Kabar
Edition 7: July-September 2005
Editorial
I recently attended a workshop sponsored by the
International Finance Corporation about the
social responsibility of mining, oil and gas
companies, and was wondering about the
difficulties companies have when trying to
engage with local people living close to proposed
or existing operations.
Must it always be a traumatic event when
extractive industries open up operations in
remote and less developed regions? What would
have been the ‘normal’ path of development had
these industries not arrived? And perhaps it is
the ‘normal’ path that is better to pursue rather
than trying to accelerate the pace of development
in a manner that opens divisions within
communities and causes damage to the fabric
of societies.
My feeling is that development professionals have
to rethink the standard approach, and work at a
gentler pace with rural societies. I believe that
this intuitively is the way we have been working
in the last two years - looking for what’s really
needed and proceeding in a manner that enables
local people to lead and make choices.
Money is not the solution. In fact having too much
money can drive things askew. There is always
a balance, and the capacity of people in society
to manage is the critical ingredient.
We need to try not to push the development
agenda too quickly. Let people do their own
pushing, based on their individual and collective
capacity. This is the natural way, and we can help
by learning to respond to needs as they arise.
This in itself is a difficult and demanding task.
On 12 October we will help facilitate seven
villages present their annual development plans
to the subdistrict head and senior staff. It will be
a test of how successful we have been in
achieving the above sentiments.
Bardolf Paul
Director
Itah
Participatory Development through the Musrenbang
The ‘Development
Planning Meeting‘ or
Musrenbang was
created in 2003 by the
Central Government to
improve the national
planning and budget-
ing system. It follows
several laws on fin-
ance, national develop-
ment planning system,
and local government
that are aimed at
improving the planning
Surya Bestari presents the Mangkuhung Village Development Plan
mechanism and
process.
Local Government Working Plan (RKPD) is established in each province
using the Musrenbang. The planning process starts at the village and
moves up through the system from the sub district to the district and to the
province in a series of Musrenbang events. The Central Government
organizes meetings with the provinces to establish a Government Working
Plan (RKP). This process takes place annually and is expected to lead to
development that will be more appropriate to the individual needs and
capacities of local communities.
YTS has been facilitating village-based participatory development planning
in line with the Musrenbang mechanism. The process starts with a village
situational analysis using the Participatory Rural Appraisal or PRA
methodology. The output from this is a draft village development plan. A
village management group is formed and continues the planning analysis
with every household in the village. The household analysis is consolidated
into the final village development plan, which is finalized in the village
Musrenbang. In 2005, seven villages followed this process, and will be
presenting their plans to the Head of the Sub District, and possibly to the
District Government.
This year’s plans are similar to the ones produced last year: infrastructure
is a priority, including development or rehabilitation of the village road, a
wooden staircase to the river, bridges, primary health services, clean water
supply, and a midwife or nurse.
Economic development relates mainly to agriculture issues, especially in
rice and rubber production. The main problems are control and
management of pests and diseases, poor soil fertility, selection of
seedlings, spacing, maintenance, and post-production. Villagers receive
almost no technical assistance to improve their farming systems.
Government support programs usually provide only physical inputs, which
results in a very short term benefit. It would be much more effective if
government was able to provide information and deliver advice and training
on improved farming techniques.
Kabar Itah Understanding Biodiversity Conservation Biodiversity near the
Kabar Itah is the quarterly newsletter Schwaner-Muller
of Yayasan Tambuhak Sinta, an
affiliate of PT. Kalimantan Surya
The tropical forest ecosystem in Kalimantan is very rich in biodiversity, as escarpment in the
Kencana illustrated in the accompanying photos. Unfortunately, uncontrolled headwaters of the
economic development, especially logging, farming, and artisanal mining, Kahayan River
are cutting into this rich resource. All of the interested parties have to
address the need to harmonize conservation with economic development
Content of "Kabar Itah" by promoting sustainable forest management practices.
Edition 7, July-September 2005

Editorial ........................................... 1
Participatory Development
through the Musrenbang .................1
Understanding Biodiversity
Conservation ..................... ..............2
"Heart of Borneo" Program
in Central Kalimantan ..................... 2
Contracting to Improve
Rubber Cultivation........................... 3
Beyond Corporate
Social Responsibility ...................... 4
Planning for the
Global Mercury Project....................4
Subud World Congress in Innsbruck
.......................................................... 4
YTS and KSK recognise the importance of conserving areas of high value
biodiversity from the onslaught of uncontrolled development. One of our
main concerns is for local people to have a strong say in what gets decided.
And to have a good information and data base that will enable wise
decision making.
We are starting to learn more about how to identify and manage high
value biodiversity, and intend to conduct a rapid biodiversity survey in our
CoW or Contract of Work area. To further our understanding we attended
the South Asia Congress on High Conservation Value Forests in Sanur,
Bali from 21-23 August, which was organized by The Nature Conservancy.
The six values that provide the framework for High Conservation Value
Forest management provide a useful tool for us to apply in assessing
biodiversity values in our CoW. The combination of physical attributes
with social and cultural values provides a good balance for our area.

Fourth Quarter Agenda 2005

.......................................................... 4

“Heart of Borneo” Program in Kalimantan Tengah

An ambitious program
called the “Heart of
Borneo“, HOB, is being
promoted by WWF to
conserve 14% of the
Published by
entire island of
Yayasan Tambuhak Sinta
Jl. Teuku Umar No. 32A Kalimantan. The area
Palangka Raya 73112 is in the centre of the
Central Kalimantan-Indonesia
Phone. +62 (0536) 32 37184 island along the
Fax. +62 (0536) 32 29187
Email:
Schwaner Muller
yayasantambuhaksinta@gmail.com escarpment, just north
of KSK‘s mining
concession, and
Editor
Mayang Meilantina includes territory in
Indonesia, Malaysia
Editorial Staffs and Brunei. The
Ros Siana immediate objective is
Naumi
Yapet M. Siwung to get the three
Saefudin Muthohar governments to agree
on a declaration for the
Bank Account
Yayasan Tambuhak Sinta
Biodiversity Congress Proposed area for 'Heart of Borneo' Program

Danamon Bank in Brazil in March 2006.

Palangka Raya Branch
Number 11655412
On 15 August, the HOB concept was presented in Palangka Raya at a
local stakeholders meeting, sponsored by Local Environmental and
Protection Board officials from four districts attended the meeting, along
with representatives from non-governmental organizations. The
participants acknowledged the importance of protecting natural areas to
ensure the sustainability of community livelihoods and the continuity of
future biodiversity. However, they felt a balance must be maintained
between conservation and exploitation.

Moreover, areas for protection or for production must be well-defined, not

We welcome any news, comments and
articles related to community and re-
gional development effort, but we re-
serve the right ti edit any material in
order to fit the available space.
only by government, but by all stakeholders – local communities,
companies, and other interest groups. It is particularly important that local
communities have a strong say in what is decided. The various options
need to be understood and discussed openly at that level.
The working group on HOB has an important responsibility to ensure that
planning and implementation of the program will be done in a manner
that satisfies all stakeholder expectations.

2 Kabar Itah - Edition 7

Contracting to improve rubber cultivation

In mid-July YTS began its technical assistance

program to support priorities identified in the annual
village development plans. YTS is not funding material
supply of seeds, fertilizer or other physical inputs;
instead the focus is on improving the skills and
capacity of villagers and village leadership by funding
the contracting in of technical experts. The priority for
six villages was rubber and rice, and for the other
village was rice and pigs.

So far two local experts have been contacted: Fried

Bandjang is an experienced rubber farmer from Teluk
Nyatu, close to the district capital, and Anden A. Bungai
is a paddy expert from Tengkiling, just outside
Palangka Raya. Both were invited to visit the villages
and see first hand what the needs and conditions
were, and then to make a proposal to provide technical
support over a full seasonal cropping cycle.

The paddy expert decided not to continue, but a Fried Bandjang, a local rubber expert, has been contracted by six villages
contract was subsequently made with the rubber
expert. This contract is between the expert, who
provides the service, and the village, which will pay for and manage the contract, and YTS, which provides the funds. The contr act
is valid for one year, starting in October, and the services will be provided to an Interest Group, a group of farmers who want to
improve their technical skills in rubber cultivation. Each village has a Management Group that will monitor the activity and pay the
expert after successful completion of each stage of the contract.

Technical support for rubber will cover the entire

production cycle, including nursery management,
plantation maintenance, latex tapping, and post-
production. Specific technical topics are: spacing and
contouring; selection of appropriate seedling variety;
and seedling production and grafting. Plantation
Wrong 30° Right
maintenance will include land clearing, weeding,
Technique Technique

130 Cm
seedling replacement, fertilizing, pest and disease
control, and plantation diversification. 45 Cm

In September, Pak Fried conducted an initial training Figure (a) Figure (b) Figure (c)
session in three villages. The focus was on selecting
good quality seedlings from the forest, and on Correct and incorrect tapping techniques
plantation establishment. The key indicators for quality
in seedlings are black root colour and green stem
colour. A root that is straight or divided is also a good
sign. In planting, the optimum spacing is 3 X 7 meters
or 3 X 5 meters. On a recently cleared and burned
piece of upland rice land, Pak Fried demonstrated
how to set the planting layout, both on flat land and on
sloping land. For the latter he used an A-frame to
establish the correct spacing. He also showed the
best way to dig a pit, plant the seedling, and apply
fertilizer. Pit size was 40 X 40 X 40 cm.

Pak Fried explained that the best way to tap the latex
was to tap only on one side of the tree (Figure C). This
technique will result in a longer period of productivity
and greater latex production. Traditionally, both sides
are tapped (Figure A), but this creates stress on the
tree and reduces its productive lifetime. It is wrong to
tap as shown in Figure B, because this type of cut
runs parallel to the flow of latex in the stem and
therefore won’t intercept the optimum flow of latex.
Tapping can begin when the tree has a diameter of
Fried Bandjang demonstrates best way to plant a rubber tree seedling
45 cm, and should be started 1.3 meters from the
ground.

Grafted or hybrid seedlings require more intensive maintenance and fertilization. The land has to be kept weed free for the
first four years. Trees from hybrid seedlings produce for only 25 years compared to 35 productive years in trees grown from
local seedlings. Pak Fried will provide assistance to improve nursery techniques, including how to cross-breed local varieties
with hybrids to develop a fast-growing variety that will produce for a longer lifetime.

Kabar Itah - Edition 7 3

Beyond Corporate Social Responsibility
On August 24-25 we took part in a workshop sponsored by the International
Finance Corporation, the arm of the World Bank that invests in the private
sector, especially in oil, gas and mining. The workshop was called “Beyond
Corporate Social Responsibility: Oil/Gas/Mining Social Risk Management”,
and was designed to bring practitioners together to share experiences and
insights from the ‘soft’ side of the business.
The participants discussed lessons in project start-up and closure,
challenges in engaging local government, how to create a collective vision
for economic and social development, dealing with multi-users of land, and
conflict mitigation and resolution.
This event was the first-of-a-kind for IFC, and the participants found the
presentations and discourse very useful. For YTS and KSK it is interesting to
see how bigger and more-experienced companies are dealing with all of
these issues, and that there are certain things we are doing with communities
and local government that are quite unique, and may contain lessons for
some of the more experienced companies.
Directors talk with the New Governor
The Directors of Kalimantan Gold Corporation, the Canadian parent of KSK,
met with the new Governor of Kalimantan Tengah, Agustin Teras Narang on
September 13th. The Governor was accompanied by the Vice-Governor, H.
Achmad Diran, and several other government officials, and he expressed
his support for mineral development in the province, stressing the need for
infrastructure development as a key ingredient. He also recognized the need
to develop ‘soft’ infrastructure, to strengthen the institutional capacity of
government organizations through programs such as the one proposed in
our agreement with UNCTAD, the United Nations Conference on Trade and
Development, and the provincial government. We were asked to follow up
on this with the Vice Governor.
Planning for the Global Mercury Program
Abandoned artisanal mining site in Galangan, 90 km west of Palangka Raya
The United Nation Industrial Development Organisation, UNIDO, has been
running a global program aimed at improving the handling and use of mercury
in artisanal gold mining. Kareng Pangi, one hour east of Palangka Raya, is
one of the two sites targeted in Indonesia for demonstrating simple, low-
cost technologies for preventing mercury entering the environment. Mercury
can be very damaging to human health if it enters the food chain or if the
vapour is inhaled.
UNIDO would like YTS to assist in implementing their program in Kalimantan,
and in early September the National Project Director, Budi Suslorini, came to
Kalimantan for discussions and site visits. The YTS Director and staff
accompanied Budi to the target area, where we met with various government
officials to explain and discuss the project. Everyone was enthusiastic about
the project because mercury is used so extensively in the area.
Subud World Congress
in Innsbruck
In late July and early August, YTS and KSK
gave several presentations on the status of
all of our activities in Kalimantan, at the Subud
World Congress in Innsbruck, Austria. There
were about 2600 people attending the
Congress, so it was a great opportunity to
reach a lot of people. Many shareholders in
the company are Subud members, so there
was a high level of interest from them in
hearing how things are going, both with the
exploration and in the social development
field.
Altogether more than 200 persons attended
the two main presentations, which were given
by four senior company representatives.
There was a lot of discussion on how to
ensure that the mining development
continues to champion the cause of local
development in the province, even after the
company brings in bigger partners to finance,
build and operate the mine.
YTS is a member of Susila Dharma
International, the development wing of Subud,
and there were many opportunities to get
together with people from other parts of the
network to inform and exchange ideas and
experiences. The YTS experience was used
as a case study in a seminar on capacity
development, which attracted about 40
participants. The central theme was how to
help build the capacity of local people and
their institutions, in a way that will enable them
to take charge of their own development
agenda. YTS provides a good example of this
approach.
The overall impact of our interactions at this
Congress was a renewed interest and
support for all that we are trying to achieve in
fostering development in Kalimantan.
Fourth Quarter Agenda 2005
Village Development Plan presentation. Seven
villages will present their annual Village
Development Plan to the Head of the Sub
District and staff. Early October.
Village activity review. Review session with
seven villages to assess the village-based
activities in 2005. November-December.
Technical assistance from rubber expert.
Visits, training and field practice review for
technical support for improving rubber
cultivation. Fried Bandjang, October-December.
Kalimantan Kids Club visit. To the Center for
Agriculture Production and Home Industry in
Palangka Raya. November.
Kabar Itah - Edition 7 4