Technical Assistance I
A Geographical Indication (GI) is a protected brand whose value-proposition is based on exceptional quality and unique characteristics. The reputation of such product is associated with its geographic origin. A GI also implies a certification process that guarantees that the product has been produced according to specific requirements and quality standards. When buying a GI product, consumers expect the GI brand promise. How can producers guarantee and deliver their brand promise? How can they assure their product quality and authenticity, especially when the consumers already pay a premium price due to GI's added value? This is where internal control plans and traceability are put into play.
ARISE+ Indonesia Internal Control Plan Expert Muhammad Rifan Rahmatulloh reminded the GI Rights Holder Communities (MPIGs) that the work does not end with getting the certificate. MPIGs are held accountable for delivering consistent quality and standards.
To empower Geographical Indication Rights Holder Communities (MPIGs) in providing assurance of their product quality and authenticity, ARISE+ Indonesia, under the aegis of the Directorate General Intellectual Property (DGIP), the Ministry of Law and Human Rights (MoLHR), supported three MPIGs to strengthen their capacity in internal control plan, and setup a traceability system.
Three MPIGs - Gayo Arabica Coffee, Kulon Progo Jogja Coconut Sugar, and Bali Amed Salt - were selected to pilot the project in late 2021. They took part in trainings to set up internal control plans and reinforce the internal auditors. Field surveys were conducted to develop databases of producers, processors, and collectors along their value chains to establish a traceability system using a web-based application.
Traceability is the ability to trace all the processes from production to the consumer. Traceability offers transparency along the value chain and a quality guarantee of GI products to consumers. Traceability is a part of internal control implementation.
Mr Rifan, who delivered the training, highlighted the importance of implementing internal control to ensure compliance with the GI registered specifications, thus guaranteeing the GI product quality.
"Geographical Indications will always be protected as long as the reputation, quality and characteristics registered in the certification are maintained," Rifan said.
Indra Mahendra, the Marketing and Promotion Coordinator of the MPIG Bali Amed Salt, said that the traceability system benefits the salt farmers and their cooperative organisation.
"From the management aspect, the traceability system allows us to track inventory and monitor the production date and location," Indra said.
He added that the traceability system's QR Code also improve consumer services by providing quality and authenticity assurance, thus attracting more consumers. The scanned QR Code will direct the consumers to a website where they can see the farmer who produced it, the GPS location, the production date, and the story of Bali Amed Salt.
"We receive repeat orders from consumers who feel more assured with our traceability system in place," Indra said.
Given the importance of strengthening the institutional capacity of MPIGs and the benefits of putting the traceability system in place, ARISE+ Indonesia scaled up the support to another four MPIGs, namely White Pepper Muntok, Berau Cacao, Flores Bajawa Arabica Coffee, and Flores Manggarai Arabica Coffee. A series of training on internal control plans, internal auditor and traceability has been conducted from June to July 2022. The development of a traceability system was done with the technical inputs of Koltiva, a technology-enabled service company supporting producers in digitising their supply chains.
M. Khodim, the Marketing Coordinator of MPIG Berau Cacao, said that the development of a traceability system for Berau Cacao is still ongoing, and the implementation trial is expected to be conducted following the harvest time at the end of the year.
"We already have an internal control system, but the training from ARISE+ Indonesia empowers us to implement our internal control plans regularly in the future," Khodim said.
