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Achievement, Impact, Lesson Learned and Best Practices of a CSR Program in Indonesia BY: ANGGRAENI IRAWATI HERMANTYO Director Of Bina Swadaya Konsultan 19 October 2011
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2 Community Investment Program (CIP): Towards Sustainable Community’s Livelihood and Natural Resources April 2008 - April 2011 Funding British Petroleum and Rio Tinto Indonesia Period Location Kaliorang sub-District, Kutai Timur District, East Kalimantan Province, covering 3 villages: Kaliorang Selangkau Bumi Sejahtera
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To increase 15% of farmers’ production 15% To increase 30% of farmer’s product added value 30%
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INSTITUTION Training and capacity building Accompaniment Demonstration plot PRODUCTLINKAGE Introducing appropriate technology Post harvest handling (packaging, labeling) Stakeholders Involving Policy dialogue Market linking Finance access developing Handling over
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Paddy seeds breedings: per Kg = IDR3,500 Following 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’ Institution 24 SHGs, 3 SHG Forum, 1 CLC-Cooperative
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banana, cacao, rice, compost, seaweed Developing 5 main Excellent Commodities BUMN Sang Hyang Seri : certified rice seed and certified soybean seed purchasing Fairco Sawit: agreement on packaged rice purchasing Cooperative KPC: agreement on processed food product purchasing from farmers Market Chain: MoU with Finance access SHGs (village level) and CLC- Cooperative(Sub District level)
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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.
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Indicators LIVELIHOOD 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
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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 Administration 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.
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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 SOLIDARITY ECONOMY at the SHG level
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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 SOLIDARITY ECONOMY at Sub District level
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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. SOLIDARITY ECONOMY At District level
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training and capacity building
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introducing appropriate technology: composting
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appropriate technology: chili nursery using bamboo pot as media, cacao fermentation, side grafting
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introducing appropriate technology: chili cultivation using mulching
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introducing appropriate technology: cacao post harvesting using fermentation
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sea grass cultivation training
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introducing appropriate technology: SRI (System of Rice Intensification) method
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farmers are practicing making liquid bio fertilizer using materials of banana stem
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developing cooperative
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product packaging
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cooperative
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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
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