Press - Puslitbang Hut

112
Author: Maman Turjaman Translator: Adi Susilo Press

Transcript of Press - Puslitbang Hut

Page 1: Press - Puslitbang Hut

Author:Maman Turjaman

Translator:Adi Susilo

ISBN : 978-602-440-638-7

TeknologiPT Penerbit IPB PressJalan Taman Kencana No. 3, Bogor 16128Telp. 0251 - 8355 158 E-mail: [email protected]

@IPBpress ipbpressPenerbit IPB Press

DEVELOPMENT OF AGARW

OOD PRODUCTION CLUSTER BASED ON MICROBE TECHNOLOGY | PT Penerbit IPB Press

Press

Author:Maman Turjaman

Translator:Adi Susilo

ISBN : 978-602-440-638-7

TeknologiPT Penerbit IPB PressJalan Taman Kencana No. 3, Bogor 16128Telp. 0251 - 8355 158 E-mail: [email protected]

@IPBpress ipbpressPenerbit IPB Press

DEVELOPMENT OF AGARW

OOD PRODUCTION CLUSTER BASED ON MICROBE TECHNOLOGY | PT Penerbit IPB Press

Press

Author:Maman Turjaman

Translator:Adi Susilo

ISBN : 978-602-440-638-7

TeknologiPT Penerbit IPB PressJalan Taman Kencana No. 3, Bogor 16128Telp. 0251 - 8355 158 E-mail: [email protected]

@IPBpress ipbpressPenerbit IPB Press

DEVELOPMENT OF AGARW

OOD PRODUCTION CLUSTER BASED ON MICROBE TECHNOLOGY | PT Penerbit IPB Press

Press

Author:Maman Turjaman

Translator:Adi Susilo

ISBN : 978-602-440-638-7

TeknologiPT Penerbit IPB PressJalan Taman Kencana No. 3, Bogor 16128Telp. 0251 - 8355 158 E-mail: [email protected]

@IPBpress ipbpressPenerbit IPB Press

DEVELOPMENT OF AGARW

OOD PRODUCTION CLUSTER BASED ON MICROBE TECHNOLOGY | PT Penerbit IPB Press

Press

Author:Maman Turjaman

Translator:Adi Susilo

ISBN : 978-602-440-638-7

TeknologiPT Penerbit IPB PressJalan Taman Kencana No. 3, Bogor 16128Telp. 0251 - 8355 158 E-mail: [email protected]

@IPBpress ipbpressPenerbit IPB Press

DEVELOPMENT OF AGARWOOD PRODUCTION CLUSTER BASED ON MICROBE TECHNOLOGY | PT Penerbit IPB Press

Press

Page 2: Press - Puslitbang Hut
Page 3: Press - Puslitbang Hut

Development of Agarwood Production Cluster Based on

Microbe Technology

Page 4: Press - Puslitbang Hut

C1/2.2019

Page 5: Press - Puslitbang Hut

Development of Agarwood Production Cluster Based on

Microbe Technology

Maman TurjamanTranslatorAdi Susilo

Penerbit IPB PressIPB Science Park Taman Kencana,

Kota Bogor - Indonesia

C1/2.2019

Author:Maman Turjaman

Translator:Adi Susilo

Page 6: Press - Puslitbang Hut

Book Title:Development of Agarwood Production Cluster based on Microbe Technology

Original Book (Indonesian Version):Pengembangan Cluster Produksi Gaharu Berbasis Teknologi Mikrob(Forda Press, 2016; ISBN 978-602-6961-10-5)

Author:Maman Turjaman

Translator:Adi Susilo

Correctors:Pujo SetioDwi Murti Nastiti

Pratama Desriwan

Layouter: Syahrival

Cover Designer:Alfiyandi

Pages:xiv pages + 94 pages, 148 x 210 mm

Edition (English Version):First Edition Publishied 2018

PT Penerbit IPB PressMember of IKAPIJl. Taman Kencana No. 3, Bogor 16128Telp. 0251 - 835 5158 Email: [email protected]

ISBN: 978-602-440-638-7

Printed by IPB Press Printing, Bogor - Indonesia

Book Title:Development of Agarwood Production Cluster Based on Microbe Technology

Writer:Maman Turjaman

Translator:Adi Susilo

Layouter:Syahrival

Cover Designer:Alfyandi

Pages:xiv pages + 94 pages., 148 x 210 mm

Edition: First Edition Published 2018

PT Penerbit IPB PressMember of IKAPIJl. Taman Kencana No. 3, Bogor 16128Telp. 0251 - 8355 158 E-mail: [email protected]

ISBN: 978-602-440-638-7

Printed by IPB Press Printing, Bogor - Indonesia

©2018, ALL RIGHTS RESERVED

No Part of this book may reproduced stored in a retrieval system or transmitted without the prior formal permission of the copyright owner and the author

Correcetor:Dwi Murti Nastiti

Page 7: Press - Puslitbang Hut

v

FOREWORDS

The production and trade of agarwood, especially cultivated one, has grown very rapidly in Indonesia. Most local governments have en-couraged agarwood plantations so that in the future the production will continue to increase and agarwood trade will be more exciting. In line with these developments, to support production and trade continuity, integrated and sustainable management needs to be encouraged and one of the is clusters. The Cluster is an integrated management concept starting from the upstream to downstream which contains conservation, production, processing, marketing and so on and also involves various stakeholders. The concept of the agarwood cluster is emphasized to the Central Bangka Regency which initially developed the production of agarwood cultivation in Indonesia. However, this concept will be a suc-cess if it is supported by all stakeholders, especially the regional govern-ment of Central Bangka Regency, Province of Bangka Belitung Islands. The support include commitment, coordination, and finance among the government working units or locally know as Satuan Kerja Perangkat Daerah (SKPD).

Finally, all parties who have supported from the beginning to the drafting of the concept/design of this cluster are thanked, and this clus-ter is expected to be useful and able to achieve the ultimate goal of pros-pering agarwood farmers throughout Indonesia.

Bogor, November 2006

The Director of Forest Research and Development Center

Page 8: Press - Puslitbang Hut
Page 9: Press - Puslitbang Hut

vii

TABLE OF CONTENT

FOREWORDS .................................................................................. vTABLE OF CONTENT ........................................................................ viiLIST OF TABLE ................................................................................. xLIST OF FIGURES ............................................................................. xiLIST OF APPENDIXS ......................................................................... xii

1. INTRODUCTION ...................................................................... 11.1. Background ................................................................... 11.2. Objective ...................................................................... 8

2. PROFIL OF CENTRAL BANGKA REGENCY .................................. 92.1. GeographicalPositionandPopulation ........................... 92.2. Social Economy ............................................................. 102.3. SoilandHydrologicalConditions ................................... 112.4. Flora and Fauna............................................................. 122.5. ClimateConditions ........................................................ 12

3. AGARWOOD CLUSTER DEVELOPMENT PROGRAM ................... 133.1. CurrentConditionofAgarwoodinIndonesia

(SWOT Analysis) ............................................................ 133.1.1. Strength ................................................................ 133.1.2. Weakness .............................................................. 143.1.3. Opportunity .......................................................... 153.1.4. Threat ................................................................... 16

3.2. ApprehendingAgarwoodCluster ................................... 163.3. AgarwoodCluster:OneStopServices ............................ 193.4. Strategy ........................................................................ 25

3.4.1. Main Strategy........................................................ 253.4.2. Operational Strategy ............................................ 26

Page 10: Press - Puslitbang Hut

viii

4. AGARWOOD CLUSTER LOCATION PLAN .................................. 29

5. AGARWOOD CLUSTER DEVELOPMENT PROGRAM .................. 335.1. PlantingProgramforTreeProducingAgarwood ............ 335.2. DevelopmentProgramforAgarwoodInoculation .......... 365.3. DevelopmentProgramforAgarwoodDiversification

Product ........................................................................ 375.4. MarketingDevelopmentProgram ................................. 385.5. AgarwoodEcotourismDevelopmentProgram ............... 405.6. Planning Development .................................................. 415.7. Human Resource Development and Improvement

Program ........................................................................ 435.8. InstitutionalDevelopmentandConsolidation

Program ........................................................................ 465.8.1. Formation of farmer groups ................................. 475.8.2. Formation of associations ..................................... 485.8.3. Growing a business entity ..................................... 48

5.9. InformationSystemsManagementDevelopment Program ........................................................................ 49

5.10. Research and Development Program ............................. 495.11. EvaluationandSupervisionProgram ............................ 505.12. InfrastructureImprovementandDevelopment

Program ........................................................................ 505.13. Independent Business and Funding Development

Program ........................................................................ 515.14. AgarwoodDerivativeProductDevelopmentProgram .... 51

5.14.1. Processing and production of agarwood oil ......... 515.14.2. Industrial treatment of Agarwood Residue .......... 535.14.3. Product diversification .......................................... 53

5.15. MarketingDevelopmentProgram ................................. 545.15.1. Network Marketing Development ........................ 54

Page 11: Press - Puslitbang Hut

ix

5.15.2. Development of agarwood standardization ......... 565.15.3. Promotions, Local, National and International

Exhibitions. ........................................................... 56

6. COORDINATION AND ALLOCATION OF ASSIGNMENTS IN AGAR-WOOD CLUSTER ..................................................................... 59

7. CONCLUTION .......................................................................... 67

ACKNOWLEDGMENT ..................................................................... 69BIBLIOGRAPHY ............................................................................... 69APPENDIXS ..................................................................................... 74

Page 12: Press - Puslitbang Hut

x

LIST OF TABLE

Table 1. Indicators of agarwood cluster development based on roadmap documents compiled by The Department of Plantation and Forestry in 2014. ...................................... 30

Table 2. Construction location of agarwood clusters in Central Bangka Regency ............................................................... 32

Table 3. Stakeholder activity matrix in the agarwood cluster in Central Bangka Regency on a five-year period (2016-2020) ..................................................................... 63

Table 4. Stakeholder contribution to the investment value of agarwood in Central Bangka Regency .............................. 64

Table 5. Stakeholder contribution to the investment value of agarwood in Central Bangka Regency .............................. 65

Page 13: Press - Puslitbang Hut

xi

LIST OF FIGURES

Figure 1. Development of agarwood clusters containing priority ... 17

Figure 2. Stages of the process in developing agarwood cluster ..... 19

Figure 3. The role of stakeholders in the institutional management of the agarwood cluster ................................................... 22

Figure 4. Technology input in the agarwood cluster ....................... 23

Figure 5. Capacity Building needed in the development of agarwood cluster ............................................................. 24

Figure 6. Aquilaria malaccensis and Citronella spp. ........................ 35

Figure 7. Chips of Agarwood from Aquilaria malaccensis after three years of inoculation with Fusarium solani in Lingga, Riau Islands .......................................................... 55

Figure 8. The high economic value of agarwood oil with a price range of USD 90-150/box. ................................................ 55

Figure 9. Accessories of agarwood bracelets that are cultivated which can be produced at the scale of the home industry ............................................................................ 55

Figure 10. Agarwood soap produced from cultivated agarwood oil . 55

Figure 11. Marketing flow of agarwood cultivation .......................... 57

Figure 12. Circulation of the flow of the agarwood cluster activity in central Bangka Regency ................................................... 60

Figure 13. Pyramid of Agarwood cluster development .................... 61

Figure 15. Network of agarwood cluster activities from upstream to downstream ..................................................................... 62

Figure 14. Government Working ..................................................... 62

Page 14: Press - Puslitbang Hut

xii

LIST OF APPENDIXS

Appendix 1. Central Banka Regent Decree regarding the Determination of the Gaharu Cluster Development Location in the Central Bangka Regency. ..................... 75

Appendix 2. Development of the Central Bangka Agarwood ........... 80

Appendix 3. The agarwood-producing tree seed (Aquilaria malaccensis) is the key to production business in the agarwood cluster system ............................................. 84

Appendix 4. Agarwood clusters require agarwood tree seedlings to produce both quality and quantity on an ongoing basis, so that the production process of agarwood cultivation can be sustainable. ...................................................... 85

Appendix 5. The selection of monoculture or mixed pattern (agroforestry) planting patterns in agarwood cluster systems ........................................................................ 86

Appendix 6. The preparation of Fusarium solani agarwood inoculants is needed on a mass scale .......................... 87

Appendix 7. The process of Quality microbial-based agarwood production is a determinant of the success in agarwood cluster development ................................... 88

Appendix 8. The production of microbe based resinous agarwood is the main product in the development of agarwood clusters ......................................................................... 89

Appendix 9. The agarwood oil production an important part of production in the cluster system, by utilizing abundant agarwood powder ....................................... 90

Page 15: Press - Puslitbang Hut

xiii

Appendix 10. Promotion of agarwood products to consumers from abroad must be carried out continuously in the agarwood cluster system. ...................................... 91

Appendix 11. Agarwood tea has its own market segment especially as a healthy drink with hygienic and standardized production methods .................................................... 92

Appendix 12. Increasing the Capacity Building trough technology training for stakeholders needs to be conducted intensively in the agarwood cluster system ................. 93

Appendix 13. Prediction technology of agarwood production by ultrasonic tomography as an input technology that is indispensable in the future of cluster system ............. 94

Page 16: Press - Puslitbang Hut
Page 17: Press - Puslitbang Hut

1

1. INTRODUCTION

1.1. Background

Agarwood is a non-timber forest product commodity trad-ed internationally since centu-ries ago. Garcie de Orta (1501-1568), Portuguese Renaissance physician, whose ingredients come from the tropical forest is the first person introducing the term fragrant wood garo, which was obtained from Malacca and Sumatra (Lee and Rozi, 2016). Agarwood trades at that age was originating from natural forests and many of which were endemic to Indonesia, especially from the genus Aquilaria spp. There are 21 species of Aquilaria recorded by

botanists, 13 of which are report-ed to produce aromatic fragrant, and the remaining 8 species have never been subjected to deep in-vestigation. Not all natural agar-wood-producing trees contain aromatic agarwood.

Based on the experience of natural agarwood hunters, out of the 100 cut down natural agarwood-producing trees, the agarwood-containing trees are less than 5% or only five trees. The Harvesting patterns by cut-ting down all found natural agar-wood-producing trees caused a

Page 18: Press - Puslitbang Hut

2

Development of Agarwood Production Cluster Based on Microbe Technology

drastic population decline in nat-ural forests because the obtained agarwood in each tree was uncer-tain (Siran and Turjaman, 2010). The agarwood chunk formed naturally due to the intervention of living things called endophytic microbes, which goes into living wood tissue from agarwood-pro-ducing trees, especially from the Thymelaeaceae family. The woundings are the first entrance for the endophytic microbes in the formation of agarwood. The formation of natural agarwood takes years because agarwood is actually a secondary metabolic deposit that accumulates slow-ly due to biological interactions between agarwood-producing trees and endophytic microbes (Turjaman et al., 2016; Sitepu et al., 2011; Novriyanti et al., 2010). Harvesting patterns of natural agarwood as mentioned above causes the sustainability of natural agarwood production is disrupted, therefore a short-age of agarwood production oc-curs, especially for high-quality

agarwood, where agarwood en-thusiasts from the Middle East and East Asia demand regular supply of every year. Many agar-wood hunters surrounding forest throughout Indonesia try to culti-vate agarwood-producing trees. However, due to the limitation on financial, information of science & technology, and marketing, the government engagement in em-powerment programs for agar-wood farmers from upstream to downstream is required (Siran and Turjaman, 2010).

Genus Aquilaria is a world- famous species of agarwood-pro-ducing tree and marketed widely to many countries. Agarwood products are further processed mainly to become perfumes, in-cense, ornaments, decorations, and as medicinal ingredients for human health. The history in the use of agarwood is written by the poem Kalidasa (in year 353-420) in Sanskrit language, with the writ-ing: “Beautiful ladies preparing themselves for the feast of pleas-ures, cleanse themselves with the

Page 19: Press - Puslitbang Hut

3

Introduction

yellow powder of sandal, clear and pure, freshen their breast with pleasant aromas, and sus-pend their dark hair in the smoke of burning aloes”. The meaning of the word aloe is the same as agarwood. The word aloe is of-ten found in gospel books (Lee and Rozi, 2016). Experts in bot-anists, forestry, and phytochem-icals, and other experts from many countries try to examine the process of forming agarwood resin from the genus of Aquilar-ia, which grows in Southeast and South Asia. Not all Aquilaria trees produce agarwood, although re-search has been done intensively, the process are still insufficiently comprehended. Generally, the researchers agreed that the pro-cess of agarwood formation is a pathological process, in which agarwood aromatic resins are formed as a result of responses from fissures and fungal infec-tions (Donovan and Puri, 2004).

The current trade in natural agarwood is carried out by a quo-ta system, based on Minister of

Forestry Decree No. 447 / Kpts-II / 2003 concerning the Administra-tion of Harvesting and Circulation of Plants and Wildlife. The quan-tity of export in agarwood is rec-ommended by LIPI as the scientif-ic authority, however, the data is still limited since only rely on re-ports from the provincial BKSDA (Natural Resources Conservation Institution), local agarwood col-lectors and last year’s agarwood export quota data. The quality of exported agarwood varies, rang-ing from grade D, C, A, B, Super, Double Super, Triple King up to Super King. The major agarwood products are needed for incense and oil as a base for perfume. Meanwhile, the production of agarwood imitation (Black Magic Wood) is also in demand by con-sumers in the Middle East. Cur-rently, it is very difficult to get a super or double-super grade of natural agarwood (Santoso, 2015; Siran and Turjaman, 2010).

In the 1990s, entrepreneurs and agarwood seekers realized the difficulty of finding agar-

Page 20: Press - Puslitbang Hut

4

Development of Agarwood Production Cluster Based on Microbe Technology

wood-producing trees in nature, so they started to cultivate agar-wood-producing tree species, especially the Aquilaria spp. and Gyrinops spp. The society’s in-terest in planting agarwood is also stimulated by the discovery of endophytic microbial inocu-lation technology to accelerate the forming process of agarwood (Santoso, 2015). People plant agarwood-producing trees using either mixed cropping or mon-oculture patterns in various re-gions throughout Indonesia. The Agroforestry planting system is preferred by most people as it is able to support the farmer’s economy on a short term basis.

Agarwood-producing trees are planted between rubber, ba-nana, oil palm, mahogany, Jabon, agricultural crops, and others. Few of them plant in monocul-ture patterns (Susmianto & San-toso, 2013). Monoculture plant-ing patterns are mostly carried out in Indo-China countries such as Malaysia, Thailand, Vietnam, Laos, Cambodia, Sri Lanka, Myan-mar, and Bangladesh.

The availability of science and technology in the cultivation of agarwood-producing tree spe-cies started to be supported by research results leading to rais-ing hope in developing upstream to downstream cultivated agar-wood industry. Some of the agar-wood research topics have been published internationally, such as the identification of agarwood products using DNA barcoding techniques (Lee et al., 2016); the technique of detecting agarwood production through ultrasonic waves (Karlinasari et al., 2016); and the agarwood inoculation technique using endophytic fungi (Turjaman et al., 2016). The re-search on agarwood production techniques is rarely found in na-tional and even international pub-lications because this technique is very important for producing high quality and expensive price of agarwood. Agarwood-produc-ing trees from Aquilaria sinensis originating from China are more comprehensively studied than other species of Aquilaria for finding active ingredients in plant

Page 21: Press - Puslitbang Hut

5

Introduction

parts, which have the potential to treat various human diseases, such as hypertension, cancer, di-abetes, asthma, insomnia, sexual dysfunction, antimicrobial, etc. (Wang et al., 2015; Wong et al., 2015; Gao et al ., 2015; Gao et al ., 2014). The Gyrinops walla resin has been analyzed for its active content. This agarwood-produc-ing tree, that grows only in Sri Lanka is known as a traditional medicinal plant that has been used for a long time in India and Sri Lanka (Subasinghe and Het-tiarchchi, 2015). Microbes as organism associated with forest plants also contribute to produc-ing active ingredients that func-tion as an alternative medicinal substance. Since the world first discovered the million-dollar an-ticancer drug, derived from the active ingredient paclitaxel (Taxol) which is isolated from endophytic fungi Pestalotiopsis microspora , that colonized the species of Tax-us wallichiana in the Himalayas (Maheshwari, 2006). Endophytic fungi of Ampelomyces sp. which

is isolated from flowers of medic-inal plants Urospermum picroides produces secondary metabolic functions as anti-pathogens sup-pressing gram-positive bacteria from the species of Staphylococ-cus aureus, S. epidermidis and Entercoccus faecalis (Aly et al ., 2008). Endophytic fungus of Col-lectrichum sp. which is isolated from the medicinal plants of Ar-temisia annua functions to inhibit anti-microbial species of Bacillus subtilis, Staphylococcus aureus, Pseudomonas sp., Rhizoctonia cerealis, and Phytopthora capisici (Lu et al., 2000). The endophytic fungus of Aspergillus fumigatus which is isolated from leaves of Cynodon dactylon has bioactive compounds that are capable of handling human pathogenic fungi such as Candida albicans, Trico-phyton rubrum and Aspergillus ni-ger (Liu et al., 2004). Ganoderma spp., a fungus commonly found in Indonesia’s tropical forests, has long been known as tradition-al medicinal ingredients in Asia to treat various diseases such as

Page 22: Press - Puslitbang Hut

6

Development of Agarwood Production Cluster Based on Microbe Technology

anti-tumor, anti-microbial, hyper-tension, diabetes, insomnia, etc. (Kues et al., 2015; Ferreira et al., 2015). Information on the poten-tial of agarwood-producing trees as the alternative medicinal sub-stance is still very minimal, in fact, the role of endophytic microbes in the species of agarwood trees is lacking in the literature.

The potential of natural agarwood production in Indone-sia which became a commodity in international trade is decreas-ing both in quality and quantity. Export of natural agarwood is limited by quota because Aqui-laria and Gyrinops are listed in Appendix II of CITES (Convention on International Trade in Endan-gered Species of Wild Fauna and Flora). The quota is no more than 700 tons per year (Santoso, 2015; Susmianto et al., 2013). The ex-ported agarwood quality tends to be low such as the abuk quality suitable only for agarwood oil and incense. In the last two decades, the alternative agarwood produc-tion was initiated by cultivating

agarwood-producing trees and it is estimated that more than 10 million trees have been planted throughout Indonesia (Santoso et al., 2014). Unfortunately, this activity is still sporadic and unor-ganized, so that the production of agarwood cultivation, as well as the distribution, is not regulated to supports agarwood farmers, and there has been no structured attempt from the central and regional governments to formu-late special regulations for agar-wood cultivation. To develop an agarwood cluster at the Regency level is constrained by many fac-tors, including forestry policies at the central, provincial, and Regency levels, which are now starting to change since the Act of No.23/2014 relating to forest-ry authority to be taken over by the province government. In ad-dition, in terms of financial man-agement, Regencys still rely on the very limited regional budgets which have to be distributed to all over government working units. The technical problem of the

Page 23: Press - Puslitbang Hut

7

Introduction

agarwood cluster development is in the technology of agarwood in-oculation that is compatible and consistent to support continuous agarwood production. Currently, there are many agarwood form-ing inoculants spread out which are not based on the results of laboratory research. Producing agarwood requires special exper-tise, especially in the fields of for-est microbiology, phytopathology biochemistry, and tree ecophysi-ology.

The capacity of human re-sources at regional level needs to be improved through practi-cal short training activities rang-ing from inoculation technology, harvesting techniques, product processing, agarwood oil refin-ing techniques and techniques of producing incense, prayer beads, bracelets, and many others. The immediate problems that will be faced are pest and disease attacks on cultivated agarwood trees.

Bangka Belitung Islands (Ba-bel) Province is one of the prov-inces possess high agarwood-pro-

ducing tree population in Indo-nesia. The appreciation of the communities living around the forest in Babel lead to high inter-est in cultivating agarwood-pro-ducing trees, and the local gov-ernment facilitated the develop-ment of agarwood in Babel. The Central Bangka Regency create a “Roadmap of NTFP (Non-Tim-ber Forest Products) develop-ment and declaring the Regencys of Central Bangka as agarwood clusters. One of the strategies of agarwood development involving many stakeholders at the provin-cial/regency level is by develop-ing agarwood clusters. The agar-wood cluster is an industrial busi-ness activity of one-stop services in which every business perpetra-tor and facilitator at the provin-cial/Regency level makes a real contribution in every step of the agarwood cluster development. Each government working unit contributes and plans to finance and implement the development of the agarwood cluster starting from the upstream, midstream and downstream industries.

Page 24: Press - Puslitbang Hut

8

Development of Agarwood Production Cluster Based on Microbe Technology

1.2. Objective

The objective to establish an agarwood cluster is to set the direction of the integrated devel-opment and to bridge the stake-holders involved in the develop-ment of agarwood cluster models in the Central Bangka Regency. Cluster development needs to be supported by the commitment of the stakeholders and those who provide budgets from each government working unit, such as building facilities and road in-frastructure, application-based training for building agarwood industry, and evaluating activities of agarwood cluster every year.

Agarwood cluster develop-ment might need a slight adap-tation because there is a plan in every provincial which are start-ing to implement the Act No.23 / 2014 regarding the authority of forest in the Province of Bangka Belitung.

Page 25: Press - Puslitbang Hut

9

2. PROFIL OF CENTRAL BANGKA REGENCY

2.1. Geographical Position and Population

Central Bangka Regency was established on February 25, 2003, based on Act Number 5 of 2003. The establishment of the Central Bangka Regency was accompanied by other Regency establishments such as the Cen-tral Bangka, South Bangka, West Bangka, and East Belitung Regen-cy. Administratively, the Central Bangka Regency was bordered by the other regencies/cities in the Bangka Belitung Islands Province, namely the Pangkalpinang City, Bangka Regency and South Bang-

ka Regency. The establishment of the Central Bangka Regency is not solely for province development, but also to fulfill the people wishes, as well as to accelerate regional development and the establishment of more effective and efficient public services.

At the beginning of its estab-lishment in 2003, Bangka Tengah Regency had an area of approxi-mately 2,156.77 Km2 or 215,677 hectares divided administrative-ly into 4 districts (Kecamatan), 1 sub-district (Kalurahan), 39

Page 26: Press - Puslitbang Hut

10

Development of Agarwood Production Cluster Based on Microbe Technology

villages (Desa) and 74 hamlets (Dusun). In 2013 the area be-came 2,279.11 km2 or 227,911,33 hectares. To accelerate regional development, in 2012 the status of several administrative regions were increased so that the ad-ministrative area became 6 dis-trict, 7 sub-districts and 56 villag-es. The latest data on the results of population registration for Central Bangka Regency in 2013 showed that the population was 162,525 people. Spreading across Koba District with 34,305 inhabit-

ants, Pangkalan Baru District with 37,029 inhabitants, Selan River District with 30,297 inhabitants, Simpang Katis District with 22,430 inhabitants, Namang District with 14,425 inhabitants, and Lubuk Besar District with 24,039 inhab-itants. Based on available data, in 2013 the population of men and women in Central Bangka Regen-cy was relatively balanced. Male population was 84,761 or around 52.15 % and the female popula-tion was 77,764 or 47.85 % with a difference of only 4.00%.

2.2. Social Economy

Economic growth in the Regency of Central Bangka dur-ing the last three years has de-creased. Initially, in 2011 the economic growth increased up to 6.48%, then in 2012 the econom-ic growth is slowly decreasing to 5.97% and in 2013 the economic growth decreased to 5.20%. The closing of the tin mining company PT. Koba Tin, as well as a number

of smelters and mining activities, brought a big impact on econom-ic growth in the Regency of Cen-tral Bangka. Mining sector con-tributes around 40% of economic growth (Source: Bangka Pos, 22 April 2015).

Page 27: Press - Puslitbang Hut

11

Profil of Central Bangka Regency

2.3. Soil and Hydrological Conditions

The land configuration in Central Bangka Regency con-sists of 4% land hill such as Bukit Mangkol with a height of up to 395 m. The soil types are Yellow-ish-brown Podzolic and Litosol comes from the Plutonic Stone of Acid. Furthermore, 51% of the configuration of land is chop-py and bumpy, with a yellow-ish brown podsolic association consisting of Kwarsit Sandstone Complex and Acid Plutonic Rock materials. Land configuration are valley/flat to choppy, with 20% of soil types including association Podsolic derived from complex sandstone and quartzite, with the remaining of 25% which are swamp and muddy/flat with soil types included in the Association of Alluvial Hedromotif and Glei Humus and Regosol Gray Young that comes from sand and clay deposits. In general, the condi-tion of pH soil in Central Bangka Regency in averages of 5, it con-tains tin and other minerals such

as quartz sand, kaolin and moun-tain rock. The Central Bangka Re-gency rivers are Selindung, Mesu, Selan, Kurau rivers and others.

Commonly, the upstream rivers are in hilly and mountain-ous areas flow down to down-stream in the sea coast. Rivers in Central Bangka Regency function as a means of transportation and have not been used for agricul-ture and fisheries because fisher-men prefer fishing in the sea. In the Regency, there are no natural lakes, but there is a wide area of a formerly mined tin ore that forms into an artificial lake locally called kolong.

Page 28: Press - Puslitbang Hut

12

Development of Agarwood Production Cluster Based on Microbe Technology

2.4. Flora and Fauna

The flora group from vari-ous vegetation of tropical forest species consisting of commer-cial and protected species such as ramin and agarwood from Themelaeaceae, the Dipterocar-paceae families such as Shorea , Hopea , and Vatica , as well as other species such as, mendaru, gelam, bintangur, mahang, ce-

mpedak air, pulai, bakau-bakau-an, and others. Wildlife found in Central Bangka province are deer, monkey, langur, wild boar, pango-lin, napu, ferrets, thrush, turtle, dove, sparrows, bats, eagles, and partridges. The Bangka island has no dangerous animal commonly found in Sumatera.

2.5. Climate Conditions

Based on the data from meteorological stations of Pang-kalpinang in 2013, the average temperature in Central Bangka Regency ranges from 24-31.6o C, while the average air humidity varies between 80-87%. The low-est rainfall was in August 2013, with an average rainfall of 251 mm. Central Bangka Regency has an “A” type of tropical climate with a large rainfall between 84.5 - 406.2 mm per month.

Page 29: Press - Puslitbang Hut

13

3. AGARWOOD CLUSTER DEVELOPMENT PROGRAM

3.1. Current Condition of Agarwood in Indonesia (SWOT Analysis)

Indonesia is the biggest nat-ural agarwood producer in the world, exporting at least more than 15 kinds of natural agar-wood especially from the genus of Aquilaria and Gyrinops, which have a dominant market such as agarwood chips, agarwood, incense, and accessories. The agarwood industrial value chain basically consists of cultivation of agarwood-producing trees, carving, processing, refining, and trading. At the level of traders/

exporters, they carried out col-lecting and storing (aging). While at the downstream level, a fur-ther process is developed such as chemical transformation, syn-thesis, and compounding to pro-duce ready products to use in the cosmetics industry like perfumes, incense, and others.

3.1.1. Strength

1. The potential and diversi-ty of biological resources

Page 30: Press - Puslitbang Hut

14

Development of Agarwood Production Cluster Based on Microbe Technology

of agarwood raw materials that have a market prospect of 15 species have been ex-ported, with specifications mixed in the Malaccensis, Gyrinops dan Filaria.

2. The main supplier in the world trade of agarwood such as resinuous agarwood, agarwood oil, incense/hio, decorative and accessories.

3. The existence and progress of agarwood production centers in various regions in Indonesia with comparative advantages in accordance with land and agro-climate conditions.

4. The species diversity of agarwood-producing tree that has been produced commercially.

5. The existence of industry producing derivative prod-ucts of agarwood with high-er added value.

6. Human resources and the accessibility of information

of Science and Technology at various universities, re-search and development institutions, as well as pri-vate sector, engaged in the upstream and downstream industry of agarwood (culti-vation, processing and ma-chinery/ equipment).

7. Awareness and determina-tion of all stakeholders to improve the competitive-ness of agarwood produc-tion business.

3.1.2. Weakness

1. Crop cultivation is mostly a side business, with scattered planting locations and a rel-atively small scale business (10 - 5000 agarwood-pro-ducing trees).

2. Most of the cultivated agar-wood products produced and traded with low added value.

3. Production practices (cul-tivation, post-harvest, and refining technology - use of

Page 31: Press - Puslitbang Hut

15

Agarwood Cluster Development Program

equipment and processes ) are not standard and not op-timal leading to less efficient which creates a low produc-tivity quality of raw materi-als in agarwood oil products.

4. The price level and fluctua-tions as well as poor trade system giving lack incentives for agarwood farmers to im-prove quality.

5. Unfair competition between business agents, especially traders/exporters

6. Limited access to business financing sources and limit-ed funds for the agarwood industry.

7. Lack of government support in advancing and increasing the competitiveness of agar-wood cultivation in Indone-sian.

8. There has been no inter-est from national private companies to handle agar-wood business starting from the development of agar-

wood-producing planta-tions up to the processing in downstream industries.

9. The regulation of the natu-ral agarwood trading system which inhibits and tends to be monopsonic.

10. Institutions at farmer levels and refiners are still weak.

3.1.3. Opportunity

1. The trend of world con-sumption of agarwood products and their deriva-tives are increasing > 4500 tons/year.

2. The tendency to use natural ingredients are preferred over synthetic materials (consumer behavior of back to nature).

3. The growth of the pharma-ceuticals, food, cosmetics, religious rituals and other industries that use agar-wood and their derivatives, which are now still being im-ported.

Page 32: Press - Puslitbang Hut

16

Development of Agarwood Production Cluster Based on Microbe Technology

4. The capabilities of human resources, science, and technology in producing agarwood products with higher added value.

3.1.4. Threat

1. Globalization in the world trade, as well as nontariff barrier issues (such as envi-ronmental issues).

2. The growth of competing countries that are also able to produce agarwood-pro-ducing trees, with better productivity, production ef-ficiency, and quality.

3. The appearance of synthetic substitution products or imi-tation of agarwood (fake)

4. Certainty and fluctuations in the exchange rate of rupiahs against foreign currencies.

5. Awareness of some business agent who is unprofession-al in carrying out business, who can turn down the “good name” of agarwood products in the world mar-ket.

6. The program carried out by various government agen-cies for agarwood develop-ment are still not integrated and coordinated and has not been focused leading to un-optimal results and im-pacts.

3.2. Apprehending Agarwood Cluster

Agarwood Cluster is a sys-tem/model of integrated agar-wood production business that is jointly managed by stakeholders at the provincial or regency level.

This integrated production busi-ness development of agarwood starts from a series of manage-ment from upstream to down-stream to provide sustainable

Page 33: Press - Puslitbang Hut

17

Agarwood Cluster Development Program

raw materials of agarwood, sci-ence, technology and innovation, production facilities, improve the capacity of human resourc-es, so that it awakens economic creativity to process a variety of agarwood efficiently, conduct le-gal product promotion and mar-keting activities, as well as mar-keting agarwood directly to the destination countries consumer (Figure 1)

Agarwood cluster contains at least five important activities conducted by all parties involved. Conservation of agarwood-pro-ducing trees species is the first activity that must be done so that the remaining natural resources

of agarwood at the present time can be saved and cultivate them in an arboretum or collection gar-den of the agarwood-producing trees species. Planting agarwood should be based on eco-region from the distribution of natural agarwood trees, considering that the formation of agarwood is strongly influenced by the intro-duced agarwood fungus, the site condition and the local climate.

The intended production of agarwood starts from the supply of agarwood-forming trees as raw material, conducting inocu-lation, harvesting, and processing of agarwood. The maintenance of agarwood-producing trees from

Figure 1. Development of agarwood clusters containing priority

Page 34: Press - Puslitbang Hut

18

Development of Agarwood Production Cluster Based on Microbe Technology

pest and disease is a critical point for the agarwood cluster activi-ty. Research in inoculation tech-nology must still be carried out to obtain effective and efficient inoculation technology so that each agarwood-producing tree that has been planted and inocu-lated can produce agarwood with acceptable quality to the market. Maintaining the health of agar-wood-producing trees is a prior-ity so that tree growth becomes optimal, up to time when the tree ready to be inoculated. For this reason, prevention of pests and diseases is preferred over eradi-cation efforts, because the erad-ication will not be effective. Mar-keting is the last step of the agar-wood cluster activity, without simplification of the regulation in the trading system of agarwood cultivation, the agarwood cluster activities will not bring benefit to the wider community.

The promotional activities for agarwood products are with-in the marketing activities. Pro-motion is carried out by partici-

pating in exhibitions at national and international levels. The role of the national private sector in agarwood investment will help to accelerate the development of agarwood clusters from upstream to downstream industries. Pro-motion can be in the form of designing a website about agar-wood products and introducing agarwood clusters in Central Bangka Regency. The website should be made in various lan-guages (English, Arabic, Manda-rin, Japanese, Korean, Spanish, French, and German). Anoth-er activity is to make a series of FGDs (focus group discussions) and direct exhibitions at the In-donesian Embassy of the export destination countries. Agarwood traders in export destinations countries are invited by the Indo-nesian Embassy to participate in investing in the agarwood clus-ter activities. The agarwood ex-hibition does not only introduce agarwood products from Indone-sia, but it is possible to do direct marketing transactions with agar-

Page 35: Press - Puslitbang Hut

19

Agarwood Cluster Development Program

wood traders at the local Indone-sian Embassy. For example, every year the Republic of China holds an international agarwood exhi-bition, one of which is in the city

of Guang Zhou. This exhibition is a big showcase to introduce and promote agarwood products from the agarwood cluster of the Central Bangka Regency.

3.3. Agarwood Cluster: One Stop Services

The development of Agar-wood cluster starts from the supply of raw materials for agar-wood trees based on area and number of trees according to the target programmed in the agar-wood cluster roadmap (Figure 2). Some of the questions that will be raised are, what tree species that will be developed? What is the planting system, will it be monoculture or agroforestry? Is

growth of planted trees are opti-mal based on the diameter class and age of the trees? Where will the agarwood tree be planted as part of the agarwood cluster? Does the location is in a single landscape? How to keep agar-wood-producing trees healthy and what techniques will be used to prevent pests and diseases. Those are the question that may arise at the field. All activities in

Figure 2. Stages of the process in developing agarwood cluster

Page 36: Press - Puslitbang Hut

20

Development of Agarwood Production Cluster Based on Microbe Technology

the upstream cluster require sub-stantial investment and need to be provided annually for plant maintenance.

The next important process is the selection of the agarwood inoculation technology that capa-ble to produce acceptable qual-ity of agarwood for international market at competitive prices. The inoculant should be made of bio-logical material comes from nat-ural resources capable inducing agarwood formation that have been existing in natural forests. Agarwood inoculants trial must be conducted from the beginning on a limited scale to avoid many unsucessful inoculated agarwood trees. Determining the right technology and type of inoculant provide certainty and security to all owners of agarwood-produc-ing trees.

The selection of inoculation technology of agarwood is based on the inoculant produced by a competent research laboratory with the support of experts in

the field of microbiology in for-estry. The valuation of quality and effectiveness of agarwood inoculants must be take into ac-count of economic aspects, i.e how much is the cost of inocula-tion per agarwood tree produced and how much is the economic value of the agarwood harvest. What types of agarwood inocu-lants are used (biology, chemis-try, and physics)? Where can the agarwood inoculants be obtained easily? Is the inoculation tech-nique effective and efficient? All of the above questions must be answered first in the agarwood cluster management so that the implementation of cluster devel-opment is in line with the oper-ational standards, and so that there isn’t any doubt because the inoculants used for the agarwood have been tested and proven to produce agarwood desired by the market.

The provision of free agar-wood inoculants needs to be fa-cilitated by the central/regional government and also the support

Page 37: Press - Puslitbang Hut

21

Agarwood Cluster Development Program

of private national companies who invest in the agarwood in-dustries. Agarwood farmers, in general, are unable to produce agarwood inoculants for agar-wood-producing trees that have been planted. With the system of “public core plantation”, it is hoped that the agarwood farm-er’s business can be done through a mutual beneficial on both par-ties, farmer dan company. Har-vested agarwood productions will be delivered to processing companies with competitive pric-es in accordance with the quality of agarwood produced.

The availability of agarwood raw materials is a key factor in the establishment of the agar-wood industry. The supply of agarwood raw materials is car-ried out through the production of superior agarwood seedlings and mass planting in one cluster. Figure 2 shows themost common planted species of agarwood-pro-ducing trees is Aquilaria malac-censis. The Agarwood-producing tree species recommended for

planting are A. microcarpa, A. beccariana, and A. hirta. The provision of seed and seedling of those species is the responsibility of Plantation and Forestry Office (Dinas Perkebunan dan Kehutan-an) at the Regency level as the main stakeholders in cluster de-velopment (Figure 3).

The agarwood cluster de-mands continuity of intense col-laboration between goverment working unit at the provincial/regency level, not only for coor-dination but also the financing commitments provided each year from the provincial/regency budget in Bangka Belitung which plays a crusial role in the coordi-nation of stakeholder planning.

The role of Agency for Re-gional Development (Bappeda) both at the provincial and regen-cy levels helped plan and allocate budget for cluster activities from each goverment working unit. The Department of Forestry focus-es on preparing land and seeds/seedlings of agarwood-produc-

Page 38: Press - Puslitbang Hut

22

Development of Agarwood Production Cluster Based on Microbe Technology

ing trees for the farmers group. The tree registration could be carried out gradually and later on, the tree registration will be carried out by an online system.

The needs of agarwood raw materials have been programmed from the beginning such as to produce agarwood chips, agar-wood oil, or agarwood herbs. The Department of Industry fo-cuses on processing agarwood and its derivative products. This activity requires not only specific

equipment but also the expertise of trained workers in the unit of agarwood processing under the coordination from the Depart-ment of Industry. Meanwhile, The Department of Trade conducts activities in the downstream, es-pecially concerning promotion, trade systems, and marketing of agarwood products. The Depart-ment of Trade should create web-sites for the promotion in various languages, outlets at the Regen-cy/provincial level, and even gal-leries in Jakarta. In addition, the

Figure 3. The role of stakeholders in the institutional management of the agarwood cluster

Page 39: Press - Puslitbang Hut

23

Agarwood Cluster Development Program

promotion of agarwood products can also be accomplished every year in collaboration with the Indonesian Embassy/Consulate General in the targeted consumer countries of agarwood.

The Forestry Research De-velopment and Inovation Agen-cy (FORDIA) responsible to carry out technological research to overcome the problems faced in the agarwood cluster (Figure 4). Currently, there are five top-ics that require technology in the agarwood cluster, which are the selection of superior seeds, in-oculation technology, pests and diseases, grading systems, and harvesting techniques. FORDIA will provide the best recommen-dations to achieve the production target of agarwood cultivation in the cluster system.

Coordination and research collaboration between FORDIA and the Forestry Research Insti-tute in Palembang as well as the University of Bangka Belitung must be carried out start from

the beginning so that the task allotment and human resources need could be fullfilled to con-duct research focus in the agar-wood cluster of Central Bangka Regency. Funding is allocated by each institution according to the research program listed in this agarwood cluster document (Fig-ure 5).

The input of technology can also be done through applica-tion training needed in the up-stream-downstream industry of agarwood which can be used as a routine activity in the agarwood cluster. Human resource capabil-

Figure 4. Technology input in the agarwood cluster

Page 40: Press - Puslitbang Hut

24

Development of Agarwood Production Cluster Based on Microbe Technology

ities in the agarwood cluster will be more specific in every activity, ranging from nursery, planting, inoculant production, inoculation techniques, product processing, promotion, and marketing.

enerally, the promotion and marketing activities are cru-cial which will be faced in the agarwood cluster. The guidelines from the agarwood cluster must be clear, in what kind of product segment that will be focused on. Stakeholders from the national private sector is expected to in-vest in the agarwood industries. The agarwood farmer groups are an important stakeholder for the

supply of raw materials for agar-wood which will be accommo-dated by private companies with competitive selling prices. Cre-ative economy of forestry must begin to open up the prospects of products that will be accepted by the international market. Will the agarwood cluster in Bangka Belitung become a tourist site (ecotourism) which will promotes various kinds of agarwood prod-ucts and their derivatives.

Figure 5. Capacity Building needed in the development of agarwood cluster

Page 41: Press - Puslitbang Hut

25

Agarwood Cluster Development Program

3.4. Strategy

3.4.1. Main Strategy

1. Development of Agarwood Cluster. The Development of Agarwood Cluster requires a “champion” enterprener and companies, with the criteria (a) engaging in the manufactures of value add-ed in agarwood cultivation as well as an exporter, (b) have a strong relationship with all components of the stakeholders in the country and business networks in the global market, (c) has commitment, concern and motivation towards the de-velopment of Indonesian cultivated agarwood. The pattern of developing the agarwood cluster needs to be directed towards increas-ing competitiveness in the international market. Three major factors of competi-tiveness need to be opti-mized including the quality, cost, and delivery.

2. Determination of Flagship Commodities. Among the various export of Indone-sian agarwood products, resinous agarwood, agar-wood oil, incense, accesso-ries, and decorations need specific attention for further improvement in view of the performance and its impor-tant position on the world market.

3. Development of Produc-tion Centers and Territories of Agarwood Commodi-ties. The suitability of the agro-climate and socio-cul-ture (including tradition) of an area towards certain cul-tivated agarwood commodi-ties is crucial in the develop-ment of production centers. Support to easy access to production facilities will in-crease the productivity and quality of raw materials for a production center

Page 42: Press - Puslitbang Hut

26

Development of Agarwood Production Cluster Based on Microbe Technology

3.4.2. Operational Strategy

1. Modernization of Produc-tion Equipment. Most agar-wood producers are small industries using simple equipment lead to un-ef-ficient and low quality of produced commodity. The usage of process equipment that meets the technical standards is believed to im-prove production perfor-mance while also improving quality.

2. Improvement of human resource capacity. Knowl-edge and expertise in the technical and management aspects of the production of small industry perpetra-tor in agarwood cultivation are usually inadequate. This has a direct impact on each production performance. Therefore, relevant and ap-propriate training programs are needed to overcome this problem.

3. Increasing and Stabilizing the Quality of Cultivated Agarwood Products. Devel-opment and application of standard of production pro-cesses, tools, quality and price in accordance with market demand, need to be pursued immediately. Therefore, support from all stakeholders are needed to shape all of these standards.

4. Product Price Increase and Stabilization. The level and price fluctuations of essen-tial oil products, among oth-ers, are determined by the balance of supply & demand in the world. Therefore, it is expected that the govern-ment and exporters will be more intensive in providing guidance, counseling, and information to agarwood farmers to anticipate the in-stability conditions and de-mand of the world market.

5. Strengthening for the Cul-tivated Agarwood Farmers

Page 43: Press - Puslitbang Hut

27

Agarwood Cluster Development Program

Institution. Almost all agar-wood farmers have a weak bargaining position against various parties. The estab-lishment of an institutional group of agarwood farmers can improve access to busi-ness capital and markets.

6. Diversification of Agarwood Products on the Horizontal and Vertical Scale. Devel-oping a prospective on agar-wood product derivatives is needed to increase varieties and export market share. In addition, the development of agarwood derivative products is also needed to maximize the added value of Indonesia’s natural raw material. This is achieved by utilizing the research results from research and develop-ment institution and univer-sities through dissemination to business perpetrators.

7. Network Development. Co-operation between stake-holders through the estab-

lishment of the Indonesian Agarwood Forum (FGI), as well as synchronization and harmonization of cross-sec-toral policies and programs that support the develop-ment of agarwood, will pro-duce strong synergies for the development of agar-wood industries.

Page 44: Press - Puslitbang Hut

28

Development of Agarwood Production Cluster Based on Microbe Technology

Page 45: Press - Puslitbang Hut

29

4. AGARWOOD CLUSTER LOCATION PLAN

Agarwood cluster and its de-velopment activities have been allocated in Central Bangka Re-gency and planned to have an area of 40 hectares. The agar-wood cluster location must be determined by the Decree of the Regent of Central Bangka Regen-cy. In the early stages, the De-partment of Plantation and For-estry with Watershed Manage-ment Institution had prepared a document of agarwood cluster roadmap in 2014, with the main activities listed in Table 1.

The roadmap document is appropriately planned and direct-ed, but there are obstacles in the

implementation process in the field and its funding. There needs to be a commitment among stake-holders in Central Bangka Regen-cy so that the implementation of the roadmap can be completed according to the expected target. The agarwood cluster location is one of the determinants in the success of the agarwood cluster development activities in Central Bangka Regency. Each stakehold-er will concentrate to conduct all activities at this location. The Decree by Central Bangka Regen-cy regarding gaharu cluster dec-laration needs to be informed to officials at the district and village

Page 46: Press - Puslitbang Hut

30

Development of Agarwood Production Cluster Based on Microbe Technology

level. It also needs to be social-ized to parties, especially at the field implementers, level includ-ing agarwood farmers, farmer

groups, and forestry/agricultural extension workers (Appendix 1).

Table 1. Indicators of agarwood cluster development based on roadm -ap documents compiled by The Department of Plantation and Forestry in 2014.

No. Target Target Indicator Output1. Data on the potential

of agarwood-produc-ing trees

Obtained data on the poten-tial of agarwood in Central Bangka Regency

Three research reports

2. Distribution of agar-wood-producing trees

Documentation of distribu-tion of agarwood-producing trees.Registration data for agar-wood producing trees.

One annual monitoring and evaluation report

3. Grand design of agar-wood development

The grand design document that has been legalized by the Regent

One grand de-sign document

4. Regulation on the development of agar-wood

Administrative arrangement on agarwood cultivation

Regents Regu-lation

5. Accompaniment/Counseling related to agarwood clusters and infrastructure assistance

Mentoring extension of-ficers to develop agarwood at the farmer group levelHelp of facilities and infrastructures obtained / inoculant material for the development of agarwood

Mentoring reports by ex-tension officers

Page 47: Press - Puslitbang Hut

31

Agarwood Cluster Location Plan

No. Target Target Indicator Output6. the price of agarwood

cultivationA grade and SNI The for-mation of the agarwood cultivation market

SNI document agarwood market in the Regency/province

7. Institution of agar-wood cultivation

Echelon IV BKSDA in Central Bangka Regencys

One Chief Sec-tion of BKSDA

8. Training about agar-wood for farmers

Training on cultivation, plant maintenance, agarwood inoculation techniques, and processing.

Increasing skills of extension of-ficers and agar-wood farmers

9. Development of effec-tive and efficient local agarwood inoculants

The superior genes of inoc-ulants forming agarwood comes from BaBel an effec-tive and efficient production techniques of inoculants

The central development of inoculants form-ing agarwood in Central Bangka Regency

10. The role of HKm, HD, and HTR in the devel-opment of agarwood commodities

Managing the agar-wood-producing tree types as the main raw material in the agarwood cluster Developing agroforestry patterns that are effective and efficient to increase societyincome

The central agar-wood forest is in HKM, HD and HTR areas

11. Product innovation, promotion and market-ing of agarwood

Increasing 'capacity build-ing' for product innovation, promotion, and marketingThe construction of facili-ties / infrastructures to sup-port the production process, promotion and marketing of agarwood

Central of agarwood trade at Regency and provincial level

Page 48: Press - Puslitbang Hut

32

Development of Agarwood Production Cluster Based on Microbe Technology

Table 2. Construction location of agarwood clusters in Central Bangka Regency

NO DISTRICT VILLAGE AREA (Ha)

1 Lubuk Besar Regency Trubus Village 10

2 Pangkalanbaru Regency Air Mesu Village 30

Page 49: Press - Puslitbang Hut

33

5. AGARWOOD CLUSTER DEVELOPMENT PROGRAM

The agarwood cluster devel-opment program in Central Bang-ka Regency is long term program

from 2015 up to 2030. The pro-gram is carried out with the fol-lowing planning stages :

5.1. Planting Program for Tree Producing Agarwood

The planting of agar-wood-producing trees needs to be carried out continuously in every planting season in Central Bangka Regency. This accom-plishment is a movement among the government of Central Bang-ka Regency, farmers living around the forest, trainers, and other stakeholders. Planting activities

in the cluster system will raise motivation to plant more because some farmers or group of farmers has been planting agarwood pro-ducing trees idenpendently since 2001, in Central Bangka Regency. The mass cultivation of agarwood was continued with mass planta-tion since 2006 through planting agarwood movement at the pro-

Page 50: Press - Puslitbang Hut

34

Development of Agarwood Production Cluster Based on Microbe Technology

vincial and Regency levels fol-lowed by mass planting inisiated independently by the farmers.

The agarwood-producing tree planting program is basi-cally a continuation of the effort to plant agarwood and is based on community empowerment in Central Bangka Regency. Al-though the impact of this plant-ing faced a resistancy (part of the society always compare the economic income from natural agarwood-producing tree and plantation of palm oil and rubber) however, in the future, this pro-gram will provide good prospects to the communities living around tin mine land and as anticipation that one day the tin mine will be terminated. Common people think that natural agarwood can be obtained by collecting, posses high quality, and expensive price. On the contrary, they think the results of the agarwood cultiva-tion do not yet exist and cannot be used as examples which can be replicated. This occurs be-cause, in Central Bangka Regency,

a lot of awful agarwood-forming inoculants are circulated around which no succesful warranty, and inconsistent result. The price of agarwood inoculants is unbeliev-able, while the inoculants sold are not even proven to produce agarwood which gives benefits to agarwood farmers. For this rea-son, we need examples of ‘success stories’ by fostering and cooperat-ing with innovators to develop a profitable image of agarwood business. The principle that was developed by the Central Bang-ka Regency Government from this movement was “ Planting agarwood-producing trees can be considered as deposits, while planting rubber and palm oil as daily income for everyday needs”. By planting agarwood-producing trees means that the residents have independently prepared for the future.

The species priority of agar-wood-producing trees are local species, namely Aquilaria malac-censis and A. microcarpa planted with an agroforestry pattern be-

Page 51: Press - Puslitbang Hut

35

Agarwood Cluster Development Program

cause it is classified as semito-larance. This plant can be mixed with rubber, palm oil, banana, coconut, fragrant of lemongrass, and other food crops (Figure 6).

This program has a target of at least 2,000,000 planted agar-wood-producing trees in the gar-dens, community forests, village forests or indigenous forest and managed sustainably. The agar-wood-producing tree is expected to spread throughout the Regen-cy and every year 200,000 trees can be planted. Planting agar-wood-producing trees in the yard and gardens near the agarwood farmer settlement is a suitable strategy to secure the produc-tion of agarwood as shown by the agarwood farmer community in the Assam Regency (India), with planting agarwood-produc-ing trees as a yard fence between their neighbor’s house. It is es-timated that the population of A. malaccensis agarwood trees planted exceeds up to 10 million trees in Assam, India.

Figure 6. Aquilaria malaccensis and Citronella spp.

To record the population of agarwood-producing trees Cen-tral Bangka Regency, the Depart-ment of Plantation and Forest-ry Service coordinates with the South Sumatra Natural Resources Conservation Institution (Balai Konservasi Sumber Daya Alam) to

Page 52: Press - Puslitbang Hut

36

Development of Agarwood Production Cluster Based on Microbe Technology

implement the Director General of Forest Protection and Nature Conservation Regulation Num-ber: P.25 / IV-SET / 2014 concern-ing Procedures of registrasion of Agarwood Cultur/Cultivation.

This regulation relates to the role of CITES as an international orga-nization in Geneva (Switzerland) which controls the trade in agar-wood from the species of Aquilar-ia and Gyrinops.

5.2. Development Program for Agarwood Inoculation

Agarwood-producing trees planted at the time of initiation have already in suitable size for inoculation, in fact, some of them are already in production. Opti-mal inoculation could be started when the trees is 6 years old or 20 cm in diameter. In this agarwood development program, inten-sive inoculation will start around 2017 for the 2010-2014 planting year and will begin to harvest in 2020. With a total of 1,500,000 tree trunks, and harvested stem of 150,000 trees/year, with an av-erage of 4kg agarwood/stem, the production of agarwood in Cen-tral Bangka Regency will reach around 600 tons per year.

The process of inoculation takes a long time until it reaches the formation of resinous agar-wood on the trees. The inocula-tion can also fail so that plants failed to produce agarwood due to various factors including tech-niques and types of environmen-tal inoculation. The inoculation technique that will be developed is a biological technique that uses fungal microorganisms to stimu-late plants to produce agarwood. In the early stages, the superior and high-quality patented inoc-ulant from Research and Innova-tion Agency are used. Later on the production of local superi-or inoculants will be produce in

Page 53: Press - Puslitbang Hut

37

Agarwood Cluster Development Program

Central Bangka Regency from the result of the research and devel-opment activities in the cluster.

Development of agarwood clusters in Central Bangka Regen-cy will spur a massive increase of agarwood trees population planted on land belonging to the

farming community. The addition of this population will also open opportunities for the production and trade of inoculants. For this reason, it is necessary to provide superior inoculants that have been tested and certified to pro-tect the public from irresponsible inoculant speculators.

5.3. Development Program for Agarwood Diversification Product

The development of agar-wood cluster in Central Bangka Regency must also be supported with giving a construction of the agarwood processing industry. It is consistent with the vision and mission development on both medium- and long-term, in order to actualize the Central Bangka Regency as a cluster on regional economic growth, increasing the value and to improve the welfare of society, also to increase local revenue.

Essentially this cluster devel-opment is trying to put on add-

ed-value of agarwood as much as possible for the importance of public welfare in Central Bang-ka so that later on various types of processing industries ranging from primary industries to the derivatives industry and sewage treatment industries will devel-op. In the initial stage, the agar-wood oil refining industry will be constructed, and subsequently the wood waste processing in-dustry (such as hio and insect re-pellent) and derivative industries (such as perfume, soap, and tea) will follow. The development of the processing industry will also

Page 54: Press - Puslitbang Hut

38

Development of Agarwood Production Cluster Based on Microbe Technology

pursue market developments by developing new and innovative products.

The development of the agarwood processing industry is also carried out based on the

community so that it can maxi-mize its benefits to improve the community’s welfare. In this agarwood cluster, home indus-tries will be developed involving small and medium enterprises and cooperatives.

5.4. Marketing Development Program

The marketing aspect is one of the most important elements in the stages of the downstream in-dustry development. The success of the marketing aspect could be the key to increasing motivation of farmers and the business world of agarwood. Hopefullu, Central Bangka Regency control and hold strong bargaining position in the local and international agarwood markets (exports). In general, this marketing development program will be carried out through prod-uct development, promotion, and exhibitions as well as network de-velopment.

Promotion and exhibition are achieved both at the local,

regional, national or and interna-tional levels. At the local level, could be accomplished through development exhibitions. Fur-thermore, agarwood promotion should actively participate in ex-hibitions and promotions at the provincial and national stages either independently or integrat-ed with other development ac-tivities. Central Bangka Regency should actively pervade export markets through promotion and exhibitions in countries of the Middle East, Mainland China (Bei-jing, Guang Zhou, Hong Kong), South Korea, Japan or Singapore.

To support this marketing development program, a net-

Page 55: Press - Puslitbang Hut

39

Agarwood Cluster Development Program

work development will be carried out both nationally and interna-tionally. This network needs to be institutionalized covering govern-ment and non-government agen-cies and the business world. At the local stages, an active role is needed from the Department of Industry, Trade, Cooperation, as well as Small and Medium En-trprices. The development of this marketing network also involves the Ministry of Trade, Ministry of Industry, embassies and trade consulate while outside the gov-ernment, network marketing in-volves associations such as the Indonesian Agarwood Associa-tion (ASGARIN, Asosiasi Gaharu Indonesia), Agarwood Farmers Association (APEGA, asosiasi petani gaharu), Young Indonesian Entrepreneurs Association (HIP-MI, Himpnan Pengusaha Muda Indonesia) and the Indonesian Chamber of Commerce (KADIN, Kamar dagang Indonesia).

The role of private national corporate is required in agarwood cluster, which is to perform accel-erated promotion and marketing of Agarwood products for export. Agarwood farmer groups could make positive and mutual benefi-cial cooperation between the two parties. Private sector with large capital can build infrastructure to support the downstream scale in-dustry commercially and export to foreign countries. With the ex-istence of a private national com-pany, the agarwood farmer group feels that there is a someone who protects the agarwood cul-tivation activities with confidence and commodities which can pro-vide welfare to the members of the farmer group.

Page 56: Press - Puslitbang Hut

40

Development of Agarwood Production Cluster Based on Microbe Technology

5.5. Agarwood Ecotourism Development Program

Another essential program in agarwood cluster is the devel-opment of the ecotourism area of agarwood. The main facilities or attractions offered are agarwood garden, cultivation process, inoc-ulation process, agarwood prod-ucts, and agarwood culinary. The business should be initiated by national private companies that need substantial business capital to manage a variety of agarwood products that are integrated with agarwood garden tourism activi-ties.

Ecotourism is an unspoiled natural regional tourism, where the ecotourism industry always maintains its quality, integrity, and preservation of nature and culture by guaranteeing in favor of the community. In line with the emergence of society’s tendency of back to nature, the potential of ecotourism in forest areas with high tourist attraction is a high

selling potential value as an ecot-ourism object so that it is feasible to be developed.

Ecotourism development is also carried out by the commu-nity. This is in line with the vision and mission of the development of Central Bangka Regency, both in mid and long term. Facilities and infrastructure that will be constructed can become tourism objects, both scenery, production processes, and culinary. The com-munity can be involved, such as in the attraction of cultivation, in-oculation, harvesting, processing, and culinary services. In addition, the community could also partic-ipate in the provision of support-ing facilities such as transporta-tion and homestay/hotels lead-ing to creation of investment and employment opportunities.

Page 57: Press - Puslitbang Hut

41

Agarwood Cluster Development Program

5.6. Planning Development

The development of the agarwood business should be planne carefully so that the im-plementation lead to good direc-tion, measurable, effective and efficient. Planning is carried out locally, with the annual and five year plan as the elaboration of the mid and long-term plans.

Agarwood cultivation is de-veloped based on the commu-nity so that the agarwood plant is owned by diversified farmer spreading throughout the Regen-cy. This development will face a big challenge to regulate the type of product and the sustainability of production because of the de-termination on the hand of the farming community. On the other hand, in the marketing aspect, it is necessary to have a continu-ous and sustainable supply both in quantity and quality. Central Bangka needs to regulate so that market demands and a sense of justice among producers (farmer groups or cooperatives) can be

fulfilled.

Planning is a number of predetermined activities to be carried out in a certain period in order to achieve the stated objec-tives. The planning contains ele-ments such as previously defined activities, the process and the re-sults that need to be achieved to make Central Bangka Regency an agarwood cluster development. In this case, planning includes:

1. As a guideline for the direc-tion of activities in achieving goals.

2. As a basis for managing tasks and authority for each element involved in the ac-tivity

3. As a working guideline for every apparatus

4. As a measurement of the effectiveness or failure of a task, so it is known any time on the accuracy and delay of work.

Page 58: Press - Puslitbang Hut

42

Development of Agarwood Production Cluster Based on Microbe Technology

5. As a data compilation ma-terial for work balance to occur.

6. As compilation materials for the preparation of priorities both targets and activities

In the framework of devel-oping agarwood in Central Bang-ka Regency, the steps in plan de-velopment include:

1. Measured assumption. Agarwood development in Central Bangka Regency is based on true and measur-able assumptions.

2. Identifying potential. Prepa-ration of agarwood devel-opment programs needs to consider the potential resource of natural, tree species of agarwood, inoc-ulant types, human resourc-es, product processing, and marketing.

3. Describing the specific po-tential. The specific poten-tial has to be more observed specifically and more opera-tional for natural agarwood and cultivation.

4. Determining the criteria of assessment. This step is tak-en to measure the target achievement on production, processing, and marketing.

5. Arranging and setting goals. Arranging goals is a logical description of the agarwood development program.

6. Designing strategies for achievement. It is created in accordance with the poten-tial that has been formulated and developed. Strategies in the form of perspective, ob-jective, pre-assessment (a diagnostic assessment) of activities to be carried out and post-assessment.

7. Organizing management systems. Organized manage-ment system for achieving targets.

8. Carrying out a trial program. The program that has been created, carried out in the trial with the aim to evaluate the effectiveness of instruc-tional strategies, program benefits, the accuracy of the

Page 59: Press - Puslitbang Hut

43

Agarwood Cluster Development Program

tools and the effectiveness of the management system.

9. Improving the program. Pro-gram improvement is car-ried out based on feedback

from the experience of ap-paratus, agarwood farmers and agarwood entrepre-neurs, the program will be-gin in 2016.

5.7. Human Resource Development and Improvement Program

Central Bangka Regency is trying to catch up in developing human resources through the de-velopment of excellent education and training. With the implemen-tation of formal and non-formal education, training, and coun-seling, it is expected to provide benefits in an effort to improve human resources both govern-ment apparatus, the community and the business community.

Human source power (HR) is an important factor as pro-gram implementers so that the objectives of natural resource management can be achieved properly and correctly. The goal in creating Central Bangka Regen-

cy into agarwood cluster devel-opment requires a good amount of competent human resources. The general character of human resources needed is noble en-dowments; have high responsi-bility; dare to bear the risk; highly dedicated; want to work hard; have high integrity; has the spir-it of Pancasila, have pride and love the Indonesian homeland. In addition to these general condi-tions, there are special conditions in accordance with the functions and responsibilities that must be carried out. These special condi-tions are as follows:

1. A person who is careful can manage natural agarwood

Page 60: Press - Puslitbang Hut

44

Development of Agarwood Production Cluster Based on Microbe Technology

resources, the human re-source, and all the existing assets properly, to produce agarwood with great qual-ity and adequate quan-tity. It is specifically for a broad-minded management expert is who also acts as a supervisor. Knowledgement in Science forestry and tech-nology that supports the successful management of resources must also be pos-sessed;

2. Source human resources (HR) with special knowl-edge are also very neces-sary, silvicultural experts who master the ins and outs of agarwood tree cultiva-tion from starting to deter-mine the appropriate area (along with its engineering), cropping patterns, nurser-ies, planting, maintenance, protection and selection of techniques, tools, materi-als, and methods that agar-wood trees that have been defined as the type of trees

planted can grow properly, can produce agarwood with quality and quantity high;

3. Human resource who mas-ters the technology of cul-tivation of agarwood, start-ing with the acquisition of biological sciences as a basis for the selection of seeds and forming best inoculant for agarwood, multiplying inoculant, storing inoculant, method and timing in put-ting inoculant to the trees, maintaining inoculant in a tree that will undertake the success of agarwood forma-tion in the stem;

4. A human resource who mas-ters in harvesting agarwood so that it is efficient and ef-fective, handling post-har-vest and ways on how to get added value for agarwood with low quality ;

5. A human resource who masters in product market-ing strategy is necessary, including marketing tech-niques and strategies;

Page 61: Press - Puslitbang Hut

45

Agarwood Cluster Development Program

6. The support from experts in agarwood research is also necessary for the develop-ment and improvement on the types of tree quality and inoculant analysis, also re-search in the development and improvement results of the quality and quantity of agarwood and its deriva-tives;

7. Extension officers in escort-ing agarwood farmers in the field are needed to ac-company and guide agar-wood farmers from early planting, maintenance and harvesting of agarwood tree with adequate quality and quantity;

8. Skilled technical experts are needed to prepare all research and development needs for cultivating the types of agarwood trees and agarwood products and their derivatives;

9. Field officers in cultivating, harvesting and processing of products are also necessary;

10. Cleaning staff is no less im-portant to always maintain the sanitation of all assets so that they are always in clean condition and ready to use.

The Agarwood farmers are also essential human resources because they are the leaders in the development of agarwood. Agarwood farmers must always be guided and protected in or-der to advance in the knowledge of all the income and outcome of agarwood starting from the field preparation, tree cultivation techniques, cropping patterns, maintenance methods, inocu-lation techniques, harvesting, and product marketing. The role of the government is very much needed to prosper agarwood farmers in Central Bangka Regen-cy. Especially through the promo-tion of production and market protection. The need for each hu-man resource is apprehensive on expertise, functions, and respon-sibilities.

Page 62: Press - Puslitbang Hut

46

Development of Agarwood Production Cluster Based on Microbe Technology

5.8. Institutional Development and Consolidation Program

Agarwood development in Central Bangka Regency already has a social principle in the form of strong commitment from de-velopment actors. Based on the Governor Decree Province of Bangka Belitung Islands Num-ber: 188.44 / 37 / DFS / 2 009 and Decree of the Director-Gen-eral on Rehabilitation and Social Forestry, Ministry of Forestry No. SK. 22 / V-BPS / 2010 concerning the determination of the types on National Non-Timber

Superior Products and the Location of Agarwood Cluster Development on June 18, 2010, Central Bangka Regency as the National Agarwood Cluster De-velopment. However, based on the fact the development of agar-wood cultivation faced obstacles, that is the inclusion of the Aq-uilaria genes in CITES Appendix II. As it is known, this status is actually caused by the rarity of A. Malaccensis in nature which

should not be related to agar-wood cultivation. Therefore, it is necessary to review this status either by deregulating, come up with new regulatory or special regulations regarding the cultiva-tion of agarwood.

Furthermore, the institu-tions that need to be compiled include institutions and organi-zations, work relations between institutions, as well as regulations and legislation that are able to the outcome the basis for cer-tainty in the agarwood business. Currently, the local government institution that handles the de-velopment of agarwood is the Department of Forestry and Plan-tation of Central Bangka Regency. Coherent with the development of activities, in the future, the role of industry, trade, cooperatives and SMEs (Small and Medium En-terprises) will be needed, as well as training and counseling.

Page 63: Press - Puslitbang Hut

47

Agarwood Cluster Development Program

At the farmers/producers level, economic institutions can be formed in stages ranging from farmer groups, associations, and business entities.

5.8.1. Formation of farmer groups

The formation of this group is based on the interests and needs of mutual trust from group members so that farmers can work together in groups and later on they could expand as self-sup-porting groups. An indicator that shows the process of forming farmer groups has taken place are:

1. The farmer groups are able to carry out an inventory of biophysical and socio-eco-nomic potential in the re-gion

2. The farmer groups are able to identify problems and steps up to solve them

3. The farmer groups know the benefit of doing business and wants to do it inde-

pendently.

4. The farmer group is able to develop a forest and land management plan for both short-term plans such as a Definitive Group Plan (RDK) and a Definitive Plan for Group Activities (RDKK), mid-term and long-term plan.

5. The farmer group has a concept of a plan for profit sharing for both timber and non-timber.

6. Farmer groups are able to do business independently

The farmer groups that have been formed can be classified into four levels, explicitly begin-ner, intermediate, mid-groups and the main groups.

1. Beginner groups are groups that have just been formed, arranged in their manage-ment and work programs;

2. An advanced group is a group that is already pro-ductive and has funds;

Page 64: Press - Puslitbang Hut

48

Development of Agarwood Production Cluster Based on Microbe Technology

3. Middle groups, namely groups that are able to de-velop productive activities, to take advantage of revolv-ing capital and have a busi-ness that has a legal entity;

4. The main groups, are pro-ductive groups, can estab-lish business partnerships with parties and already have access to banking.

5.8.2. Formation of associations

Furthermore, the agarwood farmer groups that have devel-oped are encouraged to cooper-ate with other groups in the form of larger organizations called the joint groups or associations. The formation of group combina-tion/associations is based on the needs or interests of the group itself.

The benefits of combining groups are:

1. Gathering greater busi-ness capital, among others,

through merging assets be-tween groups

2. Increasing the scale of busi-ness, among others, through increasing the volume and area of business.

3. Aggregate bargaining po-sitions, among others, by increasing the ability to con-trol prices and reduce com-petition.

4. Increasing business efficien-cy and effectiveness, among others, through increasing production capacity and de-creasing production costs

5.8.3. Growing a business entity

The farmers or joint groups/associations are encouraged to establish formal economic in-stitutions or with legal entities, whether in the form of a limited liability company or a coopera-tive.

Page 65: Press - Puslitbang Hut

49

Agarwood Cluster Development Program

5.9. Information Systems Management Development Program

Agarwood development in Central Bangka Regency needs to be supported by science and technology- based on informa-tion system management and the latest technological innova-tions so that every action can be carried out quickly, accurately, measurably and planned. This is due to the development of agar-wood involving people scattered in all places; the spread of poten-tial land is mainly in the form of yards and fields; the existence of various age classes of plants; the existence of inoculation activities

and the variety of product types and involving many parties in-cluding farmers, entrepreneurs, and the government.

The information system management also needs to be spatial and dynamic. With spatial information, it can be described and explained in detail about the location of activities and plants, among others, tree deployment map, age class and status can be depicted. While a dynamic infor-mation system can record the progress of activities at any time.

5.10. Research and Development Program

Research and development will be listed on two main efforts, namely (1) cultivation of agar-wood-producing trees and inocu-lants forming superior agarwood which has high productivity and (2) developing markets based on

product diversity. In order to sup-port these efforts, conservation of local genetic resources, con-servation of agarwood-produc-ing plants, selection of agarwood mother trees and development of seed gardens are needed. This

Page 66: Press - Puslitbang Hut

50

Development of Agarwood Production Cluster Based on Microbe Technology

program is also implemented to support the achievement of Cen-tral Bangka Regency as an Agar-wood Research and Development Cluster in Indonesia.

In the early stages, it is nec-essary to implement the adop-tion of science and technology that had developed in Indonesia and other countries. The sourc-es of science and technology can come from research and devel-

opment institutions, including the Research and Development Cluster of Conservation and Re-habilitation from the Ministry of Environment and Forestry as well as public and private universities. Furthermore, it is expected that Central Bangka Regency can de-velop and master the science and technology of cultivation, pro-duction, processing, and market-ing of agarwood independently.

5.11. Evaluation and Supervision Program

Evaluation and supervision programs are one of the elements of management that need to be held to control programs and ac-tivities in accordance with what is expected and planned to achieve the objectives. This action is car-

ried out in technical, administra-tive and financial aspects. Evalu-ation will be carried out regularly and periodically, both monthly, quarterly, semester, yearly, and in five years.

5.12. Infrastructure Improvement and Development Program

Agarwood Cluster Develop-ment in Central Bangka Regency needs to be supported with an

infrastructure among others: (1) Office; (2) Laboratories; (3) Pro-cessing factory; (4) Product show-

Page 67: Press - Puslitbang Hut

51

Agarwood Cluster Development Program

room; (5) Plant demonstration plot (6) Installing energy. These infrastructure facilities need to

be constructed and completed in the initial period of the long-term plan, in stage I of 2015-2019

5.13. Independent Business and Funding Development Program

In the initial period to de-velop agarwood in Central Bang-ka Regency, the regional gov-ernment acquired development funding from the Regional Budget (APBD), which is originated from the General Allocation Fund (DAU) and the Distinct Alloca-tion Fund (DAK). In the mid-term,

Phase I will attempt on cooperat-ing with the Forest Development Financing Cluster (P3H), namely the Public Service Agency (BLU) in the Ministry of Environment and Forestry to provide loans to farmers, especially for inocula-tion purposes

5.14. Agarwood Derivative Product Development Program

Agarwood has a variety of benefits, but basically, agarwood can be grouped into four major benefits: (1) benefits in perfumes and cosmetics industry; (2) ben-efits in the health sector: herbs and medicines; (3) benefits in the field of religion; (4) other benefits

5.14.1. Processing and production of agarwood oil

Agarwood oil is the most expensive derivative product of agarwood in the markets of America, Europe, Middle East,

Page 68: Press - Puslitbang Hut

52

Development of Agarwood Production Cluster Based on Microbe Technology

India, Tibet, and China. The rea-son is, before being used as raw material for perfumes, agarwood must be processed first to get the oil and aromatic compounds con-tained in it. Oil refineries usually use steam or water distillation techniques to extract oil from the wood. To get agarwood oil by distillation of water, agarwood is soaked in water then transmitted into a place to evaporate until the oil comes out onto the container while the volatile aromatic com-pounds can be collected sepa-rately.

Steam power will cause ex-posure of plant cells so that the oil and aromatic compounds for perfume can appear. The water vapor will transmit the aromat-ic compound through a cooling place which makes it condensate again into liquid. The liquid con-taining a mixture of water and oil will be separated until a layer of oil is formed at the top and wa-ter in below. One of the methods used today is by supercritical CO2 extraction, which is CO2 liquid

formed due to high pressure. CO2 liquid functions as an aro-matic solvent used for extracting agarwood oil. This method is ad-vantageous because there is no residue remaining, CO2 can be easily evaporated when it turns to gas at normal temperatures and pressures.

The construction of agar-wood oil installations must be prepared. Production capacity and human resources skills (the extension officers and farmers) have to master the stages of agarwood oil refining process. At the initial stage, the factory build-ing needs to be constructed and continued with the assemblance of refining machine installation. The installation can carry out pro-duction trials until it can produce completely in the following year. Production capacity is designed to handle raw materials based on its annual harvest.

Page 69: Press - Puslitbang Hut

53

Agarwood Cluster Development Program

5.14.2. Industrial treatment of Agarwood Residue

Agarwood industry is a zero waste based industry. Agarwood product residue consists of sev-eral items: (1) hio; (2) incense/clover; (3) agarwood medicine. This product of residue is recom-mended as a home industry for agarwood farmers so that it is beneficial for farmers. This pro-gram can be implemented after the harvesting program of agar-wood has been done. Preparation of simple processing equipment must be prepared by relevant stakeholders. Escorting activities in growing the home industry will be financed by the State either through the APBN or APBD. In this case, the government of Central Bangka Regency seeks coopera-tion with various agencies, either the government or private sec-tors, including the Environmental Ministry of Life and Forestry, the Ministry of Industry, Ministry of Cooperatives and SME.

5.14.3. Product diversification

Product diversification means trying other products out-side of the main product. Agar-wood tree, like another tree, commonly consists of various parts, which is sought to produce other products that can increase income for farmers. Currently, the type of agarwood that has been useful is the leaf of A. ma-laccensis species which has been a benefit in making a tea drink. Another part is its tree bark which is used as a mixture of var-ious products. Roots, branches, and stems are also widely used as additional elements in household appliances and furniture

Product diversification, for now, is not yet the main activity but must be socialized so that the community can discern, under-stand and to carry out. Diversifi-cation products basically do not require large costs and special knowledge so that farmers can do it independently.

Page 70: Press - Puslitbang Hut

54

Development of Agarwood Production Cluster Based on Microbe Technology

5.15. Marketing Development Program

Marketing in the business world holds an important role, every effort will be meaningless if the results of operations can-not be marketed or marketed at an inadequate price. Likewise in the development activities of this agarwood, the marketing pro-gram result is determined by the continuation of this agarwood development program. For this reason, the marketing program must be secured and creating separate policies, for example by forming the agarwood marketing regulation.

Agarwood products can be shaped in a variety of products, namely the resinous agarwood itself which consists of agarwood oil, agarwood tea, agarwood soap, kemedangan, agarwood ash and so on. In marketing, the product that has quota is the res-inous agarwood which indeed has the highest value and agar-wood oil which is converted into

raw material that has been used into weight (kg). (Figure 7, 8, 9 dan 10).

5.15.1. Network Marketing Development

Currently, agarwood market-ing begins from the agarwood gatherers who directly sell to col-lectors. Then the collector sells to large traders or exporters. This marketing pattern of natural agar-wood is not suitable when ap-plied in the marketing of cultivat-ed agarwood. The development of agarwood cultivation needs to empower the farming communi-ty as producers while also being traders or entrepreneurs. Farm-er groups and associations are formed so that they are able to become intermediary traders. In a long term, a business entity is needed in both cooperatives and limited companies. The portrayal of agarwood network cultivation is described in figure 11.

Page 71: Press - Puslitbang Hut

55

Agarwood Cluster Development Program

Figure 7. Chips of Agarwood from Aquilar-ia malaccensis after three years of inoculation with Fusarium so-lani in Lingga, Riau Islands

Figure 8. The high economic value of agar-wood oil with a price range of USD 90-150/box.

Figure 9. Accessories of agarwood brace-lets that are cultivated which can be produced at the scale of the home industry

Figure 10. Agarwood soap produced from cultivated agarwood oil

Page 72: Press - Puslitbang Hut

56

Development of Agarwood Production Cluster Based on Microbe Technology

5.15.2. Development of agarwood standardization

Cultivated agarwood prod-ucts that are inoculated correctly, can imitate natural agarwood, it is proven with the 5-10% of nat-ural agarwood export quota are cultivated products, although the profile of the current cultivation products has not been widely recognized. This condition re-quires the agarwood cultivation to be introduced immediately through product standardization to strengthen the government-is-sued patent No. ID PD031630.

This activity can be coordi-nated with the Forestry Research and Development Center (P3H) and the National Standardization Agency (BSN). This activity needs to be implemented immediately after the community starts har-vesting the agarwood between the years of 2018-2019.

5.15.3. Promotions, Local, National and International Exhibitions.

Promotion is an activity to introduce a product to the pub-lic. Promotion can be through a variety of media, activities, and methods such as through exhi-bitions both local regional and nationally. This activity can be ensured in 2019 with a condition of fixed standardization that has been carried out.

Page 73: Press - Puslitbang Hut

57

Agarwood Cluster Development Program

Figure 11. Marketing flow of agarwood cultivation

Page 74: Press - Puslitbang Hut

58

Development of Agarwood Production Cluster Based on Microbe Technology

Page 75: Press - Puslitbang Hut

59

6. COORDINATION AND ALLOCATION OF ASSIGNMENTS IN AGARWOOD CLUSTER

Coordination is an easy word to say, but quite difficult to implement. The division of tasks between Government Working Unit can be done, it must be giv-en by the highest decision hold-ers in the Regency Government. The Cluster Program must be led by the Regent or Regional Secre-tary of the Central Bangka Regen-cy Government. The number one person in Central Bangka Regency will determine the continuity and success of the agarwood cluster program. The obstacles that may occur in the upstream to down-stream sectors can be found solu-

tions through various meetings and regular discussion between SKPDs. The regent can under-stand the progress of each SKPD starting from planting activities agarwood production processes, harvesting, processing, and mar-keting. The Regional Secretary (Sekda) functions as the daily leader who monitors the agar-wood cluster construction activi-ties in Central Bangka Regency.

This circulation of the agar-wood cluster activity flow is a con-tinuous production series (Figure 12). Agarwood cluster program is

Page 76: Press - Puslitbang Hut

60

Development of Agarwood Production Cluster Based on Microbe Technology

not a momentary project activity but needs special attention from its upstream to downstream. Without any sustainable activity, the development of agarwood cluster in Central Bangka Regency will be impaired or even fail.

Agarwood cluster is an inte-grated unit business from its up-stream to downstream. Indeed, in terms of funding, the APBD system is tight and limited, but by making cautious planning of the agarwood cluster development activities, it is not impossible to

integrate and share to one an-other, the key is good commu-nication between stakeholders. Regional Original Income (PAD) will determine how much the Central Bangka Regency’s annual budget is. The limited fund alloca-tion of the agarwood cluster will be an obstacle in its assembling. The solution of a limited budget is to open opportunities for do-mestic and foreign investors to invest their capital in developing agarwood commodities in Cen-tral Bangka Regency. Permitting mechanism for investors should be easier and remains in profit towards the Regency / Province, special incentives should be given to investors who want to invest in the field of forestry, so in case a closure of the tin mine happens in several locations on Bangka Belitung, it will not interfere with the economy of the community in Bangka Belitung Province.

This network describes the details of the agarwood cluster activities. Every SKPD can look in details of the networking ac-

Figure 12. Circulation of the flow of the agarwood clus-ter activity in central Bangka Regency

Page 77: Press - Puslitbang Hut

61

Coordination and Allocation of Assignments in Agarwood Cluster

tivities interlinked with other SKDP. The Plantation and Forest-ry Agency is an SKPD working in the upstream, together with BP-DAS, Bangka Belitung University, BKSDA, Farmer Groups, Exten-sion, BLI / BPK Palembang. Crit-ical points and activities of the agarwood cluster that are quite substantial can be undertaken on which parts are of concern to find a solution.

The activity matrix in the agarwood cluster, commitment, and contribution from each stake-

holder need to be compiled, so that the roles of each stakehold-er can be identified, for example over the next five years (Tables 3 and 4). From the results of the last meeting in Pangkalpinang on the implementation of the agar-wood cluster with stakeholders in Central Bangka attained an important commitment that will plan to begin in 2016 (Annex 2 and Annex 3).

Figure 13. Pyramid of Agarwood cluster development

Page 78: Press - Puslitbang Hut

62

Development of Agarwood Production Cluster Based on Microbe Technology

Remark:1 = upstream cluster activity;2 = the agarwood cluster activity in the middle;3 = downstream agarwood cluster activities;4 = registration/supervision activities by BKSDA from upstream and downstream

which further cultivation can be monitored by CITES

Figure 15. Network of agarwood cluster activities from upstream to downstream

Figure 14. Government Working

Page 79: Press - Puslitbang Hut

63

Coordination and Allocation of Assignments in Agarwood Cluster

Table3. Stakeholderactivitymatrix intheagarwoodcluster inCen-tralBangkaRegencyonafive-yearperiod(2016-2020)

No. ActivitiesStakeholders who are authorized to handle2016 2017 2018 2019 2020

1. Nursery 1 -5-10 1 -5-10 1-5-10 1 -5-10 1 -5-10

2. Planting 1 -5-10 1 -5-10 1 -5-10 1 -5-10 1 -5-10

3. Maintenance 1-5-10 1-5-10 1-5-10 1-5-10 1-5-10

4. Inoculant Production 1-8-9 1-8-9 1-8-9 1-8-9 1-8-9

5. Quality control of inoc-ulants

1-8-9 1-8-9 1-8-9 1-8-9 1-8-9

6. Circulation of inoculants 1-8-9 1-8-9 1-8-9 1-8-9 1-8-9

7. Inoculation process 1-10-11 1-10-11 1-10-11 1-10-11 1-10-11

8. Evaluate the results of inoculation

1-8 1-8 1-8 1-8 1-8

9. Harvesting 1-2-6-10 1-2-6-10 1-2-6-10 1-2-6-10 1-2-6-10

10. Carving 2-6-9-10 2-6-9-10 2-6-9-10 2-6-9-10 2-6-9-10

11. Preparation of facilities/agarwood industrial infra-structure

2-7-8-11 2-7-8-11 2-7-8-11 2-7-8-11 2-7-8-11

12 . Product processing 2-3-7-11 2-3-7-11 2-3-7-11 2-3-7-11 2-3-7-11

13 . Product diversification 2-3-7-11 2-3-7-11 2-3-7-11 2-3-7-11 2-3-7-11

14. Product quality control 2-3-7-11 2-3-7-11 2-3-7-11 2-3-7-11 2-3-7-11

15 . Promotion product 3-4-11 3-4-11 3-4-11 3-4-11 3-4-11

16. Product marketing 3-4-6-11 3-4-6-11 3-4-6-11 3-4-6-11 3-4-6-11

1 Office of Plantation & Forestry;

2 Department of Industry; 3 Department

of Commerce; 4 Ministry of Communica-

tion and Information; 5 BPDAS; 6 BKSDA;

7 BaBel Univ; 8 BLI / BPK Palembang; 9

extension agents; 10 Agarwood Farmer

Groups; 11 BUMD / Private Sectors

Page 80: Press - Puslitbang Hut

64

Development of Agarwood Production Cluster Based on Microbe Technology

Table 4. Stakeholder contribution to the investment value of agarf-woodinCentralBangkaRegency

No . StakeholdersAgarwood cluster investment matrix

(Rp. X 1000)2016 2017 2018 2019 2020

1. Plantation and Forestry Service

pm pm pm pm pm

2. Department of Industry pm pm pm pm pm3. Department of Commerce pm pm pm pm pm4. Ministry of Communication

and Informationpm pm pm pm pm

5. BPDAS pm pm pm pm pm6. BKSDA pm pm pm pm pm7 . Bangka Belitung University pm pm pm pm pm8 . Palembang BLI / BPK pm pm pm pm pm9 . Extension pm pm pm pm pm

10 . Agarwood Farmers Group pm pm pm pm pm11 . BUMD / Private pm pm pm pm pm

Page 81: Press - Puslitbang Hut

65

Coordination and Allocation of Assignments in Agarwood Cluster

Table 5. Stakeholder contribution to the investment value of agarwood in Central Bangka Regency

No . StakeholdersAgarwood cluster investment matrix

(Rp. X 1000)2016 2017 2018 2019 2020

1. Plantation and Forestry Service

pm pm pm pm pm

2. Department of Industry pm pm pm pm pm3. Department of Commerce pm pm pm pm pm4. Ministry of Communication

and Informationpm pm pm pm pm

5. BPDAS pm pm pm pm pm6. BKSDA pm pm pm pm pm7 . Bangka Belitung University pm pm pm pm pm8 . Palembang BLI / BPK pm pm pm pm pm9 . Extension pm pm pm pm pm

10 . Agarwood Farmers Group pm pm pm pm pm11 . BUMD / Private pm pm pm pm pm

Page 82: Press - Puslitbang Hut

66

Development of Agarwood Production Cluster Based on Microbe Technology

Page 83: Press - Puslitbang Hut

67

7. CONCLUTION

Agarwood cluster is a sys-tem/model of integrated indus-trial enterprises of agarwood (one-stop services) that are man-aged together between related stakeholders to provide support in the form of facilities, infra-structure, financing, input tech-nology, training for farmers, grad-ing system, promotions, and mar-keting. Agarwood clusters must be formulated based on simple and easy access, even though we must follow CITES Appendix II guidelines where the trade in agarwood is being controlled in-ternationally every year.

Agarwood cluster develop-ment in Central Bangka Regency is

planned to take 15 years. The cur-rent condition of agarwood clus-ters movement in Central Bangka Regency is still progressing slowly in its implementation, although the roadmap/masterplan docu-ment has been drawn up several years ago. Actual support from each stakeholder programmed from each SKPD involved needs to be compiled and its actual con-tribution to the APBD each year, so that the agarwood cluster ro-tation from each Regency can be done corresponding to the target. The leader of the agarwood clus-ter program should be led by a person who has techno entrepre-neur so that the upstream-down-stream agarwood industry can

Page 84: Press - Puslitbang Hut

68

Development of Agarwood Production Cluster Based on Microbe Technology

be achieved conformable to the target. The agarwood cluster with the development of creative economy from the role and self-help of the community can accel-erate the success of the agarwood upstream-downstream industry. The planned document of agar-wood cluster will not benefit the community in Central Bangka Re-gency if there are not any action plans, commitment, the involve-ment of stakeholders and tangi-ble implementation. The source of funds will be an obstacle if Central Bangka Regency relies on the regional budget funds. The source of the regional budget is limited and very strict and needs approval from the DPRD of Cen-tral Bangka Regency, which will face obstacles. The Central Bang-

ka Regency Government needs to open opportunities for investors, both from within and outside the country, specifically to develop agarwood clusters.

The first priority that needs to be done in the near future is to determine the best microbi-al-based agarwood inoculant in order to increase the production of cultivated agarwood. The agar-wood inoculation demonstration plot needs to be done to make several prototypes of agarwood products and its derivatives in small scale industries. Agarwood products produced by farmers must begin to be promoted and introduced in an exhibition on domestic and international mar-kets.

Page 85: Press - Puslitbang Hut

69

Conclution

ACKNOWLEDGMENT

We express our gratitude for the implementation of this activity to ITTO-CITES Phase II Year 2015-2016 which has helped the Agarwood Cluster Design in Central Bangka Regency. For this reason, we also thank our institu-tions for the R & D and Innovation Agency, Forest Research and De-

velopment Center, Center for Bi-otechnology Research and Forest Plant Breeding, Central Bangka Regency, Bangka-Belitung Prov-ince, Agarwood Farmers Group in Bangka Belitung, extension agents, agarwood practitioners, and all parties.

BIBLIOGRAPHY

Bangka Pos. 20.15. Pertumbuhan Ekonomi Bangka Teng-ah. Http://bangka.trib-unews.com/2015/04/22/pertumbuhan ekonomi-bateng-520-persen). Di-akses tanggal 22 April 2015.

Bappeda Kabupaten Bangka Ten-gah. 2014. Bangka Ten-gah Dalam Angka. Badan Perencanaan Pembangu-

nan Daerah, Statistik dan Penanaman ftodal (BAP-PEDA-SPft) Kabupaten Bangka Tengah. 386 pp.

Dinas Perkebunan dan Kehutan-an Bangka Tengah. 2013. Roadmap Pengembangan HHBK Kabupaten Bangka Tengah Sebagai Klaster Agarwood Tahun 2014- 2028. Kabupaten Bangka Tengah.

Page 86: Press - Puslitbang Hut

70

Development of Agarwood Production Cluster Based on Microbe Technology

Donovan, D.G., Puri, R.K. 2004. Learning from traditional knowledge of non-timber forest products: Penan Benalui and the autecolo-gy of Aquilaria in Indone-sian Borneo. Ecology and Society, 9:3.

Faizal A., Esyanti R.R., Aulianisa E.N., Irawati, Santoso E., Turjaman MT. 2016. For-mation of agarwood from Aquilaria malaccensis in response to inoculation of local strains of Fusar-ium solani. Tree-Struc-ture and Function. Springer. In Press. DOI: 10.1007/500468-016-1471-9.

Ferreira I.C.F.R., Heleno S.A., Reis F., Stojkovic D., Queiroz ft.J.R.P., Vasconcelos ft.H., Sokovic ft. 2015. Chemical features of Ganoderma polysaccharides with an-tioxidant, antitumor and antimicrobial activities. Phytochemistry 114:38-55.

Gao B-W., Wang X-H., Liu x., Shi S-P., Tu P-F. 2015. Rapid preparation of (methyl) malonyl coenzyme A and enxymatic formation of unusual polyketides by type III polyketide syn-thase from Aquilaria sin-ensis. Bioorganic & ftedic-inal Chemistry Letters 25: 1279-1283

Gao X., Xie ft., Liu S., Guo x., Chen X. 2014. Chromatograph-ic fingerprint analysis of metabolites in natural and artificial agarwood using gas chromatogra-phy-mass spectrometry combined with chemo-metric methods. Journal of Chromatography B, 967:264-273.

Karlina L., Uar N.I., Kusumo H.T., Santoso E., Turjaman ft., Nandika D. 2015. Propa-gation of sonic and ultra-sonic waves in agarwood trees (Aquilaria micro-carpa) inoculated with Fusarium spp. Journal of

Page 87: Press - Puslitbang Hut

71

Conclution

Tropical Forest Science (JTFS) 27 (3): 351-356

Karlina L., Putri N., Turjaman ft., Wahyudi I., Nandika D. 2016. ftoisture content effect on sound wave ve-locity and accoustic to-mograms in agarwood tree (Aquilaria malaccen-sis Lamk.). Turkish Journal of Agriculture and Forest-ry 40:1- 9. DOI:10.3906/tar-1511-74.

Kues U., Nelson D.R., Liu C., Yu Guo-Jun, Zhang J., jian-qin L., Wang X-C., Sun H. 2015. Genome analysis of medicinal Ganoderma spp. With plant-patho-genic and saprotophic life-styles. Phytochemis-try 114:18-37.

Lee, S.Y., ftohamed R. 2016. The origin and domestication of Aquilaria, an impor-tant agarwood-producing genus. In: R. ftohamed (ed.), Agarwood: Science Behind The Fragrance.

1-20 Pp. Springer. DOI. 10.1007/978-981-10-0833-7_1.

Lee, S.Y., Ng W.L., ftahat ft.N., Nazre ft., ftohomed R . 2016. DNA barcoding of the endangered Aquilaria (Thymelaeaceae) and its application in species au-thentication of agarwood products traded in the market. PLOS ONE. 1-21 Pp. DOI:10.1371/journal.pone.0154631.

Liu J.Y., Song Y.C., Zhang Z., Wang L., Guo Z.J., Zou W.X., Tan R.X. 2004. Aspergil-lus fumigatus CY018, an endophytic fungus in Cy-nodon dactylon as a ver-satile produce of new and bioactive metabolites. Journal of Biotechnology 114:279-287.

Lu H., Zou W.X, fteng J.C., Hu jun., Tan R.X. 2000. New bio-active metabolites pro-duced by Collectrichum sp., an endophytic fungus

Page 88: Press - Puslitbang Hut

72

Development of Agarwood Production Cluster Based on Microbe Technology

in Artemisia annua. Plant Science 151: 67- 73.

Maheshwari R. 2006. What is an endophytic fungus? Curr. Sci. 90:1309.

Nimnoi P., Pongsilp N., Lumyong S. 2010. Endophytic actin-omycetes isolated from Aquilaria crassna Pierre ex Lec and screening of plant growth promot-ers production. World J. fticrobiol Biotecnol 26:193-203.

Santoso, E. 2015. Valuasi teknolo-gi agarwood budidaya. Eds. ft. Bismark, ft. Turja-man, dan P. Setio. FORDA PRESS. Bogor. 168 Hal.

Siran S.A. dan Turjaman ft. 2010. Pengembangan teknolo-gi agarwood berbasis pemberdayaan masyar-akat. Pusat Penelitian dan Pengembangan Hutan dan konservasi Alam. Bo-gor.

Sitepu I.R., Santoso E., Turjaman ft. 2010. Fragrant wood agarwood: when the wild can no longer provide. Published by ITTO and FORDA. 60pp.

Subasinghe S.ft.C.U.P, Hettiarach-chi D.S. 2015. Short Com-munication: Characteri-sation of agarwood type resin of Gyrinops walla Gaertn growing in select-ed populations in Sri Lan-ka. Industrial Crops and Products 69:76-79.

Subiakto A., Santoso E., Turjaman ft. 2010. Production trial of agarwood plantation stocks by generative and vegetative propagation. Info Hutan VII:2. 219-224p.

Suharti S., Pratiwi P., Santoso E., Turjaman ft. 2011. Feasi-bility study of business in agarwood inoculation at different stem diameters and inoculation periods.

Page 89: Press - Puslitbang Hut

73

Conclution

Indonesian Journal of For-estry Research 8(2):114-129.

Susmianto A., Turjaman ft., Setio P (Eds). 2013. Rekam je-jak: agarwood inokulasi teknologi teknologi Badan Litbang Kehutanan. FOR-DA PRESS. 275 Hal.

Turjaman ft., Hidayat A., Santoso E. 2016. Development of agarwood induction tech-nology using endophytic fungi. In: R. ftohamed (ed.), Agarwood: Science Behind The Fragrance. 57-71 Pp. Springer. DOI 10.10007/978-981-10-0833-7_4.

Wang S-C., Wang F., Yue C-H. 2015. Chemical constit-uents from the perioles and leaves of Aquilaria sinensis. Biochemical Sys-tematics and Ecology 61: 458-461.

Wong Y F., Chin S-T., Perlmutter P., Marriott P.J. 2015. Evaluation of comprehen-sive two-dimensional gas chromatography with ac-curate mass time-of-flight mass spectrometry for the metabolic profiling of plant-fungus interaction in Aquilaria malaccensis. Journal of Chromatogra-phy A, 1387:104-115.

Page 90: Press - Puslitbang Hut

74

Development of Agarwood Production Cluster Based on Microbe Technology

APPENDIXS

Page 91: Press - Puslitbang Hut

75

Appendixs

Appendix 1. Central Banka Regent Decree regarding the Determination of the Gaharu Cluster Development Location in the Central Bangka Regency.

Page 92: Press - Puslitbang Hut

76

Development of Agarwood Production Cluster Based on Microbe Technology

Page 93: Press - Puslitbang Hut

77

Appendixs

Page 94: Press - Puslitbang Hut

78

Development of Agarwood Production Cluster Based on Microbe Technology

Page 95: Press - Puslitbang Hut

79

Appendixs

Page 96: Press - Puslitbang Hut

80

Development of Agarwood Production Cluster Based on Microbe Technology

App

endi

x 2.Develop

men

tofthe

Cen

tralBan

gkaAgarw

ood

PLA

NT

DEV

ELO

PMEN

TN

urse

ryPl

ant s

hape

and

are

a (f

or d

emon

stra

tion

plot

)Pl

ant d

ata

and

info

rmati

on

RESE

ARC

H A

ND

DEV

ELO

PMEN

TD

evel

opm

ent o

f sup

erio

r se

eds

Dev

elop

men

t of h

igh

effec

tiven

ess

inoc

ulan

tsM

arke

ting

stud

y

INO

CULA

TIO

N T

ECH

NO

LOG

YTy

pes

of in

ocul

ants

Prod

uctio

n of

inoc

ulan

ts (l

ab)

Inoc

ulati

on te

chni

que

STRE

NG

THEN

ING

INST

ITU

TIO

NEs

tabl

ishm

ent o

f com

mun

ity in

stitu

tions

Esta

blis

hmen

t of r

egio

nal b

usin

ess

insti

tutio

nsPo

licy

deve

lopm

ent

HA

RVES

TIN

GH

arve

sting

tech

niqu

eTy

pes

of p

rodu

cts

(raw

mat

eria

ls)

DEV

ELO

PMEN

T O

F IN

VEST

MEN

T A

ND

BU

SIN

ESS

Inve

stm

ent f

orm

sD

evel

opm

ent o

f fun

ding

sou

rces

and

bus

ines

s ca

pita

l

PRO

DU

CT P

ROCE

SSIN

GPr

oduc

t for

ms

Proc

essi

ng te

chni

que

MA

RKET

ING

DEV

ELO

PMEN

TPr

omoti

onal

dev

elop

men

tN

etw

ork

mar

ketin

g de

velo

pmen

t (D

N /

LN

)

DEV

ELO

PMEN

T O

F FA

CILI

TIES

AN

D IN

FRA

STRU

CTU

REFa

cilit

y an

d in

fras

truc

ture

des

ign

Capa

city

INFO

RMAT

ION

SYS

TEM

MA

NA

GEM

ENT

Dat

a-ba

se m

anag

emen

tO

n-lin

e in

form

ation

sys

tem

dev

elop

men

t (w

ebsi

te)

HR

CAPA

CITY

IMPR

OV

EMEN

TTr

aini

ng (f

orm

al a

nd n

on-f

orm

al) A

SNTr

aini

ng fo

r th

e co

mm

unity

Page 97: Press - Puslitbang Hut

81

Appendixs

No

.SK

DP

ROLE

TARG

ET /

OU

TPU

TYE

AR

/ CO

ST

1.Fo

rest

Res

earc

h Ce

nter

Aga

rwoo

d Re

sear

ch a

nd

Dev

elop

men

t

Effec

tiven

ess

of in

ocul

ants

Ince

nse

prod

ucts

2016/Rp.

268

milli

on

2Pa

lem

bang

BPK

Aga

rwoo

d Re

sear

ch a

nd

Dev

elop

men

t

Gro

wth

and

Dev

elop

men

t of

inoc

ulan

ts2016/Rp.

119

milli

on

3.BP

DA

SPS

/ BP

K Pa

lem

bang

Plan

t Dev

elop

-m

ent

Secu

ring

15

Ha

in th

e Se

mbu

lan

Rive

r KP

HP

2015/Rp.

900

milli

on

4.IT

TO C

ITES

Aga

rwoo

d Re

sear

ch a

nd

Dev

elop

men

t

Clust

er d

esig

nM

arke

t stud

yPl

ot d

emon

stra

tion

plan

ting

FGD

2015

/USD

40,

000

5.Ce

ntra

l Ban

gka

Dis

tric

t Pl

anta

tion

and

Fore

stry

Se

rvic

e

Dev

elop

men

t of

Aga

rwoo

dAg

arw

ood

Inoc

ulan

tHa

ndlin

g of

post

-har

vest

aga

r-w

ood

Prom

otio

n of

fore

st p

rodu

ct

prod

uctio

nM

appi

ng th

e po

tent

ial o

f for

est

prod

ucts

Mai

nten

ance

of a

garw

ood

at

Trub

usPa

tent

mai

nten

ance

Rp. 2

00 m

illion

Rp. 2

00 m

illion

Rp. 1

00 m

illion

Rp. 5

0 m

illion

Page 98: Press - Puslitbang Hut

82

Development of Agarwood Production Cluster Based on Microbe Technology

No

.SK

DP

ROLE

TARG

ET /

OU

TPU

TYE

AR

/ CO

ST

6.Ce

ntra

l Ban

gka

Dis

tric

t In

dust

ry O

ffice

(DA

K -

kem

enpe

rin)

As

sistan

ce w

ith a

garw

ood

post

-har

vest

equ

ipm

ent (

per-

atal

for c

elub

tea,

per

fum

e so

ap a

nd a

garw

ood

acce

sso-

ries)

Const

ruct

ion

of a

garw

ood

post

-har

vest

bui

ldin

g in

Lub

uk

Pabr

ik V

illage

Trai

ning

on

agar

woo

d pr

oduc

t di

vers

ifica

tion

2014

(aga

rwoo

d, p

eppe

r and

fis

herie

s)20

15 a

garw

ood

stud

y

2016

/ Rp

. 1.4

6 M

2015

/ Rp

. 670

milli

on

7.Pr

ovin

cial

Indu

stry

Se

rvic

e

Trai

ning

on

mak

ing

perfu

mes

an

d so

aps

(201

4)M

aint

enan

ce o

f aga

rwoo

d

8.fo

rest

ry S

ervi

ceBa

bylo

n Pr

ovin

cePr

ocur

emen

t of

see

ds

show

n to

KTH

(r

outin

e)Co

achi

ng K

THNT

FP P

rom

o-tio

nTAHURA

Page 99: Press - Puslitbang Hut

83

Appendixs

No.

Gov

erm

ent w

orki

ng

Uni

tRO

LETA

RGET

/ O

UTP

UT

YEA

R /

COST

9.Pr

ovin

cial

Bap

peda

Base

d on

dis

-tr

ict p

ropo

sals

10.

Rege

nt /

Dep

uty

Rege

ntM

anag

eria

l co

mm

and

11.

Baby

lon

Prov

ince

Ba

pped

a

Supp

ort t

he a

garw

ood

clus

ter

prog

ram

Sync

hron

izati

on o

f tec

hnic

al p

ro-

gram

s at

the

dist

rict

leve

lD

eter

min

ation

of l

ocati

on a

nd

stipu

latio

n in

the

RT R

WA

garw

ood

clus

ter

deve

lopm

ent

road

map

Iden

tify

pote

ntial

loca

tions

Loca

l inv

ento

ry o

f aga

rwoo

d an

d in

ocul

ants

12 .

Ass

ista

nt II

for

Eco-

nom

ics

and

Dev

elop

-m

ent

Regu

latio

n

Page 100: Press - Puslitbang Hut

84

Development of Agarwood Production Cluster Based on Microbe Technology

Appendix 3. The agarwood-producing tree seed (Aquilaria malaccensis) is the key to production business in the agarwood cluster system

Page 101: Press - Puslitbang Hut

85

Appendixs

Appendix 4. Agarwood clusters require agarwood tree seedlings to produce both quality and quantity on an ongoing basis, so that the production process of agarwood cultivation can be sustainable.

Page 102: Press - Puslitbang Hut

86

Development of Agarwood Production Cluster Based on Microbe Technology

Appendix 5. The selection of monoculture or mixed pattern (agroforestry) planting patterns in agarwood cluster systems

Page 103: Press - Puslitbang Hut

87

Appendixs

Appendix 6. The preparation of Fusarium solani agarwood inoculants is needed on a mass scale

Page 104: Press - Puslitbang Hut

88

Development of Agarwood Production Cluster Based on Microbe Technology

Appendix 7. The process of Quality microbial-based agarwood production is a determinant of the success in agarwood cluster development

Page 105: Press - Puslitbang Hut

89

Appendixs

Appendix 8. The production of microbe based resinous agarwood is the main product in the development of agarwood clusters

Page 106: Press - Puslitbang Hut

90

Development of Agarwood Production Cluster Based on Microbe Technology

Appendix 9. The agarwood oil production an important part of production in the cluster system, by utilizing abundant agarwood powder

Page 107: Press - Puslitbang Hut

91

Appendixs

Appendix 10. Promotion of agarwood products to consumers from abroad must be carried out continuously in the agarwood cluster system.

Page 108: Press - Puslitbang Hut

92

Development of Agarwood Production Cluster Based on Microbe Technology

Appendix 11. Agarwood tea has its own market segment especially as a healthy drink with hygienic and standardized production methods

Page 109: Press - Puslitbang Hut

93

Appendixs

Appendix 12. Increasing the Capacity Building trough technology training for stakeholders needs to be conducted intensively in the agarwood cluster system

Page 110: Press - Puslitbang Hut

94

Development of Agarwood Production Cluster Based on Microbe Technology

Appendix 13. Prediction technology of agarwood production by ultrasonic tomography as an input technology that is indispensable in the future of cluster system

Page 111: Press - Puslitbang Hut
Page 112: Press - Puslitbang Hut

Author:Maman Turjaman

Translator:Adi Susilo

ISBN : 978-602-440-638-7

TeknologiPT Penerbit IPB PressJalan Taman Kencana No. 3, Bogor 16128Telp. 0251 - 8355 158 E-mail: [email protected]

@IPBpress ipbpressPenerbit IPB Press

DEVELOPMENT OF AGARW

OOD PRODUCTION CLUSTER BASED ON MICROBE TECHNOLOGY | PT Penerbit IPB Press

Press

Author:Maman Turjaman

Translator:Adi Susilo

ISBN : 978-602-440-638-7

TeknologiPT Penerbit IPB PressJalan Taman Kencana No. 3, Bogor 16128Telp. 0251 - 8355 158 E-mail: [email protected]

@IPBpress ipbpressPenerbit IPB Press

DEVELOPMENT OF AGARW

OOD PRODUCTION CLUSTER BASED ON MICROBE TECHNOLOGY | PT Penerbit IPB Press

Press

Author:Maman Turjaman

Translator:Adi Susilo

ISBN : 978-602-440-638-7

TeknologiPT Penerbit IPB PressJalan Taman Kencana No. 3, Bogor 16128Telp. 0251 - 8355 158 E-mail: [email protected]

@IPBpress ipbpressPenerbit IPB Press

DEVELOPMENT OF AGARW

OOD PRODUCTION CLUSTER BASED ON MICROBE TECHNOLOGY | PT Penerbit IPB Press

Press

Author:Maman Turjaman

Translator:Adi Susilo

ISBN : 978-602-440-638-7

TeknologiPT Penerbit IPB PressJalan Taman Kencana No. 3, Bogor 16128Telp. 0251 - 8355 158 E-mail: [email protected]

@IPBpress ipbpressPenerbit IPB Press

DEVELOPMENT OF AGARW

OOD PRODUCTION CLUSTER BASED ON MICROBE TECHNOLOGY | PT Penerbit IPB Press

Press

Author:Maman Turjaman

Translator:Adi Susilo

ISBN : 978-602-440-638-7

TeknologiPT Penerbit IPB PressJalan Taman Kencana No. 3, Bogor 16128Telp. 0251 - 8355 158 E-mail: [email protected]

@IPBpress ipbpressPenerbit IPB Press

DEVELOPMENT OF AGARWOOD PRODUCTION CLUSTER BASED ON MICROBE TECHNOLOGY | PT Penerbit IPB Press

Press