Contents
[ hide ]
- 1 Profile of CONTIGO´s partner Arum Dalu Mekar
- 1.1 Supply chain
- 1.2 Products
- 1.3 Location
- 1.4 Founded in 1991
- 1.5 History
- 1.6 Cooperation with CONTIGO since 2010
- 1.7 Structure of the business
- 1.8 Sales
- 1.9 Goals
- 1.10 Special features
- 2 Fairtrade classification
- 3 Fairtrade aspects
- 3.1 No child labour
- 3.2 No discrimination
- 3.3 Fair wages
- 3.4 Humane working conditions
- 3.5 Transparency
- 4 Monitoring
- 5 Country information
- 6 Photos
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