swisscontact

Sustainable Cocoa
Production Program
Biannual Report
1st Semester 2014
 st
Sustainable Cocoa Production Program Biannual Report - 1 Semester 2014

01
 Table of Content

Table
Table
of Content
Background and Approach .................................................................... 6

Achievements First Semester 2014 .......................................................... 8

Farming Good Practices and Technology Transfer Systems ...................... 10

Best Practice Training Manuals and Publications .................................. 10
Master Trainings for Government Extension Officers, Private Sector staff
and SCPP staff ...................................................................................... 10
Cocoa Farmer Capacity Building ........................................................... 12
Demo-plots and Clonal Gardens ............................................................ 12
Seedling Production through Farmer Managed Nurseries ....................... 14

Nutrition and Gender Sensitivity Integration .......................................... 16 02

Good Nutritional Practices (GNP) Trainings .......................................... 16
Improving the GNP Training Module ..................................................... 16
Engaging Women in GAP ...................................................................... 16
Engaging Men in GNP .......................................................................... 16

Farmer Organizations, Market access and Certification .......................... 18

Farmer Organization through Cocoa Producers Group (CGP) ................. 18
Certification .......................................................................................... 18
Cocoa Traceability ................................................................................. 20

Integrated Agribusiness Financing Facility ............................................. 22

Capacity building for farmers ................................................................ 22
Capacity building for Financial Institutions (FIs) ................................... 22
Cooperative Strengthening ..................................................................... 22
Savings Promotion ................................................................................ 24
Sector Facilitation .................................................................................. 24

Stakeholder Management and Networking Platforms ............................. 26

Local Government Involvement ............................................................... 26
Better Networking towards Sustainable Cocoa Production ...................... 28

FIELD SCHOOL, SCPP facilitates field school to train farmers in best practices of cocoa cultivation to increase productivity
and quality of cocoa beans
 st
Sustainable Cocoa Production Program Biannual Report - 1 Semester 2014
Pidie Jaya
Bireuen
1
2

Aceh Tamiang
3
South-West
Aceh 4

South-East Aceh 5

6 Tanah Datar

Padang Pariaman 7

Kota Padang 8

03

ACEH WEST SUMATRA WEST SULAWESI SOUTH

6

TM

Cocoa
 SCPP Implementation Area

SCPP
Implementation
Area
Parigi Moutong
Poso
16
17

Mamuju
9
9

Majene 10
10 13
14 15 East Luwu
North Luwu
Luwu 19 East Kolaka
04
12 18
Soppeng
Kolaka
11
Bone

H SULAWESI I SOUTH SULAWESI II CENTRAL SULAWESI SOUTH EAST SULAWESI

Cocoa
PT. TMCI
05

Background
and Approach
T he Indonesian cocoa sector faces a
number of challenges including small
farm sizes, low farm and labor
productivity, and low cocoa quality. This is
mainly due to many interlinked factors such
as lack of cultivation know-how among the
farmers, unproductive, old trees, and high
level of pest and disease infestation. Initial
focus of the cocoa sector should be directed
at creating awareness on better farming
practices, value addition, and empowering
the farmers with better market linkages. The
enabling environment thus foster for overall
development of the cocoa sector in
Indonesia. Sustainable Cocoa Production
Program (SCPP) is working to overcome the
aforementioned problems.
SCPP is a large Public-Private Partnership
(PPP) implemented by Swisscontact and the
Indonesian Ministry of Home Affairs
(MoHA), between 2012-15 with a main
focus to build capacity among the cocoa
farmers to improve the farm productivity and
quality of cocoa production. The program
donors include Swiss State Secretariat for
Economic Affairs (SECO), the Sustainable
Trade Initiative (IDH), the Embassy of the
Kingdom of the Netherlands (EKN), and
private cocoa sector companies namely
Nestlé, Mars, ADM Cocoa, Cargill, Ecom
(replacing Armajaro) and Barry Callebaut.
These funding and implementing partners
aim to have sufficient cocoa bean supply to
meet the growing processing demand in
Indonesia and to strengthen a sustainable
supply chain. The program targets to
increase the cocoa business income of the
participating 60,000 cocoa farmer families
by 75%.
SCPP introduced a holistic approach which
involves professional trainings to targeted
farmers and supports in the following
CLOCKWISE, Cocoa pod infected by Cocoa Pod Borer (CPB) pest, The fruit pulp becomes hard and fermentation process used
to produce the cocoa flavor precursors is ineffective, Farmers are capacitated to overcome challenges in farm such CPB pest, A
cocoa tree produces many healthy pods as result of side grafting technique application obtained through the field school.
Background and Approach
interrelated areas of cocoa farming to
increase the farm productivity and quality of
cocoa beans. These are:
Ÿ Farming good practices and technology
transfer system
Ÿ Nutrition and gender sensitivity
integration
Ÿ Farmer organization, market access and
certification
Ÿ Integrated agri-business financing
Ÿ Stakeholder management and
networking platform
SCPP is implemented in 19 Districts in six
provinces namely Aceh, West Sumatra,
West Sulawesi, South Sulawesi, Central
Sulawesi, and Southeast Sulawesi in the
islands of Sumatra and Sulawesi.
06
SCPP started on January 1st 2012 as a
follow up project of the, by that time still
ongoing, PEKA project in Aceh. During the
planning phase with Seco, several private
sector companies expressed interest to work
with Swisscontact in Sulawesi, which lead to
the inclusion of IDH as additional funding
partner to Seco. By the start of the
Program, three companies have joined
SCPP under the CPQP component in
Sulawesi.
In December 2012, EKN joined the
Program with the Good Nutrition Practice
component, adding huge value to activities
to improve farmers' livelihood. In March
2014, WEIF (another department from
Seco) in addition to WEHU who supported
SCPP from the beginning joined the
Program with the Agribusiness Financing
Facility (AFF).
 st
Sustainable Cocoa Production Program Biannual Report - 1 Semester 2014

07

POST-HARVEST PROCESSING: Fermented and properly dried cocoa beans are highly demanded as it affects the
quality and natural flavor of chocolate.
 Achievements First Semester 2014

Achievements
First Semester
2014
Jan - June 2014 Total since 2012
8,785 39,633 Number of Producers trained in Farming
Good Practices and/or certification modules

16.2% 18.6% Women participating in GAP and related farm

capacity building activities

47,048 262,365 Training days in Farming Good Practices

and/or certification modules

4,523 12,799 Smallholder Cocoa Farmer Households 08

trained in Good Nutrition Practice (GNP)

81.3% 83.8% Women participation in GNP activities

9,138 25,690 Training days in GNP activities

0 3 Best Practice Manuals developed and shared

with the cocoa sector

132 566 Agriculture and Nutrition extension officers

from private/public institutions trained

272 1,279 Cocoa Producer Groups supported and active

1 4 Regional Cocoa Forum established and

supported in Sumatera and Sulawesi

72 287 Cocoa seedling nurseries established within

producer groups and farmers enterprises

258,000 659,495 Seedlings produced

 st
Sustainable Cocoa Production Program Biannual Report - 1 Semester 2014

09

TRAINING MANUALS, SCPP provides thousands of master trainers and lead farmers with reliable training
materials to ensure consistency of the training contents, guide the overall processes, and provide necessary
information to perform good practice farming techniques.
 Farming Good Practices and Technology Transfer Systems
Farming Good
Practices and
Technology
Transfer Systems
Best Practice Training Manuals
and Publications
SCPP continues to develop and improve
good practices manuals to transfer
knowledge and new technology to supported
cocoa farmer households. The manuals
ensure consistency of the training contents,
guide the overall processes, and provide
necessary information to perform new
farming techniques in one place. The
program has developed several modules
(training books and reading materials)
namely the second edition of GAP, Post-
Harvest Practices, and GNP module. The
modules have been distributed to all partners
in the cocoa sector. Until the end of the
reporting period, the program has published
the following modules in Indonesian:
Ÿ Manual #1 – Best Cocoa Cultivation
Practices (2nd edition published in 2014)
Ÿ Manual #2 – Post-Harvest, Cocoa
Beans Quality and Fermentation (2nd
edition in review)
Ÿ Manual #3 – Household Nutrition and
Food Preparation
These manuals have been widely used in all
SCPP implementation, including by the
private sectors and government partners.
Currently the formulation of two more
modules for farmer group, cooperative
strengthening and certification, and Good
Financial Practice (GFP) are still underway.
The program also published various program
reports, success stories, flyers, learning
video series, journals, and brochures. SCPP
is frequently covered in newsletter articles in
partners or other mass-media publications.
Publications are available at
http://www.swisscontact.org/eng/indonesia
/media/publications.html
Master Trainings for
Government Extension Officers,
Private Sector staff and SCPP
staff
Training for master trainers is a pivotal
starting point to SCPP overall farming
techniques and technology transfer
10
approaches. The program has designed an
efficient tiered training system which starts
from in-house training for SCPP staff,
government officers, and private sector staff
down to key farmers (KF) and Cocoa
Producer Group (CPG). The efficient training
system ensures an effective delivery of
SCPP ample trainings in its vast
implementation areas.
SCPP agriculture best practice modules
received a good response from the
government partners and encouraged their
participations in the master trainers. In the
first half of 2014, a total of 146 field staff
joined specific trainings for master trainers.
Participants included 14 SCPP field staff,
130 government extension officers and 2
private sector staffs. The achievement is well
exceeding the targeted number of 177
officers in 2014, however, training of private
sector staff is lacking behind target. Since
the Program started, a total of 516
Government Extension Officers and 50
Private Sector staff went through and
concluded Master Trainings. In the coming
months, the program will continue training
for master trainers in Good Financial
Practice (GFP) and training in GAP and
GNP for government and private sector
extension officers.
 Sustainable Cocoa Production Program Biannual Report - 1stSemester 2014

Public and Private Extension Master Trainers

784

800
177

700 566

600 607 50
500 516

400

177
300
132
200 40
2
137 130
100

Target Result Target Result

Annually 2014 Cumulative 2012-2015

11
 Farming Good Practices and Technology Transfer Systems
Cocoa Farmer Capacity
Building
Improving cocoa sector in Indonesia starts
at the foundational-grass root level. One of
the focuses should be building capacity of
cocoa farmers in farming best practices to
increase productivity. Utilizing SCPP tested
methods which distilled in the manuals, the
program capacitated farmer's capacity in
agriculture best practices. Starting with
Training of Trainers (ToT), the program has
provided capacity building measures to 482
key farmers (KF) during the reporting
period. The participants include 272 new
key farmers trained in GAP, 112 key
farmers involved in refresher GAP training,
75 key farmers trained in farmer group
development and 23 key farmers trained in
ICS and certification.
The KF have gained knowledge in cocoa
farming with GAP and farm rehabilitation
modules, skills to facilitate Farmer Field
School (FFS) within their farmer groups,
and better understanding how to access the
market.
Following the ToT, the program conducted
GAP modules training across all SCPP
implementation areas with a new batch in
1st semester 2014. A total of 8,785
carefully selected farmers participated in
FFS held in Aceh, West Sulawesi, South
Sulawesi, Central Sulawesi and Southeast
Sulawesi; 1,438 are women. This brings the
total number of cocoa farmers received
training and coaching from SCPP from start
of program until end of June 2014 to
39,633 with 18.6% women participants.
Overall SCPP has achieved 66% of the
60,000 farmers targeted by the end of
2015. The program has facilitated 262,365
training days since January 2012 to improve
cocoa farm management as designed with
the private sector implementing partners.
CAPACITY BUILDING (left), Farmers are provided with capacity building in farming best practices through field school to
achieve better cocoa productivity and quality. NURSERIES (right), SCPP trained farmers maintain hundreds of nurseries in
the implementation areas to provide farmers with better planting materials and serve as a communication and education
center for farmers in the area.
The Program continued to collect baseline
data from all new farmers such as
household demographics, cocoa farm
location, GAP practices, and post-harvest
practices. The baseline data are also used
to trace the most recent situations of cocoa
sector development in SCPP
implementation for comparison with future
surveys.
Demo-plots and Clonal
Gardens
One of the main constraints of the cocoa
sector are low producing trees. There are
several factors for that: aged cacao trees,
clone types of the existing tree stock, and
lack of good quality planting material. As
solutions to the issues, SCPP encourages
12
farmer to rehabilitate their cocoa farms. The
program provides on-farm trainings to
enhance farmer groups' capacity to
undertake their own cocoa farm
rehabilitation and rejuvenation. The activities
are organized through establishing and
managing demo-plots, budwood gardens,
and clonal gardens at District Cocoa Clinics
(DCC) and Learning Centers. In the
facilities, the farmers receive training on
new farming technologies such as the
establishment of nurseries, pruning, fertilizer
application, farm sanitation, side grafting,
top grafting, seedling management, and
integrated pest management.
During the 1st semester 2014, the program
continued to maintain the more than 1,000
demo plots and 3 clonal gardens facilities
for better performance. The facilities were
used as community hubs for farmers to
exchange knowledge, source their seedlings
for improved types of clonal material, and
practice various training modules. The
program also arranged local exchange visits
for farmers to learn from their counterparts
and share good quality seedlings.
 Sustainable Cocoa Production Program Biannual Report - 1stSemester 2014

Public and Private Extension Master Trainers

60,000

12,000
60,000

39,633
50,000 48,000
7,385
40,000

32,248
30,000
14,500
20,000 8,785
2,900
10,000 11,600 1,438
7,347

Target Result Target Result

Annually 2014 Cumulative 2012-2015

13
 Farming Good Practices and Technology Transfer Systems
Seedling Production through
Farmer Managed Nurseries
SCPP encourages farmer to establish
group- or personal managed nurseries to
produce seedlings at the locations where
they are needed. This brings a twofold
benefit for the farmers. First, the seedlings
are utilized to rejuvenate farms that are no
longer producing high yields, and it saves
the farmer money, because it is cheaper
than buying seedlings from traders. About
50% of the seedlings are used for the
farmers own plantations and distributed
amongst group members. Second, the
farmers can sell the seedlings to get
additional income.
SCPP has supported farmers and farmer
organizations to establish 72 nurseries with
cumulative annual capacity of 258,000 high
quality cacao seedlings. Sale of improved
planting materials is conducted to show the
communities how farmers can improve their
income through independent nursery
business.
SEEDLINGS, Growing good cacao seedlings is the first step of producing good cocoa beans
Two main lessons were learned from the
nursery establishment activity through a
group-based approach. First, the group-
based approach simplifies the material
delivery and accelerates the spread of
seedlings also to farmers outside the group.
Second, as the group members collaborate
more active, nurseries help to strengthen
the groups.
The farmers faced a number of obstacles,
such as pest invasion, but also poor
maintenance due to the lack of group
ownership and commitment towards the
nurseries. The program learned that a more
rigorous selection method for farmers and
farmer groups to manage nurseries, and
intensive follow up/monitoring is needed. 14
 st
Sustainable Cocoa Production Program Biannual Report - 1 Semester 2014

GNP Participants

40,000

40,000
32,000
35,000

30,000

25,000 14,500

20,000 12,799
4,523
15,000
10,728
10,000
11,600
8,000
5,000
3,675
2,900 848 2,071
Target Result Target Result

Annually 2014 Cumulative 2012-2015

15

NUTRITION, SCPP's Nutrition component brings out many benefits for farmer households to improve nutritional
status and source of additional income through establishment of home gardens

Nutrition and
Gender
Sensitivity
Integration
Good Nutritional Practices
(GNP) Trainings
SCPP targets to improve farmer household
nutrition by encouraging them to maintain
small vegetable and fruit gardens. Through
the GNP module, the program promotes a
balanced diet, nutrition rich food and home
gardening and provides important nutritional
facts for cocoa farmer households. The
program promotes male inclusion into the
nutrition component to effectively share the
importance of nutrition on farmer households
across genders.
In the first semester 2014, 4,523 household
members participated in the GNP training
with 16% men attendance. This brings the
total number of GNP trainings participants
since the nutrition component start in
December 2012 to 12,799 of the targeted
40,000 Smallholder Cocoa Farmer
Households. The cumulated training days in
the 1st semester 2014 reached 9,046
which brings the total number to 25,598
days since the beginning of the program.
Both, the training participants and training
days have now achieved 32% of the overall
program target. With regular production in
their newly established home gardens, many
farmers have also earned additional incomes
from selling the vegetables produced.
Improving the GNP Training
Module
In the coming semester, the GNP module
implementation will be evaluated by
independent consultants through a mid-term
evaluation mission. The aim of the evaluation
is to gauge the effectiveness of the SCPP
nutrition capacity building in improving the
quality of cocoa farmer household life. The
evaluation will be conducted in four key
Nutrition and Gender Sensitivity Integration
areas namely effectiveness of interventions,
appropriateness of methodology, gender
inclusion and implementing staff capacity.
Engaging Women in GAP
SCPP aims to promote women's inclusion
and achieve 20% female participation in the
agricultural best practices training. The
program found that the average farm
productivity usually does not much differ
between male and female farm owners. 16
Nevertheless women tend to have smaller
cocoa farms and in men-headed cocoa
farmer households, women usually have little
access to the income from cocoa farming.
Until June 2014, 18.6% of all program
participants of the GAP training are women.
To reach the targeted 20% women, SCPP
will further increase efforts to include women
in the trainings through more intense village
socialization processes. Moreover, the
number of female key farmer remains low.
This is due to the mainly patriarchal culture
across Indonesia including in SCPP
implementations areas. In addition, most
groups are already established with male
leaders prior to participating in SCPP
trainings.
Engaging Men in GNP
Until the end of June, only 2,071 (16%)
men participated in the GNP module training
which brings the overall program
achievement to 26% of the targeted 8,000
male participants. Despite efforts to involve
men in the nutrition training, the program still
faces a number of challenges to ensure their
participation. One of the most prominent
challenges is Indonesian's patriarchal culture
where family's food intake, cooking, and
kitchen are women's domain. Thus men are
usually reluctant to involve in such activities.
 st
Sustainable Cocoa Production Program Biannual Report - 1 Semester 2014

Farmer Organizations, Market access and Certification

1,800
1800

1400

1200 1,279
1000

800

600
510
400
272
200

Target Result Target Result

Annually 2014 Cumulative 2012-2015

17

COCOA TRACE, A member of farmer group in West Sulawesi shows his cocoa trace ID that grants him
better market access.
 Farmer Organization, Market Access and Certification
Farmer
Organization,
Market Access
and Certification
Farmer Organization through
Cocoa Producers Group (CGP)
Farmer organization is the first step in SCPP
capacity building approaches. Each farmer is
part of a Cocoa Producer Group (CPG) that
consists of 20-30 cocoa farmers at village
level. The group is headed by a Key Farmer,
who is well trained at the commencement of
the program. The CPGs and their members
receive various trainings such as GAP, GNP,
post-harvest, farm rehabilitation, and
financial literacy trainings. Over the course of
SCPP implementation, eligible CPGs will be
facilitated to transform into Smallholders
Cocoa Enterprise (SCE) based on economic
and personal indicators. The main objective
for SCE is to become business incubators
for producer groups, and provide embedded
services to farmers. One SCE manages a
number of CPG at sub-district level, further
aggregated at district level into District
Cocoa Clinics (DCC).
To provide a greater support to the
members, DCCs expanded their activities to:
Ÿ Initiate a business unit through
cooperative. For instance in Pidie Jaya,
the DCC provide various services ranging
from saving and loan program, skill
trainings in good agriculture practices,
and trading agricultural inputs
Ÿ Collaborate with local university to
provide the GAP training modules for
students
Ÿ Develop business with private sector to
gain revenues. One of the DCCs has
sold 100 tons cocoa beans to private
sector
Ÿ Function as learning center with clonal
garden, nursery and nutrition garden.
The members can practice the new
techniques in the DCC as well as
sourcing superior clone budwood for
their farm.
Recent monitoring found out that the CPGs
trained in 2013 are still implementing their
own follow up plans formulated after the
Farmer Field School (FFS). Currently the
groups are practicing top grafting at the
group's nurseries, composting, and
producing bio-pesticides. The 'arisan
tenaga', where farmers form smaller groups 18
and maintain all their farms together, also
continued in some of SCPP implementations
areas.
New CPGs were also formed along the GAP
module training. During the first semester
2014, 272 new CPGs were established
across Sulawesi and Sumatera. Overall
achievement until June registered a total of
1,279 CPG which is 115% of the overall
program target.
Certification
Principally, the program aims at aiding
farmers to meet certification or external
verification requirements. The ability to
sustainably train, verify and certify the
farmers in the future will be enhanced by the
training of master trainers and trainers of
trainers.
During 1st semester 2014, a farmer
organizations East Kolaka (2,033 farmers)
has been certified by UTZ in addition to the
two DCC in Southeast Aceh (1,071) and
Pidie Jaya (1,380), respectively, who were
UTZ certified by the end of 2013.
 Sustainable Cocoa Production Program Biannual Report - 1stSemester 2014

19
 Farmer Organization, Market Access and Certification
One important thing that can be learned
from the certification process in the program
area is the farmers contribution to the
success of this program is enormous, even
though the farmers sits at the bottom of the
verification and certification chain.
The program is set-up on the premise of the
farmer as the ultimate beneficiary. All the
benefits of training the master trainers and
trainers of trainers are expected to trickle
down to the farmers in terms of producing
sustainable cocoa using good agriculture
practice. It is expected that this shall
improve on quality, which shall result into a
price appreciation as well as an increase in
output.
Cocoa Traceability
SCPP is one of the first cocoa development
programs using a Management Information
System (MIS) to collect, evaluate, and
report relevant data from every smallholder
farmer involved in the Programs capacity
building and technology transfer activities.
The MIS is called CocoaTrace and has been
used in its new cloud based version since
January 2014 to record all Program
activities and collect farmer baselines and
surveys.
During the first semester, SCPP has
gradually shifted data collection process
from paper-based to app-based using
Android Tablets in all implementation
regions. Evaluation is ongoing to improve
TRACEABILITY, Cocoa Traceability system called 'CocoaTrace' initiated by SCPP and developed by PT. Koltiva allows the
industry to trace the origin of cocoa beans in Program implementation areas.
the CocoaTrace user interfaces and improve
data submission processes. In order to
ensure data quality, the program
continuously provides training for all field
facilitators to properly use the application
and accompanying Tablets both through
class session as well as directly during data
collection process.
Recent progress achieved was the
formulation of traceability structure and
procedure to record and trace cocoa 20
deliveries from farmers through buying units
and traders to the participating industry.
Several discussions with relevant
stakeholder and observation of the selected
fields have been conducted by Koltiva, the
CocoaTrace developer. Until the end of
June, several systems regarding traceability
process has been finalized particularly the
barcode system and the traceability
procedure from farm to industry. It is
targeted that by the end of October, the
first traceability system will be finalized and
tested.
The software can be used for various
purposes for instance to create a more
efficient farmer's business analyses when it
applied for a loan, or facilitating audits and
program evaluations.
 Sustainable Cocoa Production Program Biannual Report - 1stSemester 2014

21

Integrated
Agribusiness
Financing
Facility
I n April 2014, the AFF subcomponent of
SCPP was commenced. With an
objective to increase farmer's income
through improved access to commercial
finance, AFF used the Making Markets
Work for the Poor (M4P) approach to
overcome the existing bottlenecks. From the
banking standpoint, cocoa is an interesting
crop because of its continuous harvesting
cycles. It creates permanent cash flows
which is an important precondition for most
financial institutions to grant access to loans.
Final steps to establish an implementing
team was concluded in the 2nd quarter of
2014, the team is now operational. An
implementation strategy has also been
developed.
AFF focuses its activities on several strategic
interventions in capacity building, cooperative
strengthening, savings promotion, and
sector facilitation.
Capacity building for farmers
AFF will capacitate farmers with financial
literacy training to enhance their
understanding on requirements for loans,
why they have to repay their loans, and how
to plan cash flows. The intervention aims to
build farmer's understanding of prerequisite
factors to make them bankable as well as to
demonstrate that farmers possess basic
financial understanding hence may reduce
risks for financial institutions. The topics will
be delivered in conjunction with SCPP other
modules as part of the farmer field school.
SCPP has conducted AFF training of
trainers in June, while the manual is
currently being developed
INCOME, Cocoa farming nowadays can be a source of reliable cash flow for farmers to improve their economy.
Integrated Agribusiness Financing Facility
Capacity building for Financial
Institutions (FIs)
It is of paramount importance for FIs to have
knowledge about the cocoa sector before
providing their services to the sector. AFF
will provide Cocoa Sector Training and
Training on Cocoa Financials for FIs to
enable them to recognize opportunities in
cocoa sector and evaluate associated risks
properly. Through their increased knowledge
in the cocoa sector, FIs will be able to 22
develop suitable commercial products for the
farmers. With the available expertise, SCPP
will support the product development as
needed.
Cooperative Strengthening
Cooperatives play a vital role in farmer's self-
organization. They can be a mean as
farmers' voice, trader, service provider, or
microfinance institutions. As microfinance
institution, cooperatives keep farmer's
savings and disburse loans. To support
cooperative development, SCPP will develop
Standard Operating Procedure (SOP) for
cooperatives, develop tailor-made financial
products for farmers, link cooperatives to
social/commercial lender, and provide staff
training in various topics such as loan
analysis, risk management and
administration. SCPP aims to have active
cooperatives to provide farmers with a better
access to financial services and higher
income through joint marketing/sales
activities.
 Sustainable Cocoa Production Program Biannual Report - 1stSemester 2014

23

Savings Promotion
SCPP recommends farmers to accumulate
usable large lump sums through savings for
re-investing or maintaining their farms. The
program promotes savings of 1 kg cocoa
beans per week. After six months, the
farmers can use the accumulated amounts
for regular fertilizer purchasing thus increase
productivity without the burden to pay
interests charged by FIs as it would be in
the case when taking a loan. Moreover, the
savings account can be utilized to pay
quality, traceability, or certification premiums
straight to the farmers. With saving
accounts, not only the capacity of farmers
to pay regularly can be demonstrated, but
also farmer can take responsibilities to
increase their own funding capacity.
RECORD, Farmers are encouraged to make simple record of yields as basic information of farmers' farm productivity
Integrated Agribusiness Financing Facility
Sector Facilitation
SCPP has started sector facilitation and
participation through sector events. It aims
to bring together a number of stakeholders
such as the Central Bank, banks/FI,
farmers, farmer organizations, national and
regional governments, various value chain
stakeholders, input suppliers, and so on,
because this raises awareness and
sensitizes all stakeholders for the challenges
of the others. In particular, SCPP actively
participates in the PISAgro working group
and has organized a workshop attended by
70 stakeholders in Mamuju, West Sulawesi.
Workshops in the remaining provinces are
will be conducted along the program
implementation period. 24
The main strategies mentioned above are
required to realize lasting and practicable
solutions for cocoa farmers.
25

Stakeholder
Management and
Networking
Platforms
Local Government Involvement
SCPP consistently involves local government
agencies across all program activities.
Between January and June 2014, a number
of coordination meetings at national and sub
national levels were organized as advocacy
efforts for a greater contribution from
governments towards cocoa sector
development, especially in SCPP activities.
One of the challenges to ensure continuous
support from trained extension officer to
SCPP's cocoa farmers is the high rotation
within the government. To overcome the
situation, SCPP intensifies lobbying activities
to the specific agencies to encourage them
to retain their staff, especially those who
have received training from SCPP. The
program also strengthened its structure with
capable government relation officer and solid
field teams to undertake continuous
advocacy to the government.
Government supports for the program during
the first half of 2014 are as follows:
Ÿ The local governments in SCPP
implementation areas have contributed
own funding with a total of IDR
486,490,000
Ÿ In-kind government contributions such as
technical assistance through various
agencies, office space, and pruning
shears and tool for FFS participants
MEMORANDUM of UNDERSTANDING, SCPP is implemented with local governments and private sectors involvement
through equation of perspectives set forth in a Memorandum of Understanding for a better cocoa sector.
Stakeholder Management and Networking Platforms
Ÿ Several Districts agreed to allocate more
matching funds to support SCPP
initiated activities through the
government regional financial
management mechanism of Regional
Government Work Plan (Rencana Kerja
Pemerintah Daerah) and Regional
Annual Budget (APBD) in 2015
Ÿ The Agency of Trade and Cooperative
(Disperindagkop) in SCPP
implementation areas agreed to support
capacity building activities for farmer's 26
cooperative to enable them to manage
their cooperatives
Ÿ The Health Agency (Dinkes) in SCPP
implementation areas agreed to provide
technical assistance through their
extension officers in nutrition to promote
good nutrition practice and points out the
negative impact of pesticide to cocoa
farmer households
Ÿ The Agriculture Agency (Dishutbun)
agreed to provide tools and equipment
for demo-plots, extension officers, and
some follow on coaching to cocoa
farmers on farming techniques
Ÿ The Regional Development and Planning
Agency (Bappeda) agreed to support
local statistical data, land-use shape files
for ArcGIS software and office space for
program staff.
 
27

Better Networking towards
Sustainable Cocoa Production
From the onset, the program has weaved
public and private sectors partnership to
support its implementation. The initiative is
further intensify during the last semester
through the programs active participation in
various platforms for cocoa sector
development and know-how sharing.
At national level, SCPP provides the
Chairman of the Cocoa Sustainability
Partnership (CSP) Supervisory Board and
the Partnership for Indonesia Sustainable
Agriculture (PISAgro) leader of the cocoa
working group. At both forums, SCPP
brought its strong presence to contribute
lessons from the program implementation to
the forum to foster cocoa production
sustainability.
PARTNERSHIP, SCPP is actively participating in National and International Platforms to share lessons learned and increase
stakeholder commitment to sustainable support solutions for cocoa farmers
Stakeholder Management and Networking Platforms
At regional level, the program initiated a
new cocoa forum, combining three districts
namely Luwu, Luwu Utara and Luwu Timur,
as a networking forum for stakeholders in
the South Sulawesi province. SCPP
organized workshops to formulate strategic
plans for sustainability of the so far four
established forums. The program also
continues to provide support as needed by
the forums and maintains close coordination
for actions in cocoa sector developments in
each region. All forums have been linked to
CSP and participated in the periodic
meetings.
28
 Swisscontact Indonesia Country Office SCPP Regional Office Sumatra SCPP Regional Office Sulawesi
The VIDA Building 5th Floor 01-04 Komplek Taman Setia Budi Indah I Gedung Graha Pena lantai 11, Ruang 1108-1109
Jl. Raya Perjuangan No.8, Kebun Jeruk, Jakarta 11530 Jl. Chrysant Blok E No.76, Medan 20132 Jl. Urip Sumoharjo, No.20, Makassar 90231
Ph: +62-21-2951 0200. Fax: +62-21-2951 0210 Ph: +62-61-82229 700. Fax: +62-61-82229 600 Ph/Fax: +62-411-421370