Nestlé Indonesia has partnered with Lampung coffee farmers for 20 years, providing training on improving coffee quality and productivity. They established the first joint enterprise group for coffee farmers in 1994 to empower farmers and facilitate coffee bean marketing. Currently over 15,000 coffee farmers in Lampung are involved in the partnership. Through the NESCAFÉ Plan initiative, Nestlé Indonesia is committed to sourcing 100% of the coffee beans used in NESCAFÉ products from sustainable Lampung coffee farms.

1. PT NESTLÉ INDONESIA
Wisma Nestlé lantai 5
Perkantoran Hijau Arkadia
Jl. Letjend. TB Simatupang Kav. 88
Jakarta 12520
www.nestle.co.id
1Spotlight
JULY 2014 ISSUE 04
csv
KILAS
TWENTY YEARS AGO, Nestlé Indonesia
established Agriservice Coffee Team to
provide trainings for Lampung coffee
farmers on how to improve coffee qua-
lity and productivity, an effort to sup-
porting the sustainable coffee farming.
Beside trainings, Nestlé Indonesia also
initiated the establishment of joint en-
terprise groups for coffee farmers (KUB)
to empower partnership and coffee
beans marketing in order to earn sus-
tainable income for coffee farmers.
Located in the village of Ngarip, Tang-
gamus, Agriservice Coffee Team started
with post-harvest practices training so
the produced coffee beans can meet
the criteria, known as the “Nestlé Stan-
dard and set up the first joint enterprise
group for coffee farmers in Ngarip.
Having established the KUB, coffee
farmers can directly deliver the beans
to Nestlé Indonesia factory in Panjang.
This KUB has now become one of Pan-
jang Factory partners and the hub of
coffee farmers’ delivery to factory.
Furthermore, Agriservice Coffee
Team also provided trainings for cof-
fee farmers on how to apply good ag-
ricultural practices. The coffee farmers
were keen to participate, even Rohadi,
the village head of Ngarip, fully sup-
ported these activities. This hard work
is now showing good results, evident
from the increased in productivity up to
1,200 kg/ha, 50 percent higher than the
average national coffee productivity.
In 1996, Agriservice Coffee Team set
up its demonstration farm in Ngarip
for multi-location test of five coffee
clones which were developed by In-
donesian Coffee and Cocoa Research
Institute (ICCRI) and Nestlé Research
Center in Tours, France. In 2014, Nestlé
Indonesia set up a new 4 hectare Ex-
periment and Demonstration Farm in
Talang Padang village, Tanggamus
which is used for a demonstration plot
coffee nursery training as well as loca-
tion for good coffee clones collection
from ICCRI.
This partnership, which has now in-
volved 15,000 coffee farmers in Lam-
pung, continues to grow and involve
other stakeholders. In 2012, together
with WWF, Nestlé Indonesia through
NEWTrees program, conducted train-
ing for farmers on how to preserve the
environment and also planted 8,000 silk
trees (Albizia Chinensis) as a form of
land conservation effort in Lampung.
Within the same year, Nestlé Indo-
nesia also launched a global initiative
called the “NESCAFÉ Plan” that is also
being implemented in Lampung as a
global effort to source sustainably ma-
naged coffee beans and directly buy
from farmers. In 2014, Nestlé Indonesia
will directly purchase 20,000 tons coffee
beans from KUB, including 15,000 tons
produced by some 13,000 4C* certified
coffee farmers. This 4C purchasing from
KUB by Nestlé Indonesia is a way to trace
the location of produced beans, known
as ‘Traceability Scheme’.
Rohadi said he has learned a lot since
the partnership’s establishment with
Nestlé Indonesia in 1994. “From defect
system, the application of traceability,
and the implementation of 4C certifica-
tion. All these things are challenging for
us, but we feel more excited to bring out
the best results.” Through partnership
with Lampung coffee farmers, Nestlé
Indonesia ensures that all raw materials
for NESCAFÉ products from Panjang
Factory are directly sourced from coffee
farmers who manage their farms in a
sustainable way.
Nestlé Indonesia is committed in
using 100 percent of Lampung coffee
beans, bought directly from the farmers,
to produce NESCAFÉ Classic and NESCAFÉ
Mixes instant coffee. This, in turn, will
add value to Indonesian coffee beans
and support the government and the
community in improving the farmers’
welfare. The partnership reflects Nestlé’s
business concept that has been deve-
loped globally, in which for a company
to be successful, the communities we
serve, need to prosper as well. Hence,
there is creating of shared values.
Behind a cup of NESCAFÉ:
100 PERCENT
LAMPUNG
COFFEE BEANSAgriservice Coffee Team in Lampung
*4C (Common Code for the Coffee Community) Association is a platform that brings together
coffee sector stakeholders sector to address sustainability issues in a pre-competitive manner.
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2. 2 Profile
KONSTIYANTO, THE PIONEER OF COFFEE
FARMERS JOINT ENTERPRISE GROUP
S
ince the beginning of the 1980s, the Government,
through the Ministry of Agriculture and Ministry of
Cooperative and SMEs encourages farmers to coope-
rate with corporations in order to improve agriculture and
farmers’ welfare through joint enterprise or cooperative. This
program led Konstiyanto, who served as a staff of the Estate
Crop Agency in Pulaupanggung District, to encourage coffee
farmers to form joint enterprise group so they can improve
their welfare. Together they can learn and implement good
and integrated agricultural practices, as well as the market-
ing process.
During his time in the Estate Crop Agency, Konstiyanto
has established three Joint Enterprise Groups (Kelompok
Usaha Bersama – KUB). The first was KUB Mawar in 2002,
led by Rohadi, one of the senior coffee farmers in Ngarip vil-
lage. Konstiyanto later established KUB Sinar Abadi, which
unfortunately did not last due to internal problem. Even
so, he refused to give up and continued to motivate coffee
farmers to join the KUB. In 2010, KUB Robusta Prima was es-
tablished in Pulaupanggung. A total of 1,595 farmers from
61 farmer groups joined this KUB.
After his retirement from the Estate Crop Agency,
Konstiyanto focused in developing KUB Robusta Prima
and was chosen to lead the organization. Two years after
its establishment, KUB Robusta Prima was chosen as one
of the joint enterprise groups (KUB) trained by Nestlé In-
donesia. He also registered KUB Robusta Prima as one of
Nestlé Indonesia factory’s business partners in Panjang. This
process required each member to dedicate their time and hard
work because they they were expected to provide raw mate-
rials in accordance the criteria known as “Nestlé Standard”
among the coffee farmers in Lampung. This effort finally made
its way when in 2012, KUB Robusta Prima was officially an-
nounced as the partner of Nestlé Indonesia factory in Panjang.
Since partnering with Nestlé Indonesia, the economic sta-
tus of KUB Robusta Prima and its members was improved,
including the financial difficulties faced by the group. The
transparent transaction process, competitive price and form
of support in high quality plantlets supply, training cost and
KUB development fund, have encouraged its members to
produce raw materials of “Nestlé Standard”.
Konstiyanto also mentioned that one of the programs
benefiting KUB members was the women coffee farmers
empowerment through waste bank training by the Rain-
forest Alliance, one of Nestlé Indonesia’s partners. “Having
completed the training, women coffee farmers are capable
in managing the waste bank, in addition to coffee farm-
ing. They are able to produce fertilizer and recycle goods
from the compiled waste which can be sold as additional
income sources,” said Konstiyanto.
Kostiyanto hopes that the relationship between Nestlé
Indonesia and KUB Robusta Prima will sustain and is equal-
ly positive for both parties, as well as for the surrounding
environment.
The coffee nursery at KUB Robusta Prima
Konstiyanto at the drying coffee area
of KUB Robusta Prima
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3. What’s Going On 3
NESCAFÉ Plan
Creating Shared Value
18,000 coffee farmers
1,230,000
quality plantlets by
the end of 2014
2010In In 2012the NESCAFÉ
Plan was globally
launched and
implemented in
Mexico, Thailand,
Indonesia and the
Philippines
in Lampung join the partnership
Activities of the NESCAFÉ Plan program
in Indonesia are:
Rejuvenation of coffee
trees by distributing
THIS PROGRAM IS IMPLEMENTED IN
Tanggamus Regency and
Sumberjaya Regency of
Lampung Province
Ministry of Agriculture of RI,
ICCRI, Syngenta and
Rainforest Alliance
Partners:
8Coffee Farmers
Joint Enterprise Groups
are involved
of 4C
TARGET
25,000 tons
coffee beans
by 2015
the NESCAFÉ
Plan was
launched in
Indonesia
4C: Common Code for
the Coffee Community
Responsible
FARMING,
PRODUCTION,
CONSUMPTION 2,5 million
quality plantlets by
the end of 2015
By 2014
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4. 4 Report
T
o ensure the success of NESCAFÉ
Plan program and to fulfill the com-
mitment in 2015, Nestlé organized
a Farmer Connect workshop on June 2-6
in Lampung. In addition to presentation
on the latest updates of the program
implementation in each country, as well
as discussion on local issues, workshop’s
participants were also invited to visit
the NESCAFÉ Plan site in Tanggamus, Lam-
pung. This workshop is expected to result
in action plan addressing the current tar-
get gap. Following are some photos taken
during the workshop.
FARMER CONNECT
WORKSHOP inLampung
The coffee nursery at KUB Robusta Prima
A presentation session led by Stefan Canz
Farmer Connect is our program 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.
Editorial Team
EDITOR-IN-CHIEF:
Nur Shilla Christianto
WRITER:
Elizabeth Wairatta
CONTRIBUTORS:
Ade Sonyville
Arif Kartika
Jenik D.S. Andreas
Lukman Efendi
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
Pruning by one of participants
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