1. law, govt and politics
2. government

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:
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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:
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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:
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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:
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(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:
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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
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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)
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Miranda (Program
Officer Green
Entrepreneurship)
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Rob de Groot (Manager
Indonesia Domestic
Biogas Program)
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Issues
We work with farmers, Government and business, challenges we face:
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Lack of knowledge and skill of farmers
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Lack of access to information, finance, market
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Supporting system does not functioning well
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How to make a business more than a buyer
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How to influence the agenda of companies?
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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.
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Policy that do not support SME development e.g subsidy, import ,
etc
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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
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The Agri-hub should address the above issues
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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
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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.
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Coordination should take place from Jakarta.
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HIVOS is prepared to contribute human resources to the agrihub.HIVOS is willing to host the Agri-Hub
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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
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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
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Market access
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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.
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Awareness raising
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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
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IOA as an organisation
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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).
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Finding time to organize this remains an issue
Issues
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Entrepreneurship is a new thing in Indonesia; farmers are just
producer, not become manager of their farm this should change.
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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.
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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
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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.
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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.
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Concrete activities are needed as is focus
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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)
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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.
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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)
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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
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17/1
Noviansyah Manap
(managing director)
WWF
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Imam Musthofa
Partners and network
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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.
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OA is HIVOS partner
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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.
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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.
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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
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8
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Will the Agri-Hub be a formal association?
Also our members might be interested in participating
Issues
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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.
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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.
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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.
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How to access premium markets, how to supply buyers with
continue ad stable quality is really hard and difficult.
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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
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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:
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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
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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
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18/1
Embassy of the Kingdom
of the Netherlands

Mr. Hajo Provo Kluit,
deputy head of
Economic Affairs
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18/1
INA
Indonesian-Netherlands
Association/ IndonesianBenelux Chamber of
Commerce

Elmar Bouma
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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
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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)
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18/1
IDH
Sustainable Trade
Initiative
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Based on Ppt of Mr
Daniel Hazman
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18/1
SNV

Phil Harman (director
SNV Indonesia)
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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
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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
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18/1
Business Watch Indonesia

Ms. Veronika Ratri
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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
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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
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21/1
Oxfam

Henk Peters
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Mrs. Dini Widiastuti,
Economic Justice lead

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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)
jkleinrensink@hivos.or.id
Miranda (Program Officer Green
Entrepreneurship)
miranda@hivos.or.id
Robert de Groot (Project Manager)
r.degroot@hivos.or.id
Hivos
Indro Surono (Board of Trustees)
rasdi@organicindonesia.org
Hivos
Rasdi Wangsa (Program Director)
i.surono@gmail.com
Imam Musthofa Zainudin (Fisheries Program
Leader)
Sri Sulasmi (Deputy Director)
imusthofa@wwf.or.id
OxfamNovib
ciami_12@yahoo.com
Hivos
Phil Harman (Programme Manager Indonesia)
pharman@snvworld.org
Veronika Ratri (Program Coordinator)
Dini Widiastuti (Economic Justice Lead
Indonesia)
veronika_ratri@watchbusiness.org
dwidiastuti@oxfam.org.uk
Henk Peters
Henk.Peters@oxfamnovib.nl
Johan Verburg
johan.verburg@oxfamnovib.nl
Muhammad Hariyadi Setiawan (Programme
Manager)
hpsp@ina.or.id
Cordaid
Caecilia A. Widyatstuti (General Manager)
generalmanager@hortichain.org
caeciliaaw@gmail.com
Hivos
Iskandar Zulkarnain (Manager of Applied
Technology)
izulkarnain@hortichain.org
Intan Darmawati
Muh. Djufryhard
hunkintan@gmail.com
djufryhard@telapak.org
Ery Damayanti
erydamayanti@cbn.net.id
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)
saragihjefri.sw@gmail.com
Darto
Alexander Evans (Representative)
Sulistri Afrileston (Vice President of KSBSI)
darto_woityla@yahoo.co.id
lex.evans@gmail.com
sulistri@hotmail.com
ICCO
CNV
P. Usmanto Njo (senior consultant)
Arief Hidayat (head of administrative for
International Corporation)
usmanto@okusi.net
arifpede@yahoo.com
ICCO
ICCO
Prashant Rana (Regional Director SE Asia)
prashant@swisscontact.or.id
Cordaid
Nelia Latief (Regional Manager – Indonesia
and Papua New Guinea)
Piers Gillespie (consultant)
Hendrastuti (Head of ICS)
nelia.latief@ethicalteapartnership.org
Masanto (Chairman)
tmkt_dki@yahoo.com
Budi Santosa (consultant)
Ronnie S. Natawidjaja, Ph.D (Director)
ronnie_sn@yahoo.com
Kees de Ruiter
kees.de.ruiter@iccokia.org
Kiswara Santi Prihandini (Program Officer
Indonesia)
Kiswara.Santi@iccokia.org
Supardi
piers.gillespie@solidaridadnetwork.org
jaringan.jatirogo@gmail.com
OxfamNovib
Hivos
Hivos
24
Trukjaya Foundation
Arnelo M Astillero
Suwarto Adi
Arnelo.M.astillero@iccokia.org
suwarto.adi@trukjaya.org
ICCO
25
The Daya Pertiwi Foundation (DPF)
Made D. Polak (Chairman/Head of Mission)
madepolak@dayapertiwi.org
ICCO
26
VECO Indonesia
Rogier Eijkens (Regional Representative)
rogiereijkens@veco-indonesia.net
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
hajo.provo-kluit@minbuza.nl
28
Embassy of the Kingdom of the
Netherlands – Economic Department
IDH
29
FNV
Ruth Vermeulen
Ruth.Vermeulen@vc.fnv.nl
30
CNV
Jan Ridder
j.ridder@cnv.nl
31
BBO
Antoon Blokland
ablokland@bbo.org
32
ICCO
Andre.Vording@icco.nl
33
CORDAID
André Vording, Fair Economic Development
Specialist
Harma Rademakers
34
Both Ends
Christa Nooy
cn@bothends.org
35
CDI
Marianne van Dorp
marianne.vandorp@wur.nl
36
CBI
Christa Bouwhuis
cbouwhuis@cbi.eu
37
Ministerie van Buitenlandse Zaken
Directie Duurzame Economische
Ontwikkeling
Wijnand van IJssel
wj-van.ijssel@minbuza.nl
38
Agri-ProFocus
Roel Snelder
rsnelder@agri-profocus.nl
39
Fair & Sustainable Advisory Services
Angelica Senders
Angelica.Senders@fairandsustainable.nl
27
hazman@idhsustainabletrade.com
harma.rademaker@cordaid.nl
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