Indonesian Political, Business & Finance News

~For Corporate Social Responsibility (CSR) edition/Sunday

~For Corporate Social Responsibility (CSR) edition/Sunday

;JP;
ANPAc..r..
Sampoerna-CSR-program

Reviving the glory of Virginia tobacco

Haji Lallu Ayub, a villager in Sikur district, East Lombok,
West Nusa Tenggara looked happy to see the quality of the tobacco
leaves from his farm.

Unlike last year, the quality of tobacco leaves produced from
his five-hectare farm in this year's first harvest season are
much better thanks to good weather and less plant diseases.

"I'm so glad that the quality of our tobacco leaves has been
much better than last year. I'm optimistic that those leaves will
be grade A,' the father of five told a number of Jakarta-based
journalists visiting his farm recently.

Haji Lallu Ayub is one of a number of tobacco farmers in the
Sikur district taking part in a partnership program sponsored by
PT Sadhana Arif Nusa, a subsidiary of clover cigarette producer
PT HM Sampoerna Tbk.

Started in 1995, the partnership program -- part of the
company's Corporate Social Responsibility (CSR) activities -- has
been designed to revive the glory of Virginia tobacco, once known
as one of the best types of tobacco varieties in the world.

At least 1,260 farmers in Lombok take part in the program with
total tobacco plantation areas of about 3,000 hectares.

PT Sadhana gives both financial support and technical
assistance for the farmers; including providing quality seeds,
and fertilizers. The company also hires a number of field
supervisors to help the farmers not only in the plantation
activities but also in processing and marketing. Under this
partnership program, all the tobacco leaves that meet the
standards are sold to PT Sadhana.

"When we began this program back in 1995, farmers produced no
more than 1,000 kg per hectare. With our technology, now they can
produce up to 2,000 kg per hectare and with a far better quality
of leaves," said Andrew Cockburn, technical advisor of the Leaf
Improvement program.

"Lombok, with its relatively cool weather, is quite suitable
for growing Virginia tobacco. The farmers are also very
cooperative and open for new technology we bring," he said,
comparing the situation in the Philippines and Pakistan where he
has worked on similar partnership programs.

The latest innovation by Andrew and the team is to cover the
soil with rice stalks in order to maintain the moisture of the
plants. "It works very well, particularly in the dry season
during which the lack of water has became a common issue here,"
he said. "With this simple system, the leaf production can be
significantly increased," he added.

Besides transferring the farming technology, the partnership
also teaches farmers about management so that they have the
opportunity to become professional businessmen. "Not all farmers
here have their own land, some rent it. They, therefore, have to
think strategically about the cost and the result so that they
could earn profit at the end of the harvest time", told
Koeswanto, leaf station manager of PT Sadhana.

According Koeswanto, professionalism is necessary because if
farmers suffer losses from their tobacco farming, the company
will also suffer.

The selling prices of the tobacco leaves are negotiated at the
beginning of the planting season. "It's fair for us (farmers),
because we can sell the tobacco leaves to other buyers, if we
don't agree with PT Sadhana's offered prices," Haji Lallu said.

In Lombok, there are nine other partnership program in tobacco
planting. Besides PT Sadhana, there are PT Djarum, BAT, Philip
Morris and other cigarette companies who are working with local
farmers to produce good quality tobacco leaves. Up to now, the
size of tobacco plantations under this kind of partnership
programs has reached about 18,747 hectares. -- Agustina
Wayansari/The Jakarta Post

View JSON | Print