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Posts Tagged ‘Indonesia’
Establishing a Specialty Coffee Brand by Building Capacity of Farmers and Middlemen in Indonesia: New GIM Case Study Released

About the authors

Hidemi Yoshida is an associate professor of the Hosei Graduate School of Environmental Management and the Faculty of Humanity and Environment of Hosei University in Tokyo. Her research areas include microfinance, social entrepreneurship, and poverty alleviation through CSV (Creating Shared Value). She published the Japanese Version of the GIM Report “Creating Value for All: Strategies for Doing Business with the Poor”.

Agnes Rampisela is an associate professor of the Graduate School and the Faculty of Agriculture of Hasanuddin University in Makassar, Indonesia. She got her doctoral degree in Hydrology from Kyoto University, Japan, in 1992. She further enriched her experience at the Center for South East Asian Studies of Kyoto University as Visiting Research Fellow from 1996-1997. Her research areas include farming system, agriculture and community empowerment, and poverty alleviation. She contributes as an expert to several Japanese government projects in Indonesia and also conducts series of volunteer work especially under Lembaga Pelangi, an NGO which was established in 1996 under her initiative.

About the case study

P.T. Toarco Jaya, subsidiary of Key Coffee Ltd., a large Japanese company, established a brand of specialty coffee called “Toarco Toraja” by procuring Arabica coffee from Indonesian farmers, and by running its own coffee plantation in the country. Coffee trees that can produce high quality coffee are grown in the mountainous area, where people travel on foot or on horseback. In order to facilitate the collection of coffee beans, Toarco established purchasing stations close to farmers, and leveraged local collectors. After overcoming a number of barriers, such as the lack of farmers’ knowledge and skills, P.T. Toarco Jaya is now exporting 200-500 tons of coffee beans per year, while benefiting about 7,000 small-scale farmers as suppliers, and providing 53 full time and 900 temporary jobs at its Rainforest Alliance certified plantation. Today, Arabica coffee has become a reliable source of income for farmers, and Sulawesi is well-known for its coffee.

To download the Key Coffee case study from the GIM database, please click here.

 
Q&A with Diyanto Imam, author of PPKT case in Indonesia

Diyanto Imam is the Country Director of New Ventures Indonesia, a nonprofit program of World Resources Institute (WRI). New Ventures Indonesia focuses on supporting the development of dynamic environmentally sustainable and socially responsible small and medium enterprises. Prior to joining New Ventures, Diyanto worked for the Ministry of Agriculture, Nature and Food Quality of the Netherlands at its Jakarta office. His other professional experiences include working for Queensland State Government Trade and Investment Office and Australian Trade Commission. He holds a Master of International Business degree from Swinburne University of Technology, Melbourne, Australia and Bachelor of Business (Management) from Queensland University of Technology, Brisbane, Australia.

CV Pusat Penelitian Kelapa Terpadu (Center for Integrated Coconut Research – PPKT) is a medium-sized company based in Yogyakarta, Indonesia, founded in 2004 to develop and commercialize coconut-based products, while at the same time empowering local communities through integrating local communities’ business activities into the company’s processes.

To download the PPKT case study from the GIM database, please click here.

What is PPKT’s basic value proposition and what makes its financial model sustainable?

PPKT produces high quality coconut-based products in partnership with community groups. As a small company, PPKT forms close partnerships with other organizations that allow the company to focus its limited resources on key aspects of the business, namely local community training, product development and marketing.

What are the benefits of organizing local communities into Joint Business Units?

The main benefit for the company is that it can tap the potential of local natural resources without having to maintain a processing facility that can be a drain on its limited capital. As for the community, it allows them to access the market and get good price for their products. In addition, it also allows the community to learn new skills, e.g. basic business skills and upgrade their existing skills, e.g. coconut processing.

What was the role of government regulation in the development of e-stoves and what are the prospects of mass producing and marketing e-stoves in Indonesia?

In terms of government regulation, it makes the most impact by revoking subsidy for kerosene a few years ago. As the price of kerosene goes up e-stove and other similar products is becoming more economically attractive to rural communities. Based on the experience of PPKT in selling the product, the market for e-stove in Indonesia is significant.

In your opinion, what is the potential for replicating this model in other coconut-rich countries worldwide?

It is highly possible to replicate the model used by PPKT in other coconut rich countries.

What has been your personal experience going through the GIM case research process?

It allows me to understand further how small and medium enterprises can play significant roles in local economic development. At the same time it also provides me with deeper understanding of many challenges and difficulties faced by small and medium enterprises in growing their businesses.

 
Launch of the Creating Value for All Report in Indonesia

Overview

The launch of the Creating Value for All report was organized in Jakarta, Indonesia, on August 11, 2008, in collaboration with the United Nations and Indonesia Global Compact Network, a consortium of 127 Indonesian firms.

Hundreds of business leaders and many key government officials were among the invitees to the launching event, including Coordinating Minister for the People’s Welfare Pak Aburizal Bakrie, who was scheduled to give the keynote address.

“This report is of great value both for the private sector and for the poorest people in our country,” said Minister Bakrie. “It shows how the pursuit of profit and the fight against poverty can be one and the same.”

The launch was opened with remarks by El-Mostafa Benlamlih, the United Nations Resident Coordinator in Indonesia. “When business comes to poor people, and poor people come to business, everybody wins,” said Mr. Benlamlih. “This is no big revelation, but the many companies already doing this know better than anyone that there are often barriers to doing more,” he said. “In tearing down those barriers, it’s worth noting that, as this report shows, there is a role to be played not only by private-sector innovation but also by government, civil society and development institutions.”

Also delivering opening remarks at the launch was Y.W. Junardy, President of the Global Compact consortium. A presentation on the report and the specific tools and strategies it offers was delivered by Casper Sonesson, Director OIC of the Private Sector Division at UNDP’s global headquarters.

A panel discussion at the launch illustrated various ways that, by learning to engage with the more than 100 million Indonesians who live on less than US$2 a day – selling to them, buying from them, trading with them or partnering with them – Indonesian companies can greatly expand their own earnings. And the more business models include the poor, the more likely companies pursuing expanded earnings will also help in fulfilling the Millennium Development Goals (MDGs).

“In the coming months,”Mr. Benlamlih added, “the United Nations will seek to facilitate ongoing, public exploration of which kinds of obstacles, among those identified in the report, are relevant in this country, and which strategies and tools could be useful here.

Documentation

Press Coverage

Contact Details

Benjamin Kahn
Communications Adviser
Office of the UN Resident Coordinator for Indonesia
Tel. +62 (0) 81 1155 3607
Email: benjamin.kahn@undp.org

Or

Hendra Warsita
Vice President, Communications
Indonesia Marketing Association
Tel: +62 (0) 81 6190 5247
Email: hwarsita@undp.org

www.undp.or.id