries of the Livelihoods Recovery Project, is giving Terong's population something to aim higher for.

Ponisih, a mother of two, is head of one of five food-processing groups in Terong making the popular NIKIMON snacks, which include a range of

banana crisps, cassava products and peanut snacks. Demand for their products is growing fast. Clever branding – NIKIMON is an abbreviation of the Javanese expression Niki Mawon or just pick this product – is helping to get the products noticed by the public. The groups, which consist mainly of women, are now also busily supplying local schools and popular food stalls in Yogyakarta with their snack products. “Someday, if we have wider market

access, we can produce NIKIMON snacks in even bigger quantities. We hope to expand our food-processing factories and get higher profits,” says Ponisih. Like most of the 71 women behind NIKIMON, Ponisih worked as a housewife before the earthquake. She also helped her husband with farming, but they were left to depend on government and donor assistance after the earthquake destroyed their house and interrupted their

livelihoods. “At that time we and other residents in the village lived in tents for about two months. During this time our sole focus was on survival since our daily livelihood was ruined.” Endowed with a business mentality, Terong's residents aim for profits as high as their entrepreneurial ambitions. “Non-monetary aid is good because it encourages us to develop the business. Knowledge is such a life-long investment. That's how we feel about the sustainable impact of IOM's trainings here.”

HANDICRAFTS Sector The expression 'taking products to market' has been given a whole new meaning in the villages of Yogyakarta and Central Java. Under the Livelihoods Recovery Project, small producer groups have been packing their suitcases and showcasing their wares across Indonesia. Hundreds have participated in trade exhibitions throughout Indonesia, helping to foster a 'market mindset' among the small producers who were traditionally producer-oriented. Other activities, such as IOM-sponsored tours to village workshops and showrooms, have also widened market access.

Spearheading the effort in market expansion and ensuring business sustainability, the small producers have formed their own business promotion teams, known as Village Promotion Teams. The promotion teams, established with the support of IOM's Marketing and Promotional Taskforce (IMPROTA), have created valuable networks with government ministries and departments, trade associations, potential buyers, communities and private institutions.

BENEFICIARY STORY Handicrafts Sector

IOM's help has built our independency and prepared us for when the project ends.

Sri Asiyati Delicately-woven bags, purses and boxes made by Sri Asiyati are catching the eye of buyers. New colouring and finishing techniques developed through the Livelihoods Recovery Project's technical trainings have allowed the agel crafter from Tuksono Village, Yogyakarta Province, to take her products' quality to another level. Asiyati, aged 30 and among 292 beneficiary agel crafters in her village, expects the improved products to open new market opportunities and yield bigger profit. “I've applied the new colouring and finishing techniques to improve the product quality and to make more creative product variations. We are

trying to upgrade our products in order to meet export quality standards.” This anticipated market expansion is no longer just a vision. Supported by the project's Access to Markets component, increased participation in industry exhibitions is helping to drive entrepreneurship in earthquake-hit Tuksono. Basic woven mats were the main item produced in the 1990s. However, there is now a much wider variety of products, including bags, purses and baskets. These have been displayed at exhibitions throughout Indonesia, with some even attracting international buyers.

Asiyati makes about 150 pieces per month, with a net profit of about IDR 500,000. She also supplies raw materials and collects half-finished products to improve them. Despite the fluctuating cost of raw materials, she is experiencing largely positive results. Asiyati says new bookkeeping and management skills have resulted in a big improvement on previous practises. “IOM's help has built our independenceand prepared us for when the project ends. We are certain that if our agel craft is managed and developed with dedication, it has the potential to become a vital industry for the district of Kulon Progo because our products are so unique.”

BENEFICIARY STORY Handicrafts Sector

Dalmini If it wasn't for the JRF-IOM project, I'm not sure that we could introduce our batik to other provinces outside of Kebon, and even other countries.

Once-foreign phrases such as 'marketing strategies' and 'penetrating the market' are now on every batik maker's lips in Kebon village – and especially those of Dalmini. The 37-yearold says business development trainings in the Livelihoods Recovery Project are having an impact in her village, in an earthquakedevastated corner of Central Java. Kebon's 169 IOM-supported batik makers have been active in the Village Promotion Team, taking their Batik Kebon products to exhibitions across Indonesia. They have also received hundreds of tourists to their village as a result of relentless promotion of their new showroom. They are excited by the competitive advantage that their products – made with natural materials – offer. “Batik Kebon has good prospects and can potentially be popular in wider markets because our products are unique and have beautiful motifs.”

Such high hopes are in sharp contrast with what they felt in the aftermath of the earthquake . Dalmini's house was destroyed and her family lived in emergency tents for three months. Her work tools were damaged and she was unable to do what she had done since childhood – produce batik. The Livelihoods Recovery Project replaced tools and provided skills trainings, such as colouring. As a result of new marketing strategies developed with the support of the Livelihoods Recovery Project, total sales over four months in mid 2010 reached IDR 61.7 million – adding an increase of IDR 15.4 million per month to the groups' revenue flows. Training in business management allows the batik makers to feel in control of their futures. “If it wasn't for the JRFIOM project, I'm not sure that we could introduce our batik to other provinces outside of Kebon, let alone other countries.”

BENEFICIARY STORY Handicrafts Sector

I'm sure that when we're supported by wider market access our sales will continue to increase because our filigree products have a unique style with a highly competitive retail price.

Warjiyo Warjiyo dreams of putting his village, Pampang, on the map for jewellery. The 35-year-old, one of 98 silver crafters supported by the Livelihoods Recovery Project, is spreading the word about Pampang's beautiful products. The village's silver craft sector stalled after the earthquake. Although damage was less severe than in other villages, Kota Gede, the area to which Warjiyo would send his products for retail, was still devastated. “I couldn't sell my products to silver collectors like I used to. It was six months before the industry recovered there.” The Livelihoods Recovery Project's support has helped rejuvenate Pampang's industry and has fostered a sense of community spirit among the crafters, who previously worked individually but now form four producer groups. Replacement tools – from those as small as pincers and scales for each silversmith to a finishing machine for each group – have increased productivity. But Pampang's distance

from Yogyakarta's thriving jewellery hub has made establishing wider market links a priority. The silver crafters have taken their products – including brooches, necklaces, bracelets and rings – to exhibitions across Indonesia. They have also welcomed foreign tourists to their workshop and showrooms as part of a free tours programme hosted through the Livelihoods Recovery Project. Warjiyo's house also serves as the location for a showroom which has been established through the Village Promotion Team. Warjiyo is confident that their newly expanded market opportunities can be sustained. And once this happens, their jewellery will truly put Pampang on the map. “I'm sure that when we're supported by wider market access our sales will continue to increase because our filigree products have a unique style with a highly competitive retail price.”

BENEFICIARY STORY Handicrafts Sector

Kartiyem The weaving tool was like an old friend for Kartiyem. A tall wooden structure with a matrix of pulleys, the everreliable tustel had seen many years – 83 in fact. It had been passed down from her grandmother to her mother, and Kartiyem first began using it when she was 12. The tustel, however, was damaged by the earthquake, and thus Kartiyem's ability to improve her lurik products and sustain her small business was hampered. In response to the earthquake, the Livelihoods Recovery Project provided the 77 traditional weavers in Tegalsari village, Sukoharjo district, Central Java, with new tustels and a pattern-making machine. The new tools, given under the project's Replacement of Assets component, have allowed the now 43-year-old to make larger pieces of lurik with more creative motifs. “I think the lurik industry in our village will make good progress in the future; the new production tools and

techniques have allowed us to design smoother, colourful and more diverse lurik clothing.” These new products are expected to increase the income of the widowed mother of two, whose husband died in a work accident in 2002. Along with earnings of about IDR 400,000 per month for her lurik products, she also works in farming to help cover the rising costs of raising her two school-aged children. Kartiyem was hit hard by the earthquake: her house and weaving tools were damaged, she and her family were forced to live outside for two weeks and she was unable to earn a living. Now, with the help of the project, she has been able to put the hardship of the months following the earthquake behind her. “Hopefully lurik from Tegalsari will become more well-known and go national. Or, who knows, maybe even international!”

Hopefully lurik from Tegalsari will become more well known on a national scale... or who knows, maybe go international!

LIVESTOCK Sector

A new innovation is taking hold of residents in the rural villages of Yogyakarta and Central Java, where lives, livelihoods and the environment are inter-dependent. The Livelihoods Recovery Project has introduced biogas technology to rural communities. Powered by local waste, the technology provides low-cost fuel for clean cooking and production purposes. Underground biogas plants are directly supporting households in a number of villages. Also, a mobile version is showcased on visits to villages to highlight the benefits of using biogas and to train the villagers in setting up their own biogas projects.

IOM developed this pilot technology in partnership with the University of Gadjah Madaâ&#x20AC;&#x2122;s Agricultural Training, Research and Development Station (KP4), as a sustainable energy solution for supporting livelihoods and community environments. KP4's Iwan Setiawan says two main benefits of the biogas project are cheaper energy prices and reduced environmental health risks.

BENEFICIARY STORY Livestock Sector

Our production activities are now wellorganized. We raise our cattle together, which apart from bringing financial gains, also serves to strengthen community planning and social cohesion.

Mugiyono Mugiyono had no choice but to sell his cattle to help his family survive after the earthquake left his house in ruins. “It was a hard time and I felt a bit concerned about the future. My livelihood was interrupted for four months. It took quite a long time to recover financially because we couldn't work.” The outlook is now much brighter for Murgiyono, 52. Supported by the Livelihoods Recovery Project, cattle-rearing that was previously conducted individually in Semoyo Village, Gunung Kidul District, Yogyakarta Province, has become more modern, efficient and safe through the formation of co-operatives and the construction of communally-managed cattle pens.

The Livelihoods Recovery Project also provided cattle as direct in-kind support to replenish stocks, as wll as training the cattle rearers in modern techniques and in how to utilize manure for organic fertilizer. They now use the fertiliser on their farmlands and sell it as an additional source of income. “Our production activities are now well-organized. We raise our cattle together, which apart from bringing financial gains, also serves to strengthen community planning and social cohesion.” Mugiyono's co-operative aims to have as many as 40 cattle in order to become a permanent supplier of beef.

Competing with foreign imports is a challenge, but the group has devised a strategy. “We have to be extra careful to pick the right time for selling our cattle due to price fluctuations,” he says. “Sometimes when we sell a cow, it is priced at IDR 5 million, and two months later the price can drop to as low as IDR 4.6 million. We sell our fat cows during high-price season only. Then during low-price season we keep our cows and 'marry' them so that we can have calves.”

BENEFICIARY STORY Livestock Sector

I want us to preserve all that the IOM-JRF project has done in building a communal work system. I hope we can carry on and apply all the knowledge we have gained.

Pariman Leading a group of goat rearers in Krakitan Village, Central Java, comes naturally to Pariman. The 35-year-old enjoys the extra responsibilities of fattening and caring for the 10 goats owned by his group, which is supported by the Livelihoods Recovery Project. “I enjoy having more responsibility to manage our pen, keep it clean, provide enough feed and take care of the goats.” Pariman, as head of a neighbourhood group, is no stranger to responsibility. Following the earthquake, he was among those busy helping injured villagers, repairing damaged houses and conducting surveys. The roof of his own house collapsed and, like for many

others in his district of Klaten, life became a struggle. Pariman's interest in goat rearing began when he returned home after suffering a hand injury while working as a carpenter in Indonesia's capital Jakarta. The Livelihoods Recovery Project has trained Pariman in fattening and other rearing techniques, business skills and how to make organic fertilizer from goat waste. His group also received four goats and support to build pens. About 230 goat rearers in Krakitan have formed 12 producer groups that manage their animals collectively, thus harnessing the benefits of more

efficient labour and animal feed stock management, while also improving sanitary conditions as animals are moved away from households. Pariman is confident the group can multiply its number of goats and, by extension, its profits. A goat bought for IDR 600,000 can, once fattened, be sold for double. His ultimate goal is to one day have 30 goats. “I want us to preserve all that the IOM-JRF project has done in building a communal work ethic. I hope we can carry on and apply all the knowledge we have gained.”

Credits

Writers Editor (Bahasa) Editor (English) Translators Design/Layout Photographer

Thanks to

: : : : : :

Simon Gladman, Virgi Fatmawati Diana Setiawati, Matahari Farransahat Johan Grundberg, Ciara Cribben, Mohamad Marji Virgi Fatmawati, Mirna Adzania Darunawan Tandang Hindrawan

The JRF donors : European Commission, Asian Development Bank and the Governments of Netherlands, United Kingdom, Canada, Finland and Denmark. Members of the JRF Secretariat, and the World Bank, which is the administrator of the grant funds under the JRF. The governments of the Republic of Indonesia, Yogyakarta and Central Java provinces and all districts and local levels of government targeted under the IOM-JRF Livelihoods Recovery Project. All the beneficiaries who took part in the making of this book.

Published by International Organization for Migration (IOM), Yogyakarta Jl. HOS. Cokroaminoto 109, Yogyakarta 55253, Indonesia Telp. +62 274 619055-619056 Fax. +62 274 619012 www.iom.or.id