Developing an inclusive corn supply chain

PT Santosa Utama Lestari (Vasham), a subsidiary of PT Japfa Comfeed Tbk. (Japfa), runs partnership program to respect suppliers farmers’ rights to a decent standard of living.

 PT Santosa Utama Lestari (Vasham), subsidiary of PT Japfa Comfeed Tbk. (Japfa), is an integrated agricultural social business. Vasham's vision since its inception in 2013 is ‘creating a vertically integrated inclusive agricultural business that provides added value to all parties involved. ' Through a closer partnership program with farmers, companies can ensure farmers’ right to a decent standard of living.

 

“Company must have a larger mission than the company itself.”

– Irvan Kolonas, CEO Vasham

 

Konco Program: understanding the supply chain to become a 'friend' of farmers

 According to Irvan, Vasham is a social business, which is a business aiming to solve a social problem. Social businesses like Vasham should have a profitable and sustainable financial model and have positive impacts to the society.

One of Vasham's programs is to provide a contract farming system called the 'Konco' Program, which means ‘the Friend' program in Javanese. Vasham partners with farmers, traders and local communities through financing, sales, agricultural training, and risk management to increase farmer's productivity and income. In 2018 alone, 100,000 tons of corn have been produced through the Vasham program.

To design a supply chain solution for corn commodity, Irvan and his team must go on the field to engage with farmers, middlemen, retailers, government and other parties in the supply chain.

According to Irvan, the problem in the supply chain is not always black and white. "In the beginning, I thought all middlemen were evil. After going to the field, it turned out that not all middlemen oppressed the farmers. There are tier 1 middlemen who provide services and assistance to farmers," explained Irvan. "However, there are also tier 2 and tier 3 middlemen who act purely as brokers without added value for farmers," Irvan added.

Vasham's financing partnership aims to break the practice of middlemen who do not provide added value to farmers. Farmers often have to owe money to middlemen with high interest. Through the Konco Vasham program, farmers can owe capital with profit sharing scheme.

 

“The advantage for companies to partner with farmers is the certainty of supply.

 

According to Irvan, the contract farming model has been around for a long time. For example, Japfa has a partnership program with chicken farmers that began in the 1998 economic crisis.

What are the benefits of contract farming for the company? "The advantage for the company is the certainty of supply and sales." Said Irvan.

 

Embed respect for human rights into the company’s DNA

Over time, Vasham was integrated into a subsidiary of Japfa.

"Initially I started Vasham as a social business separated from Japfa." said Irvan. "However, as I developed Vasham, I realized overlapping point: to be a responsible company, the company must become a social business."

 

“I realized overlapping point: to be a responsible company, the company must become a social business.” Irvan Kolonas, CEO of Vasham

 

"Through Vasham, Japfa now goes to corn farm centers directly in various regions such as Palu, Gorontalo and NTB." explained Irvan.

Vasham provides facilities and market access in various areas. "For example, shipping corns from NTB was not possible, because small farmers could not use large ships individually."

According to Irvan, the business model of social contract farming is simple and can be replicated by many other large companies.

"If the company wants it, actually the company can. The question is whether companies want to invest and mobilize energy to succeed in the long run."

 

https://www.youtube.com/watch?v=f_7-aW42A48&feature=youtu.be

Source: Vasham

Motivating a retail company’s suppliers to respect human rights

A retail company, H&M, through H&M Production Office in Indonesia assists and motivates suppliers to participate in respecting human rights.

H&M has committed to leading the change in the fashion industry by promoting a circular, renewable, fair and equal business model. H&M partners with 1,668 suppliers in the world, including 131 suppliers in Indonesia, to increase their sustainable business performance.

 

“H&M realizes that we are not alone. Our business should grow together with the suppliers’ business.” Anya Sapphira, Regional Sustainability Manager H&M.

 

“H&M realizes that we are not alone. Our business should grow together with the suppliers’ business.” Anya Sapphira, Regional Sustainability Manager H&M. “We support our suppliers to go beyond  in social and environmental program.”

 


[1]HM. “HM 2017 Sustainability Report”. 2017. https://about.hm.com/content/dam/hmgroup/groupsite/documents/masterlanguage/CSR/reports/2017%20Sustainability%20report/HM_group_SustainabilityReport_2017_FullReport.pdf

[2] Ibid,.

[3] http://sustainability.hm.com/en/sustainability/downloads-resources/resources/supplier-list.html#


 

Source: H&M Sustainability Report 2016

 

“H&M is committed to make fashion industry more transparent. We have learned from our previous experiences that transparency is important for our shareholders and stakeholders.” said Anya Sapphira, Regional Sustainability Manager H&M. “For us transparency is to know where and how our products are made to make sure that human rights are respected, environmental conditions are sound, and under what conditions product are made. It is also important to share this information publicly.”

 

Not a philantrophy: embedding sustainability in the DNA of business process

“There is no such thing as philantrophy. We see investing in sustainability as a business opportunity. It provides us with long term sustainability. That is why embedding sustainability to business process in our supply chain is important” said Anya.

Philantrophy and sustainability are implemented separately by two distinct lines. H&M Foundation takes care of H&M owners’ fund for charity projects. Meanwhile, H&M Sustainability Team actually implement sustainability program related to H&M core business process.

“Integrating sustainability in business process is different from philanthropy and donation. Suppliers should have a competitive business capacity, yet remains sustainable and responsible.” said Anya.

“We look into the suppliers’ business process. How they can remain competitive, free from social conflict, have a good industrial relations and free from wage violations. Meanwhile sustainable material, resources efficiency, and waste management are also important for environmental perspective of business.” explained Anya.

Sumber: H&M 2017 Sustainability Report

 

 

Developing sustainability system according to suppliers’ need

The second largest clothing retailer in the world in 2018[1] has moved away from auditing system to developing suppliers’ capacity on sustainability.

 


[4] https://www.fastretailing.com/eng/ir/direction/position.html


 

"Compliance is the minimum requirement. We reward the extra mile." – Anya Sapphira, Regional Sustainability Manager H&M

 

H & M uses the self-reporting method of the Sustainable Apparel Coalition using the Higg Index software. The H & M Sustainability Team will then verify reporting and determine what areas should be developed by suppliers.

"We are aware that suppliers need to achieve sustainability are diverse." explained Anya. "Our suppliers’ development program depends on their individual needs, for example occupational safety and health (OSH), industrial relations with workers, waste management systems, environment, etc." said Anya.

"We realize from evaluation that on average the factories already have system in place, but daily operation is sometimes challenging." said Anya. "Sometimes hygiene is not maintained during peak season. Patchworks are left on the floor, even though OSH system is a priority. "Anya explained. "There were also employees who prefer ignoring their rights by moving to factories with more overtime to get a higher bonus."According to the H & M Sustainability Team, socialization and training through the Sustainability Supplier Summit, which is held at least twice a year, is important to embed existing systems and policies in daily habits. Partnerships with various trade union forums, such as IndustriALL and international institutions, such as the International Labour Organization were also carried out.

 

Source: H&M Sustainability Report 2016

 

 

Rewarding the extra miles taken by suppliers

"Compliance is the minimum requirement. We reward the extra mile.” said Anya.

"We make sustainability a backbone of suppliers’ key performance index (KPI) and ranking." Anya Sapphira, Regional Sustainability Manager H&M

According to Anya, it is a business case to choose more sustainable suppliers.

“Suppliers with better Occupational Safety and Health system tends to have better output of production force. Suppliers that have a well-functioning industrial relation also tends to be more stable and reliable in delivering production outputs.” said Anya.

"We make sustainability a backbone of suppliers’ key performance index (KPI) and ranking." Anya explained. " suppliers with higher rank will have a higher business commitment from

H&M."

As a result, some H&M supplier factories have gone the extra mile in ensuring an inclusive working environment for women and people with disabilities. Some also have used renewable source of energy, such as solar panel.

Grievance mechanism: a platform to engage various stakeholder

A Singaporean palm oil company that has suppliers network in Indonesia, Wilmar International Limited (Wilmar), tries to ensure respect of human rights in its business practice through grievance mechanism. Worker, community, non governmental organization, government, and other stakeholder can use the grievance mechanism when alleged human rights or environmental violations occur in Wilmar’s business operations.

 

Source: Wilmar

 

Wilmar has committed to implement No Deforestation, No Peat, and No Exploitation Policy Commitment (NDPE) policy since 2013. Implementing the NDPE policy to more than 1000 suppliers[1], 238.600 hectares of plantations and 46 Wilmar’s factories[2] need  a comprehensive approach.

 

“We realized that we cannot monitor thousands of our suppliers. Therefore, we created an active platform where grievances can be communicated.” – Siew Wai, Siew Wai Manager of Grievance Procedure at Wilmar

 

“When we develop our grievance mechanism, we realized that we cannot monitor thousands of our suppliers. Therefore, we created an active platform where grievances can be communicated to Wilmar.” explained Siew Wai, Manager of Wilmar Grievance Procedure.

Wilmar gives responsibility to Grievance Committee, Verification Team, Operational Manager, Procurement Department, and Sustainability Department[1] to follow up grievances and integrate grievances to Wilmar business operations.

 

“By appointing grievance mechanism team, flow of responsibility to follow-up on grievances become clearer than before.” – Amalia, Indonesian Country Representative of CNV International

 

“By appointing grievance mechanism team, flow of responsibility to follow up on grievances become clearer than before.” said Amalia, Country Representative of CNV Internationaal in Indonesia.

As the first palm oil company with grievance mechanism, Wilmar had consulted with various NGOs and the Roundtable of Sustainable Palm Oil (RSPO) in designing the mechanism. The grievance mechanism was also adjusted to the accountability standards and transparency of the UN Guiding Principles on Human Rights.

"Wilmar also worked with the Aid Environment and Rainforest Action Network to introduce the grievance mechanism through workshops with 300 local NGOs," said Siew Wai, Wilmar's Manager of Wilmar Grievance Procdure.

The development of grievances to Wilmar can be accessed by the public through the website [2] and annual report[3]. Public can see the development of grievances and Wilmar’s responses through e-mail communication, field verification and resolution activities.

 


[1] https://www.wilmar-international.com/docs/default-source/default-document-library/sustainability/supplier-group-compliance.pdf?sfvrsn=714f6297_0

[2] http://www.tft-transparency.org/member/wilmar/what-we-do/

[3] https://www.wilmar-international.com/sustainability/wp-content/uploads/2017/03/Grievance-Procedure-Updated.pdf

[4] https://www.wilmar-international.com/sustainability/grievance-procedure

[5] https://www.wilmar-international.com/sustainability/wp-content/uploads/2018/03/180322_Grievance-update.pdf

 


 

Source : https://www.wilmar-international.com/sustainability/grievance-procedure

 

Grievance mechanism complements suppliers’ compliance program

“Although we have tried to assist Wilmar’s suppliers to comply to human rights standard through Aggregator Refinery Transformation (ART) program, campaign from NGO still keeps coming.” said Anselma Faustina, Project Manager of the Earthworm Foundation, a not for profit organisation that consult Wilmar in implementing NDPE policy.

From 51 grievances, business relations with 16 suppliers have been terminated.

“For deforestation cases, we will stop purchasing directly because evidence from satellite is hard to be done and tractors are under full responsibility of companies to be stopped.” said Siew Wai from Wilmar.

However, not all of grievances ended with termination of business relations. Grievance can also be resolved through a prolong suppliers’ assistance program.

“For grievances on alleged social violations, we focus on developing corrective action plan.” explained Siew Wai. “Because exploitation cases involve community on the field. If business relations are terminated abruptly, conflict on the ground can escalate quickly.” she added.

Several stakeholders can sit together in resolving human rights grievances, as seen on the cases below.

“Because exploitation case involves community on the ground. If business relations are terminated abruptly, conflict can escalate on the ground.”

– Siew Wai, Manager of Wilmar Grievance Procedure

 

Case of labour rights grievance in Riau

On June 12, 2017, the CNV Interational and the Center for Research on Multinational Corporations reported alleged violations of labour rights by PT MSS. Alleged violations include illegal casual daily worker, excessive working hours, salaries below minimum standard, use of child labor, and limited freedom of association.

 

Source: Wilmar

 

Wilmar followed up on complaints by providing reports on the results of internal verification on the field [6]. Then the Confederation of Indonesian Prosperous Trade Unions (KSBSI-Hukatan), CNV International, Ministry of Manpower in Bengkalis Regeancy, and MSS company continued to do consultations and trainings on industrial relations.

Now the company is in the process of Collective Bargaining Agreement with workers’ organizations.

Amalia from CNV International expressed “It is normal if CBA goes through a long negotiation process. What important is that the company wants to negotiate and allow a freedom of association.”

 


[6] https://www.wilmar-international.com/docs/default-source/default-document-library/sustainability/grievance/wilmars-response-to-somo-22-may-2017.pdf?sfvrsn=8e1b9578_2

https://www.wilmar-international.com/sustainability/wp-content/uploads/2018/05/Collective-Action-with-CNV-Hukatan-KSBSI-Makes-Positive-Impact-in-Labour-Final.pdf


 

https://www.youtube.com/watch?v=1Bo4n9IHSMA

 

Grievance case on labour rights in North Sumatra

In August 2016, Amnesty International report ound allegations of labor rights violations at PT DLI and PT Milano which are Wilmar's subsidiaries in North Sumatra. Representatives of Wilmar met with Amnesty International in December 2017 to discuss action plans. Wilmar then conducted external assessments with BSR, Roundtable on Sustainable Palm Oil (RSPO), and International Sustainability & Carbon Certification (ISCC) regarding alleged forced labor, lack of Occupational Safety and Hygiene (OSH), and illegal recruitment of casual daily workers.

According to  One Year Progress published in 2017, percentage of casual daily workers at PT DLI and PT Milano have decreased 42%.

Source: One Year Progress Wilmar

 

Wilmar also engaged labor unions to improve labor conditions at PT DLI and PT Milano.

 

Meeting with Verité team in Indonesia.

Source: Wilmar

 

"The Collective Labor Agreement between Serbundo and the management of the company has been built for the past 2 years," said Nurhaimah from Serbundo. "Now we are also working with the management to provide protection for women workers in the future," Nurhaimah added.

"Supplier companies then speak at supplier forums to share their experiences," said Siew Wai from Wilmar. "This is a good example. Sometimes not all suppliers feel comfortable talking in front of the suppliers community due to fear of raising the standard too high, " Siew Wai added.

 

Initial achievement of a long journey ahead

In the beginning of 2019, dialogue with various stakeholders was held to add some new features to the complaints mechanism.

 

“NGOs will continue to raise high standards. Wilmar will always be the focus because we are the largest palm oil trader in the world.” – Siew Wai Manager of Grievance Procedure at Wilmar.

 

"One of the feedbacks from the NGO community is how to provide a grievance mechanism for workers whistleblowers, not just reports from institutions and organizations. The whistleblower can keep his or her identity confidential for safety reasons. " said Siew Wai, "We will also begin to answer reports of complaints from the media," she added.

According to Amalia from CNV International, trade unions need to get training to make good complaints.

“CNV International provides training to workers so that all grievances are accompanied by data, if necessary research. Also, it must be clear what standards are being used, the Indonesian Law or RSPO criteria.” explained Amalia from CNV International.

According to Siew Wai, the capacity of the Wilmar team to handle complaints must also continuously be developed. "With increasing transparency, of course feedback and criticism will keep coming. NGOs will continue to raise the standards. Wilmar will always be the focus because we are the largest palm oil trader in the world, "said Siew Wai from Wilmar.

"We will continue to set the best standards for the palm oil industry so that others can follow." ensured Siew Wai.

"We will continue to set the best standards for the palm oil industry so that others can follow." ensured Siew Wai. – Siew Wai Manager of Grievance Procedure at Wilmar.

 

About Wilmar International Limited

Wilmar International is a public agribusiness company in Singapore. Wilmar's business activities include oil palm plantations, refining, trading and distribution of palm oil. Wilmar is recognized as the world's largest trader in palm oil industry, controlling around 45% of global trade.

 

Parties involved

  • Amalia Falah Alam – Country Representative of CNV International
  • Janhavi Naidu dan Anselma Faustina – The Earthworm Foundation
  • Nurhaimah – Serbundo
  • Siew Wai Loo – Grievance Mechanism Manager of Wilmar International Limited

 

 


Note: This story captures experiences and opinions from various perspectives on a particular situation, and is designed to share lessons learned on some of the issues involved. It is not intended to be a comprehensive case study nor does it claim to give a definitive account of a specific case or perspectives on that case.

Engaging women workers in automotive industry

 Learning experiences from PT Gajah Tunggal, a tire manufacturing company in Indonesia, in implementing gender responsive human resource policies to promote women empowerment.

 

Source: PT Gajah Tunggal

 

PT Gajah Tunggal Tbk. (Gajah Tunggal) is one of the tire maker companies in Indonesia founded in 1951. The automotive industry, such as the Gajah Tunggal factory, is often dominated by men.

"Gajah Tunggal company has almost 18,000 workers. Only 2.5% of them are female workers in the factory and 1% of them are female workers in the management, "said Catharina Widjaja, Director of Communications and Investor Relations at PT Gajah Tunggal Tbk at the Multi-stakeholder Dialogue themed 'Understanding Women's Rights at Work' organized by Indonesia Global Compact Network (IGCN) on October 19, 2018.

"There might be a prejudice that tire manufacturing companies are male dominated industry and not women-friendly," said Catharina.

 

 

To engage women in a male-dominated industry, Gajah Tunggal is trying to assess the company's practices.

"Our company gives equal employment opportunity. There are no job vacancies that prioritize men or women. " explained Catharina. "The Collective Labor Agreement (PKB) also includes the right to maternity leave in accordance with labor regulations from the government," added Catharina.

Gajah Tunggal strives to increase women's representation in the company in the future. "We target at least 50-50 male-female composition for job applicants. This is not a quota. It shows however our efforts to attract more female job applicants, "Catharina said. "The next process of selecting workers then treated equally based on competence." she added.

According to Catharina, the challenge ahead is to change perspectives preventing women from occupying higher positions. "Some employees refused to be promoted because they did not want to be in a higher position than their husbands or did not want more tasks because of their responsibilities at home." explained Catharina.

“If you want to be treated equally, you must feel equal.” – Catharina Widjaja, Director of Communication and Investor Relations at PT Gajah Tunggal Tbk.

Catharina, as a women minority holding position at Gajah Tunggal’s board of directors, gave a successful advice for female workers. "In principle, even if you are a woman or a man, you must achieve the same KPI (Key Performance Indicator). If you want to be treated equally, you must feel equal. "Said Catharina.

Opening the export market by respecting rights of supplier farmers

The food company PT Kampung Kearifan Indonesia (JAVARA) is successful in the export market through respecting the rights and welfare of supplier farmers.

 

"JAVARA aims to empower farmers as partners and suppliers." – Tantrie Soetjipto, Marketing Director of JAVARA

 

JAVARA is an agricultural supply chain company focusing from production to distribution with missions to maintain biodiversity and bring community-based organic products to a wider market. JAVARA is a leading social enterprise in Indonesia that supports a variety of community-based, organic, and based on moral principles.

 

Sumber: www.javara.co.id

Starting from only 10 farmers and 8 products, JAVARA has now worked with 50,000 farmers throughout Indonesia and have sold over 600 craftsmen products. Type of products varies from rice, coffee, honey, various spices, cocoa, cashews, palm sugar, coconut oil, jam, bananas, herbs, seaweed and various other products that have been well received in another countries. 85% of JAVARA's sales come from the export market, with Europe and North America as the main marketing destinations. The company has also supplied to more than 300 retailers, hotels and culinary companies in Indonesia[1].

 


[1] http://www.britcham.or.id/assets/files/Bio%20-%20Helianti%20Hilman.pdf


 

Sumber: www.javara.co.id

 

The JAVARA farmers' silhouette logo shows JAVARA's commitment to empower local farmers as the company core identity. "JAVARA aim to empower farmers as partners and suppliers. For example, JAVARA pays the supplier farmer in advance after making a purchase order. This system makes it easier for farmers to get capital to fulfil the order. "Tantrie Soetjipto, Marketing Director, explained at the multi-stakeholder dialogue themed 'Understanding Women's Rights at Work' organized by the Indonesia Global Compact Network on October 19, 2018.

 

“JAVARA pays supplier farmers in advance after making a purchase order. This system makes it easier for farmers to get capital to fulfil the order.”

 

"Through the Food Artists School program, JAVARA conducts training for farmers to increase the value added of their products." explained Tantrie. "For example, how to brand chips from fresh fruits. So farmers also enjoy greater selling value. "

 

“The Food Artists School Program provides insights for farmers from plantations to branding to markets.” Nando, alumni of The Food Artists School JAVARA.

 

One of the farmers graduated from the Food Artists School is Nando, an activist of sorghum farmers from NTT. In 2016 after completing a scholarship in the United States, Nando became a JAVARA partner farmer.

"The Food Artists School Program provides insights for farmers rstarting from plantations to branding to market." said Nando. "This program also encourages youth to preserve ancestral agriculture and safeguard customary land rights." added Nando.

JAVARA also ensures that the source of the product is directly traceable to the farmers. Partnerships are very close to farmers to ensure the quality of the products.

 

Sumber: www.javara.co.id

 

To penetrate the export market, JAVARA follows overseas certification standards in the European Union, the United States, and Japan. "Every 2 years JAVARA will be audited by a certification body regarding human rights qualifications and fair trade standards." said Tantrie.

 

“It is a business decision to determine what business the company wants to run. JAVARA has been committed from the start to become a social enterprise.” – Tantrie Soetjipto, Marketing Director of JAVARA

 

When asked by one of the dialogue participants about the company's benefits of respecting human rights, Tantrie replied, "That is a business decision to determine what business the company wants to run. JAVARA has been committed from the start to become a social enterprise."

 

Recycling Strapping Waste for Women Economic Empowerment

PT Indah Kiat Perawang Mill, part of the Asia Pulp and Paper Group, initiates a business program of recycling strapping rope waste as an effort to empower women. The United Nation Development Program (UNDP) said that opportunities for job creation for those who need it are included in the concept of market inclusion to improve welfare. This synergy is one of the community development concepts adopted by PT Indah Kiat by showing a the company’s business growth with by growing the welfare of surrounding community.  For the success of the rope strapping craftsmen, PT Indah Kiat Perawang Mill received an Indonesian Green Award in 2014. 

Strapping rope is a plastic pallet strap, which is used by PT Indah Kiat Perawang Mill to package production materials such as paper and pulp. The idea of ​​using strapping straps that the company could no longer use for woven crafts was started by Muhammad Nur, a former employee of PT Indah Kiat Perawang Mill. It turns out that the results of the webbing are quite good and strong. Mr. Nur then submitted to the company through the community development program team as part of Corporate Social Responsibility (CD-CSR) to recycle straps waste.

 

 

Recycling Strapping Rope Empowers Women

The strapping woven handicraft started from only the main business of Pak Nur's family (after he resigned to focus on developing his business) and his wife Bu Nurlis, becoming one of the sources of livelihood for some families in Tualang Village. The craftsmen formed a group called 'Tunas Harapan' from the initial number of approximately 45 housewives from 4 RTs to to 95 members consisting of 5 men and 90 women. In addition to the Tunas Harapan group, PT Indah Kiat Perawang also employs another group with 30 members in Pinang Sebatang Village, Tualang District, Siak Regency.

 

The majority of m the craftsmen group are housewives. The founder realized the conditions of the women in his village who must work outside of home, while no one took care of her children at home. Sometimes incidents happen to unattended children such as drowning when they play in the river.

With the women's empowerment program, PT Indah Kiat Perawang hopes that these women can have income while taking care of their children.

All material needed for making woven will be sent to their respective homes, as well as the baskets productwill be taken by Nurlis. Mr. Nurlis delivers material and picks up the woven products only with his cart and motorcycle.

PT Indah Kiat does not only provide economic opportunity, but also provide knowledge and understanding for the members to help each other as family. Each months, hundreds of handicrafts are sold and sales are even wider. Demand does not only come from cities in Riau Province, but also from West Sumatra. The volume of strapping waste used also have increased. Until the end of 2018, there are a total of two tons of strapping waste used as woven raw materials every month. All of these ropes were purchased from PT Indah Kiat Perawang Mill. This synergy is one of the community development concepts adopted by PT Indah Kiat by showing a the company’s business growth with by growing the welfare of surrounding community.

The PT Indah Kiat Perawang revenue from strapping waste sales returned to the Tunas Harapan Handicrafts Group. These returns are in the form of assistance in the construction of supporting facilities, drilling wells, pumps and washing pools. In addition, the company also buys handicrafts as souvenirs and facilitates the participation of craftsmen in various exhibitions.

 

 

Benefits and Learning

The success of the Tunas Harapan Handicraft Group in expanding markets have improved the welfare of its members. Persistent effort, hard work, and team work to support each other in the family are the success of the individuals and groups.

Their average wage is between Rp. 800,000 to Rp. 1,500,000 and can be even more in peak season during Ramadhan or celebration months. This equals to 40% of the Perawang regional minimum wage, which is helpful to meet the family's needs.

"I earn between Rp. 900,000 and Rp. 1,200,000, but I prefer to collect it first and then pick it up in a few months or when there is a need. I collect the money and then buy jewelry or children's school needs," said Dahlia, 36 years old, one of the strapping woven craftsmen.

Nurlis, Pak Nur's wife, treasurer of the Tunas Harapan Group said that, “Women goup members prefer to collect the results of their income. If they have saved enough, they will use the money for limited purposes. In the future we want to form a cooperative to help fulfilling the needs of the members

Spa therapist scholarships to empower women

The Martha Tilaar Group (MTG) as cosmetics and beauty company provides spa therapist scholarships to develop workers’ capacity and empower women. IGCN interviews MTG representatives regarding the program.

 

 

1. What is the background of MTG spa therapist scholarship?

Martha Tilaar Group really cares about women empowerment as realization of one of the company’s pillar, Empowering Women. MTG created program through giving spa therapist scholarship to women in Indonesia. Dr. (H.C) Martha Tilaar, the MTG founder tries to address problems of women in villages in Indonesia who tends to work as migrant workers that often led to becoming victims of trafficking to fulfill their economic needs.

 

2. What is the purpose of a spa therapist scholarship program?

The aim of this spa therapist scholarship program is to provide opportunities for Indonesian women especially those from the region to be more independent and skilled. After graduation, scholarship recipients are expected not only to become workers, but also to become independent entrepreneurs. So that they can be more confident and can put themselves equal to men, both in professional and personal relationships.

In addition, in terms of culture, this program is expected to help maintain the traditional archipelago spa techniques. Martha Tilaar Spa has conducted research and developed several traditional Indonesian spa techniques which include Bakera (Minahasa), Batimung (South Kalimantan), Boreh (Bali), Kendedes, and so on.

 

3. How can spa therapist scholarships empower women?

Through this program, scholarship recipients will be given various modules training that consists of soft skills and hard skills. Soft skills include hospitality training, leadership, as well as financial literacy. Hard skills training includes techniques for doing spa therapy, medicure, pedicure, haircut, makeup, etc.

The DJITU values (Discipline, Honest, Faith / Innovative, Diligent, Resilient) were also instilled in scholarship recipients. DJITU itself is the key to the success of Mrs. Martha Tilaar in carrying out every activity of the company. It is expected that the scholarship recipients can continue the footsteps of Mrs. Martha Tilaar in bringing the nation's name to life.

Through enriching science and skills, especially in the field of spa therapy, these women will be able to be independent in helping the family's economy and make an example for other women to be able to fight to improve their family's standard of living. With the increasing empowerment and economic participation of women in various job positions in the country, the unseen potential of women will be elevated and can play an active role in building their own country.

 

 

4. How is the spa therapist scholarship implemented?

The spa therapist scholarship program can be attended by all women graduating from vocational, high school or equivalent. Those who are interested can register directly with the recruitment team from our place. The recruitment team will also usually visit schools to socialize this program. Participants must be willing to attend education for 3-6 months at Martha Tilaar Training Center with the ability to take part in full and disciplined training and are willing to be placed anywhere at all MT Salon and Spa outlets.

In addition to getting learning materials, the participants will also get other facilities, namely education and training uniforms, monthly allowances during training, 3 times a day meal allowance and a residence mess. During the program, the participants were not charged any fees. Not only that, after graduation the participants will be placed at Martha Tilaar Salon domestically and abroad.

 

5. What are the advantages for MTG in implementing spa therapist scholarships?

Fulfillment of a high quality spa therapist is an important factor for the sustainability of our business. The advantage for the company is the availability of professional spa therapists with high quality standards and good discipline. These therapists will be placed in all Martha Tilaar Salon and Spa outlets throughout Indonesia and abroad.

Moreover,  a quality and professional spa therapist will be able build image of spa as a center of natural and original Indonesian health and beauty therapy. So that it will erase the bad image of a spa that could be associated with prostitution.

 

6. What are the challenges that you have faced?

We sometimes face conflict with migrant workers agency who think that we are stealing their human resources. With increasing of women skills, they realize that the do not need to work overseas to earn money. They can work domestically with their new skills.

Challenges also come from trainees themselves. We we often find participants who want to go home before the training ends or even just a few days staying in the training center.

 

 

7. What success has been achieved from the spa therapist scholarship?

Martha Tilaar Group has trained more than 6,000 therapists who have worked in all of our Salon and Spa outlets. These women have supported the economy of their families in the village. Some women also have become successful business women with their own spas.

Thanks to this program also Dr. (H.C) Martha Tilaar was proposed in 2000 by a French NGO to become one of the declarators of the UNGC (United Nation Global Compact) initiated by the former UN Secretary General, Koffi Annan. DR. Martha Tilaar was the only company from Indonesia who has become a declaratory because MTG was seen as a national private company that have succeeded in implementing the principles of the Global Compact.

In addition to having been awarded at the world level through UNGC namely Lifetime Commitment in 2010 and being elected as a member of the Board of UNGC chaired directly by the UN Secretary General, until 2018 in September the DR. Martha Tilaar was awarded for the "Advancing sustainability through community engagement" category. DR. Martha Tilaar become the first Indonesian women selected by the Global Compact UN.

 

8. How can the program be better in the future?

Going forward, there is a need for more extensive and clearer socialization for Indonesian young people and the wider community in general in all regions in Indonesia, so that Indonesian women have broader insights to have be more independent and successful. With the support of family and parents, these women will be able to take part in full training and can also become professional spa therapists anywhere in Indonesia to support their families.

 

Engaging community in the development of palm oil plantation through Participatory Conservation Planning

Learning experiences from Sinar Mas Agribusiness and Food (SMART) in Indonesia to engage the communities around concessions through Participatory Conservation Planning.

 

 

Source: www.smart-tbk.com

 

Sinar Mas Agribusiness and Food (SMART), established in 1962, is a subsidiary of Golden Agri-Resources, one of the largest oil palm plantation companies in the world.

Certainty of land ownership and permits is crucial in carrying out the business of SMART palm oil plantations covering more than 138,000 hectares (including plasma plantations).

If SMART has a piece of land or concession permission from the district government to operate in the area, does SMART have the full right to decide what will be done with the land? In reality, land ownership can be a gray area when local people claim customary ownership on the overlapping area they live in.

“A dilemma often occurred when high carbon stock forests need to be protected, but the community use these resources to fulfil their economic needs.” SMART Free, Prior and Informed Consent (FPIC) team explained the issue of land dispute.

 

 

 

Free prior informed consent without forced eviction

FPIC is one of SMART’s solution to clarify concession, conservation, and community areas. This policy is a practice developed to respect indigenous peoples' land rights.

 

“Because our actions impact the community, we ensure their Free, Prior and Informed Consent (FPIC) through consultation and discussion before developing plantation or conserving the land.

” –SMART

 

FPIC is part of Social and Community Engagement Policy, that has existed since November 2011. As stated on the SMART website, “Because our actions have impacts on the community, we ensure their Free, Prior and Informed Consent (FPIC) through consultation and discussion before developing or conserving the land.”

"The principle of FPIC is not only in the form of rejection or approval of a plantation project, but also in the process of providing complete and adequate information about the economic, social, cultural and environmental impacts that may be caused by the existence of the project," explained the SMART FPIC Team.

 

Bridging perceptions: starting Participatory Conservation Planning until becoming a Village Regulation

In 2015, SMART accompanied by The Earthworm Foundation has introduced Participatory Conservation Planning (PCP) in Penai Village and 11 other villages in West Kalimantan. PCP is a mapping process and consultation with surrounding communities to determine which areas can be used for SMART businesses, conservation, or can be used by the community.

Source: Sinar Mas Agribusiness and Food

 

The PCP process begins with mapping High Carbon Stock (HCS) for forest conservation areas. Then, Participatory Mapping is conducted to determine which areas have social, spiritual and economic values for the surrounding community. The community, SMART, and the village government then sat together to approve plans for concession, conservation, or for community.

"A draft report will be prepared, a draft map of spatial planning as well as a draft conservation map that will be delivered through a Public Consultation involving village communities and related parties such as Local Government (Bappeda, BPN, Related Offices), academic representatives and NGOs suggestions from the PCP activity process. ” SMART FPIC Team explained.

According to Fahreza Hidayat, Senior Management Team at The Earthworm Foundation, the company must also understand the needs of the village. "For example, villagers might need support in developing sources of livelihood or agriculture," Fahreza added.

In Penai Village in West Kalimantan, the results and the process of PCP have turned into a Village Regulation (Perdes). Fahreza stated "Perdes institutionalized PCP. The Perdes is important to budget village funds to carry out the planned activities for the PCP results. "

 

Source: Tribunnews

 

"The purpose of the village regulation is for our children and grandchildren to still be able to see the forest, and still be able to depend on this sustainable forest." said Paulus, the head of Penai Village.

SMART hopes that the PCP results can be incorporated into the Village Medium Term Development Plan. "The goal is that the village community has an environmentally conscious village development plan. So that pay attention to aspects of sustainability in managing the use of village natural resources," said the SMART FPIC team.

 

An achievement from a long process

The participatory mapping process does not always run smoothly. "Sometimes some people don't want to participate in the mapping process because they feel the company stole their land," Fahreza said. The Earthworm Foundation plays role in bridging the interests of the company and the community when conflict happens.

 

“We must find a balance of representatives from various factions and interests in the community.”

 – Fahreza, Senior Management Team of The Forest Trust

 

"We must find a balance of representatives from various factions and interests in the community. For example, despite the fact that the majority of village officials are men, we must think about how to give a broader voice to the female population. " said Fahreza.

More support from the government is also needed to provide incentives for companies to implement PCP. "It is necessary to give financial incentives so that small and medium enterprises, which do not have as much resources as SMART, can also implement PCP," Fahreza added.

 

Parties involved in this story

Free Prior Informed Consent Team and Wirendro Sumargo, as Head of FPIC Department.

Fahreza Hidayat, Senior Management Team, The Earthworm Foundation

 

Disclaimer

This story captures experiences and opinions from various perspectives on a particular situation, and is designed to share lessons learned on some of the issues involved. It is not intended to be a comprehensive case study nor does it claim to give a definitive account of a specific case or perspectives on that case.


 

[1] http://pontianak.tribunnews.com/2018/09/28/sinar-mas-inisiasi-perdes-pengelolaan-sumber-daya-alam-kawasan-hutan-di-desa-penai

 

Human rights impact assessment on palm oil supply chain addresses labour issues with an in-depth approach

In 2017, Nestlé commissioned the Danish Institute for Human Rights (DIHR) and The Earthworm Foundation* (formerly The Forest Trust) to carry out a study of Nestlé's actual and potential impacts on human rights, specifically labor rights in their palm oil supply chain in Indonesia.

As the world's largest food and beverage company, Nestlé buys 425,000 tons (2018) of palm oil annually to produce its products[1].
Most of this percentage of palm oil comes from Indonesia.

 

Source: The Eartheworm Foundation

 


*The Forest Trust Indonesia has become Earthworm Foundation per January 2019 https://www.earthworm.org/

[1] Danish Institute for Human Rights dan The Forest Trust. “Kajian Hak Pekerja: Rantai Pasok Minyak Kelapa Sawit Nestlé di Indonesia”. 2018.


 

In 2017, Nestlé requested Danish Institute for Human Rights (DIHR) and The Earthworm Foundation in Indonesia (EF) --previously The Forest Trust-- to carry out a study of actual and potential impacts on human rights, specifically labor rights in their palm oil supply chain in Indonesia. Nestle and the Earthworm Foundation have been working together since 2010. Earthworm Foundation is a non-profit organisation built on values and driven by the desire to positively impact the relationship between people and nature. EF is working with 64 global private sector businesses.

“We tried to understand the impact of human rights in the entire supply chain from small farmers to oil refineries, along with intermediary agents at each stage” Janhavi Naidu, ’Respect’ Programme Manager of  Earthworm Foundation.

 

“This study aimed to have a wider scope than refinery or plantation labour compliance audits. We tried to understand the impacts and roots causes of human rights issues in the entire supply chain from palm oil refineries to mills, plantations and smallholders along with intermediary agents at each stage, " said Janhavi,  ‘Respect’ Programme Manager, EF.

 

Source: Danish Institute for Human Rights and The Eartheworm Foundation

 

As one of the largest suppliers of palm oil for Nestlé, Golden Agri-Resources (GAR) participated in the study conducted during the year (April 2017-May 2018). The study was conducted at a GAR palm oil refinery. In addition, four independent mills that supply crude palm oil to the refinery were also visited by the team. One of the mills had an integrated plantation supplying the mill with palm fruit or Fresh Fruit Bunches (FFB).

Many labour issues were found across all levels and sizes of sites in the supply chain studied by the team. Issues such as low wages, excessive working hours, poor health and safety are commonly found at all levels in the supply chain.

An interesting observation at the refinery level was that workers’ felt that minimum wages were insufficient and didn’t reflect living wages. Additionally in mills, excessive overtime is a systemic issue. In plantations, gender-based discrimination was found in terms of women’s access to permanent employment- even when undertaking job roles permanent in nature. The team also found instances of children between 14 and 17 helping their family members in plantation work. On the issue of Freedom of Association several types of concerns were raised at all levels of the supply chain such as poor awareness levels among employees on their rights to associate, the purpose of Unions and conditions of membership.

At the smallholder level, labour issues such as low wages and health and safety arise due to the increasingly informal context of work especially as there are more layers and intermediaries between the workers and the farmers or land owners.

 

Source: Danish Institute for Human Rights and Earthworm Foundation

 

“When there are brokers in the supply chain, the tendency for labor rights violations is higher.” Janhavi Naidu,  ‘Respect’ Programme Manager of Earthworm Foundation.

 

"When there are brokers in the supply chain, the tendency for labor rights violations is higher," said Janhavi. "By outsourcing workers to third party agents or recruiters, employees become more removed from management and are often unable to raise their concerns or secure their rights effectively. As the study shows, workers are more vulnerable in plantations of independent smallholders or small FFB collectors and distributors as work arrangements are often temporary and informal.”

After the publication of this research, Nestlé and GAR
each issued an action plan on labor rights to follow up on the results of the report. Efforts to assist suppliers to fulfill workers' rights continue to be carried out through intensive facilitation, research, capacity building, training and multi-stakeholder dialogue involving trade unions and the government.

"In 2019, GAR is targeting more labor issues, especially workers' rights," said Sinar Mas Agro Resources Technology (SMART) Supply Chain Team, one of the subsidiaries of GAR.

"Working conditions on oil palm plantations face a number of challenges such as the implementation of labor standards that still require various improvements." the SMART Supply Chain Team added.

“This study also emphasizes that labor issues in the oil palm supply chain cannot be resolved by one party. A multi-stakeholder approach is needed.” Janhavi Naidu,  ‘Respect’ Programme Manager of The Forest Trust TFT.

 

Multi-stakeholder approach is needed

"This study also emphasizes that labor issues in the oil palm supply chain cannot be resolved by one party. A multi-stakeholder approach is needed. "explained Janhavi.

In this effort, the report  makes recommendations to other stakeholders, such as other palm oil buyer companies, the Indonesian government, national and international sustainability certification bodies such as ISPO and RSPO, and investors.

 

Focus on Impact Assessment

"Assessing human rights impacts is a useful way to understand labour challenges in the palm oil industry more deeply than the scope of supplier compliance frameworks." said Janhavi Naidu, Respect Program Manager, EF.

For effective multi-stakeholder collaboration that has a positive outcome on people in supply chains, an impact-based approach centred on human rights is a useful tool. Similar to the collaborative efforts of Nestle, GAR, DIHR and Earthworm Foundation, initiatives involving multiple actors, each playing to their strength, can deliver impactful work leading to positive impacts for people and businesses.

 


Disclaimer: This story captures experiences and opinions from various perspectives on a particular situation, and is designed to share lessons learned on some of the issues involved. It is not intended to be a comprehensive case study nor does it claim to give a definitive account of a specific case or perspectives on that case.

Introducing Gender Equality and Social Inclusion in Job Training and Internship

Rajawali Foundation works with SINERGI, one of USAID projects, to conduct training and inclusive job training for disadvantaged and vulnerable young people including women and people with disabilities

 

KSD Youth providing testimony to not underestimate their capacity (Photo: AMK/SINERGI)

 

The issue of Gender Equality and Social Inclusion (GESI) has yet to be integrated and implemented in training and internship activities. Generally, these two activities do not specifically address GESI, but more on preparedness to work and regulations. As a result, women and people with disabilities are often underestimated in their work, even so much as to receive unfair and distasteful treatment. Many of their rights are not considered and fulfilled.

 

"Dismantling mental blocks of both persons with disabilities and non-disabled people is very important, so they can establish equality."

 

Rajawali Foundation through SINERGI Project, as a USAID program focusing on inclusive workforce for poor & vulnerable youth, including women and people with disabilities, thinks GESI is very important to be introduced in trainings and internships. As the initial step to introduce GESI, SINERGI held a workshop on the Implementation of Training and Internship Method and Facilitation Technique with Gender Equality and Social Inclusion (GESI) Perspective in 2018, at Room Inc. Hotel, Semarang.

GESI issue in job training and internship also needs to be integrated on the training curriculum and module. The same goes for the facilitators or trainers, both women and men must be well represented.

On the social inclusion issue domain, workshop participants gained understanding on Breaking the Mental Block for Disabled Youth and Understanding the Pyscho-Social and Cultural Characteristics of Disabled Youth Training Participants. All workshop participants also listened to testimonies from eight youth with disabilities from Komunitas Sahabat Difabel (KSD) of Semarang City.

In the testimony, it is described that breaking mental block is very important for both disabled and non-disabled people to create equality. The disabled youth asked the workshop participants to learn to understand the psycho-social condition of people with disabilities. They can be empowered and do good work when given the opportunity and not being underestimated.

 

KSD Youth providing testimony to not underestimate their capacity (Photo: AMK/SINERGI)

 

"They can be empowered if they have opportunity to work and not being underestimated."

 

In addition to obtaining understanding on GESI through presentation and panel discussion, workshop participants were also engaged to develop and present their action plan and implementation or GESI perspective job training method and facilitation technique, and also practiced micro teaching on the approach and technique of mentoring youth with disabilities, facilitated by a team from Kerjabilitas.

After this workshop, participants, consisting of Action Group (POKSI) members, Job Training Providers (BLK) and Job Training Agencies (LPK), consortia coordinators from 3P (Company – Government – Youth) components, as well as companies partnering with 3P consortia for internship activity, are expected to understand GESI. Furthermore, they are also expected to be able to design their action plan on GESI-perspective job training and internship method and facilitation technique, to be implemented in their respected organizations/institutions.