Download PACA Presentation East Sumba

Diagnosis and Proposals for
the Local Economic
Development of East Sumba
Presentation Event
Waingapu / District East Sumba / Indonesia
9 March 2007
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What is the objective of
this PACA Exercise?
 Identify, with a rapid appraisal, the main strengths and
weaknesses of three selected sectors in East Sumba
(seaweed, weaving, jatropa)
 Identify options for practical activities to strengthen the
competitiveness of firms -Criteria:
– feasible with local resources
– quickly implementable (starting next week)
– quick, visible results (with 3 months)
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What have we been doing?
 Kick-off workshop (28 February 2007)
 Interviews with business people and stakeholders
in East Sumba (28/2 – 6/3)
 Mini-workshops (6) with
– Sea weed producers (1 March)
– Weavers (2 March)
– Jatropa Producers (5 March)
– Supporting Institutions (6 March)
 Internal Results Workshop (7 – 8 March June 2007)
 Presentation Event (9 March / 8h00)
 Way-forward workshops (from 9 March onwards)
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Mini-workshops
Fieldwork (28/2-6/3)
Way-forward
Workshop
Interviews
ResultsWorkshop:
Diagnosis
+
Proposals
Presentation
Event
Kick-off
Workshop
Hypothesis
Workshop
Preparation:
*Organisation
*Advance Info
What is the sequence of
activities in the PACA
Exercise in East Sumba?
Implementation
9.3.
PACA-Exercise (26/2-9/3)
PACA-Project
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Why selecting Seaweed,
Weaving and Jatropa?
Seaweed
• Inter-island trade price is constantly increasing
• The central government plans East Sumba as the project
pilot area for seaweed development as main commodity
• Plan to build seaweed processing factory in East Sumba
• A cultural product with economic value
Weaving
• Unique characteristic compared to other regions
• National Program promoting jatropa oil as alternative to
fossil fuel
Jatropa
• Appropriate commodity to cultivate in the dry lands of
East Sumba
• Potential to involve many community members
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Kick-off Workshop
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Interviews
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Interviews
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Mini-workshops
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Analysis of the Local
Economy in East Sumba
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Seaweed
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seaweed
Strengths
• Good quality catoni type seaweed with high level of
karagenan
• A lot of interest to get involved in the sector
• Expansive cultivation sites
• Buyers in Surabaya showing constantly high demand
• Steady increase of seaweed prices in recent years
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seaweed
Weaknesses
• Insufficient infrastructure
• Farmers have low skills in organizing groups
• Farmers have low skills in cultivation & processing
• Not familiar with seaweed processing technologies
• Minimum competition amongst inter-island traders
• Seaweed farmers are prevented to sell directly to the
district capital Waingapu (without engaging collectors)
• Inability to fulfill market demand
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Weaving
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weaving
Strengths
• Unique and traditional design & pattern
• Supporting material is available in own backyard
(natural coloring)
• Strong cultural values of the community
• Weaving skills among most members of the community
• Many production clusters
• High quality of products
• Weaving clusters offer tourist attractions
• Permanent market demand (ceremonies, traditional
local events)
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weaving
Weaknesses (1)
• Monotonous and non-variative design
• Part-time business activities
• Production is only based on the taste of the weavers
(and not demand-driven)
• No market information available
• Long production processes
• Conflict between traditional and economic values
• Traditional looms with low technology
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weaving
Weaknesses (2)
• Lack of diversification of production
• Lack of promotion outside the region
• No gallery for exhibiting SME products
• Uncompetitive price, low demand
• Limited market
• Low buying power of local community
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Padamu (Jatropa)
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Padamu (Jatropa)
Strengths
• Expansive land potentials available
• Easy access to seedlings through partnership with RNI
company
• For replanting usage of bare land resulting in erosion
prevention
• Many farmers are involved in planting / cultivation
• Suitable with the agricultural & farming system already
adopted by the community
• Investment opportunity for jatropa oil
• Prospect as alternative fuel
• High market demand for bio-fuel
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Padamu (Jatropa)
Weaknesses (1)
• Lack of water (low rain level)
• Monopoly in seedling supply
• No proficiency in seedling technology
• Post-harvest and processing technology is unknown
• Farmers do not know the final use of jatropa nuts
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Padamu (Jatropa)
Weaknesses (2)
• No processing factory in place to press oil from jatropa
nuts
• The community does not know the market side / buyers
of jatropa nuts
• Uncertain sale prices
• High risk project (unclear market, though the farmers
are already planting)
• Threatening food cultivation and availability
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Supporting
Institutions
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supporting
institutions
Strengths (1)
Seaweed
• Local bank is ready to give credits
• Partnership between the seaweed farmers and the
government as well as businesspeople
Weaving
• Assistance from local and international NGO [World Vision
Indonesia - WVI]
• Support of government for weaving, e.g. cooperation for
promotion
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supporting
institutions
Strengths (2)
Jatropa
• The government support for the jatropa sector is in line with
the national policy on alternative energies
….one example of government’s support is free provision of
seedlings
• there are 2 MoUs, between the District Government and
RNI as well as PLN and Delsos
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supporting
institutions
Weaknesses (1)
Seaweed
• There is neither coordination nor a collective vision of the
stakeholders
• The permit system in the seaweed sector in regards to the
cultivation area is either complicated or unclear
• Lack of guidance and assistance in the field / field officers
tend to have low capacity
• The role of the government, through the relevant offices, is
not apparent yet
• Environmental risks have not been analyzed or considered
• No previous dialogue meeting between government,
traders, and farmers
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supporting
institutions
Weaknesses (2)
Weaving
• No market survey
• Lack of coordination among relevant Government Offices
• Government’s assistance is uninformed and not need-oriented
• No IPR for local patterns
• No business association in the weaving sector
• Government does not involve weaver groups in exhibitions
• The mindset of support institutions is not market-oriented
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supporting
institutions
Weaknesses (3)
Jatropa
• Limited capacity of field officers
• Lacking analysis of the socio-environmental impact of largescale jatropa cultivation
• The only investor does not instill confidence and hides behind
the regional government
• The Office of Plantation only provides seeds without further
guidance
• Lack of coordination and communication between the main
players in the jatropa sector
• No involvement of research institutions for scientific research
and training
• Lack of coordination between Office of Plantation and Office of
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Agriculture
Proposals to Improve the
Local Economy in
East Sumba
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seaweed
Seaweed Proposals
Short-term Proposals
• Training on group management for seaweed centers (NGOs,
regional government / business opportunity!))
• Sending samples of catoni seaweed for karagenan testing
(Delsos, ATMI)
• Simpul 16+ facilitates government to determine the validity of
seaweed cultivation permits (Simpul 16+)
Medium-term Proposals
• Training on seaweed post-harvest and processing (Office of
Trade and Industry, Office of Sea Affairs and Fishery)
• Training on cultivation for capacity building of government’s
field officers and NGOs (Office of Trade and Industry, Office of
Sea Affairs)
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seaweed
Seaweed Proposals
Medium-term Proposals
• Procurement of seaweed production tools for farmers
(Office of Sea Affairs and Fishery / business opportunity!)
• Investment promotion for seaweed processing facilities
managed by private actors (regional government /
business opportunity!)
• Data collection and field assistance for farmers’ groups in
seaweed centres (Office of Fishery and Sea Affairs,
Simpul 16+ )
• Establishing micro-finance cooperatives (Farmers)
• Activating and socializing Seaweed Association (Seaweed
Association)
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seaweed
Seaweed Proposals
Medium-term Proposals
• Capital Assistance for seaweed groups [revolving
funds] (Office of Sea Affairs and Fishery)
• Promotion events for seaweed cultivation with
potential seaweed farmers (traders and succesful
farmers / business opportunity!)
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weaving
Weaving Proposals
Short-term Proposals
• Product diversification of weaving (Office of Industry and
Trade, WVI, YAL / business opportunity!)
Medium-term Proposals
• Economic analysis of weaving production (WVI)
• Training for SMEs on natural dyeing (YAL, KSM, WVI)
• Training on simple bookkeeping (STIE [College of
Economy] Kriswina, WVI )
• Weaver group formation and strengthening (Office of
Industry and Trade, Simpul 16+)
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Padamu (Jatropa)
Jatropa Proposals
Short-term Proposals
• Guidance in jatropa usage, basic and advanced
processing, such as to bio fuel (Delsos)
Medium-term Proposals
• Coordination and socialization meeting between Jatropa
stakeholders (Office of plantation, RNI, PLN, Delsos)
• Coordination between government offices relevant for
jatropa development (Office of Plantation, Office of
Agriculture)
• Conducting Environmental Impact Analysis (BapedaldaRegional Bureau of Environmental Impact, Colleges)
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• Provision of Water Reservoirs/Containers
(Kimpraswil)
supporting
institutions
Supporting Institutions
Proposals (1)
Short-term Proposals
• Routine PACA follow up meeting (Simpul 16+)
• Study tour to conduct comparative LED study to Central
Java (Vice Head of District, Regional Development
Planning Bureau, Office of Industry and Trade)
• Establishment of promotion and information center (Delsos,
Office of Industry and Trade / business opportunity!)
Medium-term Proposals
• Establishment of LED Forum (District Government, NGOs)
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supporting
institutions
Supporting Institutions
Proposals (2)
Medium-term Proposals
• Establishment of display gallery for SME products or an
East Sumba Handicraft Promotion Center (Office of
Industry and Trade, NGOs)
• Entrepreneurship training (Office of Cooperatives and
SME, STIE)
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Who is the PACA TEAM?
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Christian Schoen (mesopartner)
Stepanus Makambombu (STIMULANT INSTITUTE-SIMPUL 16+)
Agung Lidartawan (University Udayana)
Bening Dwiono (FEDEP Demak District)
Sri Hestiningsih W (FPESD Central Java)
Marlina R. Meha (KSM Tapawalla Badi)
Yusuf (YKPS)
Veri (Delsos West Sumba)
Kamilus Pantus (Delsos West Sumba)
Delsius (Delsos West Sumba)
Arie (Yayana Alam Lestari)
Domu Wora (Department of Industry and Trade East Sumba)
Adrianus Hudang (STIE Kriswina Sumba)
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