FH INDONESIA 2011 ANNUAL REPORT

Whether you turn to the right or to the left, your ears will hear a voice behind you, saying, “This is the way; walk in it.” Isaiah 30:21

Dear Friends,

God calls us to "walk with communities and leaders", but more than that, He shows us the way to walk when we take time to listen to Him. As I reflect back over 2011, God has indeed opened the path before us in Indonesia and continues to lead our way.

Over this past year, we made major improvements in the areas of Finance, Human Resource Administration and support services with the goal of strengthening the backbone of our organization. We received registration from the Indonesian government as a national charitable organization, “Yayasan Fondasi Hidup”. And, we took steps toward creating a strong foundation for FHs long-term financial stability in Indonesia.

In addition to that, our projects grew significantly! We began working in 10 new communities in North and West Sumatra, reaching the families of more than 2500 children, as we opened up sponsorship for the first time in Indonesia! Our longstanding relationship with communities and leaders in Meulaboh (Aceh) continued to be strengthened even in the face of strong political and spiritual adversity that drove most NGOs away; and we piloted of our first Micro Enterprise Development Program there. 2011 also brought many short-term teams and visitors, among which were those that focused on educational training and assessment in Aceh.

Now, as we look to the future, I am excited about the advancements that will be brought into our work through our newly formed Program Development Team. We will continue working toward refining our programmatic strategies while achieving higher program standards and efficiency through increased monitoring and evaluation. However, my personal goal for 2012 is to diligently work toward achieving a greater impact for all those we serve by forging stronger relationships with partners.

Today, I am continuously encouraged by the opportunities God has blessed us with in Indonesia as we strive to follow Him each day. I pray that this journey also serves as an encouragement to you. I am deeply grateful for all God has done, the things He is doing right now, and for those things yet to come.

Thank you for your support for the work of FH in Indonesia!

Scott

Letter From the Country Director

Kids Club covers a variety of subjects depending on the needs of the community. At Kids Club children learn basic principles to help them excel and develop such as hygiene, nutrition, language, math, and science.

NORTH SUMATRAChild Focused Community Transformation in

KIDS CLUB

Where We Work:

We work in vulnerable communities in Northern Sumatra. Most of the communities we work in are rural communities. The families in these villages are either rice farmers,fisherman or day laborers. Disparities between the rural poor and those living in urban areas are a major concern. For example, for a child under the age of five years in a rural area, the risk of dying is almost double that of a child in an urban setting due to lack of health services, poor environment, and diseases (UNICEF, 2010).

• There is a great lack of knowledge about health issues and sanitation. In these communities there are few to no bathroom facilities. 60 million people in Indonesia practice open defecation due to lack of sanitation resources and knowledge of appropriate health practices.

• Many children can’t go to school because they need to work to support their families. Only 55% percent of poor children have completed elementary school (UNICEF, 2010).

• Between unpredictable crop yields and fishing, income is very unreliable in these communities. Families don’t know how to manage their incomes to deal with the unpredictability of their trades.

• Namo Serit• Desa Baru

• Bintang Meriah• Jaring Halus

• Sendayan• Teluk Meku

• In January, we began CFCT programming• 1,032 children have been connected with a sponsor. Through child sponsorship, we address the most critical

needs facing children in North Sumatra. We help parents and community leaders to overcome barriers that keep children from reaching their full potential

• 34 Focus Group Discussions: Through discussions with focused groups in the community, we learn the struggles and hopes of every part of the community

• 4 Community Events• 341 Home visits: During regular home visits, FH staff asks and listens to the challenges and dreams of the

families in the community• 261 Kids Clubs: At Kids Club children learn basic principles to help them excel and develop, such as hygiene,

nutrition, language, math and science• 78 Soccer Clubs: In weekly soccer clubs, FH staff teaches children important lessons about taking care of

their bodies and teamwork

What We’ve Done

• Children now actively brush their teeth, wash their hands and have a greater understanding of how disease is spread.

• FH staff has seen a significant change the communities’ attitudes towards education. More parents are enthusiastically supporting their children’s education than ever before.

• As parents began seeing the difference in their children’s behavior and grades, they have become very enthusiastic supporters of our work.

Change We’ve Seen

Direct Impact

11,245 Individuals

2,198 Children

1,730 Families

55 Leaders

MENTAWAIWorking with the most vulnerable in

Where We Work:• Muntai • Muara • Maileppet

We work on the remote Mentawai Islands in South Siberut. Siberut is the largest of the Mentawai Islands. The families in these communities are farmers and fisherman. On this isolated and disaster prone island, the families face many challenges such as poor sanitation, limited access to formal and informal education, inadequate health services and a lack of skills to generate alternative income.

• Nearly 1 in 10 children in Mentawai don’t make it to the age of 5

• 41% of the children under 5 are malnourished

• Over 70% of the population is under the poverty line

• 74% of households have no access to clean water

• 70% of households don’t have latrines

The Mentawai Islands are 90 miles (150 km) off Indonesia’s West Sumatran Coast.

(Research conducted by SurfAid International and the University of Indonesia, 2009)

Change We’ve Seen

Direct Impact

5,040 Individuals

1,063 Children

515 Families

72 Leaders

• In July, we sent a team to South Siberut to begin assessment and plan programming in the area• 500 children were registered in December to be connected with a sponsor. Through child

sponsorship, we will address the most critical needs facing children in Mentawai. We help parents and community leaders to overcome barriers that keep children from reaching their full potential

• 24 Focus Group Discussions: Through discussions with focused groups in the community, we learn the struggles and hopes of every part of the community

• 2 Community Events• 489 Home visits: During regular home visits, FH staff asks and listens to the challenges and dreams

of the families in the community

What We’ve Done

• Initially, community members had a lot of distrust towards FH staff due to negative experiences with other NGOs in the past. However, as FH staff has grown in relationship with community members there has been a growing trust and enthusiasm to collaborate with FH staff in the community.

• Families are beginning to see the connection between their health problems and their poor hygienic practices.

AGRICULTURAL TRAINING FARM

The agriculture training farm is a systematic demonstration farm that integrates fishery, animal husbandry, and organic farming.

Growing Leaders in Sustainable Agriculture

AGRICULTURAL TRAINING PROGRAM

Where We Work:• Evangelical Theological Seminary of Indonesia (STII), Medan

In August 2011, FH Indonesia became partners with the Evangelical Theological Seminary of Indonesia (STII), a seminary in Medan. Our organizations work together to conduct an agricultural training program on STII’s land, where we have a demonstration farm. The demonstration farm integrates fishery, animal husbandry, and organic farming. The center is currently growing several kinds of crops including soybeans, peanuts, corn, and cassava. The center also has ducks and 1,500 fish for fish farming training.

The program’s goal is to train STII students, FH staff and the local community in sustainable agricultural methods. Many of the seminary students and staff work in rural communities and this knowledge will not only be shared with the community but also used to feed the students and their families. Students of this program will be able to use their training to teach farmers to yield better crops and to farm more efficiently.

What We’ve Done

Change We’ve Seen

Direct Impact

64 Students

157 Individuals

7 Leaders

14 Communities

• In August, FH and STII signed a partnership agreement and began the training program• 13 types of crops successfully grown: peanuts, sweet corn, cucumber, soybeans, string beans, kangkong,

Chinese cabbage, spinach, chili, green beans, okra, moringa oleifera and cassava.• Raised 27 ducks • Raised 1,500 fish• Bi-weekly hands on agriculture training and field work for STII students• 1 community-wide training for 148 people, including students, community members and NGO staff.

• The majority of program participants have weekly ministries in churches in rural villages. They have shared their growing agricultural knowledge with these communities, which have been enthusiastically received.

• Many students have used the training to start their own gardens at home and now have a sustainable food source for themselves.

MEULABOHFrom relief to long term sustainability in

Where We Work:• Meulaboh, Aceh Barat Province

We have worked in Aceh Province for 7 years since the massive Boxing Day tsunami. 226,000 Indonesians were killed in the disaster and 500,000 plus left homeless. In response to the aftermath of the disastrous tsunami, FH embarked on an ambitious livelihoods and education program to support small scale businesses and provide vocational training and education for tsunami survivors.

However, the need in Aceh Province was greater than just rehabilitation of tsunami survivors. The rural communities outside of the tsunami-affected area are extremely poor and were long neglected compared to the tsunami survivors near the coastal area. These rural communities have long been struggling as a 30-year rebel conflict brought them into deep poverty. During the rebellion, many of the rural villages were burnt to the ground.

861,850 people in West Aceh district still live in poverty. Lack of clean water, no irrigation systems and massive flooding twice a year are some of the issues in these communities.

PROGRAMS Agriculture

Education

• 9 communities• 128 beneficiaries

• 80 trainings• Direct Impact: 750 individuals

• Go Green School: The aim of the Go Green School project is to create clean, environmentally friendly schools. Go Green School introduces students from grades 5-8 with basic knowledge on environmental issues, sanitation, and how keep their school environment clean. Go Green School also trains students through hands on activities how to reduce excess garbage and waste, methods of recycling and also practical skills such as, grafting, planting, and organic dying.

• English Club: In English Club, students learn English lessons by singing, playing educational games and formal classroom study. English Club is adding a Go Green component to their program activities, teaching children about environmentally friendly behaviors and cultivating vegetables in English.

• English Teacher Training and School Assessment: In English Teacher Trainings, local English teachers are trained by native English speaking volunteers how to prepare effective and engaging lessons and how to monitor students progress. The volunteers also assessed the capacities of local schools and offered suggestions for improvement.This training opens many new opportunities for the local teachers. FH staff regularly follow up with the trainees.

• 91 Go Green School Students• 4 Go Green Schools• 52 Go Green School Trainings

• 149 English Club Students• 184 English Clubs

• 25 English Teachers trained from 16 schools

• Direct Impact: 644 individuals

The agriculture program aims to improve the livelihoods of farmers in the coastal farming areas, impoverished communities and conflict areas of Aceh Barat (West Aceh). The current project involves female farmers in 9 villages in collaboration with the National Office of Food Security and district agricultural programs. Key project activities include supporting women farmers’ groups, developing a network for women in agriculture, and research and demonstration for a range of crops in the coastal farming system. The focus of the agriculture activities is the home garden. The beneficiaries of the home garden now have a sustainable food source and improved health. The women have learned to make organic fertilizer and have reduced the occurrence of disease by growing clean vegetables.

PROGRAMS Livelihoods

The Livelihood and Savings Group Program provides skills trainings in sewing, baking and crocheting. These programs focus on empowering women in the community to learn financial management and use skills to increase their families’ incomes. The women who participate in the livelihood program also meet regularly to save small amounts of money.

Once they have saved enough, they start lending to themselves. Women involved in the livelihood program now have a source of income and are able to save for events in the future, such as children's school fees and holidays.

• 5 Livelihoods and Savings Groups• 64 Livelihoods participants• 391 livelihoods classes

• 2,053,000 IDR ($224 USD) saved in savings groups

• Direct Impact: 400 individuals

Micro Enterprise Development (IMED)

Upon the community’s request for help in developing small businesses, FH has started this new project working together with Southland Church in Kentucky to train small business owners and provide microfinance loans.

There has already been one full cycle of trainings, which included 3 trainings of 54 hours total led by business professionals from the United States. The trainings covered topics such as developing a business plan, market research, marketing, and good business principles.

The trainings ultimately narrowed the participants to 6 individuals who received loans. The small businesses included restaurants, a tailor shop, and a bakery. For two years following the dispersement of the loans, FH staff and local mentors will help these individuals to grow their businesses. These close mentoring relationships are a special opportunity to show love in the community.

• 54 hours of microfinance training• 30 participants in training phase 1• 15 participants in training phase 2• 6 businesses awarded loans

• 150,000,000 Rp ($16,000) in microfinance loans to be dispersed

• Direct Impact: 150 individuals

Where We Work:• Calang, Aceh Jaya Province

CALANG

FH Agricultural staff spend each day working directly alongside beneficiaries. In addition to working hand in hand with local farmers, they hold frequent training workshops in the communities.

AGRICULTURAL TRAINING

Calang was referred to as “Ground Zero” after the 2004 tsunami. The province of Aceh Jaya remains the poorest region in the whole of Aceh Province.  There are little to no opportunities for income generation or employment outside of agriculture.  Day labor positions occasionally exist but are often located far outside the district.  

In response to the needs of the people in Aceh Jaya, FH has been operating programs in the areas of Education, Livelihoods, and Agriculture in order to address the issues of vulnerability in a wholistic way.   

The programming in Calang closed in May 2011. We are currently assessing reopening in the future.

From dependency to dynamic interdependence in

PROGRAMS

FH began a pilot Home Gardening / Permaculture Project in partnership with IS Wong in October 2010. Initially, 15 women were trained and given pieces of land for demonstration plots. After one month, the women were able to earn an additional 300,000-500,000 IDR ($50-$70) per plot for the produce they were able to harvest and sell. The women then started vegetable gardens behind their houses in addition to the demonstration plots.FH added an additional savings component to their training to help the women learn how to budget and save. After harvest, each woman put back 10% of the money earned to use to purchase more seed to begin the process again.   

The first 15 women began working their own land in January 2011 and by February they were able to experience their first independent harvests.The women wanted to cultivate unused land in other villages and asked permission to develop land in exchange for cleaning and taking care of it. The other villagers expressed interest in learning permaculture training for themselves. In March 2011, FH began supporting 33 new beneficiaries from 3 villages, with the original 15 women working along side the FH agricultural team to train the new beneficiaries. In 2011, FH held 30 permaculture trainings.

Permaculture

FH formed a partnership with a papaya processing company in Medan. FH provided overall management of the project, including selection of beneficiaries, training, and oversight. The company provided 5,000 seeds and, if the beneficiaries were unable to sell their papaya in the local market, a guarantee to purchase the fruit at a competitive price. There are currently 3,300 thriving trees divided up between 12 family farms.  

The education program held activities for 113 students in 3 villages teaching math, science and Indonesian language. FH staff also held weekly teacher trainings to build the capacity of the local teachers.

Education

Papaya Farming

PROGRAMS

In 2006, FH gave 70,000 cocoa trees to 6 villages in Aceh Province.Today, 20 hectares of trees are beginning to bear fruit for the first time and the villagers are opening up more land to grow more trees with the seed from their current yield. FH’s agricultural staff have been a tremendous help to these farmers over the past few years as the trees have come into maturation. Our agricultural specialists have been able to train the farmers in using non-chemical, natural pesticides and fungicides.

The livelihoods program focused on empowering women in the community to learn financial management and teaching them vocational skills to increase their families’ incomes

SRI is a method of increasing the yield of rice producing in farming. In 2010, FH planted SRI 3 demonstration plots in villages outside of town set up along major thoroughfares. After the demo plots were set up for a while, people came to FH and asked for help in starting SRI projects where they lived. In 2011, we held 22 SRI trainings. As of May 2011, there were more than 230 SRI project beneficiaries between 3 villages.

Cocoa Farming

SRI (System of Rice Intensification)

Livelihoods

FINANCIAL RESOURCES AND STEWARDSHIP

Financial Responsibility At Food for the Hungry we are accountable before God and before you to use your gifts in the best way possible to help the hurting around the world. We are a charter member of the Evangelical Council for Financial Accountability (ECFA) and abide by all of its strict reporting standards. In addition, we are in compliance with the standards of the National Charities Information Bureau. Our audited financial report is available upon request.

$0

$125,000

$250,000

$375,000

$500,000

2009 2010 2011 2012

$170,180 $180,428

$272,340

$480,568Annual Budget Growth

25%

40%

3%9%

12%

7%4%

Southland Church IS Wong Foundation FHUS Undesginated FundsFHUS Designated Funds FHUS Gift Catalog Child SponsorshipNorwegian Lutheran Mission

Sources of Funding

HUMAN RESOURCES AND ADMINISTRATION

Vision“God called and we responded until physical and spiritual hungers ended worldwide.”

Mission“To walk with churches, leaders and families in overcoming all forms of human poverty by living in healthy relationship with God and His creation.”

Values

• Christ-centered• Wholistic• Stewardship

• Grace • Excellence • Servanthood

• 89% of our staff are trained in Vision, Mission and Values

• The training takes place over 2-3 days • Training covers how we can apply the

Vision, Mission and Values to our work

25%Staff

Growth in 2011

Staff Trainings:• 9 capacity building staff trainings:

• Logical framework training: 10 staff members• Child Focused Community Transformation training: 14 staff

members• World Link software training: 4 staff members• Capacity building training for CFCT staff: 10 staff members• Health assessment training: 15 staff members• Vision, Mission and Values training: 16 staff members• Financial systems training: 4 staff members• Global Leadership Conference: 10 staff members• Envision 2020 transformational development training: 8 staff

members

Notable Administrative Accomplishments:

• Launched internal website creating one site where staff can access all materials related to HR, Finance, Logistics and Staff Care.

• Staff Information Booklet read and acknowledged by all staff.• New staff member orientation checklist and protocol created

and enforced.

2012: WHERE WE ARE GOING

• Cassava: Cascading Savings and Learning GroupsImplementing an innovative comprehensive programming model which combines education,health care and savings groups

• Increasing our impact and influence in Indonesia• Increasing Indonesian partnerships and involving

Indonesians in supporting marginalized communities• Improving program efficiency by implementing higher

standards for program efficiency• 5x more beneficiaries by 2020

• Staff Capacity Building: Planned trainings include: Savings Group training, Disaster Risk Reduction training, and sector specific trainings

• Expanding Child Sponsorship500 more children will be registered, with the aim that all 2,500 children will have a sponsor.

• Expanding IMED Training Exploring options for expanding IMED training

• Surveying Conducting a health baseline survey to monitor and evaluate child health progress in the communities where we work

• Advocacy:• Developing and implementing an advocacy plan to benefit

the poor in Indonesia• Increasing our social media presence