Aligned with the vision to implement sustainable business practice, Indesso conducts several initiatives on sustainability. One of its recent initiatives is a joint program with Firmenich on patchouli sustainable sourcing. The objective of the program is to transform a farm community that has been producing patchouli oil with a sustainable business model. Patchouli was chosen as it is an important essential oil commodity in Indonesia. Besides involving thousands farmers, patchouli is also a key ingredient in many fragrance formulations. The commitment to start this project was made by the end of 2013, learning from a similar project which was done in 2007.
Patchouli farmer is the most vulnerable party in the supply chain. With inadequate knowledge and weak institution, farmers suffer the most when price of patchouli oil is fallen. After a series of baseline study and exercises, Indesso & Firmenich created a business model that simplify the supply chain, encouraging farmers – distillers to form a cooperative and set a transparent multiple years contract with floor price.
Together, Indesso and Firmenich also develop corporate social responsibility programs for the community where patchouli is sourced. One that has been realized is a kindergarten construction as an educational facility for village children. The opening ceremony was held on September 3rd, 2015.
Firmenich guarantees that, at the level of the concerned sites, sound social & environmental practices are implemented.
A short video to give an overview about this program can be viewed at this link