Академический Документы
Профессиональный Документы
Культура Документы
Smallholders In Situ
Community Partnership Program
CPP ( COMMUNITY PARTNERSHIP PROGRAM)
Guiding Principles
1. Community Partnership Program --> Key requirement based on regulations:
a) Within the concession, permit holder (LAJ/Wanamukti/MKC) must develop a
Forestry Partnership Program (Community Partnership Program) that is a long term
agreement with smallholders and tied to “land usage”
b) Based on Ministerial Regulation no P 12/2015 about Industrial Forestry
Development require every permit holders to allocate minimum of 20% of total
area is Livelihoods Crops area (forestry partnership area) & minimum 10%
protected area (conservation)
c) CPP in MOEF regulation is recognized as primary community development strategy,
social stabilisation effort and land conflict resolution strategy
d) Avoid non-compliance with government regulations that have the potential to get
sanctions from the government and legal loopholes for litigation in the court.
e) This program is also planned in the ESMS, monitored periodically by RLU investors /
lenders (TLFF, Andgreen).
f) The implementation of CPP can range from agreement between company and
existing settlement areas to development of Rubber plantation with smallholders in
situ scheme (CPP Smallholders In Situ) or profit sharing concept (“CPP Plasma”)
g) Fulfillment it can be in livelihoods crop area or protected area (conservation)
Existing Regulatiom
3 PT Multi Kusuma
Cemerlang 18.000 Ha 4.864 Ha (27 %) 0 Ha 3.600 Ha 9.983 Ha (55%)
Based on Ministerial Regulation no P 12/2015 about Industrial Forestry Development require every permit
holders to allocate minimum of 20% of total area is livelihoods crops area (forestry partnership area) &
minimum 10% protected area (conservation) .
In a variety of standards (ISO 26000 guidance on social responsibility) - the basic principle is to first fulfill
the applicable government regulations and do those that are beyond / better than that.
CPP ( COMMUNITY PARTNERSHIP PROGRAM)
Guiding Principles
Inside concession.
Program for development of rubber smallholders with
CPP Plasma revenue sharing scheme. The program aims to be an
alternative land acquisition strategy in addition to land
compensation and fulfillment of regulatory obligations
(Minister of Forestry and Environment Regulation)
Inside concession.
Community Cooperation with existing rubber smallholders to buy
Partnership CPP Smallholders
their cuplump/latex. The program aims to
Program (CPP) in Situ strengthening social stability (trust from community)
and fulfillment of regulatory obligations (Minister of
Forestry and Environment Regulation)
Outside concession.
Program for small holders in the surrounding area. It
CPP Outgrowers will contribute to the supply chain of the RLU factory
and part of Michelin policy for SNR development in
Indonesia.
Preparation Q3 Q4 Q1 Q2 Q3 Q4
1 Engagement with stakeholders Dishut, KPHP, TRK & Public Affairs LAJ & WW MKC
(government and NGOs) Setara
2 Social economic assessment Public Affairs LAJ - WW - MKC
3 Concepts program Public Affairs WW LAJ
development MKC
4 Participatory mapping of Sungai Karang (SK), Public Affairs, WW LAJ
smallholders Napal Putih (NP)/ KPHP & Setara MKC
Pemayungan (PY),
Tepian Langsat (TL)
5 Dialogue with smallholders SK : 18 (40 Ha) Public Affairs, WW – LAJ-
NP : 18 (50 Ha) KPHP, Head of MKC
Villages, Setara
6 Establishment of Forest SK - done Public Affairs WW LAJ
Farmers Group & Setara MKC
Implementation Q1 Q2 Q3 Q4
1 Establishment of implementing Public Affairs, TQC &
team (RLU internal) operation
2 Training for trainers Public Affairs,
Training -TQC and
SNV (TBC)
3 Training on Better Management Public Affairs,
Practices for Smallholders Training-TQC and
SNV (TBC)
4 Smallholders facilitation, Public Affairs, and
mentoring & monitoring SNV (TBC)
Scaling up Q1 Q2 Q3 Q4
1 Intensive assistance Public Affairs, TQC &
operation
2 Strengthening operational and Public Affairs,
MONEV Training -TQC and
SNV (TBC)
3 Replication to other Public Affairs,
communities/villages Training-TQC and
SNV (TBC)
Challenge: The village head has not supported this activity (one of the
largest illegal settlement areas, issues with ABT/WWF concession as well)
Assumptions:
- SICOM price (dry): SICOM price is around Rp. 21,000 / kg with the selling price of RLU to the factory
with a discount of Rp. 2,200 / kg
- Farmers price sell to intermediary (current) around Rp 7.000 – Rp.8000/ kg (wet)
- The term of payment from the factory to the supplier is 2 days after delivery invoice. Usually
smallholders are more interested in selling rubber with the cash on delivery model.
- There is an income tax (income tax) of 5%. This tax can be deducted from the sale of all holders or
paid by the RLU. VAT is not valid in this transaction
TOTAL 90.000.000
C - RLU establish rubber plantations on behalf of farmers in D - Smallholder rubber farmers established within the
consolidated blocks, then hand over of plantation concession with up to 10 ha of rubber plantation, incorporated
management responsibilities to smallholders and recover into community partnership plasma scheme, managing and
establishment and subsequent technical support costs from improving these existing rubber plantations ‘in situ’
value of latex once in production
Avoids risk and expense of land acquisition, resettlement and
Eventually provides for smallholder autonomy, transmission compensation, and thereby facilitates full compliance with
of capital and cultivation of a sense of ownership and international best practice. Provides means to regularise and
responsibility for scheme participants take advantage of existing smallholder enterprise and
investment, with maximum smallholder autonomy and sense of
Offers more control for company over plantation quality, but ownership
still with some risks to quality of production and compliance Rubber production per unit area can be improved, but very likely
with company commitments on environmental and social to be less than in RLU’s own plantations
practice
June 28, 2019 Confidential-Information Only Indicative 17