1. PT NESTLÉ INDONESIA
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Perkantoran Hijau Arkadia
Jl. Letjend. TB Simatupang Kav. 88
Jakarta 12520
www.nestle.co.id
1Highlight
FEBRUARY 2015 ISSUE 01
csv
kilas
A cocoa field school for
cocoa farmers in Mamuju,
West Sulawesi.
Fresh milk supply at Milk
Collection Center in Pucangsari,
Purwodadi, East Java.
O
ne of the crucial factors to
keep a factory running is a
guarantee of continuous
supply of high quality raw
materials. To fulfill its needs of fresh
and high quality raw materials, Nestlé
Indonesia establishes a partnership
with farmers living around its factories.
Nestlé Indonesia’s efforts in partner-
ing with local farmers have been in-
troduced as well as implemented long
before Farmer Connect was created. In
Lampung, for instance, a partnership
with the coffee farmers in Ngarip was
established in 1994. In 2014, Lampung
coffee farmers were able to supply
approximately 17,500 tons of coffee
beans for Panjang Factory. As for fresh
milk supply, Kejayan Factory has been
partnering with East Java dairy farm-
ers since 1975. The factory has even in-
stalled the River Osmosis (RO) machine
to increase its absorption capacity of
fresh milk in 2011. “Nestlé Indonesia is
committed to absorb more fresh milk
from local dairy farmers. I hope that
these suppliers can then focus on pro-
ductivity increase,” said Eko Sugiarto,
Kejayan Factory Manager.
To maintain the quantity and quality
of the raw materials, Nestlé Indonesia
provides training and assistance to the
farmers. The company also provides
other forms of support, such as finan-
cial support for the development of
coffee farmers’ joint enterprise groups
in Lampung or the installation of wa-
ter ad-libitum unit in 1425 barns, dis-
tribution of 747 chopper units and 40
cow milking units, as well as other aids
to the dairy farmers in East Java. Nestlé
Indonesia organizes various trainings,
such as field school for cocoa farmers,
good agriculture practices for coffee
farmers and financial management for
dairy farmers. The trainings and assis-
tance for these farmers are fully sup-
ported by the Agriservice and the Milk
Procurement and Dairy Development
(MPDD) teams. This helps ensure the
quality of supplied raw materials.
In 2014, Nestlé Indonesia produced
more than 300,000 tons of various
products including dairy, coffee and
confectionery. The partnership be-
tween Nestlé and the farmers also
contributes to rural development in
the area where the farmers live. For
example, the dairy farmers are trained
and given assistance to build biogas
units utilizing cow manure. By using
biogas, they can reduce gas consump-
tion for cooking. This synergy is a rea
lization of Nestlé Indonesia’s commit-
ment to implement Creating Shared
Value (CSV).
Sustainable Sourcing
from Reliable Farmers
2. 2 Profile
A
s part of rural development, one
of the concepts that Nestlé deve
lops globally is Farmer Connect.
Through the program, Nestlé is
committed to sourcing local raw materials
directly from the farmers who meet the com-
pany’s standards. To help the farmers meet
these standards, Nestlé also provides techni-
cal assistance and partnership.
Through the Farmer Connect program,
farmers are expected to improve the quality
of their lives, as well as that of the local com-
munity, by improving the productivity and
quality of their produce so that they have an
opportunity to earn a higher income.
On a global scale, Nestlé has established
partnership with 686,000 farmers through
the Farmer Connect as well as other pro-
grams, such as the Nescafé Plan or the Co-
coa Plan. Among all the farmers involved in
the Farmer Connect program, 60% are dairy
farmers, 35% are coffee farmers and 5% are
cocoa farmers. In Indonesia, Farmer Con-
nect has only been implemented for coffee
farmers in Lampung and has covered 13.000
farmers to help them obtain the 4C (Common
Code for the Coffee Community) certificate.
“Despite carrying a different label, the con-
cept of direct partnership with farmers for
local raw materials sourcing has long been
implemented by Nestlé Indonesia, for exam-
ple in Lampung. We started with providing
trainings about quality standard for coffee
beans that can be accepted by Panjang Fac-
tory. We also encouraged and assisted the
creation of Joint Enterprise Groups to allow
farmers to collectively supply their harvest to
the factory. This partnership still continues
until today and has been beneficial for both
the farmers and the factory,” said R. Wisman
Djaja, Director of Sustainable Agriculture De-
velopment & Procurement. The same kind of
partnership has also been initiated by Nestlé
Indonesia with cocoa farmers in Sulawesi, in
collaboration with BT Cocoa.
For Nestlé, the Farmer Connect pro-
gram can help guarantee the high quality
of sourced raw materials, thanks to the
proximity to the farmers. Farmer Connect
allows the company not only to establish
and maintain a good relationship with the
farmers, but also to monitor its supply chain
so that it stays compliant with social, envi-
ronmental and ethical requirements. As for
the farmers, the program helps establish
an equitable and consistent pricing system,
improve yields and reduce impacts on the
environment.
Farmer Connect:
Farmer Connect is our
programme for direct
sourcing from farmers,
through which we commit
to the local sourcing of
raw materials, offering
technical assistance and
ensuring co-operation to
meet the highest sourcing
standards.
Supporting Farmers and Promoting
Sustainable Agriculture Development
3. Creating
SupplyChain
aSustainable
Farmers
Whoareinvolved?
HowisNestlécontributing?
Cooperatives,
Joint Enterprise Groups
Factory
● Good Agriculture
Practices
Training:
Assistance
Aid
Rp● Post-Harvest
Management
● Access to
Finance
● Access to
Market
Whatarethebenefits?
● The guarantee to
receive high quality
raw materials for
the factory in a
sustainable way
● The improvement
of farmers’ welfare,
that helps improve
the community in
which they live
To date, a number of
57,000 farmers have
directly supplied raw
materials to four factories
of Nestlé Indonesia.
4. 4 Agenda
KASIHKarya & Sumbangsih
Editorial Team
Editor-in-Chief:
Nur Shilla Christianto
Writer:
Elizabeth Wairatta
Contributors:
Ade Sonyville
Billy Sandro Primadita
Jenik D.S. Andreas
Meriza Lenanda
Valeska Liviani Priadi
We hope this bulletin can be a forum for us
to share stories and improve our engage-
ment with the communities through our
CSV program. We welcome any input or
suggestions from you.
Please feel free to contact the editorial team
at: elizabeth.wairatta@id.nestle.com
O
n 22 December 2014, approximately a hundred employees of Panjang
Factory gathered to promote the importance of water conservation.
Taking place at Youth Camp Taman Hutan Raya Wan Abdul Rachman,
Hurun Village, Kecamatan Teluk Pandan, Kabupaten Pesawaran, they planted
75 trees comprising of champak, meranti, blackboard tree, acacia (thorntree),
needlewood and umbrella tree. This tree planting activity is a form of water
conservation effort, one of the three focuses in Nestlé’s Creating Shared Value
(CSV).
The tree planting activity also involved students who received scholarship
from Panjang Factory and the community of RT Sinar Baru Dusun Penyan
dingan and was supported by UPT Tahura Wan Abdul Rachman of the Lam-
pung Province Forestry Department. “The tree planting activity is a great idea
because it allows us to contribute to environmental conservation. It also mo-
tivates my child to take part in conserving the forest, and the scholarship mo-
tivates him to study harder at school,” said M. Nurranau Windra, one of the
factory’s operators participating in the activity.
The program was then followed by the handing out of 45 seedlings of
tropical almond, jack fruit, eugenia, and king of fruits from Panjang Factory
Manager Budi Utomo to Head of BPLH Bandar Lampung Rejab, SE to help re-
forest the city of Bandar Lampung.
“I am glad to be able to participate
in conserving the environment, es-
pecially in my own city, Lampung,
through this program,” said Anto-
nius Sudiyono, Filling/Packing Ope
rator of Panjang Factory.
This activity is the embodiment
of Nestlé’s commitment to create
value for the community where it
operates. According to Billy Sandro
Primadita, HR General Services &
Employee Services, it is a good way
to motivate employees and their
children to get to know the nature
closer. Closer means stronger com-
passion. “I hope that Nestlé’s com-
mitment to CSV will be sustainable
and can help boost our motivation
to care more about the environ-
ment,” he said.
Our Water Resources!
Let’s conserve
KASIH, an acronym for Karya
(Deed) and Sumbangsih (Contri-
bution) is Nestlé Indonesia’s CSV
employee volunteerism program
launched in 2013. Employees’ parti
cipation in CSV activities is expected
to strengthen employee engage-
ment, increase the awareness and
understanding of the company’s
CSV programs and create shared
value for the community.
If you are interested to
support the KASIH program
or to make biopore holes
at home, please contact
Jenik D.S. Andreas (ext. 1528; email
Jenikdwi.Suspeni@id.nestle.com)
or Faiza Anindita (ext 1526; email
faiza.anindita@id.nestle.com).
