Profile of CONTIGO´s partner Arum Dalu Mekar

Supply chain

Trading partner: Arum Dalu Mekar, microenterprise
Function: Exporter
Structure: Affiliated production groups
Tradeway: Direct import CONTIGO

Products

Fans made of bamboo and colourful fabrics

Location

Office: Denpasar (capital city of Bali), Indonesia – distance to Europe: 11,800km

Production of fans: Yogjakarta (Java Island), Indonesia – distance to Europe: 11,400km

Founded in 1991

History

• 1991: Founding of Arum Dalu as a marketing organisation for different kinds of Indonesian handicrafts from several Indonesian islands, such as Bali, Java, Borneo
• Since 1991: Long time partnerships with several international Fairtrade organisations
• Since 2004: Member of the World Fair Trade Organization (WFTO)
• 2009: CONTIGO meets Arum Dalu at the Fairtrade trade show in Lyon (Commerce Equitable)
• 2019: Arum Dalu’s core business shifts from handicrafts to the production of sustainable coffins

Cooperation with CONTIGO since 2010

Structure of the business

Number of employees:

• 6 fulltime employees (2 women, 4 men) with fixed salaries
• Long time partnership with 12 producer groups that employ around 270 people (depending on order situation)
  • 60-80% are women and single parent
  • 40-80% of the employees work at home
  • Employment of people with disabilities and with no or little education
  • Producer groups are organized on their own
  • In addition to bamboo fans with fabrics, Arum Dalu produces and exports coffins made of sustainable materials: depending on order situation, between 10 and 16 people are employed

Organisation of workforce:

• Responsibilities of Arum Dalu / Denpasar:
  • Product development for each workshop (twice a year)
  • Advance payments to external producer groups
  • Trainings of external producer groups (e.g. quality management, price calculation, realisation of fair trade standards)
  • Final quality control (5 employees), labelling, storage and export
  • Weekly meetings with the workshops (topics: current production, product development, planning issues, transport organisation)

• Workshop of the CONTIGO bamboo fans:
  • Location of production: Yogjakarta, Java Island
  • Production manager: Mr. Sayudi
  • Arum Dalu purchases the cotton fabrics
  • 5 families are involved:
    • 20 women: glueing of cotton fabrics to the bamboo slats
    • Two men: cut bamboo into shape
    • Four women: sewing the cotton bags for the fans
  • The earnings are the main income for the artisans, (daily) earnings are higher than for other jobs in the region

Sales

• Exports (100%) to UK, Australia, Germany, France, Italy, Ireland

Goals

• To establish an own bamboo plantation
• To support the traditional crafts in Indonesia
• To create employment opportunities for people with no or little education
• To create employment opportunities in the area, to avoid rural depopulation
• To raise the environmental awareness
• To stay internationally competitive
• To support the different workshops to make them independent from Arum Dalu (therefore trainings in different issues)

Special features

• Support producers in forestation efforts
• Recycling and environmentally friendly disposal of waste is important
• Recycled materials are strongly considered for product development
• Financial support of local orphanages in Bali and Java, e.g. paying school fees

 

Fairtrade classification

FTA= Fairtrade Approved

 

Fairtrade aspects

Arum Dalu Mekar complies with the following Fairtrade Principles:

No child labour

No discrimination

No discrimination due to gender, disability, religion, ethnicity, sexual orientation, political orientation, or infection with HIV

Fair wages

• Minimum wage in Denpasar, Bali: IDR 2,770,300/month (IDR = Indonesian Rupiah) – status 2021
• Wages at Arum Dalu:
  • Office employees receive fixed salaries between IDR 3.850.000 and  4.200.000/month (depending on job, responsibilities)
  • Artisans at the fan workshops receive agreed daily wages which are higher than for other jobs in the region

• Monthly cash payout
• Wage is revised once every second year (due to inflation)
• Bonus payments after shipment of big orders
• Bonus payments for religious holidays
• Higher wages in case of overtime

Humane working conditions

Working hours:

• 6-8 hours/day (flexible working hours, depends on work)
• 6 days/week

Social benefits:

Office employees in Denpasar receive:

• Paid holidays
• Payment of contributions to health insurance BPJS
• Continued payment of wage in case of sickness or accident, maternity leave
• Financial support in case of high medical or hospital costs
• Opening of saving accounts (retirement  schemes), Arum Dalu pays US$ 5 monthly, employees can get access when they are retired or in case of need/emergency
• Payment of fuel
• Employees receive additional staple food (e.g. rice, noodles, sugar, eggs), quarterly
• School fees for children are paid

Educational opportunities:

• Trainings on various issues (design, quality standards, occupational safety courses)
• Trainings of external producer groups (e.g. quality management, price calculation, realisation of fair trade standards)

Occupational safety:

• All safety standards are met

 

Transparency

• Work contracts are available
• Supply contracts are available
• Payroll is available
• Pay slips are available
• SAR (Self Assessment Report) was duly submitted to CONTIGO

 

Monitoring

• Member of:
  • WFTO (World Fair Trade Organization) since 2004
  • World Fair Trade Asia since 2006
  • Forum Fair Trade Indonesia since 2008/2009

 

Country information

See Encyclopaedia Britannica: Bali

 

Photos