Collaborating for Meaningful Impact: Workshop on Coconut Value Chain

July 10, 2024

Not known to many, South Sumatra has an untapped potential for coconut plantations which can give birth to many sustainable products. In 2022, the region is recorded to have produced around 58.039 tonnes. From fresh coconut water to coconut oil, from ingredients for balm to a conceivable medium for carbon capture. These are the wonders we find from having conversations with courageous entrepreneurs who continue pushing for innovative derivative products from coconut. Along with the Earth-Centred Economy Coalition (Koalisi Ekonomi Membumi/KEM), Supernova Konstelasi Accelerator, and under the guidance of the SDGs National Secretariat of Bappenas, UNDP supported the convening of Workshop on Coconut Value Chain, took place on 9-10 July 2024 in Palembang and Banyuasin region.

Under the flagship of the Integrated National Financing Framework (INFF) the workshop was carried out as a realisation of the financing strategy, which identifies the need to enhance mobilisation of impact investing and mainstream impact measurement and management. In that light, the workshop intended to strengthen the sustainable enterprises ecosystem. Benefitting from experts' knowledge, the workshop introduced the concept of sustainable investment and businesses, the importance of impact articulation, and enabling collaboration with stakeholders involved in the value chain. Over 60 participants attended the workshop consisting of entrepreneurs, ecosystem enablers, and local government.

Kulaku Indonesia, a social enterprise that produces and distributes coconut derivatives products, demonstrating their practice on Impact Measurement and Management.

Kulaku Indonesia, a social enterprise that produces and distributes coconut derivatives products, demonstrating their practice on Impact Measurement and Management.

As mentioned by Greget Kalla Buana in his welcoming remarks, UNDP quote, “In the long run, knowledge on sustainable finance and business is expected to equip entrepreneurs to compete in having better access to capital, broaden their market size, and implement responsible business practices.”

Throughout the packed two days, the participants got to identify the causes they wanted to contribute and identify potential collaboration with other players across the value chain. One of the best practices was also shared by social enterprises originating from Banyuasin, South Sumatera, Kulaku. Kulaku was once part of Youth Co: Lab—an incubation program supported by Citi Foundation and UNDP since 2018 that aims to establish a common agenda to empower youth and accelerate the implementation of SDGs through leadership, social innovation, and entrepreneurship—participants back in 2021, who have mainstreamed the sustainability measures throughout their business process. Beyond their business, Kulaku is dedicated to fostering long-term sustainability by investing in the future of their community. They established the Beasiswa Tani Muda (BTM) scholarship program, which provides educational opportunities for farmers’ children, enabling them to pursue higher education. This initiative not only supports individual growth, but also ensures the continuation of sustainable practices and values across generations.

The example set by Kulaku was living proof of how the incorporation of a clear theory of change and consistent impact monitoring could provide clarity into the direction of their business. Kulaku has now partnered with various stakeholders, not only with the ecosystem enablers like KEM and Supernova but also with Dompet Dhuafa, Bank Indonesia, Sriwijaya University and MSMEs offices from South Sumatera. A holistic partnership that’s ensured symbolises how impact-oriented businesses can bring positive changes to the ecosystem. By partnering with key stakeholders, they do not only focus on profit but strengthen the coconut plantation ecosystem, which eventually will trickle down to productive economic activities for local communities.

Participants engaging in an exercise on Coconut Value Chain Collaboration Canvas to facilitate collaborative partnerships among the stakeholders in the coconut supply chain ecosystem.

Participants engaging in an exercise on Coconut Value Chain Collaboration Canvas to facilitate collaborative partnerships among the stakeholders in the coconut supply chain ecosystem.

Lishia, Executive Board of KEM highlighted,“In Indonesia, 95% of coconut plantations are smallholder-owned and there are 4 million coconut farmers who depend on them for their livelihood. Therefore, KEM has made coconut one of the prioritized commodities to be promoted.” KEM and Supernova have been developing the Value Chain Collaboration Canvas (VC3) approach to facilitate and nurture collaborative partnerships among the stakeholders in the high-value commodities supply chain, including coconut, coffee, cacao, and other non-timber forest products cultivated by implementing sustainable practices.

In spite of the short and packed duration, the convening inspires many of the participants including the organising committee of the collaborative spirit, in translating grand ideas into actionable approaches. By focusing on strengthening the sustainable enterprises ecosystem, the workshop showcased how sustainable financing, as emphasised by the INFF, is being realised at the grassroots level, which will push decent work and economic growth. Thus, it is essential to continue the iteration in translating the grand policy plans into a small, meaningful action.