Local Champions 2019_Gorontalo - IKM LapaKlapa, Gorontalo district (English)

NSLIC/NSELRED GORONTALO CHAMPIONS IKM LapaKlapa, Gorontalo district Wahyudin Tahir (28) is an inspiring young entrepreneur from Gorontalo district. Started his processed Coconut oil business by establishing LapaKlapa SME in 2017, Wahyu who initially only produced traditional cooking oil, now has six Coconut derivative products include VCO, cooking oil, body scrubs, body lotion, VCO skin spray and snacks. Wahyu's seriousness in advancing his business through various technical supports has encouraged NSLIC/NSELRED to choose his LapaKlapa SME as the first SME pilot for the Quality Standardization of Processed Coconut Oil program in Gorontalo province in 2018. This choice turned out to be very appropriate because in addition to playing an active role as a learning center for improving product quality, LapaKlapa SME is also eager to motivate fellow SMEs who are members of the Association of Gorontalo Processed Coconut Oil (OKGo) in increasing quality, production capacity and market expansion. Wahyu did not hesitate to share his expertise on processed Coconut oil business with anyone interested in learning or starting a new SME. This commitment also led him to won the Fist Place of Syariah Young Entrepreneur Award 2019 from Bank Indonesia.

BUSINESS CHALLENGES Just like the majority of newly formed SMEs in Gorontalo province, LapaKlapa SME which was established by Wahyudin Tahir in 2017 at its initial stage has low production capacity, lacked of standard production equipments, product quality and market. During 2017 to 2018, LapaKlapa SME used to produce 1,000 liters of traditional Coconut cooking oil per month with a selling price of around IDR 29,000 per liter. Thanks to the Government of Gorontalo Province’s policy which demanded Coconut oil from local SMEs to be one of the mandatory items for the monthly Local Non-Cash Food Aid (Bantuan Pangan Non-Tunai Daerah/BPNTD) distributed to the low income families, it has helped increasing the production capacity of local SMEs, including LapaKlapa SME. After signing the contract with the Government of Gorontalo province in early 2018, LapaKlapa SME was requested to supply 1.3 tons of coconut cooking oil per month for the program.

Unfortunately, the demand to supply materials for the BPNTD program did not come continuously so it affected local SMEs’ fluctuative production capacity, including LapaKlapa. With other SMEs, Wahyu then improved the quality of the products to be able to expand the market and sustain their business.

Wahyudin Tahir won the First Place of Sharia Young Entrepreneur at the Bank Indonesia’s FESyar Eastern Indonesia Region 2019 held in Banjarmasin city of South Kalimantan.

“NSLIC/NSELRED provided me with very useful knowledge to further develop my business, a Coconut processing SME. I am very grateful for the technical supports, provision of production equipments and for the guidance so far. Now, with the spirit of creating bigger multiplier effects, I have shared the knowledge to anyone from Aceh to Papua who is interested in learning and starting business. Hopefully this effort also can help to multiply its social impact for SMEs." (Wahyudin Tahir, Owner of LapaKlapa SME and OKGo Association member, Gorontalo).

INTERVENSI NSLIC/NSELRED

INSTITUTION STRENGTHENING

For the Quality Standardization of Processed Coconut Oil pilot program, NSLIC/NSELRED facilitated 36 local SMEs since 2018. Various technical supports provided through this program including; a) Development of SOPs and training module on Quality Standardization of Processed Coconut Oil; b) Training on the standardization of quality processed coconut oil; c) Quality and processing standard assistance; d) Facilitationon the lab test and products certification; e) business plan; f) Promotion/ marketing; g) Institutional strengthening, etc.

NSLIC/NSELRED facilitated the establishment of the Gorontalo Processed Coconut Association (OKGo) to strengthen the institutions, vision and coordinations between 36 SMEs. Capacity building through training, technical facilitation, product certification, promotion, etc. has increased the SMEs’ productivity with an average sales of Coconut oil now increased to 120 liters (from 80 iters) per month and net income from IDR 560,000 to Rp 2.1 million/month per SME.

On the following process, NSLIC/NSELRED then appointed LapaKlapa SME as a center of learning to facilitate SMEs’ peer learning and practices in improving the quality of processed Coconut oil. To support the SMEs production, NSLIC/NSELRED also provided equipments support which was handed over in August 2018 witnessed by the Regent of Gorontalo district, Nelson Pomalingo. This production machine based on Wahyu's experience, has significatly shorten the production time (to process 300 Coconuts usually takes about two hours but with this machine it only takes 30 minutes now).

OKGo's capacity building successfully equips SMEs as Business Development Service Providers. Wahyu, for example, is now often invited as a trainer for the training of Disperindagkop Gorontalo, Pohuwato, Bolaang Mongondow Timur and Burung Indonesia.

He was also engaged by Bank Indonesia as trainer for BI-assisted SMEs after winning the First Place of Sharia Young Entrepreneur at the Bank Indonesia’s FESyar for Eastern Indonesia Region held in September 2019. During the FESyar competition, Wahyu presented the concept of multiplying social impact through the SMEs development and quality standardization of processed Coconut oil inspired by NSLIC’s capacity building. Wahyu now also provide free online tutoring for more than 100 SMEs. He believes that such knowledge transfer is effective to multiply the social impacts for SMEs in Indonesia.