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: Yogyakarta (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
• 2020-2022 (Covid-19 pandemic years): only minor decreases, no layoffs, thanks to continuous orders (also from CONTIGO) workshops could continue to work, lack of material availability caused delays

Cooperation with CONTIGO since 2010

Structure of the business

Number of employees:

• 10 fulltime employees (4 women, 6 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 20 and 30 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: Yogyakarta, Java Island
  • Production manager: Mrs. Sulastri
  • Arum Dalu purchases the cotton fabrics (screen printed)
  • 6 families are involved:
    • 20 women: glueing of cotton fabrics to the bamboo slats
    • 2-4 men: cut bamboo into shape
    • 5 women: sewing the cotton bags for the fans
  • Payment & social benefits:
    • The earnings are the main income for the artisans
    • agreed daily wage is higher than for other jobs in the region
    • paid health insurance BPJS
    • employees reveive free staple food (like rice, noodles, sugar)

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 2,990,500/month (IDR = Indonesian Rupiah) – status 2023
• Wages at Arum Dalu:
  • Office employees receive fixed salaries between IDR 3,900,000 and  4,500,000/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