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Community Partnership: Empowering farmers through partnership programs

Land for livelihood: Farmers plant paddy in a rice field owned by state-owned oil and gas company PT Pertamina in Balongan, Indramayu, West Java

The Jakarta Post
Mon, March 23, 2015

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Community Partnership: Empowering farmers through partnership programs

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span class="inline inline-center">Land for livelihood: Farmers plant paddy in a rice field owned by state-owned oil and gas company PT Pertamina in Balongan, Indramayu, West Java. The company provides 119 hectares of land for rice field that local farmers can till as part of its CSR initiative. ANTARA

Corporations and farmers gain mutual benefits from empowerment program.

When it comes to low-income groups in Indonesia, farmers remain at the top of the list despite, as the government has claimed, the declining trend in the number of poor people in this country.

Data at the Central Statistics Agency (BPS) in March 2014 showed that of the 28 million people living under the poverty line, 18 million lived in rural areas, mostly farmers.

The number of poor people slightly declined from 2013, partly caused by low-inflation and increased wages, according to government sources.

But the poverty experienced by many farmers remains a major issue that should be addressed as it leads to a long list of adverse impacts, such as lack of nutrition, bad health, lack of access to education, ignorance, etc.

While the government continues to tackle poverty, many companies are also carrying out efforts to improve the welfare of farmers through their respective corporate social responsibility (CSR) initiatives.

The saying, '€œgive them a fish hook instead of fish'€ serves as a guiding principle that many companies apply when it comes to improving the welfare of farmers, as equipping them with skills is believed to have a long-term impact. Therefore, the programs that they run are expected to support sustainable livelihood and mostly take the form of training, provision of seedlings, fertilizer, etc.

For companies whose business largely relies on agricultural or plantation yields, empowering farming communities is seen as crucial because this will ensure the sustainable products that they use as raw material for production.

However, companies helping to empower farmers are not confined to agriculture-or-plantation-based industry. Mining and oil companies that operate in remote areas and other non-natural resources-based firms, such as banks and telecommunications, also run programs to improve the lives of farmers through their economic empowerment initiatives.

Empowering farmers is seen by many as an effective way of boosting the welfare of farmers.

Yanti Triwadiantini, executive director of Indonesia Business Link (IBL), said that empowering farmers in the context of partnership meant a sustainable cooperation program with farmers, with win-win patterns.

Self-reliance

According to her, empowering farmers should drive the creation of self-reliance or being autonomous. '€œFrom the standpoint of farmers, they should not always be dependent or waiting for aid,'€ she said.

'€œThe change of their pattern of thought that leads to self-reliance [being autonomous] and providing mutual benefits can perpetuate the relationship of the partnership.'€

However, if the goal has been achieved in a certain period of time in accordance with a written agreement, the partnership can end well.

Yanti underscored the importance of partnership.

'€œEvery partner has its own expertise, strengths, values, authority, etc.'€ she said.

There is often a greater demand from the communities than the corporations are capable of meeting. Apart from that, '€œthey are often asked to make donations,'€ she said.

'€œThe role of local governments and regulation that is not conducive [to farmer empowerment] because they do not grasp the meaning of the program,'€ she said, explaining the challenges facing companies that often become hindrances to farmer empowerment.

An effective partnership should be conducted based on equality that promotes mutual respect. '€œIt should also be accountable for creating and maintaining trust and mutual benefits to keep good ties,'€ she said.

Several multinational companies use an independent party to verify the programs that they run. Verification is aimed at, among other things, ensuring that the company concerned runs its programs the right way, to determine how strong the company'€™s commitment to the objectives and key performance indicators (KPI) are and to discover if it has a long-term impact on the farming community.

However, she holds an opposing view to this. '€œI think it is unnecessary to involve an independent [institution],'€ she said.

'€œSuch programs provide mutual benefits to the company and farmer so other parties should not interfere,'€ said Yanti, also a chair at the ASEAN CSR Network.

'€œIf likened to marriage, is it necessary for an independent party to verify it [the marriage] or to find out whether the husband and wife'€™s relationship is harmonious or not,'€ she argued.

'€œExcept when there is a dispute, the two parties may appoint a third party to serve as a bridge [to resolve the dispute),'€ she added.

The empowerment program for farmers is said to be successful because it not only helps farmers achieve a sustainable income but also boosts their quality of life. '€œEnvironmentally, it can create a sustainable ecosystem in agricultural or rural areas.'€ (Sudibyo M. Wiradji)

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