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Presentation Event Waingapu / District East Sumba / Indonesia 9 March 2007

Diagnosis and Proposals for the Local Economic Development of E ast Sumba. Presentation Event Waingapu / District East Sumba / Indonesia 9 March 2007. What is the objective of this PACA Exercise?.

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Presentation Event Waingapu / District East Sumba / Indonesia 9 March 2007

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  1. Diagnosis and Proposals for the Local Economic Development of East Sumba Presentation EventWaingapu / District East Sumba / Indonesia 9 March 2007

  2. What is the objective of this PACA Exercise? • Identify, with a rapid appraisal, the main strengths and weaknesses of three selected sectors in East Sumba (seaweed, weaving, jatropa) • Identify options for practical activities to strengthen the competitiveness of firms -- Criteria: • feasible with local resources • quickly implementable (starting next week) • quick, visible results (with 3 months)

  3. What have we been doing? • Kick-off workshop (28 February 2007) • Interviews with business people and stakeholdersin East Sumba (28/2 – 6/3) • Mini-workshops (6) with • Sea weed producers (1 March) • Weavers (2 March) • Jatropa Producers (5 March) • Supporting Institutions (6 March) • Internal Results Workshop (7 – 8 March June 2007) • Presentation Event (9 March / 8h00) • Way-forward workshops (from 9 March onwards)

  4. Preparation: *Organisation *Advance Info Interviews HypothesisWorkshop Kick-off Workshop Presentation Event Way-forward Workshop Imple- mentation Fieldwork (28/2-6/3) Mini-workshops PACA-Exercise (26/2-9/3) PACA-Project What is the sequence of activities in the PACA Exercise in East Sumba? Results- Workshop: Diagnosis + Proposals 9.3.

  5. Why selecting Seaweed, Weaving and Jatropa? Seaweed Weaving Jatropa • Inter-island trade price is constantly increasing • The central government plans East Sumba as the project pilot area for seaweed development as main commodity • Plan to build seaweed processing factory in East Sumba • A cultural product with economic value • Unique characteristic compared to other regions • National Program promoting jatropa oil as alternative to fossil fuel • Appropriate commodity to cultivate in the dry lands of East Sumba • Potential to involve many communitymembers

  6. Kick-off Workshop

  7. Interviews

  8. Interviews

  9. Mini-workshops

  10. Analysis of the Local Economy in East Sumba

  11. Seaweed

  12. seaweed Strengths • Good quality catoni type seaweed with high level of karagenan • A lot of interest to get involved in the sector • Expansive cultivation sites • Buyers in Surabaya showing constantly high demand • Steady increase of seaweed pricesin recent years

  13. seaweed Weaknesses • Insufficient infrastructure • Farmers have low skills in organizing groups • Farmers have low skills in cultivation & processing • Not familiar with seaweed processing technologies • Minimum competition amongst inter-island traders • Seaweed farmers are prevented to sell directly to the district capital Waingapu (without engaging collectors) • Inability to fulfill market demand

  14. Weaving

  15. weaving Strengths • Unique and traditional design & pattern • Supporting material is available in own backyard (natural coloring) • Strong cultural values of the community • Weaving skills among most members of the community • Many production clusters • High quality of products • Weaving clusters offer tourist attractions • Permanent market demand (ceremonies, traditional local events)

  16. weaving Weaknesses (1) • Monotonous and non-variative design • Part-time business activities • Production is only based on the taste of the weavers (and not demand-driven) • No market information available • Long production processes • Conflict between traditional and economic values • Traditional looms with low technology

  17. weaving Weaknesses (2) • Lack of diversification of production • Lack of promotion outside the region • No gallery for exhibiting SME products • Uncompetitive price, low demand • Limited market • Low buying power of local community

  18. Padamu (Jatropa)

  19. Padamu (Jatropa) Strengths • Expansive land potentials available • Easy access to seedlings through partnership with RNI company • For replanting usage of bare land resulting in erosion prevention • Many farmers are involved in planting / cultivation • Suitable with the agricultural & farming system already adopted by the community • Investment opportunity for jatropa oil • Prospect as alternative fuel • High market demand for bio-fuel

  20. Padamu (Jatropa) Weaknesses (1) • Lack of water (low rain level) • Monopoly in seedling supply • No proficiency in seedling technology • Post-harvest and processing technology is unknown • Farmers do not know the final use of jatropa nuts

  21. Padamu (Jatropa) Weaknesses (2) • No processing factory in place to press oil from jatropa nuts • The community does not know the market side / buyers of jatropa nuts • Uncertain sale prices • High risk project (unclear market, though the farmers are already planting) • Threatening food cultivation and availability

  22. Supporting Institutions

  23. Strengths (1) supporting institutions • Seaweed • Local bank is ready to give credits • Partnership between the seaweed farmers and the government as well as businesspeople • Weaving • Assistance from local and international NGO [World Vision Indonesia - WVI] • Support of government for weaving, e.g. cooperation for promotion

  24. Strengths (2) supporting institutions • Jatropa • The government support for the jatropa sector is in line with the national policy on alternative energies….one example of government’s support is free provision of seedlings • there are 2 MoUs, between the District Government and RNI as well as PLN and Delsos

  25. Weaknesses (1) supporting institutions • Seaweed • There is neither coordination nor a collective vision of the stakeholders • The permit system in the seaweed sector in regards to the cultivation area is either complicated or unclear • Lack of guidance and assistance in the field / field officers tend to have low capacity • The role of the government, through the relevant offices, is not apparent yet • Environmental risks have not been analyzed or considered • No previous dialogue meeting between government, traders, and farmers

  26. Weaknesses (2) • Weaving • No market survey • Lack of coordination among relevant Government Offices • Government’s assistance is uninformed and not need-oriented • No IPR for local patterns • No business association in the weaving sector • Government does not involve weaver groups in exhibitions • The mindset of support institutions is not market-oriented supporting institutions

  27. supporting institutions Weaknesses (3) • Jatropa • Limited capacity of field officers • Lacking analysis of the socio-environmental impact of large-scale jatropa cultivation • The only investor does not instill confidence and hides behind the regional government • The Office of Plantation only provides seeds without further guidance • Lack of coordination and communication between the main players in the jatropa sector • No involvement of research institutions for scientific research and training • Lack of coordination between Office of Plantation and Office of Agriculture

  28. Proposals to Improve the Local Economy in East Sumba

  29. seaweed Seaweed Proposals • Short-term Proposals • Training on group management for seaweed centers (NGOs, regional government / business opportunity!)) • Sending samples of catoni seaweed for karagenan testing (Delsos, ATMI) • Simpul 16+ facilitates government to determine the validity of seaweed cultivation permits (Simpul 16+) • Medium-term Proposals • Training on seaweed post-harvest and processing (Office of Trade and Industry, Office of Sea Affairs and Fishery) • Training on cultivation for capacity building of government’s field officers and NGOs (Office of Trade and Industry, Office of Sea Affairs)

  30. seaweed Seaweed Proposals • Medium-term Proposals • Procurement of seaweed production tools for farmers (Office of Sea Affairs and Fishery / business opportunity!) • Investment promotion for seaweed processingfacilities managed by private actors (regional government / business opportunity!) • Data collection and field assistance for farmers’ groups in seaweed centres(Office of Fishery and Sea Affairs, Simpul 16+ ) • Establishing micro-finance cooperatives (Farmers) • Activating and socializingSeaweed Association (Seaweed Association)

  31. seaweed Seaweed Proposals Medium-term Proposals • Capital Assistance for seaweed groups [revolving funds] (Office of Sea Affairs and Fishery) • Promotion events for seaweed cultivation with potential seaweed farmers (traders and succesful farmers / business opportunity!)

  32. weaving Weaving Proposals • Short-term Proposals • Product diversification of weaving (Office of Industry and Trade, WVI, YAL / business opportunity!) • Medium-term Proposals • Economic analysis of weaving production (WVI) • Training for SMEs on natural dyeing (YAL, KSM, WVI) • Training on simple bookkeeping (STIE [College of Economy] Kriswina, WVI ) • Weaver group formation and strengthening (Office of Industry and Trade, Simpul 16+)

  33. Padamu (Jatropa) Jatropa Proposals • Short-term Proposals • Guidance in jatropa usage, basic and advanced processing, such as to bio fuel (Delsos) • Medium-term Proposals • Coordination and socialization meeting between Jatropa stakeholders (Office of plantation, RNI, PLN, Delsos) • Coordination between government offices relevant for jatropadevelopment (Office of Plantation, Office of Agriculture) • Conducting Environmental Impact Analysis (Bapedalda- Regional Bureau of Environmental Impact, Colleges) • Provision of Water Reservoirs/Containers (Kimpraswil)

  34. supporting institutions Supporting Institutions Proposals (1) • Short-term Proposals • Routine PACA follow up meeting (Simpul 16+) • Study tour to conduct comparative LED study to Central Java (Vice Head of District, Regional Development Planning Bureau, Office of Industry and Trade) • Establishment of promotion and information center (Delsos, Office of Industry and Trade / business opportunity!) • Medium-term Proposals • Establishment of LED Forum (District Government, NGOs)

  35. supporting institutions Supporting Institutions Proposals (2) • Medium-term Proposals • Establishment of display gallery for SME products or an East Sumba Handicraft Promotion Center (Office of Industry and Trade, NGOs) • Entrepreneurship training (Office of Cooperatives and SME, STIE)

  36. Who is the PACA TEAM? • Christian Schoen (mesopartner) • Stepanus Makambombu (STIMULANT INSTITUTE-SIMPUL 16+) • Agung Lidartawan (University Udayana) • Bening Dwiono (FEDEP Demak District) • Sri Hestiningsih W (FPESD Central Java) • Marlina R. Meha (KSM Tapawalla Badi) • Yusuf (YKPS) • Veri (Delsos West Sumba) • Kamilus Pantus (Delsos West Sumba) • Delsius (Delsos West Sumba) • Arie (Yayana Alam Lestari) • Domu Wora (Department of Industry and Trade East Sumba) • Adrianus Hudang (STIE Kriswina Sumba)

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