Start-up Agri-Hub Indonesia Annexes Quick scan January 17 – January 29 2013
Start-up Agri-Hub Indonesia Annexes Quick scan January 17 – January 29 2013 Angelica Senders Consultant Fair & Sustainable Advisory Services Utrecht, March 2013 Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 Table of content Annex 1 Terms of Reference Start -up of Agri-Hub Indonesia (objectives and results) 3 Annex 2 Overview of visits 6 Annex 3 Contact details 25 Annex 4 Background note to the food security program By the Royal Netherlands Embassy Indonesia 27 Annex 5 The Dutch Food security program in Dutch political perspective By Antoon Blokland, BBO/ Indonesia Council 30 2 Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 Start -up of Agri-Hub Indonesia Terms of Reference (objectives and results) […..] 3. Objectives and leading questions These terms of reference are to provide a practical paper which: Identifies and analyses trends, cross-cutting issues and bottlenecks in Indonesia with regard to agriculture in general and farmer entrepreneurship in particular; Distinguishes scenarios / options for jointly promoting farmer entrepreneurship based on what important stakeholders are aiming for and are currently doing; Serves to level the playing field among the stakeholders engaging with this process, and helps to position the Agri-Hub Indonesia strategy within the wider arena of agricultural development (networks) in the country. For the analysis the APF main drivers - mentioned on page 1 of this ToR - will be guiding. So the content focus will be on: Organizing farmers for business Access to markets / rural business development services Access to financial services Sustainable food production (incl. land and natural resource management) Gender in value chains 4. Paper content deliverables a. Executive summary: Present an overview and conclusions of the paper Max 2: pages b. Facts: Describe regarding agriculture and farmer entrepreneurship in the country the key state of affairs (supported by figures) Max: 3 pages (details in annexes if required) c. Key actors: Map out actors (farmers organisations, national and international private sector, government, international donors, national NGOs and research institutes, other existing networks) involved in support of the agricultural sector in terms of their: Policies, focus and priorities Current geographical outreach and programmes This includes naturally Dutch Agri-ProFocus members active in Indonesia, Netherlands Embassy and companies. Max: 5 pages plus affiliation matrix (see annex 1) d. Trends and issues: Identify the factors that influence the development of the agricultural sector in the country (look both for opportunities and constraints) and farmer entrepreneurship in particular. Max: 5 pages 3 Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 e. Opportunity assessment: Compose a comparative overview of what the stakeholders identified - from the perspective of their experience, programmes and activities – consider to be: Positive Indonesian examples in the context of developing farmer entrepreneurship Opportunities for joint action, innovation and increased linkages Space for business brokering Max 3: pages f. Agri-Hub features: Map out possible features of an Agri-Hub Indonesia including: (minimum) Requirements for linkages to existing networks Prospects for sharing of resources Key organisational and capacity features for an Agri-Hub. Max: 2 pages 5. Methodology and sources - How to develop the paper? It is essential that the consultant takes a broad view in considering essential (re)sources. As this is the kick off of network development interaction with key stakeholders will be essential, both in the Netherlands and in Indonesia. This can be done through interviews – face to face to or through mail / skype. to be consulted are both persons/organisations and relevant, available and accessible documents. Relevant refers to: (i) Priority areas of Agri-ProFocus as indicated above; (ii) standing policies as well as policy reviews/evaluations. Sources are to include: 6. Government level priorities / policies on agriculture and poverty reduction; Bilateral donor level: EKN, USAID, DANIDA, … Multilateral donor level: EU, World Bank, FAO, IFAD, WPF, … Position papers of Indonesian civil society organizations focusing on with regards to farmer entrepreneurship / SME agriculture Major value chain support programs including financial services Existing strategies of Agri-ProFocus members in farmer entrepreneurship Policies and activities of key players in the Indonesian and international private sector related to agriculture Agri-ProFocus strategy 2013 - 2016 and related sources. Assignment team The assignment is to be carried out as a collaborative effort this to insure ownership at an early stage: A lead consultant familiar with the Agri-ProFocus network and the Agri-Hub concept will be contracted through Agri-ProFocus from Fair & Sustainable Services, a company linked to ICCO. An Indonesian expert closely linked to HIVOS Indonesia will work with the lead consultant to make sure expertise from the Indonesian context is well embedded in the team Support will also be delivered through BBO by mapping current programmes of the stakeholders which have indicated interest. The assignment team will under coordination of Agri-ProFocus to develop a work plan for the mission both in the Netherlands and in Indonesia. 4 Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 7. Expected outputs/deliverables Write up of findings in an accessible and engaging paper (based on 3 above no more than 20 pages) . Keywords as regards style: non scientific, readable and ‘down to earth’ Overview of potential stakeholders (names and organizations) Overview of resources for further reading (in soft copy / links) Debriefing start-up coalition (HIVOS, ICCO, CORDAID and Agri-ProFocus Netherlands) 5 Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 Annex 2: Overview of visits Interviews in Jakarta, between January 17 and January 29, 2013 Dat e Meeting with Information Issues to be addressed in Indonesia and Outcome / follow-up for Agri - Hub 17/1 HIVOS Jan Jaap Kleinrensink (Regional director South East Asia) Miranda (Program Officer Green Entrepreneurship) Rob de Groot (Manager Indonesia Domestic Biogas Program) Issues We work with farmers, Government and business, challenges we face: Lack of knowledge and skill of farmers Lack of access to information, finance, market Supporting system does not functioning well How to make a business more than a buyer How to influence the agenda of companies? How to create synergy between a company, development organizations and government (PPP) Our partners are strong in farmer empowerment strategies but developing farmer entrepreneurship is new to most of them. Policy that do not support SME development e.g subsidy, import , etc Green Entrepreneurship focuses on enterprising women and men in rural areas; improving their economic position in the value chain primarily by strengthening their organizational capacity, improved access to markets (inputs), improved productivity (quality, quantity), access to finance, access to information. Current programmes: rice- based farming systems, horticulture (Java), Palm Oil (Jambi), Traditional handicraft and food processing (Kalimantan, Central java, West Sumatra), Palm and Coconut Sugar (Java), Biogas (currently 7 Provinces), Renewable Energy (Sumba), Micro finance (Bali, Java) In the near future the GE program will develop a geographic and sector focus : renewable energy, coconut and palm sugar, cacao, coffee, bio slurry. Which new areas / directions are you planning to develop in the near future? See above+ Cacao How are you funding your activities now and in the future? MFSII, Applications with EU, PPP facility. Partners: LESMAN. SPPQT, Setara Jambi, LPPSLH, KSU Jatirogo, ASPPUK, KSP-QT,KSU MUK, KOMIDA, BIRU, IBEKA, AOI 6 Agri-hub The Agri-hub should address the above issues The Agri-hub should be inclusive (include organisations from Indonesian, Dutch and other origin). HIVOS can link the Agri-hub with its Indonesian partners Other non-Dutch organizations can be important players for collaboration (Swisscontact, Veco and Indonesian Netherlands Associations, Horti Chain Centre, Ford Foundation, etc.). The Agri-hub should not limit itself to certain sectors or regions/ islands The APF members in Indonesia (Cordaid, ICCO, Oxfam Novib, SNV) work in different geographic areas in Indonesia, which is not always an advantage for programmatic collaboration. This will need to be assessed from a case to case basis. Coordination should take place from Jakarta. HIVOS is prepared to contribute human resources to the agrihub.HIVOS is willing to host the Agri-Hub In the Agri-hub joint programming development (application Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 17/1 Indonesia Organic Alliance (IOA) Mr. Indro Surono IOA national umbrella for organisation involved in organic and Fair Trade since 2002,OA has 70 members (organisations en professionals) Active in 4 areas: Improving quality of production of small holder farmers OA has developed a participatory, group based guarantee system to assist small farmers, who cannot pay for the other types of certification. OA provides training and consultancy to farmer organisations and companies scheme related Market access OA facilitates members to participate in national international exhibitions (e.g. for coffee, cinnamon, cashew, palm - and coconut sugar, nutmeg OA organizes each year an own exhibition, Bogor organic Fair. 3000 visitor, 60 exhibitors to open wider markets for our members. Awareness raising Organic Alliance is also involved in awareness raising on organic and FT agriculture. OA has regular public campaigns (using radio and televison) is also OA is active in lobby and advocacy towards the Indonesian government, e.g on agricultural budgeting IOA as an organisation Internal strengthening of IOA is a continuous point of attention. In order to increase their self-reliance OA established a Certification body, Bio Cert Indonesia, certifying for several ecological and social standards e.g. Rainforest Alliance, 4C, Ethical Tea Partnership). Bio Cert it is a private company with 6 full time staff and a pool of consultant also working abroad, e.g. Vietnam. Profit of the company is used 7 external funding), Advocacy, Geographic Focus, Exchange of Partners, Joint learning Programs, Joint documentation, Joint marketing can take place. A better overview of each other’s portfolio’s and activities has the potential for improved collaboration between the organizations and relevant Dutch / external stakeholders (e.g. private sector actors interested in collaborating with smallholders). Finding time to organize this remains an issue Issues Entrepreneurship is a new thing in Indonesia; farmers are just producer, not become manager of their farm this should change. Farmers lack: capital; access to suitable loans (farmers lack collateral); capacities to add value to their produce (they only sell fresh products); pest management is a problem; access to (national and international) markets and information (farmers have only access to local markets; farmers have small plots (an increasing problem, especially in Java); organizing farmers is difficult. Companies are happy to work with IOA, but they do not pay for organizing farmers. IOA looks for companies interested willing to invest in establishing long term relations Agri-Hub An Agri-Hub as Multi Stakeholder initiative to support small holder farmer sounds interesting to jointly deal with the problems we face in capacity development of farmers, relations with financial institutions and companies, especially in the establishment of long term relations. The Agri-Hub idea is wider about organisations to be invited. (Also international organisations and bigger (Dutch) companies). This is interesting for the Organic alliance. Concrete activities are needed as is focus Indonesia is a vast country this make the functioning of a network difficult(OA has representative per island and also communication technology is a help) We realize that we also have to be active and make sure that the Agri-Hub is taking up the activities we are interested in. Collecting fees is difficult in Indonesia (even when small) asking organisations to pay in kind (e.g. transport and accommodation is often easier and financially more interesting) Will fee of international and Indonesian organisation be the same? Additional funding will be needed Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 for OA 17/1 A+ CSR Indonesia 17/1 Noviansyah Manap (managing director) WWF Imam Musthofa Partners and network OA is active in several national networks on organic food sovereignty network, indigenous people network, farmers’ movement agrarian reform, social entrepreneurial network (ACCI) and IFOAM, OA works with e.g. the British Council on CSR related activities. OA is HIVOS partner A+ provides Assistance, Assurance and Advocacy for communities and companies to set up CSR programmes. A+ staff has ample experience in community development. A+ is paid by the company, but defends the interest of the communities. E.g. in Sulawesi A+ supported a group of communities in dealing with a mining company to set up a community development programme with positive impact on the communities). They did the same with a pepper plantation. If the companies do not accept our advice t obey regulations we leave, last year they once did. A+ does not accept to just be window dressing. We want to work with companies that sincerely want to do good. WWF promoting eco labeling in fisheries product: MSI for capture fisheries and AFS for aquaculture In 2009 WWF established B2B platform named Seafood saver, consists of buyer, producers cooperatives, financial institution who willing to 8 Will the Agri-Hub be a formal association? Also our members might be interested in participating Issues Farms size is very small especially in Java, farmers on average have only 0.2 ha. In order to feed Indonesian population agrarian reform is necessary allowing give land from state owned companies to farmers, but this is dwelling already for years and a continued issue for lobby by NGOs. We only have limited land, but with better farming practices, with better business skills the farmer has more possibilities to improve their livelihood. An Agri-Hub could contribute to innovation, networking leading to business deals. Agri-hub No real need to address land reform issues, this is sufficiently covered. Many organisations support farmer organisations, improve technical production, how to sell, how to access better market for better prices is still difficult for most of them. How to access premium markets, how to supply buyers with continue ad stable quality is really hard and difficult. An Agri-Hub can play a role in this in developing the entrepreneurial mind set of farmers but also in NGOs. NGOS in Indonesia start with advocacy, followed by strengthening farmer groups and then the technical A+ would be interested in participating and contributing on CSR and issues. A+ is a social enterprise with two wings profit and not for profit (CB for communities for free) Issues: Most of association in Indonesia do not voice the interest of small farmers/producers, but only legitimate government policies because government is part of association Lack of know how in processing in producer’s level Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 implement sustainable fisheries. 18/1 Ministry of Agriculture Sri Sulasmi (Deputy Director, Directorate of Quality and Standardization 18/1 Embassy of the Kingdom of the Netherlands Mr. Hajo Provo Kluit, deputy head of Economic Affairs 18/1 INA Indonesian-Netherlands Association/ IndonesianBenelux Chamber of Commerce Elmar Bouma MOA use farmer group approach. MOA establishes Farmer Field School to improve farmer’s capability. In the last 2 years marketing is included in the curriculum but the impact has not been seen Cooperation with INGO: Hivos, Swisscontact, ACTED International Agency active in agriculture sector in Indonesia: FAO, Hivos, Swisscontact, GIZ, JICA, USAID, EU Trade support program In 2014 government targets self-sufficient for rice, corn and soy bean Priorities 2012 – 2015: economic relationship, synergy development cooperation and economic diplomacy; leverage Dutch expertise Focal areas cooperation program: security and rule of law; food security; water Cross-cutting topics: environment and climate change; good governance and gender CSR: networking, match making and advocacy: dialogue with companies, incorporate CSR into development, social and environmental issues, Public Private partnerships Examples: labor rights (with FNV, CNV), environment (horticulture program), Corruption (EITI), Human Rights (HR program, VPs), sustainability reporting (INA), IDH programme, other PPPs: Frisian Flag, DSM nutrition Established in 1978. Since 2003 including Belgian and Luxembourg companies Aim is to facilitate business cooperation between Indonesia, the Netherlands, Belgium and Luxembourg, member companies. 20 staff members. 9 Agri-Hub: Find common interest among sector Medium for sharing information, promoting sustainable production Issues: Government doesn’t give much attention and lack of capability to develop entrepreneurship Lack of access to information on technology that suitable to the farmers, market, finance Unorganized farmers (not attractive for companies) Inconsistent supply in terms of quantity and quality (farmers hardly fulfill requirement of the companies) Agri-Hub Agri-Hub can support the mission of MOA, not only linking farmers with international market but also securing domestic supply Entrepreneurship could drive development in agriculture Coordination with local government due to decentralization To check regulation related to international activities with related government bodies Agri-Hub There is overlap between the objectives of the Agri-Hub and the priorities of the Netherlands embassy Food security as objective of the cooperation programme (reduction of malnutrition) Incorporation of CSR in dialogue with companies Address social and environmental issues through PPPs The embassy would like to be kept informed about the development of the Agri-Hub; cooperation with Agri-Hub will depend on the development of the Agri-Hub Read also annexes 4 Background note to the food security program (by the Royal Netherlands Embassy Indonesia) and Annex 5 The Dutch Food security program in Dutch political perspective (By Antoon Blokland, BBO/ Indonesia Council) Issues INA is in constant search for suppliers as part of their match making activities. Agri-Hub The Agri-Hub would open up access to farmers and other suppliers. Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 (director) 18/1 IDH Sustainable Trade Initiative Based on Ppt of Mr Daniel Hazman 18/1 SNV Phil Harman (director SNV Indonesia) Services: Establishing companies in Indonesia, Information and Market Research, Business Mediation, Representation and Advice, Administrative and Office Services, Conferences, Matchmaking, and Trade Fairs, Legal Services, Permits, and Taxes Since 2006 a organizational stakeholder of the Global Reporting Initiative Organizes annual Sustainability Reporting Awards (ISRA) 32 major Indonesian companies have developed Sustainability Reports based on GRI (2005 only 1 company); Synergy4Life.org : Meeting Platform for companies and NGOs in Indonesia Netherlands Water Platform Indonesia Offering integrated technical and managerial solutions in the water sector with cooperation between Dutch Water consultancy companies in Indonesia CBI – Center for the Promotion of Imports from Developing Countries Information and Assistance programmes in exporting to Europe Public Private Partnership agent (funded by but at arm’s length of Dutch government) IDH aims to support business and government in specific sectors to transition into the next phase of mainstream sustainable, higher quality production of agro-commodities; Indonesia key country for IDH IDH worldwide active in 16 commodities; in Indonesia already active in cocoa, tea, timber, and spices with a variety of Private Sector, government and NGOs. Scoping/starting in palm oil, coffee, aquaculture (shrimps) SNV started in Indonesia mid-2012, although SNV has provided TA to the biogas program since 2009 managed by Hivos. SNV is at the moment hosted by the Indonesian domestic biogas programme managed by HIVOS, in 2013 they will move to an own building SNV is in the process of getting registered and 10 On the other hand INA would provide NGOs and their farmers access to the INA network of businesses both Indonesian (for domestic value chains) as well as Dutch companies for international markets. Director suggests to look into the possibilities to combine the match making activities of INA and the AH, e.g. by jointly hiring a staff member for this, and using the logos of both organisations. To be further discussed SNV approach One of our key approaches is inclusive business where we use companies as the entry point to develop the value chain in a way that benefits to the companies and small holder farmers. SNV has just starting a project which will develop a sustainable coffee platform where it can then work with interested companies. Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 18/1 Business Watch Indonesia Ms. Veronika Ratri envisages growing up to about 20 staff (incl a few expatriates) in 2013. Focus so far on value chain development. The following value chains have been selected: dairy, rattan, coffee, coconut, cassava, aquaculture SNV is implementing a feasibility study in in conjunction with the ADB to establish a fund to support inclusive businesses. This may be a regional fund including debt and equity with a technical assistance facility attached Important donor for VCD/ food security related work is AusAID (they have a lot of funds), Ford Foundation, USAID,working with Swisscontact is also important. SNV have recently secured AusAID funds for some preliminary work in coconut and cassava Noraid and DFID are more in the REDD+/ forest management/ climate change SNV intends to develop 2 other sector programmes: (1) renewable energy (without duplicating what the Biogas programme is doing (household level biogas), but medium level biogas at community level also able to generate electricity) and WASH. Climate change is a cross cutting issue. SNV will have to secure funding from back donors as from 2016 no core funding is available any more. At the moment they have some funds to build up their track record No explicit gender strategy, although gender is mainstreamed in all projects, however it does not always gain the necessary attention Established in 2002, starting from research activities Working in tea, coffee and cocoa sector, funded by Solidaridad, IDH, Sara Lee, Oxfam Aim: influence businesses to have attitude, ethical in implementing CSR; advocacy to companies related to certification; promoting national standard as a reference to certification body Regulation on CSR for Limited Corporation had been issued in 2007 but until now there is no technical guidance supporting the regulation 11 Issues in Indonesia Important to be addressed in value chain work in Indonesia Positive and negative role of cooperatives Geography leads to significant logistical challenges eg. excessive port charges etc Agri-Hub SNV is Interested in the Agri hub, it sounds very relevant for their work SNV would need to understand more to really say what or how we could contribute. Issues: Farmers difficult to comply with certification standard Access to market Sustainability Agri-Hub: As learning medium for cross sector issues Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 21/1 21/1 Horticultural Partnership Support Program (HPSP) and Horti Chain Centre (HCC) of INA Hariyadi Setiawan Iskandar Zulkarnaen Caecilia Widyastuti Gender specialist, Bogor, Intan Darmawati BWI established National Reference Group of Cocoa, Tea and Coffee, consists of small holders, businesses and government HPSP Exists since 2004, bilateral Dutch – Indonesian initiative. Covers all Indonesia for vegetable, fruit mushrooms, flowers, and orchid. Cooperation with different research institute in Indonesia. In 2008 they moved to involve private sector. E.g to supply supermarkets, but small producers for this quality and a quantity issues are to be solved, so support was needed Supply chain development for horticulture: shallot, hot pepper and sweet pepper (for the export). Introduction greenhouse, drip irrigation. For funding relations are established with RABO bank As per Febr 1 2013 the HPSP has come to an end. Its way of working will be continued by the HCC. HCC INA and Lei developed proposal for a BDS, the Horti Chain Centre; farmers pay for support. While HPSP is a project HCC is a business. First 2 year starting up phase, after that HCC starts to earn enough to pay staff. The HCC has now 4 staff First assignments were market studies and Value Chain analysis HCC provided services to HIVOS for their certified palm sugar value chain in west java (very remote) reaches 2000 farmers going for 5000 farmers. Women play an important role in quality control; they clean the jars, which determine the ph level, which is very important for the quality and thus the price. Recognition of this improves the position of women HCC also provides support, access to finance, information etc. important is to translate this to the language of the farmers Worked with HIVOS as a gender consultant on gender mainstreaming for agriculture Assistance to HIVOS partners SPI, Setara, LESMAN, 12 Agri-Hub This Agri-Hub is going to work; this is the time for it. Farmer entrepreneurship development is hot, government is active in this field, business are organized they need a voice from civil society the Agri-Hub would fill that gap All the 4 roles are appropriate (coordination, B2b deals and innovation of support systems and lobby) INA could also work with the Agri-hub, they associate businesses (Dutch and Indonesian), the Agri-hub the development organisations and farmers, they complement each other these 2 networks of a different outreach. Lessons learned can spread fast via an Agri-Hub, we need to translate knowledge ad systematize. You need a central coordination, but also decentralization In order to build on the own need of the islands for agricultural development Maybe in each island you should have a satellite hub. They can have f2f meetings. In different island they have different priority Suggested organizations / network: Indonesian Farmer Alliance (API) Partnership for Indonesia Sustainable Agriculture (PIS Agro) Issues Organisations know about gender, but they have difficulty to translate it to their work. Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 21/1 Oxfam Henk Peters Mrs. Dini Widiastuti, Economic Justice lead etc (Rice, palm oil in depend small holder, horticulture) We look in main programme of organisation, e.g. Land reform programme. Who will benefit Economic development starting point for gender equality especially when families move from poor to medium Women are more into new complicated tasks, the appreciation for these new roles improved their position (see story palm sugar HCC) Problem when families get richer men take an extra wife. Bottleneck is the sharia law Combining gender with business makes gender less sensitive. We discuss how the sharing of the benefit depends on the contribution to the quality of the produce. Other gender specialist is Caecilia Widyastuti from HCC There are 4 Oxfam’s active in Indonesia: Oxfam New Zealand, Oxfam Australia, Oxfam Great Britain, Oxfam Novib. In the private sector programme 3 complementary approaches are applied (1) use but also improve various global frameworks (2) Advocacy: combining various ways of “insider” (dialogue with private sector) and “outsider” (critical and on bad policies and practices of private sector public campaigning involving consumers (3) Partnerships with private sector Activities in Indonesia Women Enterprise and empowerment programmes Papua and Sulawesi Multi stakeholder initiatives: example commodities palm oil, aquaculture, tea and cocoa: Translate experiences in these value chains to national, regional (ASEAN) and global (UN, certification bodies, WB, etc.) policy development; link with global MSIs: RSPO, ASC Indonesian Fair Wiser guide: public comparative scoring of banks on responsible investment policies 13 They put very much emphasis on scores, (how many men, how many women) but real mainstreaming is difficult. Agri-Hub This is the time, there is a paradigm shift ongoing, entrepreneurship is on the agenda of everybody NGO have lobbied for the right to land, if they get land they have to make it productive In an Agri-Hub we can join resources and develop approaches to more easily reach farmers We can develop approaches for fair and inclusive value chain development Also to advocate becomes easier Opportunity, after Suharto left in 1998 the climate has become more open, even though fundamentalists have come up in general the climate has become more open. Issues The discussion on farmer entrepreneurship and cooperation with the private sector is highly politicized in Indonesia. Some CSOs are eager to establish linkages between farmers and companies; others do not want to cooperate with business at all. In Oxfam terminology these are called ‘outsiders”, while the ones willing to dialogue with the private sector are called ‘insiders’. This is of course influenced by the history of Indonesia in development of large scale privately owned plantations and schemes, which led to very uneven income distributions in the country. Oxfam itself plays both roles worldwide and also in Indonesia Agri-Hub ‘Insiders’ will be natural (potential) members of an Agri-hub. An Agri-Hub will have to deal carefully with the ‘outsiders’, as they might distort the development of the Agri-Hub though blaming and shaming the “insiders”. Example of networks in which ‘outsiders’ are organized are e.g: Walhi (Friends of the Earth Indonesia), Green Peace Indonesia, KIARA (Coalition of Fishery organisations). Oxfam works with them. Oxfam would be in favor of including fishery/aquaculture as sub sector to be addressed in an Agri-Hub (fish is crucial part of Indonesia’s economy) as business and linking farmers to businesses. Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 Participation in global Oxfam GROW campaign: “Food Justice in a resource constrained World” Advocacy on the Indonesian Food Bill, the legislation that regulates food systems, it deals with ways in which Indonesia will feed itself in the future. Partners in Palmoil with Sawit Watch, JKPP, SPKS; in aquaculture with Telapak, WWF Indonesia and KIARA; in cocoa and tea with BWI, VECO, ETP; Fair Wiser guide: lead Prakarsa; GROW campaign: various partners Oxfam is active in a variety of networks 21/1 Telapak 21/1 Sawit watch Is an association with members Gets income from several businesses (e.g. café) Telapak has projects in community forestry (with ICCO) And fishery projects with Oxfam (e.g the Responsible Shrimp Culture Improvement Programme (RSCIP). Sawit Watch is an association of member organizations in 15 palm oil-producing provinces in Indonesia. Its mission is to bring together local communities and other civil society groups to stop the unsustainable expansion of oil palm plantations, and to facilitate conflict resolution on oil palm plantations in favor of communities and a reduced environmental impact. The member organizations have experience in conducting advocacy on social and environment issues in large-scale oil palm plantation sector. Sawit Watch was established in 1998 with specific focus on oil palm (“sawit” in Bahasa Indonesia) in response to growing concerns about the negative impact of large-scale oil palm plantations. In recent years Sawit Watch has been working at various levels: capacity building of local communities, support in conflicts, advocacy on 14 Topics to be addressed by an Agri-Hub: develop support systems for market analysis and feasibility studies; strengthening the business perspective of farmer groups; learn on how to tap into the potential of CSR; bridge the gap between farmers and (big but also SME) companies; Oxfam would not be interested in being the lead of an Agri-hub, but would promote the Agri-hub to their partners. Its staff would be active in the network if the activities are relevant for their work. Oxfam is planning to recruit a private sector specialist, who would be a logical contact person for the Agri-Hub. Concrete contributions are to be decided on after plans are made. Oxfam could maybe even play a role in convening a planning session Gender is of course a special field of interest on which collaboration can take place Agri-Hub Telapak is interested to participate Agri-Hub Sawit Watch considers the Agri-Hub an interesting initiative Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 22/1 Oxfam Novib Johan Verburg 22/1 US ASEAN Chamber of commerce a. Alexander Evans 22/1 KSBSI (confederation of labor unions) regional and national policies, board membership of the Roundtable on Sustainable Palm Oil, and developing community-based, smallholder oil palm production and alternatives to palm oil. Sawit Watch works with 65 local NGOs and more than 250 local groups of communities in Indonesia; General reflections Is there not already such a network in Indonesia? An Agri-hub takes the farmers and not the companies (and their supply problems) as a starting point. An Agri-hub uses the more horizontal/complex picture of a value chain than the vertical supply chain centered way of thinking of companies. This way of thinking includes also access to support services, market information, knowledge, finance etc. and is more suitable for the reality of small farmers. To solve the complex problems of small farmers this more complex picture is probably more suitable. An Agri-hub looks for synergy with businesses networks (e.g INA) and forms the counter force (countervailing power) against the self-centered thinking of companies; An Agri-Hub safeguards the green, inclusive, pro-poor development perspective Organisations can and have to learn a lot on this this topic; at this stage organisations focus very much on their own ‘toko’. Association of large corporation US and international (BP, Unilever etc.) Evans has been asked by ICCO to inform them on CSR policies of companies Since 2007 Indonesian law obliges companies to spend a minimum of 2% on CSR. This can be related to social community projects of to their core business. Examples of the latter being by Unilever and Nestle (in dairy). There are options for NGOs to cooperate with corporations in these businesses. KAMIPARHO, unions of foods, restaurants, hotel, tourism, has 27 branches (district level), HUKATAN 15 Agri-Hub There are potentially too many issues to handle There are also so many different types of small holders all with their own specific problem How are you going to select your target groups and your focus? If you don’t do you might not be able to show results Take care not to be driven by development organisations needs (supply driven) but focus on the need of the country Take care not to centralize too much (Jakarta-based network for high level staff in staff instead of practitioners) Allow for sub groups or network addressing specific need of regions/ island A networks will flourish when it make the work of its members easier, how to ensure that? The network should not deal with technical matters (e.g cocoa) but with processes Agri-hub Evans is interested in the Agri-hub. Issues Contract only one year, daily workers only for harvest period. Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 Sulistri, Deputy president program division 22/1 Okusi Associates Senior Consultant P. UsmantoNjo (agriculture, plantation and forestry union) has 65 branches (district level) The latter most interesting for |Agri-Hub, has branches in plantations palm oil (Sumatra, Kalimantan), rubber (Kalimantan), tea (West Java) cacao (Sulawesi) Laborers sometimes are also contract farmers for the company Objective of KSBSI: increased welfare of the workers, training of workers en influence gvt policy, gender equality. KSBSI promotes the social dialogue for collective labor agreement on plantations (not yet reality) According to Indonesian law, 1 company could have more than 1 labor union (up to 5) KSBSI receives support from CNV This consulting firm did market study for ICCO We do commodity and market studies e.g on coconut and palm sugar. This palm (not the same as oil palm tree) is more environmental friendly, the tree even protects water. Here are a number of success story. Even with geothermic energy (cheap). The world demand for this sugar is strong Several NGOs (like HIVOS) involved Another interesting commodity is the melinjo (a kind of fruit, used to make crisps, crackers) for the Japanese markets. A Japanese company is very interested. They want to assist the farmers to produce the fruit. They have a long term interest in partnering. Other players AUSAID is coming with an 8 year programme Prisma, they are now tendering for the main contractor, later on they will tender for their projects Swiss contact is a well-known expert in this field USAID have Amarta (horticulture and cutflower), Companies want to link their CSR to their supply chain. The trend is to combine CSR and supply chain, they need the supply 16 The main issue is salary under min wage Social security policy not implemented Houses are provided as long as they work for the plantation. Housing allowance only for men 30% are women workers. They do not get women right (maternity, menstruation right). Women are afraid if they ask maternity leave they will be dismissed. Employer is afraid of independent union, employer wants own union. In some plantation this exists. Other special issues. Occupational safety and health issues Agri-hub Interesting to be in contact with organisations working with small holders Laborers are often also farmers, and in informal economy they are interested in access to fertilizers, capital, markets HUKATAN would be interested in participating in the Agri-Hub Issues The scattered agricultural sector makes it difficult to achieve required volumes and quality Pricing issue: farm gate prices are low and consumer prizes high, this make that imported goods (especially fruits) are often cheaper (and better) Food law in Indonesia, this law tries to bridge the gap between the corporate sector and the scattered, small holder agriculture in order to secure food for the Indonesian population with import when own production is insufficient and export only when own consumption has been met. Organisations protest against the food bill as it does not recognize the situation of the small holder farmers, the main producers of food crops. Agri-hub This idea comes very timely, as it can provide the solution for the food problem in Indonesia There are many organisations active in this field, government, political parties, CSR of companies, NGOs all do things but support is not enough and not coordinated. There is a need to learn from each other and to share and replicate success stories Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 22/1 23/1 Administrative for International Corporation Min. of Home Affairs Arief Hidayat Swisscontact Prashant Rana (Regional director South East Asia) Directorate General of Village Empowerment is a unit under Ministry of Home Affair that focused on rural development with broader topics (not only agriculture) Established in 1959 by privates sector and universities. Active in Indonesia since 1971, starting with vocational training. Private sector development has always been its core business. We work primarily in Asia; have offices in Myanmar, Laos and Bangladesh (our largest programme, US$ 70 mio, 20 sectors). But SC work also in Africa (e.g. Mali) to a more limited extend In Indonesia SC was involved in vocational training, together with the government over 130 polytechnic school were (between the 70ies and 90ies) established all over the country Later SME promotion and development of BDS became important for SC, now vocational training becomes more important again. SC involving private sector in developing the curriculum for vocational training. SC has small program in environment (reducing pollution). Until 2012 SC was also involved in economic revival after the Tsunami Now SC involved in 2 massive programme: cocoa in Sulawesi and Aceh funded by IDH and SECO and Tourism in Flores funded by AUSAID and had taken over by SECO. Cocoa, Multi stakeholder initiative aiming at good farmer practices, involving Nestle, mars etc Big donors in Indonesia: Aus aid (soon Prisma will start), USAID (different project), Canada (only Sulawesi). GIZ only national (macro) level support Expert players, all you Dutch APF members!! Non 17 Issues Access to market for agriculture product Inconsistency in quantity and quality Lack of entrepreneurial mindset Economic of scale (in average 0.2 ha/farmer) Agri-Hub Coordination with related government agency for registration issue (including Ministry of communication and informatics) Membership fee that could lead to fundraising issue (INGO is not allowed to do fundraising in Indonesia) Should develop criteria for member to ensure credibility of members Issues Implementation coordination is weak No mechanism for exchange among agriculture actors Agri-Hub Would add value, there is not such an initiative yet, crops are quite similar, questions are similar (strengthening farmers groups, inputs, inter action with plantations, increasing yields, establishing business linkages) SC is interested in establishment of learning mechanisms. In Bangladesh we established and were leading a similar initiative, Market Development Forum (but with a broader scope, not only agriculture, excluding donor) Start small keep it focused, keep the donors away, focus on practitioners others can enter later Country level coordination from Jakarta (most agencies have offices in Jakarta, in provinces limited number of organisations can work together on specific issues Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 23/1 Ethical Tea partnership Nelia Latief (Regional Manager for Indonesia and Papua New Guinea) Dutch Mercy corps ETP association of 30 large tea packers, incl DE We do black and green to, we like to monitor our tea in the production areas Some tea is certified to rainforest alliance Utz of other, but all our tea has our own standard according to 9 criteria Only 30 of the team comes from small holders, we foresee a larger role for them, that is why we work with them Tea production in Indonesia: 40% produced by small farmers (with least productivity). In average 1 ha/ farmer ; 60% produced by big plantation (government and private) 70% located in West Java ; 30% from Sumatera, Sulawesi, etc We give training on sustainable agriculture and standards to speed up their certification Tea is not seen as a money making crop by the gvt, we move down on the list of tea growers due to competition of land use (converting to other crops). 23/1 Solidaridad Piers Gillespie Existing network/ association in tea sector: Tea Board, consists of stakeholders in tea sector. Focus activity: lobbying Tea association consists of tea producers Solidaridad works with small holders in palm oil, tea and ….? They train small holders (mostly the independent ones) Their work is all about empowerment of small holders Solidaridad currently works with consultants (e.g. Piers in palm oil) and partner organisations (Business Watch Indonesia in tea) but is in process to establish an office in Jakarta 18 Issues Climate change changes the conditions in the tea area, ETP does research to adjusted tea varieties Agri-Hub This entrepreneurship development sounds great! It is the central issue Indonesia is lacking this coordination, we all work in the same complex environment, we could support each other, learn from each other He Agri-Hub would not be about commodities, but about cross cutting topics we all face Issues Palm oil is financially the most interesting sector in Indonesia both government and some companies earn a lot of money in it. For this reason the sector is very important for the government and highly politicized. Working with companies in this sector is controversial, also the Dutch organisations do no always agree about the best strategies (cooperation with and/ or campaigning against) Agri-Hub A good idea, also natural for Dutch to take this up, as there are so many Dutch organisations active in this field. It would be logical to seek more cooperation Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 23/1 Jatirogo farmer organization Masanto ( Chairman of farmer’s cooperative) Hendrastuti (ICS coordinator) Budi Santosa (Cooperative consultant) 24/1 Center for Agrifood Policy and Agribusiness Studies University of Padjadjaran, Bandung Ronnie S. Natawidjaja (Director) This farmer organisations of 1800 farmers is involved in the coconut sugar project of HIVOS The farmers live West of Jogjakarta Coconut sugar is a traditional product, with the assistance of HIVOS they now produce crystalized coconut sugar produced according to General Manufacturing Practice and certified as organic. There is a good international market for this product The farmers currently get 4 times as much for their coconut sugar The farmer organisation can also sell other organic products, e.g. gloves, cocoa etc produced from the certified land. Was active in Global Learning Network, project of the HIVOS Knowledge Programme, small producer agency in the globalized market’. The learning project resulted end of 2012 in a publication Does a lot of research related to agriculture and value chains, often with students. In the 70-ies Indonesia had strong extension ser vices developed by the central government (Ministry of Agriculture), this system collapsed with the decentralization Extension is now responsibility of district governments, they have not provide enough resources (skill upgrading, salaries, means of 19 Avoid to get into highly political discussions, concentrate on higher level process issues related to working with small holders and if sector specific maybe leave the palm oil out and concentrate on easier high value adding sectors (fruit, vegetables, but also tea, coffee and other food products) There is this nice government campaign: “I love Indonesian products” maybe a good entry point probably easier to create good will for the network Solidaridad welcomes the network and is willing to contribute for sure with staff time, maybe also funds, this is to be checked. Be sure to establish good relations with relevant government departments Issues They had to learn the new technologies But also everything related to certification and ensuring that everybody sticks to the rules Keep everybody together (traders approach individual farmers, who sometimes side-sell Managing supply (spreading supply) and invoicing is an issue Coconut sugar is really a family business, the men climb in the trees, the women cook the sap, make the sugar and ensure the hygiene, which determines the ph, an important factor for the quality. The coconut sugar provides cash the year round. The women decide on how the money is spent, often food, clothers, schooling Agri-Hub Sounds very interesting, as long as it leads to concrete new services Issues Subsidized fertilizer distorts markets Lack of entrepreneurship at farmers level Farmers in by government supported sectors e.g. rice are used to getting assistance and input for free this does not contribute to entrepreneurship development Other sectors (e.g. fruit and vegetables) have more entrepreneurial farmers (often also younger ones), these farmers lack appropriate Business development services (not simply the packages government offers in their programmes) Initiatives to provide services failed (see left column) Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 25/1 ICCO Kees de Ruiter (Regional Manager South East Asia) Arnelo Astillero Heny Soelistyowati Yoga Sofyar Kiswara Santi (absent due to family reasons) transport etc.) to keep up the standard) Several governments’ programmes to develop services to farmers failed: e.g. the Agri-Sub Terminals, collection points for all kinds of agricultural products, often combines with cold chain. They were not financially sustainable and did not deliver the wide range of services envisaged The auction for agricultural products in Bandung, high tech model with computer technology, exist already 10 year but heavily relies on government’s subsidies (has to become financially sustainable in 2014). Effectively the only one providing services to small farmers are traders and middle men often in packages with inputs and insurances. ICCO moved from Conflict Transformation and Food Security to economic development as focus, this is a regional shift to ‘access to natural resources as precondition for economic development’ Focus used to be on food security, agriculture on larger scale is new to ICCO in Indonesia, ICCO makes use of ICCO experience in the Philippines to build its expertise in the Indonesian office (these experts are based in Bali) In North Sumatra, Atjeh and Java ICCO support organic coffee and rice. ICCO is involved in sustainable forest management in Indonesia and Papua New Guinea, now also involved in NTFP Companies already approach ICCO (e.g. Achmea for a CSR programme in Malang on financial services and crop insurance) ICCO is also in discussion with Rainforest and Utz (both have offices in Bali) Utz is interested in coffee and cocoa and rainforest in spices ICCO is discussing with BNI to work on CSR (big funds) 20 Agri-Hub Intuitively seems to be a good idea Should address sectors in which high value is added they are willing to pay for services (not e.g. rice farmers see above) At the start it will be difficult to attract people to a network which in itself does not provide things for free So you will have to start with a (maybe smaller) motivated group willing to invest in the network If the network shows results/ benefit to members it will attract others In order for people to invest in the network it will have to make their work easier. They should not be for the network but for themselves Tap the energy, motivate, show vision this will attract people All topics mentioned seem relevant also the gender. It seems timely given the feminization of agriculture in some areas. Also the fact that women contribute to new value adding activities might contribute to increased gender equality. Ronnie is interested in the Agri-Hub and wonders whether there is a role for his university. The issues to be addressed by the hub are crucial: CB of farmer organisations, access to market, working with companies etc. The Agri-Hub fits perfectly in the new choices we made in our ICCO programme, ICCO is in general in favor of working in multi stakeholder settings (its programmatic approach, looking for synergy important) Is interested in leading the Agri-Hub, has funding, office space, Bali is central for eastern Indonesia, central if we talk about nonplantation small holder agriculture (Sulawesi, Java en NTT and NTB) there is a lot going on by NGOs in agriculture Rainforest and Utz have offices in Bali the Fair Trade network also and VECO and MDF and a good place for meetings (cheaper for accommodations and travelling costs) May not have a high profile on farmer entrepreneurship yet, but few organisations have in Indonesia, ICCO brings in international and regional expertise (Philippines, through its Philippines staff) Has a high profile on finance (investment manage (Toto), contacts with Oikokredit, even an investment fund) Point of attention the ministry under which the INGO has its MOU, ICCO under rural development, very appropriate (better then social affairs) if not in line this can create problems Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 25/1 25/2 Partners ICCO Petrasa Rev.Samuel Sihombing, Mr. Trukaja Suwarto Adi, Mr. Vredeseilanden (VECO) Mr. Rogier Eijkens (director) ICCO is currently in process to develop a fishery programme in East Java as part of the IMDI programme (Introduction of Market Development to Indonesia) which will be funded by AUSAID The organisations in this IMDI programmes is already a group, they have been supported by Swiss contact on value chain development they are all contacted as part of this mission except for Mercy corps Petrasa works in North Sumatra on organic coffee Trukaja works in organic rice in central Java VECO has a long history in Indonesia (since 1959), has 1 country office in Bali (12 staff) and 6 field (6 x2 staff) offices all over the country Aims at sustainable agriculture, since 2007 applies a market oriented, value chain approach, link farmers to market, but also prepare them for this Local NGOs are service providers to farmer organisations (the ultimate clients) NGOs deliver services fee based. (training and VC facilitation) Aims at business development of farmers and their organisations In Sulawesi in cocoa, active in the Cacao sustainability Partnership (CSP) This partnership incl business as Mars, Amajearo (trader)) also in cocoa in Flores, we developed an approach combining Rainforest and Utz support modules In Flores Coffee, there is an increased interest in niche market quality coffees, an underdeveloped market in Indonesia, we have established field schools to improve productivity, we want to expand this to Sulawesi With IDH and a Dutch company VECO is involved in cinnamon from Sumatra ( as specific areas know for this product) In mid- Java VECO supports organic / healthy rice farming (different rice varieties and standards) With SNV VECO will work in coffee (also Ford is in), 21 Both organisations are interested in the Agri-Hub Issues There is a great need for linking farmers to companies! Increasingly farmers want to work with companies, get rid of middle men Bigger companies are easier to make agreements with on sustainable agriculture Development of standards is an issue in Indonesia Agri-Hub Hands-on, field related exchange of experiences is very important, linking practitioners and researchers. there is great need for Veco is positive towards network development will support this network actively, with staffing time, maybe even with small funds It is important that the network is experienced as useful, limit data bases, sending around documents, etc. Link up with already existing networks in specific sectors as the CSP You will not be able to cover the whole country, variety too big, concentrate on real small holder farming issues and areas, so not Kalimantan and Sumatra Jakarta en Bali will be hubs (Bali for east Indonesia) Bali has advantages (see ICCO’s arguments) but Jakarta is more central for (Indonesian) organisations Identify cross cutting themes: farmer organisation strengthening, how to works with companies, certification, internal control; systems, Ensure that strong local NGOs are members (VECO works with Binadessa, good organisation) It would be good to have an Indonesian lead organisation, but at Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 5/2 Cordaid Harma Rademakers (the Business Unit DRR and Disaster Response, previously Sector Entrepreneurship) a similar platform will be established as for cocoa Gender is mainstreamed in the VECO in the management cycle. A toolkit was developed by a local consultant Till end of 2012 main focus of Cordaid was on: value chain development in combination with healthy farming systems & diversification, capacity building and empowerment of farmer organizations, productive ecosystems (non-timber forest products, biodiversity). As per Jan. 2013 Cordaid’s Sector Entrepreneurship does not exist any more, and the ‘Small producer’ program will be phased out by end of 2013. Only the spice program will continue, because of the partnership with the IDH Sustainable Spice Initiative. The main program of Cordaid in Indonesia is now on Disaster Risk Reduction (including food security), Climate Change Adaptation and ecosystem management The current programs regarding farmer entrepreneurship focuses on public private partnerships with a focus on local markets (horticulture, rice) and international markets (spices) Partners and programs of Cordaid in Indonesia are VECO Indonesia, NTT, Eastern Java Coffee value chain (Flores); Healthy rice value chain (Flores and Java) (Till end 2013). Swiss Contact, NTT, Western Kalimantan Cashew & Honey (Flores); potential for Spices: black pepper value chain (Kalimantan); link with IDH Sustainable Spices Initiative (Till end 2015). Cassia Co-op SCE & VECO, Sumatra, Spices: cassia value chain; link with IDH Sustainable Spices Initiative (Till end 2013) IDH, Netherlands Indonesia (and Vietnam, India) Sustainable Spice Initiative for sustainable spice production, processing and marketing: investment in fund for Spice Producer Support Pilot projects with Dutch/international companies and Indonesian 22 least Indonesian coordinator Agri-Hub Cordaid is committed to support the start-up of an Agri Hub Indonesia, also financially; incl. support to partners to become active in the Agri hub Due to the changed circumstances in Cordaid as per Jan 2013: Cordaid can only contribute in case climate change adaptation and disaster risk reduction in relation to food security are taken into account as part of the programme/focus areas. After 2013 involvement will be from the unit DRR and Disaster Response, for this reason Cordaid would like to be topics as Climate Change and Disaster Risk reduction related to food security on the agenda of the Agri Hub. Expectations Joining forces for developing stronger programme and policies, that strengthen the position of small farmers and their organizations and contribute to poverty reduction and green& inclusive economic development; joint resource mobilization Sharing and learning from each other. Collaborate as much as possible with public and private sector, but also offering alternatives and be a critical voice, asserting the position of the small farmers. Being a partner in development for the Dutch government and Embassy in Jakarta with regard to sharpening and implementing their policies to the benefit of small farmers, rural employment and local agribusiness. Being a contact and resource (information, broker) for Dutch companies (agribusiness). Questions Do similar initiatives already exist? And if yes, do we have something to add? How to be an interesting and reliable partner to the Dutch government and Embassy; which preconditions and ambitions can make an Agri-hub into an interesting and reliable partner? How to make use of funding instruments of Dutch government and Embassy; what kind of issues/ideas/partnerships would be eligible and could be brought at the table by members of an Agri-hub bring? Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 CBI (Centre for the Promotion of Imports from developing countries) Christa Bouwhuis 5/2 Wageningen University Centre for Development innovation Marianne van Dorp Advisor and consultant for food and nutrition security partners (NGOs, farmer organizations, local companies); Riak Bumi and Dian Niaga Kalimantan Non Timber Forest Products, especially honey value chain; national honey network; Till 2015 (in the Cordaid – BothENDS alliance) (Initial stage) Pilot project started Maluku Spices: nutmeg value chain INA -Indonesia Netherlands Association Mainly Java; In 2013 focus on spices; CBI is an Agency of the Netherlands Ministry of Foreign Affairs. Established in 1971 Objective CBI: measurably increasing exports from developing countries to the EU/EFTA markets, CBI offers an integrated packages of services (isolated services are not enough to create impact): (1) Capacity Development by providing expertise focusing on product development and quality management required to enter the European market. (2) Market intelligence (3) Human resources in companies (4) Development of an enabling environment (sector development, Business Support Organisation development, Chamber of Commerce). CBI focuses on a limited number of value chains, of which the bottlenecks are analyzed. In Indonesia CBI focuses on food ingredients: (Essential) oils, carrageen (seaweed), coffee. It is a Asia broad programme; on value added products, not raw material; quality improvement and sustainability are key issues, this includes standards, they are necessary to enter the European market Ms van Dorp is specialized in linking agricultural production and food security/ nutrition. In May she was involved in advising the EKN on how the specific sectors (especially horticulture, fishery and aquaculture) can be developed in such a way that also the availability of food in terms of quality (nutrition) and quantity increases, especially for specific poorer segment of the Indonesia population. 23 As per Jan 2013: what can be role and contribution of DRR and CCA in food security and green & inclusive economic development? How do other stakeholders (NGOs, farmer organisations, Dutch Embassy/government, private sector) see this? Agri-Hub Agri-Hub seems a good idea, Indonesia is a big country may stakeholders involved in Agricultural development coordination, communication between them sometimes lacking CBI works with exporters; they often have not enough quality, backward linkages/ linking to farmers are often problematic. An Agri Hub can play a role in improving those We assist companies to map their subcontractors, if we organize specific training courses we could add farmer organisations If we specifically organize trainings we could invite farmer organisations. CBI does not work with APF members leden (IDH, Agentschap, ICCO, GIZ, Swiss contact). Agentschap.NL plays the same role for Dutch companies as the CBI does for Indonesian companies. CBI has a match making facility. GIZ Works with the ministry of planning cooperates with Swisscontact. We try to cooperate. An Agri-hub could facilitate cooperation with businesses for CBI as CBI does not have an office in Indonesia. We look for complementarity Agri-Hub The experiences from the projects might be interesting for Agri-Hub members. Would the organisations involved also benefit from the Agri-Hub? That depends on the activities. It is important to create two-way communication (bringing and taking). Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 19/3 Both Ends With regards to horticulture advice focused on the reduction of inputs (fertilizer and pesticides) in order to reduce the production costs for farmers, while at the same time contributing to the quality of produce and reducing environmental damage. On fishery and aquaculture the advice focused on the handling of the fish (including marketing and processing) in order to reduce losses and thus increase availability of fish on the market without increasing (or even reducing) overfishing. The mission worked closely together with relevant national research institutes and ministries. No decision taken yet on the follow up of the advice given. Sustainable forest management via Non Timber Forest Products (NTFPs) Both ENDS is cooperation partner within the Non Timber Forest Products Exchange Programme. NTFP Indonesia is the NTFP-EP partner in Indonesia. Together with NTFP Indonesia Both ENDS has worked on production of sustainable land management and livelihoods through the production and marketing of NTFPs: Sustainable production and local and regional marketing of forest honey Partners: Forest Honey Network Indonesia (technical assistance to gathers) and Riak Bumi (marketing) Handicrafts from forest products in West Kalimantan Partner: Borneo chic (processing and marketing of high end market products) LP3M: land rights and local communities, EastKalimantan; Capacity building Cassia producers, development of value chain, marketing of cassia Partner: Cassia Coop Training Center (training) 24 Issues Participation of local communities/ farmers in land use planning The current national policies on village forests and community forestry management allow local communities to manage the forests around their villages. Both ENDS on these issues Warsi, Samdhana, Telapak, Walhi Participation of local communities/ farmers in integrated water resources management Both ENDS works within a network of advocates for participation of local water users, including farmers, in policies and decision-making over water resources. Both ENDS works on these issue with Telapak. Palm oil influences local communities / farmers on land use - and spatial planning In Sanggua district in West Kalimantan Both ENDS works with research institute ICRAF and local CSOs PPSDAK, LBBT and YPSBK to integrate community maps in formal land use planning/ spatial planning procedures. Resolving conflicts over land with RSPO members through Dispute Settlement Facility In 2003, the Roundtable on Sustainable Palm Oil (RSPO) was established and Both ENDS has been a member of the RSPO since the beginning. Both ENDS has initiated together with other NGO members, businesses and mediation experts, the development of a facility for the settlement of disputes within the RSPO. Partner: Sawit Watch. Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 Annex 3 LIST OF RESOURCE PERSON FOR AGRI HUB EXPLORATION NO 1 2 3 ORGANIZATION Hivos Regional Office Southeast Asia (ROSEA) The Indonesia Domestic Biogas Program of Hivos Indonesia Organic Alliance (IOA) 4 WWF-Indonesia 5 6 Ministry of Agriculture Directorate of Quality and Standardization SNV 7 8 Business Watch Indonesia Oxfam 9 10 11 12 Horticultural Partnership Support Program (HPSP) – IndonesianNetherlands Association ( INA) Horti Chain Centre (HCC), INA Gender Consultant Perkumpulan Telapak NAME E MAIL RECOMMENDED BY Jan Jaap Kleinrensink (Director Hivos ROSEA) [email protected] Miranda (Program Officer Green Entrepreneurship) [email protected] Robert de Groot (Project Manager) [email protected] Hivos Indro Surono (Board of Trustees) [email protected] Hivos Rasdi Wangsa (Program Director) [email protected] Imam Musthofa Zainudin (Fisheries Program Leader) Sri Sulasmi (Deputy Director) [email protected] OxfamNovib [email protected] Hivos Phil Harman (Programme Manager Indonesia) [email protected] Veronika Ratri (Program Coordinator) Dini Widiastuti (Economic Justice Lead Indonesia) [email protected] [email protected] Henk Peters [email protected] Johan Verburg [email protected] Muhammad Hariyadi Setiawan (Programme Manager) [email protected] Cordaid Caecilia A. Widyatstuti (General Manager) [email protected] [email protected] Hivos Iskandar Zulkarnain (Manager of Applied Technology) [email protected] Intan Darmawati Muh. Djufryhard [email protected] [email protected] Ery Damayanti [email protected] 25 OxfamNovib OxfamNovib Hivos OxfamNovib Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 13 14 15 16 17 Sawit Watch US ASEAN Business Chamber Confederation of Indonesian Prosperity Trade Union (KSBSI), KAMIPARHO and HUKATAN 19 Okusi Associate Ministry of Home Affair Administrative for International Corporation Swisscontact, Swiss Foundation for Technical Cooperation Regional Office SE Asia (ROSEA) Ethical Tea Partnership 20 21 Solidaridad Jatirogo Farmer’s Cooperative 18 22 23 Center for Agrifood Policy and Agribusiness Studies (CAPAS) Padjadjaran University, West Java ICCO SEA Achmad Surambo (Executive Director) OxfamNovib Jefri Saragih (Head of Campaign Dept) [email protected] Darto Alexander Evans (Representative) Sulistri Afrileston (Vice President of KSBSI) [email protected] [email protected] [email protected] ICCO CNV P. Usmanto Njo (senior consultant) Arief Hidayat (head of administrative for International Corporation) [email protected] [email protected] ICCO ICCO Prashant Rana (Regional Director SE Asia) [email protected] Cordaid Nelia Latief (Regional Manager – Indonesia and Papua New Guinea) Piers Gillespie (consultant) Hendrastuti (Head of ICS) [email protected] Masanto (Chairman) [email protected] Budi Santosa (consultant) Ronnie S. Natawidjaja, Ph.D (Director) [email protected] Kees de Ruiter [email protected] Kiswara Santi Prihandini (Program Officer Indonesia) [email protected] Supardi [email protected] [email protected] OxfamNovib Hivos Hivos 24 Trukjaya Foundation Arnelo M Astillero Suwarto Adi [email protected] [email protected] ICCO 25 The Daya Pertiwi Foundation (DPF) Made D. Polak (Chairman/Head of Mission) [email protected] ICCO 26 VECO Indonesia Rogier Eijkens (Regional Representative) [email protected] Cordaid and OxfamNovib 26 Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 27 Hajo Provo Kluit (Deputy Head of Economic Department) Daniel Hazman, Asia Regional Director [email protected] 28 Embassy of the Kingdom of the Netherlands – Economic Department IDH 29 FNV Ruth Vermeulen [email protected] 30 CNV Jan Ridder [email protected] 31 BBO Antoon Blokland [email protected] 32 ICCO [email protected] 33 CORDAID André Vording, Fair Economic Development Specialist Harma Rademakers 34 Both Ends Christa Nooy [email protected] 35 CDI Marianne van Dorp [email protected] 36 CBI Christa Bouwhuis [email protected] 37 Ministerie van Buitenlandse Zaken Directie Duurzame Economische Ontwikkeling Wijnand van IJssel [email protected] 38 Agri-ProFocus Roel Snelder [email protected] 39 Fair & Sustainable Advisory Services Angelica Senders [email protected] 27 [email protected] [email protected] Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 Annex 4 Background note to the food security program By Royal Netherlands Embassy (RNE) Date: February 2013 In Indonesia, 37% of children under five suffer from malnutrition induced stunting due to one sided, rice based diets. The agricultural sector in this country is significantly underperforming. Given its expertise and experience, the Netherlands can therefore make a major contribution to increasing food security in Indonesia by focusing on intensifying agricultural production and making it more sustainable. The food security program follows a two-pronged approach: 1) nutrition programs as complementary activities to IDH sustainability programs in cash crops; 2) in order to diversify diets, secure access to animal and vegetable protein by increasing production, quality and sustainability of food crops. The focus is on four subsectors: horticulture, poultry, dairy and fisheries which is in line with the foodsecurity policy of GOI The embassy’s approach is for sub-sector programs to cover the full value chains, linking products to markets, and should include a wide range of stakeholders, bringing together the Dutch Ministries of Foreign and Economic Affairs and the Ministries of Agriculture and Fisheries on the Indonesian side, as well as knowledge institutions, the private sector and last but not least farmers’ groups. The video conference on February 27 can assist in further understanding the role and potential contribution of CSOs. In May 2012 a programming mission formulated recommendations for the embassy’s food security program, with an emphasis on horticulture and fisheries/aquaculture. A second mission is planned for April 2013 to develop programs in poultry and animal feed. Horticulture The horticulture program started in late 2012. Its main aim is to start and guide a process of diversification of agricultural production and thereby of income sources for the rural population. Diversification from rice production to high value crops, such as vegetables, will generate higher incomes for small holder farmers, improving access to food and basic educational and health services. Relatively new is the progressive professionalism of the vegetable production, supply and marketing chain, with a dominant, however, efficient role of modern wholesale and supermarket-retail, demanding safe, uniform and continuous quality supply for competitive prices. To meet the requirements of the market, the farmers of Indonesia need to improve their skills and knowledge on crop nutrition, pest and disease control and on additional cultivation practices. In recent years in joint Indonesian-Dutch projects, methods have been developed to assess current farming practices, followed by a process of attaining consensus on practical and rational recommendations for improvement, disseminated among farmers in a comprehensive program of demo-fields, trainings and farmer field visits. The results were an increased profitability at farmer’s level, improved product quality (food safety) and less emission of agro-chemicals. The methodology will be made more effective by adding a market access component in close collaboration with vegetable market players. By simultaneously addressing farmers’ practices, post-harvest handling, logistics and marketing, the acquired knowledge and experience can be combined with actual market access, to create impact with pilots of specific product-market combinations in various regions of the country. 28 Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 Fisheries and aquaculture Important contextual considerations for the fisheries and aquaculture program are the activities developed by CBI and IDH regarding the export markets for fish and shrimp, as well as the dwindling stock of marine fish and freshwater fish. The embassy’s strategy is therefore to focus on the domestic market – which covers 85% of the Indonesian sector -, reduce post-harvest losses in capture fish and increase aquaculture production. These priorities are in line with GoI policy. As in the other sectors, the embassy envisages linkages throughout the value chain, from small scale farmers / fishermen, to the consumer markets. Poultry Poultry products are, together with fish, the most important source of animal protein in Indonesia. Exact figures are not available but an estimated 2 billion birds annually are used for the production of meat and eggs on a total population of 260 million people. Daily consumption of chicken in Jakarta is approximate 800.000 and transport, slaughtering and marketing are associated with increasing human health and environmental problems. Only 5 % of the poultry is slaughtered in specialised slaughterhouses. It is expected that the demand for poultry will increase with growing economic development in Indonesia. The current system is vulnerable to animal disease outbreaks, poses human health risks and is not designed to cope with the predicted growth in demands. Animal feed A bottleneck for growth of animal production, according to consulted stakeholders, is the availability, quality and price of animal feed/fodder. The poultry sector for example is highly dependent on imported feedstuff. For dairy production the availability of fodder might be critical, and an embassy program focusing on fodder would support other potential programs more directly adressing quantity and quality of production. 29 Annexes Start-up Agri-Hub Indonesia, Quick Scan March 2013 Annex 5 The Dutch Food security program in Dutch political perspective By Antoon Blokland, BBO/ Indonesia Council (based on personal conversations) The Dutch Embassy Development Cooperation Program has gone through a change. The Multi Annual Plan 2012 – 2015 present quite some changes. At the back of these country program changes are the overall policy changes of the Ministry of Foreign Affairs. Within the Dutch policy framework Indonesia is perceived as an important geo political power in the region and is an up coming middle income country. De diplomatic relation and trade relation with Indonesia are important and the development cooperation relation is brought in line with the economic interests of the Netherlands. The focus in Indonesia is on the economic sectors in which Dutch business has an interest and business opportunities. The development cooperation programs matches the Dutch interests with the Indonesian needs and supports the enabling environment for investments, trade, private sector development and sustainable growth. Sustainable growth is achieved through public-private-partnerships and inclusive business models and through offering all kind of technical assistance to establish a enabling environment. In relation to the Agri-Hub some aspects of the Multi Annual Plan 2012 – 2015 are important. Food Security is a new priority and part of the first pillar: ‘supporting Dutch economic priorities’. An Agricultural program has been part of the Embassy program for many years already and focused on an increase of production and quality. Therefore the food security program links strongly to the Agricultural production of food. The Embassy supports a nutrition program as a complementary activity to the IDH sustainability programs in cash crops. Higher quality production of the small holders lead to a higher income and better nutrition. This nutrition program has a strong link to the increase in the production and quality of the food for the international market and the transport of the food. A second program increases the local production, quality and sustainability of food crops in the sub sectors horticulture, poultry, dairy and fisheries. The improvements in these four subsectors should be achieved by PPPs and technical support to the farmers or fisherman. Small holders are a target group of this approach. And the Embassy acknowledges the bottlenecks to make small holders part of the value chain and link them to companies higher up in the value chain. Through specific technical support (like certification of food production techniques, fertilizers) the Embassy wants to increase their production and quality, and link them to the international market (within IDH sustainability program) and to the local market (within their projects of the horticulture, poultry, dairy, fisheries). Small holders are approached through the value chain and not seen as a target group for the enabling environment program to support entrepreneurial climate in Indonesia. Small holders are not seen as potential entrepreneurs. The Embassy approach is business driven and product-market oriented. One of the reasons for this is the financial sustainability of the program and the program results. Within the context of Indonesia this is important. The development cooperation relation will transform into a economic trade relationship and the development cooperation program and budget will probably end. When it will be finished is not clear and the speed of transition is not agreed yet. In the long run it means that embassy funding for projects on small holders will dry out. Private funding of companies op Private-Public funding is an alternative, next to the programmes of Embassies like Australia who have a growing budget for Agricultural projects and small holders. 30
© Copyright 2024