P PULARREP RT2014

Content List. . . . . . . . . . . . . . . . . . . . . . . 3

Foreword.. . . . . . . . . . . . . . . . . . . . . . . . . . .4

About VECO Indonesia . . . . . . . . . 6

Program Area.. . . . . . . . . . . . . . . . . . . . . 8

Summary.. . . . . . . . . . . . . . . . . . . . . . . . . . .10

Activities. . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Kerinci. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Jakarta.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Java.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Flores. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Sulawesi. . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Collective Marketing.. . . . . . . . . . . 24

Finance.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Testimonial. . . . . . . . . . . . . . . . . . . . . . . . 28

Contact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Content List

Production Farmers Organisation

Foreword

In 2014 VECO Indonesia started implementing the

new program 2014-2016. The value chains program

continue with several additional partners and

Structural Change Agendas (SCA) have been

introduced. The experience and learning from the

pilot chains will become evidences to be used by

SCA partners at the national level to contribute to

SCA’s (policies, practices) that are more favourable

to smallholder farmers.

The target group (direct beneficiaries) in 2014 is

23,898 farmers (15% female), increased by 49

percent from 2013. The wider program coverage

area and higher trust of farmers in farmer

organisations contribute to this increase.

The new program areas are: Luwu Utara, Parigi

Moutong, and Sikka for cocoa chain, Ende for

coffee chain, and Tasikmalaya for rice chain.

Cocoa program in Flores Timur has also

expanded to Adonara Island and in Ende to Liu

Timur Sub-district. Our new farmer

organisations (FO) are: Cahaya Sehati, Parimo,

FO Ende, FO Sikka, Simpatik, and P3LL.

Agribusiness

VECO Indonesia has facilitated partnerships

between farmer organisations (FOs) and private

actors for Cocoa Sulawesi, Cocoa Flores, Coffee

Sulawesi, Coffee Flores, Rice Flores, Rice Central

Java, Rice West Java and Cinnamon Kerinci with

the objective of improving the business capacity of

FOs to engage and comply with the requirement of

modern markets.

In general there has been an increase in the yearly

incomes of farmers, thanks to a large degree to the

higher price of the commodities. Increasingly

unpredictable weather conditions pose risks to the

production, especially rice. Farmers’ resilience to

cope with this condition continues to be tested.

In this Popular Report, you can read more about

our achievements together with partners in 2014.

We hope you enjoy reading it and learn from it as

well.

Rogier Eijkens

Regional Representative VECO Indonesia

AboutVECO Indonesia

Part of Vredeseilanden

Head Office in

Leuven, Belgium

8 Regional Offices

Globally

The inclusion of

smallholder farmers

Sustainable rice

production of good

standard quality

MainProgram

Continuously increasing the

capacity if VECO Indonesia staff

Goals ofProgram

Increasing the capacity of business and

organization of farmers

Strengthening farmer

organizations

Improving the capacity

of partners and local

institutions

Tasikmalaya

Boyolali

Lumajang

Polman

Program Area

East JavaCentralJava

WestJava

WestSulawesi

Jambi

Greater

JakartaEnrekang

Kerinci

Malang

Solo

GianyarDenpasar

NTT

Nagakeo

Ende

North Luwu

Parigi Moutong

INDONESIA

WestSulawesi

SouthSulawesi

Manggarai

Ngada

Sikka

East Flores

East Luwu

Enrekang

Tana Toraja

Palopo

Legends

Office

Cocoa

Coffee

Rice

Healthy Food

Cinnamon

North Toraja

Makassar

EastManggarai

Summary

85% 15%

Direct

Beneficiaries

20,313 3,685

23,898Total

farmers increased by

49% from 2013

Farmer Organisations

NGOs and Forums

Private Sector

Local Government

18

16

18

Partners

18

Total70 Partners

MainActivities2014

2014 was a year of change for

Indonesia and for this organisation,

VECO Indonesia. In this year,

Indonesia got a new leader and a

new cabinet. For VECO Indonesia,

2014 marked the beginning of

change with a new programme.

Last year, we started a more

intensive phase of introducing farmer

organisation as business entities. So,

during 2014, we focused more on

programmes to build the business

capacity of farmer organisations.

Facilitating improved

production of farmers

Building the business

capacity of farmer

organisations

Facilitating quality

standard training

Supporting gender

integration

Linking private companies

and smallholder farmersOrganising business

meetings between farmers

and private companies

Promoting farmer

products

Performing monitoring

and evaluation

Facilitating links with

financial institutions

Facilitating specific training

to strengthen business

Facilitating trademark

packing and labelling

workshops

Jambi

Kerinci

In 2014, TAKTIK officially became a

farmer organisation with legal status that

focuses on sustainable agriculture

development activities and programmes.

Having this legal status makes it easier

for TAKTIK to build partnerships with

others, such as buyers and government.

Commodity:

Cinnamon

Kerinci

Mitra Aksi

Foundation

Partners

The partnership between

TAKTIK and PT Agripro

Tridaya Nusantara (ATN)

included the purchase of 8

tons of cinnamon and

working capital support.

Increase

farmers'

income

(707 of 1,014)

of TAKTIK members

Have adopted organic

farming practices.

Using organic fertiliser

and pesticide.

Creating terraces to save

water and prevent

erosion.

70%

Semester I:

Gross Income

13.5IDR

1.5per hectares

Semester II:

Gross Income

16,5IDR

1.5per hectares

million million

TAKTIK farmer

organization

Achievements

Members

PT Agripro Tridaya

Nusantara

Partnerships

Jakarta

Jakarta

The programme focused on

advocacy related to the

multi-quality national

standards for rice,

strengthening the national

rice producer organisation,

inclusive retail business, and

raising consumer awareness

about healthy food.

Farmer organisations have a good

relationship with the district

governments. They have been invited to

take part in dialogues on sustainable

agricultural themes.

Alliance of Indonesian Farmers (API)

Partners

2014 SCAI Coffee Auction: 144 speciality

coffees registered, 31 samples got high

scores, five of them from VECO Indonesia

partners, Permata (Ngada), Asnikom

(Manggarai) and Benteng Alla (Enrekang).

Achievements

The government agreed to get

involved the Cocoa Sustainability

Partnership activities and in

harmonising the CSP Cocoa Roadmap

with government plans for cocoa.

On 17 September 2014, 17 farmer

organisations established the Indonesian rice

farmer association Amartapadi in Boyolali,

Central Java. The aim of the organisation is

to provide a forum and enhance the

negotiating position of rice farmers.

Indonesian Consumer Foundation (YLKI), Perkumpulan Indonesia

Berseru (PIB), Environment Education Centre (PPLH) Bali, Healthy

Food Foundation of Indonesia (YAPSI), Organic Alliance of Indonesia

(AOI), Specialty Coffee Association of Indonesia (SCAI), dan Cocoa

Sustainability Partnership (CSP).

Commodities:

Rice and Coffee

Java

WestJava Central

JavaEastJava

Tasikmalaya

Boyolali

LumajangMalang

Solo

The programme focused on rice development by

farmer organisations in Boyolali, Central Java, and

in Tasikmalaya, West Java. VECO Indonesia has also

just started a coffee development programme in

Lumajang and Malang, East Java.

Partners

Farmer organisations signed contracts with

private companies: APPOLI with Sembada

Inti Pangan, BSN, Quasinde and SMESCO,

and Javara and Simpatik with Bloom Agro.

Two farmer organisations received

organic and fair trade certification.

Simpatik received organic certification

from IMO, and APPOLI received fair

trade and national organic standard

certification.

Simpatik and APPOLI formed a cooperative in

2014. As legal entitities, these cooperatives

are platforms for marketing organic rice on

the domestic and foreign markets.

Volume of rice sold through

collective marketing (in tons) :

Achievements

110.348.9120.3716.15

Total

APPOLI

APOB

Simpatik

P3LL

255.76tons

Asosiasi Petani Padi Organik

Tasikmalaya (Simpatik) ,

Asosiasi Petani Padi Organik

Boyolali (APPOLI), Aliansi

Petani Organik Boyolali

(APOB), Paguyuban Petani

Pengelola Lahan Lestari (P3LL)

Lumajang

Indonesian Retail Merchant

Association (APRINDO), PT

Bloom Agro

Lembaga Studi Kemasyarakatan

dan Bina Bakat (LSKBB), Gita

Pertiwi

Flores

Flores

Manggarai Ngada NagakeoEnde Sikka

East Flores

The focus of the programme in Flores is

development of coffee, cocoa and rice in seven

districts on Flores Island. The main support is for

building the business capacity of farmer

organisations in this area.

EastManggarai

Jaringan Petani Wulan Gitang

(JANTAN), Asosiasi Petani Kakao

Nangapenda (SIKAP), Asosiasi

Tani Organik Mbay (ATOM),

Asosiasi Petani Kopi Organik

Manggarai (Asnikom),

Perhimpunan Petani Watuata

(Permata), Farmer Organisation

in Ende and Sikka.

Partners

Memorandum of Understanding (MoU)

between VECO Indonesia and Bank NTT

to support rice, cocoa and coffee farmer

organisations in Flores.

Support in the form of coffee grinding and

other equipment for ASNIKOM coffee

processing unit in Manggarai, and a

commitment to provide working capital to

buy coffee in 2015.

Support from the Finnish

Embassy for ATOM of

Achievements

IDR 601,184,000

support for cocoa processing facilities from

the Ministry of Cooperatives for JANTAN

multi-business cooperative.

IDR 300 million

Yayasan Tana Nua Flores (YTNF),

Mitra Tani Mandiri (MTM) Ngada,

Ayu Tani, Delsos Ruteng, and

Lembaga Advokasi dan

Pendampingan Masyarakat

(Lapmas) Ngada

Comextra Mayora, PT Indokom Citra

Persada, PT SBN, and Volkopi

Sulawesi

Polman

Enrekang

Tana Toraja

NorthLuwu

EastLuwu

ParigiMoutong

WestSulawesi

SouthSulawesi

CentralSulawesi

The programme focused on cocoa

development in three provinces

(West Sulawesi, South Sulawesi

and Central Sulawesi) and on

coffee development in Tana

Toraja, North Toraja, and

Enrekang, South Sulawesi.

NorthToraja

Makassar

Achievements

Amanah, Masagena and Cahaya

Sehati received certification from

Rainforest Alliance for sustainable

cocoa. They covered the cost of

certification themselves.

Amanah, Masagena,

Cahaya Sehati,

Perhimpunan Petani

Kopi Toraja (PPKT),

dan Benteng AllaMitra

Farmers' price negotiating skills are

improving. Sulatco and Toarco Jaya provide

PPKT daily price information. Benteng Alla

receives a higher than market price.

Volume of coffee

marketed collectively:

Net income per

month per hectare

Polman:

North Luwu:

East Luwu:

Parimo:

33218.8

PPKT

Benteng Alla

tons

tons

IDR 2.5 millionIDR 2.9 millionIDR 576,000IDR 946,000

Wahana Sukses Pertanian Terpandang

(Wasiat) , Jalesa Toraja

ECOM, PT Mars Symbioscience

Indonesia, Continaf/Nedcommodities,

Sulatco, Toarco Jaya

CollectiveMarketing in 2014

Jantan

Sikap

Sikka

43.5

22.5

0.22

Amanah

Masagena

Cahaya Sehati

Parimo

276

181

161.7

202.4

PPKT

Benteng Alla

332

18.8

Permata

Asnikom

13.86

35.77

Total cocoaof Sulawesi

821.14

Total cocoaof Flores

66.22 350.8

Total coffeeof Sulawesi

Total coffeeof Flores

49.63

in tons

Appoli

APOB

P3LL

110.34

8.9

16.15

13.43

Total rice ofFlores

Total rice ofCentral Java

135.39 120.38

Total rice ofWest Java

Total cinnamonof Kerinci

8.83

Finance

0.89%

DGD (Belgium)

15,900,942,452

DFAT / AUSAID

3,262,040,241

MISEREOR

2,116,169,368

NOVIB

1,313,226,578

FAO

188,179,387

ZUIDDAG

218,990,007

TRDS

482,057,838

Income

64.49% 13.23%

8.58%

5.33%

2.68%

0.76%

Triple 11

515,751,210

2.09%

1.96%CORDAID

660,000,000

(in IDR)

Partners Activities

General operation

Training and meeting

Personnel

Investment

Expenses

9,725,720,001 98,709,000

3,602,624,333

4,752,064,404

825,991,302

(in IDR)

25%

4% 19%

1%51%

Testimonial

Initially, JANTAN and SIKAP

had no knowledge of good

quality cocoa beans. However,

thanks to support from VECO

Indonesia and Comextra

Mayora, in 2014 they learned

to produce very good quality

cocoa beans.

With support from VECO

Indonesia, we are able to

produce better quality

cinnamon.

Romanus Nong Rewo,

Vice Lead, Coordination Team, PT

Comextra Mayora, Maumere

Junaidi,

Farmer in Kerinci, Jambi

On behalf of the district government, I

would like to thank VECO Indonesia for

motivating coffee farmers to improve the

quality of their coffee; Benteng Alla coffee

now meets the market standards to be sold

as speciality coffee.

Muslimin Bando,

Regent of Enrekang,

South Sulawesi

Regional Office

Jl Kertadalem No. 7 Sidakarya

Denpasar, Bali 80224

Telp +62 361 727378

Faks +62 361 723217

FA Kerinci

Jl. Depati Parbo, Rt. 03 Desa

Kumun Mudik

Kecamatan Kumun Debai, Sungai

Penuh, Jambi

HP: 08117454330

FA Jakarta

Jl Saleh Abud No. 18-19 Otto

Iskandardinata

Jakarta

HP: 08113854465

Contact

FA Jawa

Perumahan Galaxy Permai Blok B No. 9

(Utara Terminal Boyolali) , Boyolali,

Jawa Tengah

HP: 08113854464

FA Sulawesi

Jl. Gunung Rinjani I no 7

Perumahan New Jasmin Tanjung Bunga

Makassar, Sulawesi Selatan

HP: 08113854464

FA Flores

Jl. Gatot Subroto no 7 Ende, Flores,

Nusa Tenggara Timur

HP: 08113854463

This report printed in

50 percent of recycle

paper as commitment

of VECO Indonesia to

environment.