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
Community Investment Program (CIP):
Towards Sustainable Community’s Livelihood
and Natural Resources
Funding
British Petroleum and
Rio Tinto Indonesia
Period
Location
April 2008 - April 2011
Kaliorang sub-District,
Kutai Timur District,
East Kalimantan Province, covering 3 villages:
 Kaliorang
 Selangkau
 Bumi Sejahtera
2
15%
30%
To increase 15% of farmers’
production
To increase 30% of farmer’s
product added value
INSTITUTION
Training and
capacity building
Accompaniment
Demonstration
plot
PRODUCT
LINKAGE
Introducing
appropriate
technology
Policy dialogue
Post harvest handling
(packaging, labeling)
Finance access
developing
Stakeholders
Involving
Handling over
Market linking
Product Increase: 15%
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
Additional Value increase: 30%
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
Developing Farmers’ Institution
24 SHGs, 3 SHG Forum, 1 CLC-Cooperative
Developing 5 main Excellent Commodities
banana, cacao, rice, compost, seaweed
Market Chain: MoU with
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
Finance access
SHGs (village level) and CLCCooperative(Sub District level)
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.
Indicators
LIVELIHOOD
MINDSET
• Income
• Work
Opportunity
• Food
Consumption
• Sanitation and
Hygiene
• Activity in the group
• Level of technology
adoption
• Saving habit
• Self Confidence
• Education
• Gender Mainstreaming
• Business Practice
VPA DISTRICT LEVEL OF KALIORANG
10.00
9.00
7.71, 7.58
Livelihood
8.00
6.70, 7.12
7.00
1.97, 5.87
6.00
6.39, 6.20
1-2
5.00
2-3
4.00
3-4
LINEAR
3.00
2.00
1.00
0.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
mindset
7.00
8.00
9.00 10.00
12
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
SHG
Network
Entrepreneurship
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.
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
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
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
training and capacity building
introducing appropriate technology:
composting
appropriate technology:
chili nursery using bamboo pot as media, cacao fermentation, side grafting
introducing appropriate technology:
chili cultivation using mulching
introducing appropriate technology:
cacao post harvesting using fermentation
sea grass cultivation training
introducing appropriate technology:
SRI (System of Rice Intensification) method
farmers are practicing making liquid bio fertilizer using
materials of banana stem
developing cooperative
product packaging
cooperative
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