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Local agricultural business growing in Mimika

Local agricultural business growing in Mimika

Yosias Magai and his wife are feeding their ducks in their
fenced backyard when someone wanting something from their small
shop in front of their house calls out. Yosias asks his wife to
attend to their customer.

Magai, often called Yos by close friends, is one of a growing
number of Papuans who are venturing into small and medium sized
businesses in Mimika district, particularly in the livestock
breeding and agricultural sectors.

Two years ago he received 200 ducks as assistance to become a
duck breeder, and now Magai owns close to 2000. In the meantime
he has begun to breed pigs, and his wife runs a small shop at
home in the SP-12 settlement in the lowlands.

The story of how Magai and his companions at SP-12 have made
significant progress in their agricultural businesses,
particularly in livestock breeding, is not a brief one.

Several years ago, the expansion of PT Freeport Indonesia
mining operations generated development in various aspects of the
company, becoming an object of interest to people in the mountain
regions -- more often called the highlands by the people of
Mimika. The Utekini valley, which lies between the mining town of
Tembagapura and the village of Banti, where the indigenous people
of the area, the Amungme, live, had become a magnet for people
from other tribes in the mountain regions.

The Utekini valley quickly became overcrowded and the
situation deteriorated when intertribal strife broke out in 1997.

The Mimika district government then acceded to the request of
the Amungme living in the Waa valley, that the migrants from
other tribes be relocated in a separate settlement.

The Mimika government offered the migrants two choices: to
return to their original homeland, or to take part in a local
transmigration program to the lowlands near Timika. A small
number of these people opted to return to their homeland with
financial assistance, while the majority chose to join the local
transmigration program to the lowlands.

The Mimika government provided settlements for about 350
families in SP-12, and for 93 families in SP-9. The relocation
process, which was undertaken with the support of facilities and
funds from Freeport, required a period of more than three years,
as well as various land preparations for infrastructure and
farming, and public health assistance from both the local
government and Freeport.

"When we first arrived down here, we found it very hot, and
sometimes we would buy ice to cool our feet," says Julius Elas,
one of the farmers and cattle breeders in SP-12. "Now I believe I
made the right decision." Elas is close to making the final
payment for the chickens he acquired on a loan from the Jayasakti
Mandiri Foundation, or YJM, which is Freeport's partner in the
development of agricultural enterprises for the highland people
in SP-12 and SP-9.

When they had just arrived in the new settlements, the
highland people worked in land clearance projects and in
Freeport' programs to ensure that the newcomers and the land were
free of malaria and other potential public health problems.

Following that and to date, they work for YJM, which manages
agricultural development in the two locations. The strategy set
out by the foundation together with Freeport was to shape the
people into self-reliant farming entrepreneurs. Community members
were employed to build and develop the agricultural center at SP-
12, and at the same time they were given loans in the form of
seedlings and livestock such as chickens and ducks to be bred in
their respective plots of land.

Each family was allotted a house and a two-hectare plot of
land. In addition Freeport built other facilities such as roads,
bridges, clean water supply, schools, clinics, and churches to
support their well-being. In the first year, the communities
received financial aid and were allocated staples such as rice
and cooking oil. Over 100 hectares of land has been selectively
cleared, and this area is gradually planned to extend to over 200
hectares.

The foundation felt it had to employ the people on a
continuous basis, specifically at the agricultural development
center itself in order to educate them into changing from using
unsustainable farming practices to modern sustainable
agricultural methods. At the same time, YJM encouraged the people
to be responsible and to eventually be self-reliant. This
objective led YJM to apply a program wherein the recipients are
obliged to repay the YJM for the ducks, chickens, seedlings and
other necessities in installments.

To achieve the objective, YJM and Freeport believed it was
important to provide training outside the region for several
people in order for them to learn the entire process of the
farming enterprise including the marketing and financial aspects.

They chose West Java as the training ground, because of the
presence of model fowl breeding farms. Those selected for the
training were expected to become models for the rest of the
communities in SP-9 and SP-12, and indeed they did become so.

Marliyanto, a Freeport staff member who supervises the
community development program in SP-9 and SP-12 and its workers,
also provides training and introduces various farming methods and
livestock types that are suited to local conditions and are
calculated to bring favorable results in the future.

In crop management, for instance, hydroponics -- the method of
cultivation using liquids as a source of nutrients -- has been
applied because of the heavy rainfall in the lowlands. Crops
grown using this method include tomatoes, chilli peppers, and
various vegetables. Meanwhile, the plots of land have already
produced various horticultural crops and legumes.

New species of chickens and ducks that are more resistant to
disease and produce more eggs have been introduced. Pig farming
has been initiated, as this livestock is an important part of
Papuan culture. SP-12 in particular has become a supply source
for farm products and eggs to the people of Timika and Freeport
employees.

Marliyanto explains that the challenges faced have not been
small, particularly during the early stages of development.
Although these mountain people had farmed before, their know-how
was greatly lacking, as their previous farming experience was
limited to staples such as yams and taro. Their low level of
formal education was an added challenge. At the same time they
had become accustomed to a "cash economy" and wanted quick
results for their efforts.

At the same time they continue to maintain their traditional
custom of carrying communal loads, such as bearing the cost of a
close relative's wedding. According to Marliyanto, the key to
dealing with the Papuan agricultural entrepreneurs was to direct
them to the understanding that success in the agricultural sector
required earnestness and communal cooperation.

This approach has been applied toward the clearing of land,
the initial construction of the agricultural center and the
introduction of new crops or livestock. Those who are fast
learners are asked to become models or to teach others. "There
are many new things that we have learned, like fertilizers and
supplements for crops," said Enos Magai, a candidate to become a
self-reliant farmer/livestock breeder in SP-12.

Although not all have shown indications of immediate success,
most reveal a great desire to become self-reliant
farming/livestock entrepreneurs. Some among them have already
produced real results, like Yosias Magai.

As with Julius and Enos, Yosias Magai says his life has
improved greatly at SP-12 compared to his prior life in the
mountains. It has never crossed his mind to return to his
homeland or to the mountains. "Nor do I want to work at the
Freeport mine, I like this much better," he added. This kind of
statement is rarely heard from local people, for many in Mimika
strive for jobs in the company.

With real progress achieved by the highland people in their
new homes, YJM continues its expansion of this program, such as
opening up new land for developing farming and chicken and duck
breeding. New plots for hydroponic cultivation as well as for
normal farming and for breeding chicken and ducks continue to be
cleared. Earlier this year, YJM and the communities received
thousands of ducks in assistance from Indonesian President
Megawati Soekarnoputri.

YJM and these communities are aware that at some point they
will have to stand on their own without the aid of Freeport. But
according to Marliyanto and Edmundua Maturbongs, Freeport staff
members who are the day-to-day supervisors at SP-9 and SP-12, no
fixed schedule has been set as training is still ongoing.
Nevertheless, communication with the communities is maintained on
various occasions to clarify that at some point they will have to
proceed without any direct assistance from the company. "To be
sure this will not be easy, but they are well aware of it,"
Maturbongs said.

According to Maturbongs, in the near future some will emerge
who will be fully self-reliant in that they will be self-
employed, although their produce and livestock will still be
marketed through the foundation. "It is such people who will
motivate others to follow suit."

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