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Presentation EventPresentation EventWaingapu / District East Sumba / Indonesia Waingapu / District East Sumba / Indonesia

9 March 20079 March 2007

Diagnosis and Proposals for the Local Economic Development of East Sumba

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What is the objective of What is the objective of this PACA Exercise? 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?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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What is the sequence of What is the sequence of activities in the PACA activities in the PACA Exercise in East Sumba?Exercise in East Sumba?

PACA-Project

PACA-Exercise (26/2-9/3)

Fieldwork (28/2-6/3)

Results-Workshop:Diagnosis

+ Proposals

Mini-workshops

Imple-mentation

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• 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

•Unique characteristic compared to other regions

•National Program promoting jatropa oil as alternative to fossil fuel

•Appropriate commodity to cultivate in the dry lands of East Sumba

•Potential to involve many community members

Why selecting Seaweed, Why selecting Seaweed, Weaving and Jatropa?Weaving and Jatropa?

Seaweed

Weaving

Jatropa

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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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• 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

Strengths seaw

eed

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• 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

Weaknesses seaw

eed

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Weaving

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• 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)

Strengthsw

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• 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

Weaknesses (1)w

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•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

Weaknesses (2)w

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Padamu (Jatropa)

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• 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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• 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

Weaknesses (1)P

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• 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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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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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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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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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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Jatropa

• Limited capacity of field officers

• Lacking analysis of the socio-environmental impact of large-scale 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 Agriculture

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Proposals to Improve the Local Economy in East Sumba

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Seaweed PropSeaweed Proposalsosals seaw

eed Short-term ProposalsShort-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 ProposalsMedium-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 ProposalsSeaweed Proposals seaw

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Medium-term ProposalsMedium-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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SSeaweed Proposals eaweed Proposals

Medium-term ProposalMedium-term Proposalss• 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 ProposalsWeaving Proposalsw

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• Product diversification of weaving (Office of Industry and Trade, WVI, YAL / business opportunity!)

Medium-term ProposalsMedium-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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Jatropa PJatropa ProposalsroposalsP

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Short-term ProposalsShort-term Proposals

• Guidance in jatropa usage, basic and advanced processing, such as to bio fuel (Delsos)

Medium-term ProposalsMedium-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 (Bapedalda- Regional Bureau of Environmental Impact, Colleges)

• Provision of Water Reservoirs/Containers (Kimpraswil)

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Supporting Institutions Supporting Institutions PProposals roposals (1)(1)

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s Short-term ProposalsShort-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 ProposalsMedium-term Proposals

• Establishment of LED Forum (District Government, NGOs)

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Supporting Institutions Supporting Institutions PProposals roposals (2)(2)

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s Medium-term ProposalsMedium-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?Who is the PACA TEAM?

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)