THE COALITION FORSUSTAINABLE
LIVELIHOODS (CSL)
Opportunities for private sector engagement
in an emerging jurisdictional initiative in North
Sumatra and Aceh, Indonesia© Conservation International/photo by Tory Read© Conservation International/photo by Tory Read

INTRODUCTION
Many companies have set out to achieve rigorous sustainable sourcing commitments; however, they are
increasingly realizing they simply can’t do it alone. To get at root challenges and demonstrate meaningful progresson sustainability, companies will need to look beyond their supply chains.
Meeting sustainability goals is an all-hands-on-deck effort. By joining forces with governments, farmers,
communities and civil society, there is an opportunity for the private sector to align sustainability priorities
and strategies in key landscapes using a jurisdictional approach to meet sustainable sourcing commitments.
Through multi-stakeholder collaboration, investment and action, a jurisdictional approach works to create market
incentives for improved governance of natural resources from jurisdictions that reduce deforestation and improvesustainability of commodity production. This adds value to the jurisdiction’s products in global markets.
Private sector support is needed for these initiatives to be successful and to scale. Conservation International isproviding this guidance as a tool for companies sourcing from Indonesia’s North Sumatra and Aceh to actively
engage and invest in the Coalition for Sustainable Livelihoods (CSL) to advance commitments for improving
smallholder livelihoods, sustainable production and natural resource management in global supply chains.

WHAT IS CSL?
The Coalition for Sustainable Livelihoods (CSL) isan emerging jurisdictional initiative bringing together
a diverse and dynamic group of stakeholders tocollectively achieve common objectives for smallholder
livelihoods, sustainable agricultural production andconservation in North Sumatra and Aceh, Indonesia.
CSL provides a collaborative platform for advancing aplace-based approach to achieve goals shared bygovernment, civil society and private sector. The CSL
operates within specific landscapes/districts as well asat the larger provincial and initiative levels to encouragealignment, collective action and scaling through policy
and replication.

www.conservation.org/CSL

WHY NORTH SUMATRA AND ACEH?
Indonesia’s Aceh and North Sumatra are two important regions for agricultural commodities — including palm oil,cocoa, coffee, rubber and timber — contributing significantly to local and national supply chains, driving economic
development and supporting thousands of smallholder farmer livelihoods. Collectively, the two provinces
represent 14 percent of Indonesia’s palm oil production and contain significant areas of natural forest that arehome to threatened species and provide communities with natural resources that:

Supply ecosystem services,such as the provision of fresh
water, medicines and culturalvaluesReduce risks of flooding andlandslides

CHALLENGES IN THE LANDSCAPE
Smallholders and surrounding communities
currently face challenges like low crop yields
and environmental degradation, both of which
threaten social, economic and environmental
sustainability across the landscape:•Low crop yields. The average productivity ofsmallholder palm oil producers in North
Sumatra and Aceh is 35 percent below
yields of corporate plantations. Commodity
production of palm oil, cocoa, rubber andcoffee supports thousands of smallholders
across the two provinces, yet low yields, lackof technical support or training andinadequate access to credit and markets
continues to challenge farmer livelihoods.

•

Environmental degradation. From 2001
to 2018, tree cover across North Sumatra
decreased by 22% and Aceh by 13%. Thisremains a threat to important forest andpeatland areas, including the roughly 2.6
million hectares (Ha) of the Leuser ecosystem,
one of the most biodiverse places on
Earth, of which nearly 90 percent covers
Aceh. North Sumatra alone is currently on
track to lose roughly 350,000 hectares ofprimary forest cover by 2035 — impacting
endangered species habitat and resulting
in emissions of around 150 million Mt
CO2e. This forest loss exacerbates frequent
floods and landslides, leaving rural farming
communities vulnerable.
www.conservation.org/CSL

Buffer against the impactsof climate change, such as
uncertain weather patterns
that lead to drought and crop
failureCSL’S APPROACH
The collective importance of this region has spurred the establishment of numerous government, private sector
and civil society initiatives to advance economic, social and environmental sustainability. While many of these
initiatives have achieved successes, misalignment and gaps across initiatives impede change at scale.
Many leading companies pursuing sustainable supply chain and “No Deforestation, No Peat, No Exploitation(NDPE)” objectives in the region have faced significant challenges and are recognizing the need for greateralignment, investment and stronger leadership by government across national, provincial and district levels.
Similarly, thousands of smallholders would benefit from the investments and capacity building associated withsustainable supply chains, but they are not able to access these resources. CSL seeks to fill this need by bringing
together a wide range of stakeholders from government, civil society and the private sector to align and bridge
government programs and current initiatives.
CSL focuses simultaneously at multiple levels:
1. Provincial Level: CSL provides a platform for alignment, learning and investment to encourage development
and implementation of jurisdictional plans such as the NAP, the Green Aceh initiative, or throughstrengthening provincial level land-use and forest governance mechanisms.
2. Landscape and District Level: CSL invests in strengthening existing or developing new sustainable
landscape initiatives in important landscapes and districts where government, civil society and private sector
actors agree to work together towards sustainable development outcomes. Landscape initiatives andactivities will link to supply chains and government programs focusing on common priorities.
3. Initiative Level: CSL convenes stakeholders across sectors to focus on advancing shared goals in Aceh andNorth Sumatra as outlined in jurisdictional sustainable development plans.
By aligning landscape and supply chain efforts with existing national and regional platforms and policies, CSL
aims to create a critically needed pathway to scale sustainable production on the ground while also generating
lasting social, economic and environmental benefits in North Sumatra and Aceh. This will bring tangible gains
for smallholder producers, improve their access to markets seeking sustainable products and help generate
additional investments — ultimately creating sustainable commodity value chains that ensure business andlivelihood opportunities for the people of North Sumatra and Aceh.

WHY SHOULD THE PRIVATE SECTOR ENGAGE?
We invite the private sector to join us in this journey for collective action for sustainable development.
Companies can get involved by participating, promoting and/or funding CSL initiatives. There are manypotential benefits to engaging in and advancing the CSL, including:•

Aligned efforts in production landscapes with NDPE sourcing commitments•

Increased supply and access to sustainable commodities•

Scaled impacts of improved farmer livelihoods and natural resource management•

Improved efficiency through collective efforts of leveraging investments and pooling resources
across stakeholders in key sourcing regions•

Collaboration and partnership to drive industry level change•

Access to district and provincial action plans which not only indicate clear government commitment
and engagement, but also provide a detailed trajectory for progress within the landscape(s).
www.conservation.org/CSL© Conservation International/photo by Tory ReadCSL OPPORTUNITIES THAT MEET MULTIPLE STAKEHOLDER PRIORITIES ANDPROVIDE COMMON BENEFITS
Improve farmer livelihoods by increasing production capacity and well-being of thousands of smallholders
in Aceh and North Sumatra.
Potential smallholders impacted in Aceh:• 128,979 cacao farmers

Potential smallholders impacted in North Sumatra:• 65,423 cacao farmers•

104,314 rubber smallholders•

153,916 rubber smallholders•

119,890 palm oil smallholders•

174,745 palm oil smallholders•

76,996 Arabica coffee farmers•

119,576 Arabica coffee farmers•

17,137 Robusta coffee farmers•

32,460 Robusta coffee farmers

Reduce deforestation: There are 675,593 Ha of forest in Aceh and 1,339,715 Ha in North Sumatra andthe potential for improved forest management and policies for protection to ensure longevity of standing
forests.
Degraded land potential: There are as much as 250,000 Ha in Aceh and 1,250,000 Ha in North Sumatraof degraded land with sustainable production or restoration potential.

www.conservation.org/CSL

PARTICIPATE
A jurisdictional approach aims to reconcile
competing social, economic and environmental
objectives through participation acrossstakeholders and sectors.
The first step in engaging in CSL is toparticipate — bringing your voice, perspective
and presence to learn and collaborate. Throughmulti-stakeholder collaboration, a jurisdictional
initiative facilitates alignment around common
goals.
We invite interested companies to bring theirexperiences, knowledge and priorities to thetable through various opportunities:•

Learn more about the initiative at www.
conservation.org/CSL or by contacting
CSL@conservation.org.

•

Join a future working group to address
key questions and challenges foradvancing the implementation of CSL’s
vision.

•Attend a CSL workshop to meet andcollaborate with other stakeholders on
current workstreams and next steps.

•

Become a CSL member — make acommitment to support and actively
invest in the vision and mission of the
CSL.

More than 130 representatives from across government,
private sector, financial institutions and civil society joined
the CSL’s initial supporters at the Coalition’s development
workshop in September 2018. © Conservation
International

The CSL is hosting a workshop in 2019 to clarify andfinalize the Coalition’s objectives, operating processes
and activities within and across various landscapes.
© Conservation International/Photo by Tory Read

AT A GLANCEThe Coalition for Sustainable Livelihoods (CSL) is an emerging initiative focused oncollective action to drive economic development, reduce poverty and improve natural
resource management in the Indonesian provinces of North Sumatra and Aceh.
Learn more at www.conservation.org/CSL or by contacting CSL@conservation.org.

PROMOTEEngage and educate your supply chain and industry networks to increase understanding of thejurisdictional approach and CSL. We invite companies to promote awareness and accelerate
progress in the following ways:•

Engage your supply chain. Discuss the importance of the jurisdictional approach. Trace
any linkages in your supply chain to CSL landscapes. Invite suppliers to learn more and todirectly engage — we need more suppliers at the table.

•

Engage other commodity supply chains both within your own companies andexternally to build support and understanding for jurisdictional approaches to address
multiple interests and needs within the landscape as well as to leverage additional
investment and stakeholder collaboration.

•

Connect with industry forums like the Consumer Goods Forum (CGF), as well as
commodity specific platforms like the Roundtable for Sustainable Palm Oil (RSPO). Sharewhy jurisdictional approaches to are important to your company. Ask how these forums
are supporting and engaging with jurisdictional approaches.

•

Engage governments on shared priorities and goals. Work with your corporate
government engagement team to integrate messaging around the importance of
supporting jurisdictional initiatives into broader communication and lobbying efforts.

•

Publicly communicate your support for jurisdictional initiatives and how you areengaging in CSL to advance global sustainable supply chains through various media
channels.

© Conservation International/photo by Tory Read

AT A GLANCEThe Coalition for Sustainable Livelihoods (CSL) is an emerging initiative focused oncollective action to drive economic development, reduce poverty and improve natural
resource management in the Indonesian provinces of North Sumatra and Aceh.
Learn more at www.conservation.org/CSL or by contacting CSL@conservation.org.

FUND
Developing and implementing jurisdictional initiatives is costly and requires investment largely
at two levels: governance of the overall initiative itself and implementation at the landscapelevel. Companies may also choose to make preferential sourcing commitments. These areappreciated and encouraged; however, these should accompany, rather than replace, funding
and support to help the jurisdiction take actionable steps to achieve a sustainable supply base.
1. Invest in activities for sustaining the governance and coordination of the CSL initiative:•

Coordination and facilitation of CSL’s secretariat toprovide day-to-day support and overall management,
strategic guidance and implementation of CSL
processes, development, membership and participation,
stakeholder communication and fundraising support.

•

Development and facilitation of landscape advisorycommittees and landscape leads to coordinate acrosslandscape pilots and various stakeholders, including
government, in the development and execution of
government district level sustainability roadmaps andaction plans.

•

Collaboration and coordination with otherjurisdictional approaches and landscape initiatives toshare knowledge and promote industry-wide
engagement to generate transformation at scale.

•Continue initiative and new stakeholder outreachwith government, NGOs, companies and communities
to expand CSL participation and membership acrosscommodity sectors and stakeholder groups.

•

Coordinate strategy and development of a long-term
funding model as well as outreach with potential
donors.

•Develop a CSL website to share knowledge andupcoming opportunities, provide a centralized network
for stakeholders and serve as a space to communicate
progress towards the initiative’s goals.

© Conservation International/photo by Ade Budi Kurniawan© Conservation International/photo by Tory Read

AT A GLANCEThe Coalition for Sustainable Livelihoods (CSL) is an emerging initiative focused oncollective action to drive economic development, reduce poverty and improve natural
resource management in the Indonesian provinces of North Sumatra and Aceh.
Learn more at www.conservation.org/CSL or by contacting CSL@conservation.org.

FUND
2. Invest in the implementation of landscape level activities:(examples from the Tapanuli Seletan landscape in North Sumatra provided on the next page)•

Strengthen policies and implementation of district spatial plans and forest management
plans for conservation and water management through strategic advisory meetings withlocal government and participation in local platforms.

•

Create partnerships with communities in priority landscapes through ongoing local
engagement.

•

Improve transparency by building and mapping a farmer database in pilot landscapes.

•

Increase smallholder production capacity and access to markets through farmer
training (i.e. GAP, environmental awareness), certification (i.e. ISPO, RSPO) and technicalservices, as well as by expanding field extension services.

•

Develop restoration projects for agroforestry and peatland reforestation.

•

Adopt innovative tools to support the acceleration and expansion of sustainableproduction and forest management activities.

•

Implement socioeconomic analyses to help identify improved livelihood opportunities
from farming communities and alternatives to deforestation.

•

Monitor and evaluate biodiversity through the application of camera trapping andwildlife surveys.

© Conservation International/photo by Syaiful Purba

© Conservation International/photo by Tory Read

Sample investment opportunities within North Sumatra’s CSL pilot landscape
Assist smallholders during palm oil replanting••••

Identify compatible banks in Indonesia to fund smallholder replanting
Perform as a guarantor on behalf of the smallholders to obtain loans
Provide lab-tested and certified seeds to produce higher productivity yields
Coach and assist in the management of smallholder plantations (until their debts are repaid to the banks)

Promote land conflict resolution through agroforestry (restoration)••••

Conduct land and soil capability assessments to determine commodity suitability
Identify and mitigate barriers at dissimilar stages of supply chains across commodities
Quicken the adoption by investing in production of high-quality seedlings for smallholders
Improve smallholder farmer yield and connect access to markets for agroforestry commodities

Create a farmer database for digitizing the palm oil value chain
•
•
•
•
•

Support application of technology (i.e. drones, GPS, etc.) to provide data imagery of farmers’ plantations
Support use of sensors to collect climate, soil conditions and other data
Provide track and trace systems for traceability and certification of palm oil fresh fruit bunches when sourcing fromsmallholders
Use smallholder digital identification as a tool for creating economic identities
Monitor and map yields

Promote appropriate technology for sustainable agriculture•••

Introduce and popularize new agriculture technologies
Incorporate technologies across the value chain
Train farmers on the latest agricultural technologies and the maintenance of these

Build capacity of extension workers•••

Conduct a diagnostic survey stage (identify knowledge capacity to increase information needs and determine thetypes of extension materials preferred)
Help produce and construct extension worker modules for sustainable agriculture
Provide agriculture and marketing skills training

Build capacity of smallholders
•
•
•
•
•

Support farmers by increasing the organizational capacity of the Farmers Cooperative (Koperasi) in soft skills,
financial capital and functional capacity
Offer a Farmers Field School
Complete a demo plot
Distribute equipment and seedlings
Improve access to pest control supplies, environmentally-safe pesticides and technologies

Additional funding opportunities are being developed in key thematic
areas of governance, growth, metrics and pilots through the developmentof action and investment plans. To learn more about these funding
opportunities as they evolve, please contact CSL@conservation.org.