Popular Report 2012VECO Indonesia

3. Foreword5. About us6. Where do we work9. Summary11. Sustainable agriculture chain development13. Advocacy15. Consumer awareness17. Learning organization18. Finance20. Factsandfigures22. Key activities

Table of Contents

ForewordThe year 2012 has been another dynamic year

for VECO Indonesia, partners and networks. A growing recognition of our expertise in Sustainable Agriculture Value Chain development and development of business farmer organizations (BFO) has led to new opportunities for working with private sector, government and international development organizations. We have now a well-established Value Chain Development Programme and made some interesting progress towards our programme goals: All farmer organizations partners are now well established and organized. Most of them have established business links with companies to sell high qualityproducts(e.g.certifiedCocoainWestSulawesifromBFOAmanahandcertifiedRiceinCentralJavafrom BFO Appoli). The advocacy efforts of National Farmer OrganizationAPIanditssupporterstoinfluenceRicepolicies in Indonesia have led to a well-documented proposalforpolicychangesonNationalRicepricing policies. There is a clear recognition of API’s important role by all stakeholders including national government, banks and other national farmer organizations. The Healthy Food, Healthy Living Consumer programme targeting youngsters has accelerated its development during 2012 with several youth groups working independently and organizing a large variety of consumer awareness activities. Concrete collaboration was built with educational institutions

Best regards,

RogierEijkensRegionalRepresentative

and activities are well-received by local government authoritiesintheprojectlocationsBaliandSolocity. There is a clear tendency that VECO Indonesia develops more strategic collaborations with other development institutions, local government and private sector companies now, especially noticeable during the last year (collaboration with AusAid, PT Mars Symbioscience and Boyolali government). It is recognized that important opportunities for synergy and up-scaling within the programme are present through these new partnerships and will play an even more important role in the coming years. The ultimate result of our programme continues to be the improved livelihoods of small-holder farmers in Indonesia. We believe this can be achieved through the development of professional farmer business enterprises, commercial links with the private sector, high quality service providers and promoting sustainable agriculture products/production with consumers and government. In this annual report we present concise information and some highlights of the programme in 2012. This will serve you to have a quick overview of what happened in our programme. For more details you should go to the new VECO Indonesia website www.veco-ngo.org/vecoindonesia where you can finduptodateinformationofactivities,newsletterLONTAR,publicationsandotherinformation. Ihopeyouenjoyreadingourannualreport.Letusknow if you have any comments or questions.

Anon-profitorganisationthatformorethan30yearshasbeenpromotingsustainable agriculture to get a better deal for farmers. We are a part of Vredeseilanden, an international NGO headquartered in Belgium with programmes in West Africa, East Africa, South America, Central America, and South East Asia.

About Us

Improve the lives of rural family farmers,1. Strengthenthepositionoffarmerstoenablethemtoinfluencepolicy,2. Raisetheawarenessofconsumersaboutconsumingsustainable3. agriculture products,Be a learning organisation.4.

Who are we?

What are our aims?

Who do we work with?Farmers, farmer organisations, NGOs, private companies, and government at the local, national and international levels.

Programs:Advocacy related

to the government procurement price of rice (HPP) and food

sovereignty,Consumer awareness

about healthy food

Programs:Consumer awareness about

healthy rice,Healthy rice chain

development,Healthy Food Healthy

Living

Program:Coffee and

healthy rice chain

development

Program: Cocoa and

peanut chain development

Program:Coffee and

cocoa chain development

As of 2012, VECO Indonesia was running programs in eight program areas:Jakarta,CentralJavaandBali,EastNusaTenggara(NTT)1,NTT2,WestSulawesiandSouthSulawesi.Fivefieldantennasworkinthese eight program locations.

Where do we work?

DKI JakartaParters:

Aliansi Petani Indonesia (API)•KoalisiRakyatuntukKedaulatanPangan•(KRKP)Yayasan Lembaga Konsumen Indonesia (YLKI)•Perhimpunan Indonesia Berseru (PIB)•

Jawa Tengah dan Bali Parters:

Lembaga Studi Kemasyarakatan dan Bina Bakat •(LSKBB)Aliansi Petani Padi Organik Boyolali (APPOLI)•JaringanKerjaPertanianOrganik(JAKERPO)•Lembaga Gita Pertiwi (GP)•Asosiasi Petani Organik Boyolali (APOB)•KonsorsiumSoloRaya(KSR)•Bali Organic Association (BOA)•Pusat Pendidikan Lingkungan Hidup (PPLH)•IDEP•Private Sector : •

PT Bloom Agro•

NTT 1 (Manggarai, Manggarai Timur, Ngada dan Nagekeo)Parters:

DelsosRuteng•Lembaga Advokasi dan Penguatan Masyarakat •Sipil (LAPMAS) NgadaAsosiasi Petani Kopi Manggarai (ASNIKOM)•PerhimpunanPetaniWatuata(PERMATA)•Yayasan Mitra Tani Mandiri Mbay (YMTM)•Aliansi Petani Organik Mbay (ATOM)•

NTT 2 (Ende, Sikka, Flotim dan TTU)Parters:

Asosiasi Petani Bituna•JaringanPetaniWulangGitang(JANTAN)•Yayasan An Feot Ana (YAFA)•Asosiasi Petani Kakao Nangapenda (SIKAP)•Yayasan Ayu Tani (YAT)•Yayasan Mitra Tani Mandiri TTU (YMTM) •

Sulawesi Barat & Sulawesi SelatanParters:

PerhimpunanPetaniKopiToraja(PPKT)•YayasanJayaLestari(JALESA)•Koperasi Tani Amanah •Wahana Sosial Petani Terpandang (WASIAT)•Koperasi Tani Masagena•Private Sectors: •

PTArmajaroIndonesia•PT Mars Symbioscience Indonesia•

As of the end of 2012, VECO Indonesia was still running Sustainable Agriculture Chain Development, Advocacy and Consumer Awareness programs. These three

programs, along with Developing a Learning Organisation, make up the four areas in which VECO Indonesia continues to work.

The focus throughout 2012 was on strengthening farmer organisations (FOs) through training, facilitation, and support to enable FOs to develop their businesses. The aim was to build the capacity of farmers in running their farming businesses. As well as providing funding and capacity building support, VECO Indonesia also linked farmers with others, including NGOs, consultants, government and other development organisations. The aim was to enable farmers to develop themselves and play a key role in agriculture value chains.

Intheinterestsofefficiency,in2012VECOIndonesiafocusedonlyonprimecommoditiesin each of the program locations: cocoa, coffee, rice and peanuts. All activities in 2012 focused on these four commodities, in particular on improving their quality and production volume.

Theseactivitiesincludedfarmerfieldschools,internships,studyvisitsandsoon.VECOIndonesia also continued to support advocacy related to the government purchase price of rice, sustainable food stock systems, and healthy food consumer awareness campaigns, which involved consumers in urban areas and young people.

Summary

Improve the socio-economic life of family farmers, both men and women, through sustainable agriculture chain development, from production to marketing.

Sustainable Agriculture Chain Development

Expansion of Program Locations. In early 2012, VECO Indonesia expanded its cocoa chain development program location in Sulawesi. In addition to Polewali Mandar

(Polman) District in West Sulawesi, VECO Indonesia now also supports the Masagena farmer organisation in North Luwu District, South Sulawesi. In this area, VECO Indonesia isalsostillsupportingcoffeefarmersinToraja,SouthSulawesi.

Increasing Coffee Farmer Incomes.Asnikom’scollectivemarketingwithIDR30millionsupport from Kopkardios has done much to help farmers in Manggarai, East Nusa Tenggara, avoid having to use moneylenders. This has led to an increase in incomes has also come with an improvement in the quality and production volume of coffee after adoptingknowledgefromfieldschools.InNgada,farmersareabletoimprovetheirproductionafterimplementingknowledgefromfarmersfieldschools(FFS).

ICS to Guarantee Product Quality.In2012,APPOLIreceivedorganiccertificationfromtheInstituteofMarketology(IMO)Switzerland,acertificationagencyheadquarteredinSwitzerland.IMOissuedthecertificateon13December2012,forEU,NOP,JASandairtrade(fairforlife)specification.Thiscertificatehashelpedenablefarmermembersof APPOLI to export organic rice overseas. The ICS is key to maintaining the quality of farmers’ products and helps consumers to source healthy food.

Strengthen farmer organisations to strengthen their negotiating position in influencing policy, including rice price and food sovereignty policies.

Advocacy

Multi-stakeholder Dialogue. One of our advocacy initiatives is holding multi-stakeholder dialogues with key actors from the Ministry of Trade, Ministry of

Agriculture, Coordinating Ministry of Economic Affairs, National Logistics Agency, local andnationalfarmerorganisations,andnationalNGOs.APIandKRKPresearchfindingswere used as input for drafting rice price policy in 2012. Key actors are becoming increasingly aware that API is a farmer organisation that is serious about performing rice policy advocacy.

Community Food Stocks. The Melati women’s farmer group in Femnasi village, in the East Miomaffo subdistrict of North Central Timor in East Nusa Tenggara manages a food stockof2tonsofriceacquiredforitsmembers,withfundingsupportofIDR15,000,000.ThishasgeneratedprofitsofIDR2,000,000.Inanothervillage,Wure,fundingsupporthas been used to procure 15 tons of rice for the food stock. In this village, the food stock ismanagedbyTunggalJayafarmergroup,underthesupervisionofthefarmergroupassociation and the Village Food Team.

Research on Rice Reserves.APIcompleteditsStudyofAlternativeRiceInstitutionstoStrengthenLocalandNationalRiceReservesincollaborationwithPusatStudiEkonomidanKebijakanPertanianasafollowuptoitsproposedchangeinricepricepolicy. The alternative rice price policy and proposed institutional reforms have been communicated to government through the multi-stakeholder dialogues and to Parliamentary Commission IV. These two proposals have received a variety of responses, both positive and negative. Bank Indonesia has expressed its appreciation, in particular of the proposed multi-location rice price policy.

Raise consumer awareness about consuming healthy sustainable agriculture products.Consumer Awareness

Information Reaching More People. Through interesting and informative activities in 2012, such as the local food parade organised by HFHL Solo and the celebration

of World Food Day organised by PIB, information about healthy food reached more consumers. This was thanks to national media coverage of these events. Mass media campaigns via radio and magazines, for example, continued.

Healthy Food Education for Consumers. YLKI ran a variety of consumer education activities on healthy food. Healthy food campaigning is a national agenda for YLKI. As part of this campaign, YLKI organises face-to-face meetings between producers and consumers, linking them together in the healthy food campaign. YLKI also organised a nationalmovementtoinfluencethegovernmenttoadopttheConsumerProtectionLawand Food Law.

Organic Food Market in Bali. Together with eco communities and young people in Bali, the HFHL team organises a regular organic product market in Sanur, Denpasar, Bali. This event was launched in 2012 in response to the lack of organic produce for consumers in Bali, despite growing demand for these products. Participating in the Sanur Community Market are farmer groups, NGOs, consumer groups and organic food outlets. Alongside the trading, young people run a healthy food campaign.

Develop the organisational management of VECO Indonesia to become a learning organisation.

Learning Organisation

Four Key Factors. In building VECO Indonesia as a learning organisation, there are four key factors: (1) creating spaces where the staff and divisions can share and

learn together, (2) adopting human resource development policy, (3) providing the infrastructure and facilities for learning together (budget, activities, etc.), and (4) having an adequate database that staff can access easily.

Variety of Learning Activities.In2012,theseactivitiesincludedfivehomeweeksinthe year (where staff share program experiences and lessons learned), B3 learning forums (all staff sharing information about the organisation and teambuilding), gender workshopsinthevaluechains,theCountryForumWorkshop,RegionalLearningInitiative(RELI)inVietnam,andstaffcapacitybuilding.

Two Country LONTAR.Forthefirsttimeever,VECOIndonesiaandVECOVietnam,twooftheVECOregionalofficesinSouthEastAsia,publishedacollaborativeeditionofLONTARquarterly.This28-pagemagazinediscussedtheorganicriceprograminIndonesia and the safe vegetable program in Vietnam. Published in November 2012, thiseditionofLONTARwasapartoftheeffortofthesetworegionalofficestopublicisesuccess stories in their countries, as well as being learning material.

In2012,VECOIndonesiamanagedprogramfundingofEUR1,148,722oraroundIDR13.85 billion. These funds were used to (i) support the programs run by 31 partners and networks in 16 districts, including 15 NGOs, 3 networks, and 13 farmer organisations, (ii) operations and staff, (iii) training and meetings to support commodity chain development, and (iv) program monitoring and evaluation.

Finance

Sources of Funds, VECO Indonesia 2012

DGD

IDR 9,689,633,735€ 800,452

IDR 872,025,000€ 75,000

IDR 1,837,350,000 € 150,000

MISEREOR CORDAID NOVIB TRDS GILLES OMMERSTEIN WCF

IDR 885,592,611 € 76,344

IDR 285,839,241 € 23,615

IDR 82,510,000 € 7,105

IDR 157,171,949 € 12,989

IDR 39,548,600 € 3,267

6,6%

2,1%

0,6% 1,1%0,3%

69,7%

6,5%

13,1%EUROcent

EUROcent

EUROcent

EUROcent

EUROcent

EUROcent

EUROcent

Use of Funds, VECO Indonesia 2012

IDR7,519,956,296€ 623,749

IDR6,329,714,840€ 525,023

VECO Indonesia Local parters

54% 46%DGD

IDR 9,689,633,735€ 800,452

IDR 872,025,000€ 75,000

IDR 1,837,350,000 € 150,000

MISEREOR CORDAID NOVIB TRDS GILLES OMMERSTEIN WCF

IDR 885,592,611 € 76,344

IDR 285,839,241 € 23,615

IDR 82,510,000 € 7,105

IDR 157,171,949 € 12,989

IDR 39,548,600 € 3,267

6,6%

2,1%

0,6% 1,1%0,3%

69,7%

6,5%

13,1%EUROcent

EUROcent

EUROcent

EUROcent

EUROcent

EUROcent

EUROcent

60%40%

33,821farmerswereprogrambeneficiariesin2012,comprising 20,303 (60%) men and 13,518 (40%) women.

IDR70,950,000supportfromtheEastNusaTenggara Provincial Agriculture Agency to Asosiasi Petani Kopi Manggarai in 2012. This support was the result of VECO Indonesia partners lobbying the government.

3,310 farmers are members of the Amanah ICS

2,763 (83,5%) men

547 (16,5%) women

Facts and Figures

939 members of Amanah farmer organisation regularly paid subscriptions to the cooperative throughout 2012.

113.9 tons of dried peanuts were sold by Bituna farmer association in 2012. This compareswithjust6tonsin2011.

2012 2011

59 hectares of land belonging to 260 farmers who are members of APPOLIreceivedorganiccertificationfromIMO

21 VECO Indonesia staff as of December 2012

15 men 6 women

= 100 people

VECO Indonesia National Forum. On May 28-29 2012, VECO Indonesia held its nationalforuminTanjungBenoa,Bali.Theaimoftheworkshopwastoformulate

what the position of Indonesian farmers would be in be during the period 2014-2020. The participants at this workshop were from partners and networks contacts, including farmer organisations, government, NGOs and research institutes. Each stakeholder also discussed their roles in these changes. A similar workshop was held with selected partners prior to the national forum.

National Partners’ Meeting. On 11-14 September 2012, VECO Indonesia held the annual partners’meetinginBatu,EastJava.Partnersandnetworksacrossallprogramareasattended this meeting on the topic of “Agriculture as a Business”. The focus of discussion at this meeting was how to make farmer organisations more business oriented. As well as discussion, the participants also went on learning visits to farmer cooperatives in MalangDistrict,includingKoperasiAgroNiagaJabungandKoperasiUnitDesaKepanjen.

ICS Training in Vietnam. To foster a closer relationship, VECO Indonesia and VECO Vietnam organised Internal Control System (ICS) training on 9-15 October 2012, in Hanoi, Vietnam. The training was attended by 15 participants from VECO Vietnam, NGOs, and the private sector. The lead facilitator for the training was Imam Suharto, VECO Indonesia Program Manager and independent inspector for the Institute of Marketology (IMO),Switzerland.JoiningImamweretwopresentersfromthecertificationagenciesUTZandRainforestAllianceVietnam.

Key Activities

Jl. Kerta Dalem No. 7, SidakaryaDenpasar Bali 80224, IndonesiaTelp. +62 361 7808264, 727378 Fax: +62 361 723217Email admin@veco-indonesia.net. Web. www.vecoindonesia.org