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    Organic SRI Rice

    The agricultural sector is one of the main economic drivers of the East Luwu local community, with rice as a leading commodity. Data released by the East Luwu Regional Research & Development Agency (BAPPELITBANGDA) shows that this sector is in second place after the mining sector as a mainstay contributor to East Luwu Regency's GRDP (Gross Regional Domestic Income). However, this sector often faces challenges such as high prices of chemical fertilizers and difficulty in accessing these fertilizers, attacks by plant pests or various pests, resulting in unstable harvest yields, which in turn impact household economic income. With these background, solutions are needed, and innovation is important to overcome this problem.

    Since 2015, PT Vale, through the Community Empowerment Program (PPM) program, has initiated an environmentally friendly & sustainable agriculture program through the development of an Organic Rice System of Rice Intensification (SRI) together with the Regional Government of East Luwu Regency through the Department of Agriculture. The program aims to improve the human resources capabilities of Field Agricultural Extension (PPL) and farmers regarding Organic SRI rice, productivity and managing farmers' income. PPL and Farmers are given technical training in sustainable, environmentally friendly agricultural cultivation by experienced experts and under the coordination of the program support team. After being given training, PPL and farmers were invited to jointly prepare activity plans for each group as a reference for intensive assistance, including field school activities.

    In general, the aim of this program is to develop environmentally friendly agriculture as a superior regional commodity and help improve community welfare. Several indicators of the program's success include;

    1. There is an increase of at least 10% in the sustainable livelihood assets (pentagonal assets) of the partner farmers from the initial baseline of the program.

    2. There is an increase in the number of assisted partners & the area of organic farming land by at least 10% from the initial program baseline.

    The program support provided includes technical assistance for cultivation, field schools, organic certification facilitation from INOFICE, agricultural support facilities such as weeding tools (gasrok), hand tractors & combine harvester machines through Bumdesma Mahalona and post-harvest. The SRI Organik demonstration plot almost reaches the entire East Luwu Regency area through PPL. Currently, organic rice products are one of the flagship products of East Luwu Regency, and provide real benefits for local farmers. Farmers claim that their income has increased, the condition of the rice fields has become fertile, water use is more proportional, it is not difficult to obtain fertilizer because they can make it themselves, and there are not too many pest attacks. The farmers have a local umbrella organization called the SRI Organic Farmers Association (APSO).

    Highlighted program accomplishments encompass:

    1. Averaging a Social Return on Investment (SROI) index of 1,2. (Highlighted)

    Impact to Wellbeing:

    1. In 2021, an impact assessment study (Impact Assessment) was carried out to measure the impact of the program using the Sustainable Livelihood Impact Assessment (SLIA) approach where the results of the study showed that the majority of farmers assisted by the program felt a change in the assets/capital they had, especially knowledge, attitudes and skills. as well as increasing (financial) income, another thing is that the presence of APSO indicates that the group's social capital is strengthening, in this case the index has changed positively from before participating in coaching, namely 1.24, increasing to 2.59 after the evaluation, meaning that from previously low to above average average (medium).

    Impact to Economic aspect of Sustainability:

    1. Attained a noteworthy rice yield average of 6-7 tons per season, doubling that of traditional rice cultivation.

    2. They promote the products under the Matano Rice brand, all of which come with official certifications. They've also built strong partnerships with various types of businesses, including retail stores, cooperatives, and small to medium-sized enterprise (MSME) outlets for selling these products.

    3. Throughout 2022, farmers have succeeded in supplying more than 1.5 tons of premium organic rice to the employee canteen of PT Vale Indonesia Tbk. This accomplishment underscores PT Vale Indonesia Tbk's commitment to leveraging the power of business to foster positive and sustainable change. We are not only dedicated to enhancing the well-being of farmers but also to improving the quality of rice consumed by our workforce, with the expectation of enhancing their long-term health. We will continue to make continuous improvements to this scheme, in alignment with one of PT Vale Indonesia Tbk's core ambitions, which is to set an example in creating shared value (Creating shared value 3).

    Impact to Environmental aspect of ESG:

    1. Farmers have the capability to independently create organic fertilizers and plant-based pesticides to deter pests, allowing them to reduce their reliance on synthetic chemical fertilizers that are becoming scarcer and more costly in the market.

    2. Through this farming approach, farmers can reduce water usage by over 40% in comparison to conventional farming method.

    3. Based on 2021 data, SRI Organic agricultural practices effectively reduce the generation of carbon emissions by up to 528 kilograms of CO2 equivalent per year.

    Impact to Governance aspect of ESG:

    1. Established the  SRI Organic Farmers Association (APSO) to facilitate farmer competence enhancement and collaborative marketing.

    2. There is a Joint Village-Owned Enterprise (BUMDESMA) Mahalona which is an off taker partner for organic rice, has the trademark "Mahalona Rice" and affirms the use of combine harvester machines and hand tractors for organic farmers

    Foto: Vale Indonesia

    • SDG 1: End poverty in all its forms everywhere

      • 1.1 By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day

    • SDG 2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture

      • 2.3 By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment 

      • 2.4 By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality

    • SDG 12: Ensure sustainable consumption and production patterns

      • 12.4 By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment

    • SDG 17: Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development

      • 17.16 Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the Sustainable Development Goals in all countries, in particular developing countries

    Principle 9.1 Implement inclusive approaches with local communities to identify their development priorities and support activities that contribute to their lasting social and economic wellbeing in partnership with government, civil society and development agencies, as appropriate.

    Foto: Vale Indonesia