In running its business operations, ICBP is supported by many small and medium enterprises (“SMEs”) which include farmers and agricultural stakeholders upstream as well as food entrepreneurs within the ecosystem. We have developed programs and partnerships to support and provide good economic returns for these SMEs.
- Partnerships with Farmers
We have established strategic partnerships with local agricultural farmers of potato, chili, cassava, shallot and coconut sugar to generate long-term economic value mutually. To help the farmers improve their productivity and outputs, we provide them training on good agricultural practices. The agricultural products are purchased from the farmers at a fair price. Through these partnerships, we have ensured the supply of raw materials for our production and provided economic security for the farmers.
- Partnerships with Cow Breeders
Since 2013, we have partnered dairy farm cooperatives in East Java on a rolling cattle breeding program. Under this scheme, we provided an initial stock of hundreds of dairy cows to members of the cooperatives for breeding. Within a five-year period, these participating cow breeders would have to each provide three healthy calves to other cooperative members for breeding under the same arrangement. Through this method of propagation, we are aiming to steadily increase the dairy cow population to meet the rising demand for our products.
Other assistance is also extended to the dairy farmers, including the loan of milk cooling machines and professional advice on improving the health and quality of the livestock.
- Partnerships with Tempe Entrepreneurs
Tempe is a healthy, traditional soybean cake which Indonesians love and we used as an ingredient in one of our snack products. We have established many partnerships with tempe entrepreneurs that have grown steadily over the years into a strong community of tempe producers. We provide opportunities for the tempe producers to come together to share their experience on tempe making and GMP. This has helped to improve the quality and efficiency of tempe production as well asincrease the incomes of the tempe producers.
- Partnership for Indonesia Sustainable Agriculture (“PISAgro”)
Both ICBP and Indofood are members of PISAgro, a joint initiative between the Indonesian government and agribusiness stakeholders to support national food security and to improve the welfare of local farmers through sustainable agriculture. PISAgro aims to achieve 20% increase in agricultural yields, 20% reduction in carbon emissions and 20% improvement in farmers’ income by 2020. To support this vision, PISAgro is partnering financial institutions to extend credits to farmers through their farmer cooperatives, and has established a memorandum of understanding with the Ministry of Agriculture to strengthen agricultural education programs and to entice more young Indonesians to go into farming. ICBP has been actively supporting the PISAgro initiatives through its partnerships with local farmers.
- Partnership with Indomie Entrepreneurs
We continued to support Indomie entrepreneurs under the Warung Makan Indomie (“Warmindo”) program, which aims to improve the service and food quality of Indomie stalls by imparting knowledge of food hygiene and good food stall management to the stallholders. A separate Mudik Warmindo (Homecoming) program was organized to bring the Indomie entrepreneurs back to their hometowns for Eid al-Fitr celebrations. We also ran the Green Warmindo program to collect post-consumer packaging waste from the Indomie stallholders for recycling.
- Partnership with Food Entrepreneurs (“Pojok Selera”)
Pojok Selera is an economic empowerment program that supports Goal 1 of Sustainable Development Goalsto end poverty. It aims to foster culinary entrepreneurship among local communities living around our operating units by providing training on running a small business operation and preparation of nonrice food products, in addition to providing equipment and raw materials to participants to help kick-start their production and small business. In 2018, we expanded the program to include digital marketing support. The participants were given an introductory course on leveraging e-commerce to promote their products and expand market reach.