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Survey of Productive Use Potential at Selected MHP sites in Luwu Utara and Mamasa Districts For Deutsche Gesellschaft f端r Technische Zusammenarbeit (GTZ) GmbH

Edi Purwanto Abdul Rahman


Survey of Productive Use Potential at Selected MHP sites in Luwu Utara and Mamasa Districts

Dr. Edi Purwanto Director Operation Wallacea Trust/OWT, Environmental Hydrologist

Abdul Rahman Village Business Development Specialist, OWT, Economist

Bogor, 20 May 2011

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Table of Contents Page ii vi vii Vii Vii viiii xi 1 1 3 3

Table of Contents List of Tables List of Figures List of Boxes List of Annexes Executive Summary CSO Contact Person

I

Chapter I. Introduction 1.1 Background 1.2 Survey Implementation 1.3 Objectives

4 4 5 8 9 9 9 9 10 10 11 12 13 14 16 16 18 19 19 22 22 23 23 24 24

Chapter II. General Conditions of the Survey Areas 2.1. Mamasa District, West Sulawesi 2.1.1. Environment and Livelihoods 2.1.2. Local Government Capacity 2.1.3. Socio-economic Condition 2.1.3.1 Accessibility 2.1.3.2 Flow of goods 2.1.3.3 Economic empowerment development 2.1.3.4 Social Capital 2.2. Luwu Utara District, South Sulawesi 2.2.1. Environment and Livelihoods 2.2.2. Local Government Capacity 2.2.3. Socio-economic Condition 2.2.3.1 Accessibility 2.2.3.2 Flow of Goods 2.2.3.3 Social Capital 2.3. Economic Development 2.4. Productive Uses Activities and the Problems 2.4.1.Present Productive Use Activities 2.4.2. Problems of the Productive Uses Activities 2.4.2.1 No processing of the extracted resources 2.4.2.2 Most of productive uses are economic rather than business motives: 2.4.2.3 Lack of access to capital 2.4.3. Potential Development 2.5 Conclusion and Recommendation III

25 25 25 27 27 28

Chapter III. Financial and Economic Analysis Potential Productive Uses 3.1. Small-scale Poultry 3.1.1.Potential Development 3.1.2. The use of MHP for egg incubator (hatchery) 3.1.3. Financial Analysis of Chicken Keeping 3.1.3.1 Profitability of selling eggs

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3.1.3.2 Financial analysis of selling DOC free range chicken 3.1.3.3 Financial Analysis of selling two months grower 3.1.3.4 Financial analysis of selling mature chicken 3.1.3.5 Comparison of small-scale chicken production 3.1.4.Financial Analysis of duck keeping 3.1.4.1 Financial Analysis of selling eggs 3.1.4.2 Financial Analysis of selling DOD 2 days 3.1.4.3 Financial Analysis of selling 5 months grower duck 3.1.5. Economic Analysis of chicken and duck keeping 3.2. Cocoa bean drying 3.2.1. Potential Development 3.2.2. Financial analysis and economic of cocoa bean drying 3.3. Tailor 3.3.1.Potential Development 3.3.2.Financial Analysis and economic of tailor 3.4. Rice Milling (Huller) 3.4.1. Potential Development 3.4.2. Financial analysis and economic of huller 3.5 Coffee Processing 3.5.1. Potential Development 3.5.2. Financial analysis and economic of Coffee processing 3.6 Black Smith 3.6.1. Potential Development 3.6.2. Financial analysis and economic of Black Smith 3.7. Furniture 3.7.1. Potential Development 3.7.2. Financial analysis and economic of Furniture 3.8. Saraba Instat 3.8.1. Potential Development 3.8.2. Financial analysis and economic of Saraba Instant 3.9. Conclusion and Implication 3.9.1. Conclusion 3.9.2. Implication 3.9.3. Recomendation IV

28 29 29 29 30 31 31 32 33 34 35 36 37 37 38 39 39 39 40 40 40 41 41 41 42 42 42 43 43 44 45 45 47 47 48 48 50 50 52 55 55 55

Chapter IV. Selection of Productive Use Village Models 4.1. Screening of the surveyed villages 4.2 Results of the Primary and Secondary Screening 4.2.1 Results of Primary Screening 4.2.2 Results of secondary screening 4.3. Conclusions and Recommendations 4.3.1. Conclusions 4.3.2 Recommendation

V.

56

Chapter V. Feasibility Analysis of Project Implementation 5.1. Productive use designed power consumption

56 59

5.2. Supply-demand Analysis of productive use energy iv


5.3. Designed and cost of installation network

60

5.3.1 Installing Timer control in every house

61

5.3.2 Installing Automatic Transfer Switch (ATS) at turbine house

63

5.3.3 Establish Productive Use Center Area (PUCA)

64

5.5 Conclusions and Recommendations

65 67

References

List of Tables Page Table 2.1 Table 2.2 Table 2.3

Land-cover and livelihoods changes in Mamasa District The land-cover and livelihoods changes in Luwu Utara District The different conditions between Luwu Utara and Mamasa Districts

7 11 15

Table 2.4

General characteristics of the survey villages in Luwu Utara and Mamasa Districts

16

Table 2.5

Economic Development Indicators of Luwu Utara and Mamasa Districts (All figures in Rp). Economic Infrastructure of the district capital of Luwu Utara and Mamasa Districts The existing Productive Use Activities and sites distribution

18

Table 2.6 Table 2.7 Table 2.8 Table 2.9 Table 2.10

Economic and Business Motives Potential development of the existing Productive Use Activities

Environmental, economic and social indicators of Luwu Utara and Mamasa District Financial analysis for selling DOC free range chicken

18 19 22 23 24

Comparison of household and village earnings from duck keeping

30 30 31 32 32 32 33 33 34 34 35 35

Table 3.14

Standard of cocoa harvest

38

Table 3.15

Financial analysis of cocoa drying

38

Table 3.16

Contribution of cocoa drying to village economy Financial analysis of Tailor Contribution of tailor to village economy

39

Table 3.2 Table 3.3 Table 3.4 Table 3.5 Table 3.6 Table 3.7 Table 3.8 Table 3.9 Table 3.10 Table 3.11 Table 3.12 Table 3.13

Table 3.17 Table 3.18

Financial analysis of selling 2 months grower Profitability of selling mature chicken Financial analysis of several products of chicken keeping

Comparison of productivity with and without hatchery Financial analysis for selling eggs Financial analysis for selling DOD Cost to raise 5 months grower Financial analysis of selling 5 growers Financial analysis of duck keeping

Comparison of household and village earnings from chicken keeping

40 40

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Financial analysis of rice huller Contribution of rice huller to village economy Financial analysis of coffee processing Contribution of coffee processing to village economy Financial analysis of Black Smith Contribution of Black Smith to village income Financial analysis of furniture Financial analysis of furniture Contribution of furniture to village economy

41

46

Table 3.28

Financial analysis of Saraba Instant Contribution of Saraba Instant Production on annual village income

Table 3.29

Feasibility of income generation activities with 6% annual inflation rate

46

Table 4.1

Criteria Indicator and verifiers of the primary filters

49

Table 4.2 Table 4.3 Table 4.4 Table 4.5 Table 5.1 Table 5.2 Table 5.3 Table 5.4

Accessibility of the surveyed villages

MHP capacity on each village

50 50 52 54 57 58 59 60

Table 5.5

Comparison of Village MHP capacity and productive use consumptions

61

Table 5.6

62

Table 5.7

Cost of network installation for Timer Control Arrangement Cost of network installation using ATS at turbine house (in IDR)

Table 5.8

Cost of network installation for PUCA

64

Table 5.9

Pros and cons of three installation alternatives

66

Table 3.19 Table 3.20 Table 3.21 Table 3. 22 Table 3.23 Table 3.24 Table 3.24 Table 3.25 Table 3.26 Table 3.27

Criteria, indicator and verifiers of the secondary filters Scoring of the primary screening Scoring of the secondary screening

The existing and potential productive uses on the surveyed villages Power consumption of each single unit productive use The designed productive use electrical power consumption on each village

42 42 43 34 44 44 44 45 46

63

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List of Figures Page 2. 1

Position and modes of transportation to the survey areas

2.2 2.3

The situation of Mamasa Town

3.1

Egg incubator type RH120A, capacity 540 eggs. Length: 100 cm, width: 40 cm and height; 100 cm. The machine automatically turns eggs every three hours to prevent the yoke from settling to one side and to exercise the embryo Financial analysis of several chicken products Financial analysis of several duck keeping products Comparison of income generation of chicken and duck keeping products

Transportation modes in Luwu Utara District

4 5 14 27

PUCA supported by three MHP

31 34 36 37 48 48 61 62 63

5.4

PUCA network design which is supplied by three MHP

64

5.5

PUCA network design using one MHP (after Johannes, 2011)

65

3.2 3.3 3.4 3.5 3.6 3.7 5.1 5.2 5.3

Schematic of cocoa bean drying machine Percentage of income increment per year Percentage contribution to village economy per year Network design of installing timer control in every house Network design of installing ATS at turbine house

List of Boxes Page Box 2.1 Box 2.2 Box 2.3 Box 2.4 Box 2.5

Pinus merkusii a Sumatran native species which dominates the survey area

Tallulalisan Cocoa pod borer Sago Palm Sugar

5 9 11 13 14

List of Annexes Page

Annex A Annex B Annex C Annex D Annex E Annex F

Profile of Survey Villages in Luwu Utara District Profile of Surveyed Villages in Mamasa District Contact Persons in Luwu Utara District Contact Persons in Mamasa District Contact Persons at Sub district and Village Level in Luwu Utara District List of Contact Persons at Sub district and Village Level in Mamasa District

68 73 80 81 83 85

Annex G

Capacity and Specification of Electrical Machines

86

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Executive Summary The report outlines the survey findings of productive use (energy) potential at selected microhydro power (MHP) sites in Luwu Utara and Mamasa Districts. The field data collection was conducted on 11 villages, i.e. 4 villages (Bantimurung, Malimbu, Tulak Talu and Parara) in Luwu Utara District and 7 villages (Orobua Selatan, Tawalian Timur, Salumo Kanan, Rante Puang, Bombong Lambe, Masamba and Pasembu) in Mamasa District. The successful implementation of productive use will become a milestone of MHP’s best practice, it is expected to: (a) enhance strong ownership and awareness of local community on MHP sustainable management use, including catchment areas management; (b) enhance the establishment of sustainable livelihoods in the upstream areas; (c) As a driver of industrial revolution, accelerated and distributed income generation in the upstream/remote area. Efforts had been made on this aspect, however, the results, have not yet been satisfying. The most probable reasons are: (a) improper procurement of productive-use machines. The productive use machine may not be simply purchased from the general market, it should be tailor made and carefully tested before granting to local community; (b) local community needs intensive facilitation and technical assistances to use and maintain the machine. The granted machine may not be used by local community due to a simple technical problem; (c) the operational cost of the machine should be economically sound for specific productive use activity; (d) the machine should be designed for long-lived used with simple operation and maintenance. Based on our findings, Luwu Utara District is ideal for productive use development. The district has good economic infrastructure, accessibility and great support of local government. The government has strong development policy to develop and maintain the areas as a leading cocoa production in South Sulawesi Province. While Mamasa, the economic infrastructure is still under development and rather poor accessibility, but the district has excellent social capital and wellknown as the center of MHP development in Sulawesi. Local community in Mamasa is still ‘virgin’ from project (‘money’) intervention and badly needed technical assistances. The MHP in the surveyed areas established by various projects, the recent establishment is initiated by Green-PNPM (after 2009), while the previous MHP (2005-2008) were established by PNPM Rural-MHPP (GTZ) and district agency. The MHP number on each village ranges from 1 to 4, the MHP installed capacity ranges from 8 Kwh – 78 Kwh. Several villages have only one MHP, such as Bantimurung, Salumokanan, Mesakada, Orobua Selatan, Pasembu and Bombong Lambe, while some villages have more than 2 MHP, such as Rantepuang, Malimbu (2 MHP), Tawalian Timur (3 MHP), Parara (3 MHP) and Tulaktalu (4 MHP). Based on our field observation, MHP initiated by Green-PNPM during 2009 and 2010 have better performance compared those initiated by MHPP, Rural PNPM and district government, this is certainly due to the present of GTZ-Technical Support Unit/TSU. TSU facilitate MHP project preparation and implementation, including site assessment, construction, plant commissioning and training to Green Facilitators, key village champions and operator teams.

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The existing and potential productive uses in the surveyed villages: (a) Tailor: Many villages have tailors; the existing manual machine can be changed into electrical; (b) Small scale chicken and duck keeping: local communities in all surveyed villages raise chicken and some of them also duck; electrical hatchery can be introduced to raise chicken and duck population; (c) Cocoa bean drying: All the surveyed villages in Luwu Utara produce cocoa and rely on solar radiation for drying; cocoa drying machine (either oven or flat bed) is potentially introduced; (d) Coffee processing: All the surveyed villages in Mamasa produce processed coffee; the existing manual coffee grinding can be changed into electrical machine; (e) Blacksmith: Some villages in Luwu Utara and Mamasa have blacksmith to produce agriculture utensil; the existing manual machine can be changed into electrical; (f) Paddy huller: Many villages in Luwu Utara and Mamasa have paddy huller machine; the existing gasoline machine can be change into electrical; (g) Carpentry: Some villages in Luwu Utara and Mamasa have carpentry; the existing gasoline machine can be change into electrical; (h) Saraba Instant: This is only occurred in Parara Village (Luwu Utara) and only conducted by one community group. The existing manual processing and packaging can use electrical machine. Conclusions and recommendations: 1.

Financial versus economic impacts: (a) If the objective of the project is to accelerate income generation (financial impacts), the project has to select the most profitable enterprise business unit, regardless the economic impact of the business at village level. This is the case for: rice huller, coffee, duck keeping, black-smith and Saraba Instant; (b) If the objective of the project is to optimize revenue distribution (economic impacts) at village level, the project has to select enterprise business unit which has high contribution to village economy, regardless the profitable at enterprise unit. This is the case for chicken keeping and cocoa bean drying. Implication: the project is ideally able to combine the optimal application of the two different characters of income generating activities. For income generating activities which accelerate income generation, the project has to socialize and facilitate the business to wider communities; this is the case for duck keeping. While for income generating activities which distribute revenue, the project has to improve the production efficiency, improve capital access and open new market access, this is the case for chicken keeping and cocoa drying.

2.

Proposed village models in Luwu Utara District: Alternative A: Tulaktalu and Parara Villages. Reasons: Both villages are the best prepared to succeed; Alternative B: Tulaktalu, Parara and Bantimurung Villages. Reasons: (a) to compare different cultural conditions between Tulak Talu-Parara and Bantimurung Village (transmigrant village). The former is dominated by Bugis culture while the latter is Javanese culture; (b) Productive use in Bantimurung (only one MHP) is focused on cocoa bean drying; (c) Bantimurung is a good model for low MHP capacity village.

3.

Proposed village models for Mamasa District: Alternative A: Tawalian Timur and Rante Puang Villages. Reasons: Both villages are the best prepared to succeed. Alternative B: Tawalian Timur, Rante Puang and Salomo Kanan Villages. Reasons: (a) Salumokanan will have a good access, after the road connected Mamasa and Mamuju is ix


established; (b) Salumokanan is a good model for low MHP capacity village. 4.

Analysis supply and designed electrical power demand: The power consumption ideally should not exceed 75% of MHP installed capacity to guarantee electrical power supply and future development. Except for Salumokanan Village, all the surveyed villages have excess power capacity against designed productive use demand. This provides space for development and replication of the pioneer productive use model facilitated by the project. Apart from MHP power supply, Salumokanan Village is a prospective productive use village model, it might be worth to enhance Salumokanan village MHP capacity in the near future.

5.

Three ways to transfer electricity power from MHP to productive use houses: (a) Installing timer control on every house; (b) Installing Automatic Transfer Switch (ATS) at turbine house; (c) Develop productive Use Center Area (PUCA).

6.

The (dis)advantage of PUCA: Different entrepreneurs may help each other, share working equipment and tools and build a center for craft knowledge, so that a development of business activities can be expected. On the other hand, in many cases PUCA is impractical, especially for small scale home industry, as household members are distracted from their daily household work.

7.

Principle of safety electrical installation: (a) Establish transmission block (to ensure that the electricity power during the day is only used for productive use during the day); (b) Making safety star-up (on/off) system; (c) Install current protection; (d) Install appropriate size and quality of cable network; (e) Install cable grounding for efficient use of electricity;(g) Install step-up voltage regulator.

8.

Pros and cons of electrical network installation: Installing ATS at turbine house and establishment of PUCA provide strong guarantee on the use of MHP for productive use only during the day, however, the cost for installation and maintenance is relatively expensive compare to installing timer control at every house.

9.

The need to formulate Village Regulation: As MHP energy is used alternating either for private and productive use, to ensure the smooth implementation, apart from technical approach, regulation approach in the form of Village Regulation (Peraturan Desa/Perdes) is necessary, to establish new tariffs, limit the maximum currents, sanction etc.

10.

The need to provide full facilitation on productive use development model: Realizing that productive use development is complex, involving many aspects, business development, improving capital and market access and MHP technical aspect, while there are no success story which can be used as learning sites, the establishment of productive use model requires full facilitation, i.e. training, awareness and intensive technical assistance.

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CSO Contact Information Name Organization Address Phone/Fax Mobile Branch-Offices

Dr. Edi Purwanto Operation Wallacea Trust Taman Cimanggu Jl. Akasia III Block P6 No.5 Bogor + 62 (0)251 836 1180 + 62 (0) 81 296 55 233 Bogor: Taman Cimanggu, Jl. Akasia III, Block PVI No.4. Phone/Fax: 0251-8361180. Kendari: Perumahan Dosen Unhalu, Block A7. Jl. Mayjen S. Parman, Kemaraya, Kendari, Phone: 0401-3122097 Muna: Jl. I Made Sabara No. 30 Raha, Kabupaten Muna, Phone: 0403-2521483, 081 341 845 334 Kolaka: Jl. Pemuda No.37, Lalombaa, Kolaka. Phone: 04052323841

E-mail

purwanto.owt@gmail.com www.owt.or.id

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Chapter 1: Introduction 1.1 Background Small-scale renewable energy (RE) projects are good examples of environmentally protective activities which also present tangible benefits to participating communities. In Indonesia, there are more than 20 million un-electrified households - most of which are found in poor and remote rural areas. Current plans for expanding Indonesia’s national power grid do not include the connection of many rural communities within the next decade. Therefore, many communities are eager to explore alternative energy sources in order to meet their development goals. Micro-Hydro Power (MHP) technology is relatively well-established in Indonesia and holds significant potential for communities choosing to invest in RE schemes. Over the past 25 years, the MHP sector has developed significantly; local service providers have proven their capacity to develop successful ‘stand-alone’ rural electrification and ‘grid-connected’ MHP schemes within a specific size range (typically less than 100 kW). Through (Green) PNPM1, participating communities receive funding and necessary technical support to develop functional and sustainable MHP projects. Unfortunately, many MHPs operate mainly after sunset and therefore the main benefit is in lighting and entertainment, such as TV & radio. However, MHP schemes should and need to be able as a minimum - in a long-run perspective - to generate sufficient income for upkeep in order to continue to deliver tangible benefits. So-called “productive use” of the electricity made available is often much slower to develop than recreational and convenience use. Productive use is taken to mean application of power from an MHP that adds value to an existing economic process or allows new processes to materialize such as micro and small-enterprises in agri-business, as well as to social service institutions such as schools and health clinics Operation Wallacea Trust (OWT) is a Civil Society Organization (CSO) appointed by the World-Bank (PNPM support Facility/PSF) to support the implementation of the Green-PNPM project in SE-Sulawesi Province (2007- to date). Since March 2010, OWT has been contracted by the Danish Embassy to support catchment rehabilitation campaigns in the upper catchments 1

Green PNPM’s development objective is that rural communities in target locations benefit from improved natural resource management NRM practices and the use of RE technology. This objective is achieved through (i) mainstreaming NRM issues in the community-driven development planning process, (ii) increasing environmental awareness and related management capacity of communities and government stakeholders, and (iii) disbursing block grants to fund environmentally supportive ‘green’ projects at the kecamatan and kabupaten level. In Sulawesi, the pilots have been operated in four provinces, i.e. North, South, South East and West, while in Sumatera the pilots are developed in Aceh, North Sumatra, West Sumatra, and Bengkulu Provinces. Within the initial eight provinces, a total of 26 kabupaten and 78 kecamatan receive block grants and technical assistance to implement ‘green’ projects.

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of MHP contruction sites funded by Green-PNPM in Mamasa and Luwu Utara Districts; ‘Capacity Building on Catchment Areas Management and Conservation to Sustain MHP schemes’ (1.MRD.16-3). Measures such as community-enforced catchment area management and protection are essential for the sustained water flow to ensure the operation of MHP schemes. Improved natural resources management (NRM) practices will also provide other benefits and services to the participating communities including reduced soil erosion and increased rainfall retention. Since April 2010, OWT has delivered trainings, awareness and technical assistance and facilitated the development of village nursery and catchment areas planting campaigns. The project has recieved great responses and enthusiasm from local government in Mamasa and Luwu Utara Districts and enhanced a green spirit to the MHP program in Sulawesi. The project also successfully made vegetative cachment rehabilitation meaningful to the local community. This was done by nurturing the spirit of biodiversity conservation through the selection and protection of Village Mother Trees of indigenous tree species, the development of Village Tree Nurseries and Village Seed Sources. The intensive campaigns in Mamasa and Luwu Utara Districts during 2010/2011 have awakened the spirit of government and local community to restore their degraded areas. The support by OWT and the donor has made local community motivated to rehabilitate their resources, ‘why do we not care about our own resources when outsiders care so much about them’, a common statement by local communities in response to project facilitation. As a matter of fact, the project, apart from introducing new activities (tree seedling propagations, catchment areas planting etc.), is also the first technical assistance provided by an NGO funded by a foreign donor in this area. No wonder that the project receives enthusiastic participation. As a complementary of the above program in Mamasa and Luwu Utara Districts, it would be ideal that community facilitation on MHP management will also cover productive use. Some efforts had been made by previous project implementers on this aspect, however, the results, have not yet been satisfying2. The most probable reasons are: (a) improper procurement of productive-use machines. The productive use machine may not be simply purchased from the general market, it should be tailor made and carefully tested before granting to local community; (b) Local community needs intensive facilitation and technical assistances to use and maintain the machine. The granted machine may not be used by local community due to a simple 2

Some cases may be worth to mention: (a) Cocoa drying machine: In 2005, Parara community, Sabbang SubDistrict (Luwu-Utara) received cocoa drying machine with potential capacity of 200 kg. The actual capacity is only 20 kg-30 kg. The machine consumes voracious fuel; it consumes 5 liter kerosene for heating and 3 liter gasoline for generator for one time drying. The drying cocoa machine was actually designed for coffee rather than cocoa. (b). Coffee grinder: In 2008, Rante Puang community, Sesena Padang Sub-District (Mamasa) received coffee grinder, but the machine was unable to grind coffee as it was designed for cooking spices rather than coffee grinder. (c). Rice mill: In 2008, Lisuan Ada community, Sesena Padang Sub-District (Mamasa) received rice mill, but due to unsolved technical problem, the machine is ill-functioned.

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technical problem; (c) The operational cost of the machine should be economically sound for specific productive use activity; (d) The machine should be designed for long-lived used with simple operation and maintenance. In response to the issues, and understanding that OWT has been working in MHP developing districts in Mamasa and Luwu Utara Districts, in November 2010, OWT was invited by GTZ to conduct survey on productive use potential at selected MHP sites in Mamasa and Luwu Utara Districts.

1.2. Survey Implementation The survey was carried out from 5 February – 3 March 2011. From 5–18 February 2011, the survey was conducted in Luwu Utara District, while from 20 February– 3 March 2011 was in Mamasa District. The field data collection was conducted on 11 villages, i.e. 4 villages (Bantimurung, Malimbu, Tulak Talu and Parara Villages) in Luwu Utara District and 7 villages (Orobua Selatan, Tawalian Timur, Salumokanan, Rante Puang, Bombong Lambe, Masamba and Pasembu Villages). The field survey in Mamasa District was benefited on the support and inputs of German MSc student (Mr. Johannes). The survey findings, especially related to environmental conditions, selected MHP sites, exiting productive use and people expectations was documented in the 20 minutes film entitled ‘Micro-hydro power for people’. The first version of the film has been presented in the GTZ office, Jakarta on 10 March 2011, while the final version was submitted on 15 April 2011.

1.3. Objectives As stated in the Terms of Reference, the objectives of the survey are: (a) (b)

To assess the potential for fostering productive-use activities using MHP generated power in the selected areas; Prepare a proposal for a productive-use pilot project in one or more locations

The report outlines: (a) general conditions of the survey areas; (b) identification of the existing and potential productive uses activities; (c) financial and economic analysis of the existing and potential productive uses to evaluate the feasibility of the activities; (d) selection of village models based on list of criteria and indicators; (e) define strategy and actions plan for technical assistance and facilitation. The report will be a basis for project proposal formulation of productive uses facilitation in selected areas.

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Chapter 2: General Conditions of the Survey Areas 2.1. Mamasa District, West Sulawesi Mamasa District was established in 2002. Previously, it was part of Polewali-Mamasa (Polmas) District. The district shares boundary with Mamuju District in the northern part, Polewali Mandar in the southern part, Tana Toraja District in the eastern part and Pinrang District in the western part. The area of the district is 3,006 km, total population, based on 2009 census is 178.025 persons. The population density is 59 persons per km. The establishment of a new district and the appointment of Mamasa ‘town’ (14.607 inhabitants) located at the uppermost of the West-Sulawesi upland as the capital of the newly established District have gradually opened up this isolated area, which only about two decades ago was only accessible on horseback. The distance to the province capital of West Sulawesi Province (Mamuju) is 286 km, while the distance with the capital of South Sulawesi Province is 340 km. Until 2005, Mamasa District is composed of 10 sub-districts, after partition, since 2006, consist of 15 sub-districts3.

Figure 2.1. Position and modes of transportation to the survey areas 3

Name of sub-districts in Mamasa: (1). Mamasa, (2) Tabang, (3) Aralle, (4) Mambi, (5) Tabulahan, (6) Pana, (7) Nosu, (8) Sesena Padang, (9) Messawa, (10) Sumarorong, (11) Tanduk Kalua, (12) Tawalian, (13) Rantebulahan Timur, (14) Bambang, (15) Balla.

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Regent Office

Phone Cellular Tower

Electricity State Owned Enterprise (PLN)

Market

Figure 2.2. The situation of Mamasa Town

2.1.1. Environment and Livelihoods Biophysically, the district is located at the upstream areas (mountains ecosystem), mostly having altitudes above 800 m with hilly and mountainous terrain. The soil is dominated by Inceptisol and Ultisol. Annual rainfall ranges from 2,500 – 3,000 mm. Temperature is cool (10 – 15 C), especially during the evening and early morning. Water resources are abundant but with brown color, high suspended load, due to unstable substrate (bedrock). The natural vegetation is dominated by lower montane forest, Uru (Elmerrillia sp) is one of the indigenous species, but most of these have been logged and now the terrain is mostly covered with Sumatran native Pine trees (Pinus merkusii), see Box 2.1. The major staple food4 of Mamasa community is rice. The main livelihoods of the local community are agriculture, irrigated rice, rainfed farming (coffee) and raise cattle (water buffalo). As a consequence of the high population pressure upon limited land resources, most farmers have occupational multiplicity or have several different occupations at the same time. They may also alter their main sources of income from season to season, as opportunities arise. Box 2.1: Pinus merkusii a Sumatran native species which dominates the survey area Most of the hilly and mountainous terrains in the project areas are covered with Pine trees. The question arise ‘Is it naturally grown or manmade?’ ‘It is indigenous or exotic/introduced species? Pines trees in the project areas were planted during the ‘Regreening Program’. As such, the Pine trees in Sulawesi are introduced, but due to the nature of the species, Pine trees become ‘invasive’ and as we can see now, the tree has dramatically changed the landscape of the Sulawesi upland over the last four decades. Pinus merkusii (Pinaceae) is of Aceh, Kerinci and Tapanuli origin (Sumatera). This is the only species of Pine trees which is of Indonesian origin. There are at least three reasons why Pine trees invade and grow well on logged over forest in this area: (a) The seeds are easily dispersed by wind; the seed is small, light and have wings. The dispersal of seeds of Pine trees are not done by birds, but by wind. Pine trees are hardly visited by birds.

4

It is a food hat is eaten regularly and in such quantities as to constitute the dominant part of the diet and supply a major proportion of energy and nutrient needs.

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(b) The roots of pine trees have an intimate association with mycorrhizae (such as Scleroderma dictyosporum and Rhizpogon sp), fungal hyphae at the pine roots which transfer nutrients from fallen leaves and other organic material in the soil into the plant. Mycorrhizae also make nitrogen (N) and phosphorus (P) become available to pine as dissolved in water. (c) The pine tree produces allelopathy, a chemical suppression which prevents the growth of other species under its canopy to avoid nutrient and light competition. As we can see the diversity of undergrowth species beneath Pines stands is poor compared to stands of indigenous trees. Pine forests are generally found above 200 m altitude, and trees grow best between 800 – 1,500m. Final felling occurs at the age of 30-40 years with a timber production of up to 250 m3/ha. With the lack of high quality timber supply, local people have used pine wood for in-door construction. Due to the high density and total surface areas of the Pine’s needle leaves, the trees are known to have high evapotranspiration rates (water consumption). In areas having low rainfall depth, the trees often cause water yield reduction. Pine trees produce resin, which is being tapped and gathered in a similar way to rubber latex. Its distillation produces rosin and turpentine. Rosin is used in vanish, paint, ink and paper industries, while turpentine is used in various pharmaceutical and perfumery industries. Pine trees from Aceh are known to have the highest resin production compared to Pine trees of Kerinci and Tapanuli origins, however the latter has straighter stems compared to Aceh native Pine.

During the last five years, Mamasa ‘town’ has rapidly developed into a real town. However, such development as has occurred has already been excessively paid for by its natural resources degradation. The natural resources in the area are very fragile. Apart from its hilly terrain, its substrate is dominated by unconsolidated sandy rocks which are easily eroded by landscape disturbance and torrential water flows. The rapid and un-environmentally friendly road and house construction has caused severe degradation. Landslides in the newly opened areas are widespread and indeed even impact the accessibility of Mamasa Town during the rainy season. Since the 1950s, the natural forest in the region has been degraded, especially when the local community started converting natural forest into grazing ground and shifting cultivation (coffee). Up till now, such practices are still widespread. During the 1970s, a government regreening program rehabilitated the degraded natural forest land with Sumatran native Pine trees (Pinus merkusii). The Pine trees thrive well in the area, but the wooded areas are now also in a degraded state, due to overexploitation. The blanket rehabilitation with Pines has led to dramatic ecosystem degradation. The Pine plantations offer poor ecological protection compared to the original indigenous trees or to broadleaved tree species in general. The Pine forests provide poor erosion control as the Pine tree roots are superficial, while the thick and slowly decomposing litter layer has reduced the soil pH leading to rapid nutrient leaching. The invasive nature of Pines has made the Mamasa landscape inhospitable for the growth of all other vegetation systems and species except Pine. Given that most of the gentler sloping areas have already been occupied with irrigated agriculture (rice field), as a consequence of the high population pressure and in search of 6|Page Operation Wallacea Trust (OWT) |Report


additional income sources, many farmers have begun cultivating the steeper slopes, clearing the natural vegetation in the process. Steep slope agricultural practices require high investments, especially for terrace building and maintenance, while the soil productivity is quickly reduced, due to high erosion rates. Table 2.1. Land-cover and livelihoods changes in Mamasa District Time

Land cover

Until 1940s

Rice field cultivation  Intact tropical rain forest  Small-scale shifting cultivation for coffee Coffee plantation Rainfed agriculture plantation Small-scale timber collection Small-scale livestock Small-scale rattan collection  Conversion of natural forest into grazing Rice field cultivation Coffee plantation (bigger number) ground.  Larger scale shifting cultivation for Rainfed agriculture Small-scale timber collection coffee plantation Small scale livestock (bigger  Enlargement of critical land number) Small-scale rattan collection Government regreening program Idem rehabilitated the degraded natural forest land with Sumatran native Pine trees. The Pine trees thrived well in the area Idem  Pine forests logged for house Idem construction.  Conversion of Pine forest into coffee plantation Rice field cultivation  Mamasa separated from Polmas District Rainfed agriculture  Rapid development of Mamasa Town  Destruction of Mamasa terrain, land Coffee plantation Small-scale timber collection cover and riparian areas Medium-scale livestock Small-scale rattan collection Traders Workers Establishment of micro-hydro power Idem Environmental destruction (land slide as Idem results of improper and unplanned infrastructure development)

1950-1970

1975 - 1980

1980 - 1990 1990 – 2002

2002– to date

2005 –to date 2005 – to date

Livelihoods

The ecosystem degradation described above has created a vicious cycle of land degradation and the associated downstream impacts. The high sediment loads of the rivers resulting from land degradation in Mamasa is threatening the economic life of downstream investment such as the 7|Page Operation Wallacea Trust (OWT) |Report


Bakaru Hydro-Power Reservoir in Pinrang, the biggest hydro-power scheme and the main source of electricity to West and South Sulawesi Provinces. 2.1.2. Local Government Capacity Until 2002, Mamasa was a sub-district under Polmas District. After becoming a district, the total development budget and block grants from centre government increased about 200 times compared to when Mamasa was a sub-district. The District authorities are ‘unprepared’ to manage such big funding, and have instead become victims of development. It is apparent that the current development takes place in a hurried, haphazard, and random manner, without obvious spatial planning, without sufficient coordination between different authorities and the local people, and without consideration for the land use capacity of the region. Also, it appears that major infrastructure projects, including the opening of access roads, feeder roads and bridges, and the opening up of new agricultural lands, are being implemented without the necessary environmental safeguards. The success of decentralization depends upon the availability of proper institutions and qualified human resources in implementing all aspects of decentralization, as well as other supporting factors, such as infrastructure, technology, information access, personnel, and institutional capacity. 2.1.3. Socio-economic Condition 2.1.3.1. Accessibility The distance from Makassar to Mamasa Town is 340 km; this can be reached by public transportation (minibus, station wagon) about 10 hours. The road from Makassar to Polewali has been established since colonial time; the trace follows the flat terrain along the coast-line of South and West Sulawesi Provinces. Since 2007, the road from Makassar to Pare-Pare Town has been improved, concreted and widened, allowing separated two ways traffic. In fact, the construction takes long time. Terrestrial transportation from Makassar to Polewali is quite smooth and normally takes about five hours. The ‘adventure’ is started from Polewali to Mamasa. The narrow size road is continuously climbing upslope with many sharp curves along the mountainous terrain. The road condition is fragile and highly susceptible to landslide and rock-fall. The quality of the asphalt road is terrible from Sumarorong to Mamasa Town. The Mamasa District has still uncomfortable to reach from Makassar and even from the Mamuju (the capital city of West Sulawesi Province). The Airport is planned to build in Sumarorong5 and will serve Makassar-Mamasa and Mamasa-Mamuju. Sumarorong is about 40 km from Mamasa Town. Now there has been Lion flight from Makassar to Mamuju, however, terrestrial transportation from Mamuju to Mamasa is harder than from Makassar.

5

The fund source is from Centre government (APBN), it is about 104 billion rupiah

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2.1.3.2. Flow of goods Most of goods, from basic to secondary needs are served from surrounding towns such as Polewali, Enrekang, Pare-Pare and Makassar. During market days, two days a week, the road transportation are dominated by trucks which bring goods from outside to Mamasa. It is remarkable that flow of goods come from outside to Mamasa rather than vice-versa. 2.1.3.3. Economic empowerment development The original district revenue (PAD) of Mamasa District is about 14 billion rupiah a year; this has been completely spent for local government wages (including district parliament), while development funding is originated from the centre government and heavily spend for infrastructure development (building roads and buildings). This left a little portion for economic empowerment of local community. So far, the only community development program at grassroot level is the Rural PNPM program. 2.1.3.4. Social capital The community is dominated by the Toraja ethnic group, it is mostly Christian and has strong social capital. This is reflected from the following phenomena: (a) High spirits on voluntary works: every village defines one day a week to conduct voluntary work for their village (such as improving road, reinforce the fragile slope, develop tree nursery etc.); (b) Tallulalisan (three pillars): The strong cooperative works among the Priest, Village Head and Elders to build the village, solve social problems and safeguard environmental degradation (see Box 2.2.); (c) Strong social intact: high obedience to their culture and religion. Box 2.2. Tallulalisan Tallulalisan is the spirit of environmental conservation involving the roles and leadership of the Priest (Church), Village Government and Village Elders. The spirit of conserving nature has emerged since 1950s; however, degradation could not be avoided during 1960s when many people converted natural forest to grazing ground for livestock (carabao, water buffalo). During the 1970s, a regreening program rehabilitated the degraded natural forest land with Sumatran native Pine trees, but the village has lost of many part of its natural forest. Since 2005, the spirit of environmental conservation has reappeared, headed by the Priest. A new commitment to protect the forest has been implemented consistently: for every tree cut, at least 25 tree seedlings must be planted. A natural resource rehabilitation campaign is led by the Priest which involves children and youth. In 2007, they organized the first youth camp, in which one of the main activities was to conduct tree planting campaigns in the upper catchment areas.

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2.2. Luwu Utara District, South Sulawesi Luwu Utara District was established in 1999, as result of partition of the Luwu District. The District shares boundary with Centre Sulawesi Province on the north, Luwu Timur District on the east, Luwu District on the south and Mamuju District on the west. The area of the district is 7.502,58 km, total population, based on 2003 census is 250.111 persons (50,022 households). The population density is 42 persons per km. The district is located on the northern most of South Sulawesi Province. The capital of the district is Masamba (32,286 inhabitants), 136 km from Makassar. The district is composed of 11 sub-districts6. Luwu District is easily access from Makassar and other surrounding district, however, there are three sub-districts which are located far away from Masamba, i.e. Seiko, Rampi and Limbong. The most remote sub-districts areas are Seiko and Rampi (200 km) which are used to be reached by airplane from Masamba (20 minutes). Due to the road conditions (muddy and fragile), both sub-districts can only be accessed by Ojek (motor-bike taxi), which normally takes 2 days. 2.2.1. Environment and Livelihoods Biophysically, the district is located in the downstream areas, mostly having altitudes above 200 meter. The soil is dominated by Andosol. Annual rainfall ranges from 2,500 – 3,000 mm. Average temperature is 28 C. Although, the area is located in the downstream areas (with large river channel and the distance to the sea on average are about 20 km), the terrain surrounding river is not flat, but hilly to mountainous. Water resources are abundance; there are many spring waters and small streams (creek) originated from the areas and become a good source for micro-hydro power. It is different with Mamasa District; the substrate (bedrock) of the area is stable, the soil is compacted, landslide is minor, the stream water looks fresh and not in brown color as in Mamasa. Natural vegetation is dominated by secondary forest. Massive deforestation has been occurred since 1970s, most of the natural forest has been logged by forest concession. It is different with Mamasa District, Pine species was not introduced in the areas which makes the natural environment is better. The fertile soil and the high rainfall are so favorable for natural regeneration of secondary forest. The major staple food of Luwu Utara community is Sago. Apart from Sago, they also eat rice. The main livelihoods are cocoa plantation, fruit trees (durian) and rice cultivation. In 1990s, community enjoyed the windfall profits from cocoa. The favorable environmental condition (fertile soil7) and good sanitation led the cocoa plantation develop very well. On average 200 of 6

Name of sub-districts in Luwu Utara District: (1) Masamba; (2) Baebunta, (3) Sabbang, (4) Bone-Bone, (5) Malangke, (6) Malangke Barat, (7) Suka Maju, (8) Mappedeceng, (9) Limbong, (10) Rampi, (11) Seko. 7

Most of the cocoa developed from the forest land which have high organic material content

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dry cocoa beans transported to Makassar, this raised until 600 tons during great harvesting season. Farmers were able to build good houses and had cars. The cocoa reach its maximum price during economic crisis of 1999 and 2000, which contributed to the district revenue until 4 billion rupiah a year. In 2002, the golden period of cocoa plantation had passed, after the outbreak of cocoa pod borer (Penggerek Buah Kakao/PBK). See Box 2.3. Box 2.3. Cocoa pod borer The cocoa pod borer, Conopomorpha cramerella (Snellen) is a member of the lepidopteran Family Gracillariidae. The cocoa pod borer is the most serious insect pest of cocoa in Indonesia. Crop losses due to this insect are up to 80% in some geographical regions. The strongly flattened orange-brown eggs are laid singly on the pods, mainly in the furrows, and are very difficult to see. Incubation lasts 36 days and the larva immediately after hatching bore into the pod and makes long frass-filled galleries in the pulp. Beans are not eaten but callus formation takes place, affecting bean development. When fully grown, after 15-18 days the larvae are 10-12 mm long. When in the pod they are off-white, but they become pale green as they eat their way out through the green husk. A cocoon is formed in which the larvae pupates, sometimes on the underside of leaves or on the pod surface but possibly more frequently on dead leaves on the ground. The adult emerges after 5-8 days, thus the total life cycle length is about 4 weeks. The moths fly feebly at sunset and can possibly be carried for some distance by wind. The larvae spend almost their whole life inside the pods of the cocoa fruits. This habit gives the larvae protection against natural enemies and insecticides, and allows them to disperse passively over long distances in the fruit. Several essentially cultural methods for control of the cocoa pod borer are known. “Rampasan” consists of the total stripping of pods of more than 5 cm in length from farms or plantations once or twice a year, at periods of low fruiting to break the breeding sequence of the moth. Another method is the covering of developing pods with transparent plastic sleeves, open at the bottom, when the pods are 2 – 3 months old, before they are likely to be infested with eggs. Biological control, using black ants or parasitic wasps is also undertaken. Predation on pupae provides some limitation of numbers, but regulation of the cocoa pod borer by natural enemies is weak and the prospects for biological control are unpromising.

Table 2.2. The land-cover and livelihoods changes in Luwu Utara District Time Land cover Livelihoods Until 1970s

Intact tropical rain forest

1970-1985

Several timber forest concession companies conducted selective logging of the forest.

1985 -1990

 Local community clear secondary forest for

Small-scale timber collection Collection of tree fruits Small-scale rattan collection Making palm-sugar Sago extraction Small-scale timber collection Workers in timber concession Collection of tree fruits Small-scale rattan collection Making palm-sugar Sago extraction Cocoa plantation Small-scale timber collection

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cocoa plantation New settlers from Sengkang, Pangkep, BoneBone opened secondary forest for cocoa plantation  Expansion of cocoa plantation by local and new settlers  Reduction of Palm sugar tree and sago trees

1985 - 1995

1990 - 2002 2002 – to date 2005 – to date

The golden decade of cocoa production The outbreak of cocoa pod borer (PBK)  Many settlers left their cocoa plantation and return to the original area  Local community returned to its original livelihoods (making palm sugar and sago extraction), see Box 2.5.  Local community conduct circular migration to find jobs in Makassar

2004– 2007

Nationwide program to eradicate the PBK disease through Farmers Field School.

Collection of tree fruits Making palm sugar Sago extraction Cocoa plantation Small-scale timber collection Collection of tree fruits Making palm sugar (minor) Sago extraction (minor) Idem Idem idem

Idem

The program fail to eradicate the PBK disease 2008 - 2011

2011

Nationwide program to eradicate the PBK disease through Gernas, Gerakan Sambung Samping Nasional, National Campaign to eradicate the PBK disease through side shoot grafting. As results of Gernas, the cocoa production has started to improved.

Idem

Idem

2.2.2 Local government capacity The government district has strong governance capacity. This is strongly indicated from the following indicators: (a) the recent regent succession went smoothly. The district successfully conducted 2010 election in democratic manner with minimum excess; (b) the establishment of one stop government service: all district agencies office are centered at one area; (c) The district officials are highly responsive on community development initiatives; (d) The Masamba is a clean and tidy town, all public services (public phone, transportation etc.) work well, indicate that the government is functioning well. The good governance may be caused by the following reasons: (a) The district is surrounded and highly accessible from the growth center area of South Sulawesi, i.e. Palopo, Pare-Pare and Pinrang; (b) It is located across road to Centre and Southeast Sulawesi; (c) The district is blessed with good natural resources, a terms of water, soil and stable substrate; (d) The district has been developing since colonial time; (e) The economic development in the rural area was wellestablished due to the strong contribution of cocoa.

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The Luwu Utara District put big concern on economic empowerment for local community. The Regent issued Decree No. 153/2010 on the Synergetic Team. The Team is led by the Head of Rural Community Empowerment Agency (PMD), while the members are: (a) Head of Health Agency; (b) Head of Agriculture Agency; (c) Head of Cooperative and Trade Agency; (d) Head of Workers and Transmigration; (e) Head of Family Planning and Women Empowerment; (f) Head of Workers Training. The tasks of the team are: (a) Inventory community based smallscale industries; (b) Provide technical assistance; (c) Provide tools, equipment and grant; (d) Facilitate marketing, packaging and certification; (e) Evaluate the development of community based business; (f) Facilitate the potential development of natural resource management. Box 2.4. Sago Sago (Metroxylon sago Rottb) is a species of palm the genus Metroxylon, Arecaceae (palm) family. The sago palm is found in tropical lowland forest and freshwater swamps across Southeast Asia and Papua. It tolerates a wide variety of soils and may reach 30 meters in height. In Indonesia, the plant is largely distributed in Sulawesi, Moluccas and Papua. Sago palms grow very quickly, with up to 1.5 m of vertical stem growth per year. The stems are thick, self-supporting and the leaves are pinnate. Each palm reproduces only once before dying. Sago palms are harvested at the age of 7–15 years, just before flowering, when the stems are full of starch stored for use in reproduction. One palm can yield 150– 300 kg of starch8. Sago is largely found in Luwu Utara District, but not in the Mamasa highland; the trunks of Sago are solitary or clumped and large to massive in size. In 1990s, local community cut massive Sago trees during the land clearing to grow cocoa plantation, however, at present, Sago is still easily found in the wetland and riparian areas. Sago (Sagu) is a starch extracted from the pith9 of sago palm stems. It is traditionally cooked and eaten in various forms, such as rolled into balls (kapurung, papeda), mixed with boiling water to form a paste, or as a pancake. Sago is often produced commercially in the form of "pearls" (mutiara). Sago pearls can be boiled with water or milk and sugar to make a sweet sago pudding. Sago pearls are similar in appearance to tapioca pearls, and the two may be used interchangeably in some dishes.

2.2.3. Socio-economic Condition 2.2.3.1. Accessibility The capital of Luwu Utara District (Masamba) can be accessed through air and terrestrial modes. Air transportation: Masamba has airport, names ‘Andi Jema’ which has been established since colonial time. The Airport has runway of 900 meters. Cassa 212 (PT. Sabang Merauke Air Carter/SMAC) was used to flight twice a week (Wednesday and Friday) to Masamba and then from Masamba to Seko and return to Masamba. The capacity is 20 seats and flight hour from 8

Starch (pati, carbohydrate) is not synonym of flour (tepung). Starch is the major raw material of flour, apart from starch, flour also contain vitamin and protein. Flour may also be developed by mixing some different starches. 9 Pith or medulla - is a substance that is found in vascular plants, it is a nutrient storage and the transport of nutrients through the stem, branches, leaves, and roots of the plant

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Makassar to Masamba is 1.5 hours. Since early 2011, there has been no flight to Masamba, due to the airplane, which used to serve, had accident in Sumatra. Bus transportation: There are three luxury buses serving for Makassar-Masamba routes, Alam Indah, Bintang Prima and Gunung Rejeki. The bus has 35 seats, reclining seat, air-condition and toilet. All the luxury buses operate in the evening and takes 9 hours. Masamba is also possible to reach by boat from Kolaka (SE Sulawesi Province), it takes about 10 hours (Kolaka-Palopo). Palopo is the capital of Luwu District; it is about 30 km from Masamba.

Evening Bus (MakassarMasamba)

Goods transport

Airport

Local public trasportation (Angkot)

Figure2.3. Transportation modes in Luwu Utara District Box 2.5. Palm Sugar Palm Sugar is different from coconut sugar, although the names are used interchangeably. Palm sugar produced from Arenga pinnata (syn. Arenga saccharifera, Aren), while coconut sugar from coconut trees. It is a species of palm, the genus Arenga. It is an economically important feather palm native to tropical Asia. It is a medium-sized palm, growing to 20 m tall, with the trunk remaining covered by the rough old leaf bases. The trunks of Arenga are solitary or clumped and large to massive in size. The sap is harvested yielding the sweet, watery sap that drips from cut flower buds. The watery sap is processed into palm sugar; this can be fermented into vinegar and wine. The immature fruits are widely consumed in the called as kolang-kaling and are made into canned fruits after boiling them in sugar syrup. The black fibres surrounding the trunk is called ijuk fibres, it is used as the organic roof material common in ancient Java vernacular architecture, this also can be used as ropes or the brush part of the broom. The sugar palm making was the main traditional livelihood of several villages in Sabang Sub-District, Luwu Utara District. Until mid 1980s, the surveyed villages, such as Tulak Talu and Parara had massive Arenga palm. During end of 1980s, local community developed cocoa plantation at the expense of Arenga trees. They had to cut Arenga palm during land clearing, as the palm cannot live solitary as Durian (Durio cibetinus) trees. In fact, the conversion of secondary forest (traditional land-use) to cocoa plantation has affected to the depletion of Arenga tress, but not Durian. Those villages are still rich of durian trees10. During early 2000s, after sharp declining of cocoa production, many households wanted to return on 10

The annual harvesting season of Durian occur in February and March, however during March 2011, they did not harvest any single durian tree due to failure flowering (too much rain).

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their traditional livelihoods, but hampered by the limited Arenga plantation. At present, it is only 10% of the households who rely on their livelihoods as sugar palm makers either in Tulak Talu and Parara Villages. The average capacity of small scale palm sugar production per day is 10 kg, to maintain the sustain production each producer should manage at least 12 Arenga trees; the price is Rp. 4,000/kg. The sap is collected each morning and boiled in huge woks on the plantations until a sticky sugar remains. This is whipped and dropped in lumps on cellophane, or filled into containers. Because it is not highly processed like brown sugar, the color, consistency, flavor and level of sweetness can vary from batch to batch. They use fuelwood for boiling process which take 6 hours to process 10 liters watery sap.

2.2.3.2. Flow of Goods: Inter-district goods transportation from and to Masamba is easily found. Local public transportation use Angkot and Ojek11. The district has various goods transportation (1-20 tons), such as: pick up, truck with four, six and 10 wheels which can support the fluent flow of goods from and into the district. 2.2.3.3. Social capital: The community is dominated by Bugis Luwu ethnic group and is mostly Moslem. Luwu Utara District has a good social capital, although it is not as strong as Mamasa District. This is reflected from the following phenomena: (a) spirits on collaborative work still exist: Many activities at village level are conducted through voluntary work, such as: improving access road, improve mosque, school etc.); working together to erect the wooden house; (b) Strong social intact: high obedience to their culture and religion. Table 2.3. The different conditions between Luwu Utara and Mamasa Districts No

Main characteristics

A.

Accessibility A.1. Transportation from Makassar to District Capital A.2. Mode of transportation from Makassar to District Capital A.3. Transportation from District Capital to potential village models A.4. Internet access at District Capital A.4. Telecommunication (phone cell) at District Capital

B. B.1.Terrain condition (topography)

Luwu Utara

Good Good (Telkomsel & Indosat) Bio-physical conditions Flat to undulating

B.2. Geology B.3. Soil Type and Properties

B.4.Land-slide B.5. Forest condition

11

Very good Air Plane Luxury Bus Paved roads

Mamasa

Poor Mini-bus Poor roads Fair Good (Telkomsel & Indosat)

Mid Tertiary Volcanic Ultisol and Alluvial soil

Hilly and Mountainous Tertiary acid Intrusive Unconsolidated sandy rock

Fertile and low erodibility Rare Secondary forest with indigenous species

Fertile, high erodibility Frequent Degraded Pines forest (non-indigenous

Motor-bike taxi

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B.6. Level of natural degradation B.7. Flood frequency B.8. Natural hazard C.

D.

E.

F.

Low Low Low Economic infrastructure C.1. Access to district level market access Good C.2. Access to inter-district level market Good C.3. Access to province market Good C.2. Bank Service Good C.3. Inter-villages roads and transportation Good Public services D.1. Roads and transportation to potential village models Good D.2. Education Good D.3. Government administration Good D.4. Energy (electricity) Poor Government Supports to the proposed project D.1. Support from the Regent Very Good D.2. Support from Community Empowerment Agency12 Good D.4. Support from relevant agencies Good Micro-Hydro Power (MHP) F.1. Number of MHP ca. 40 F.2. Agencies to facilitate the MHP construction District agency PNPM-Rural MHPP/PNPM-Rural PNPM-Green

species) High High High Good Poor Poor Fair (only BRI) Poor Poor Fair Fair Poor Very good Good Good ca. 130 District agency PNPM-Rural MHPP/PNPM-Rural PNPM-Green

Table 2.4. General characteristics of the survey villages in Luwu Utara and Mamasa Districts General Characteristics A.

B. B.1. Religion B.2. Main Tribes

C. C.1. Capacity of key village government C.2. Village administration C.3. Existence of Village regulation

13

Mamasa

Social Capital A.1. Historical Conflict A.2. Mutual Help A.3.Social integrity A.4. Roles of faith on social integrity A.5.Homogenity A.6. Cultural Identity

12

Luwu Utara

None High Fair Fair Heterogenic Fair Religion and Tribes Moslem Bugis13 Toraja Javanese Village Governance Good Fair None

None Very high Very high Very high Homogeny Strong Christian Toraja

Fair Fair None

Badan Pemberdayaan Masyarakat Desa (BPMD), community empowerment agency Bugis Luwu, Bugis Sengkang, Bugis Bone

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C.4. Performance of PNPM program C.5. Roles of community Organization D.

Good High

Good High

- Cocoa plantation 14 -Rice farming -Animal husbandry (chicken)

-Rice farming 16 - Coffee farming -Animal husbandry (pig, buffalo, chicken) Rice

Livelihoods D.1. Main livelihoods

D.2. Staple food

E.

F.

G.

H.

Sago Rice D.3. Circular migration High Capacity of local community E.1. Education of KVC Secondary school E.2. Access to information Fair E.3. Enterpreneurship/innovation Fair Economic infrastructure at village level F.1. Local market access Good F.2. Inter-villages roads and transportation Good F.3. Access to district capital for potential village models Good Micro-hydro Power (MHP) G.1. Average capacity 10 – 15 kg watt G.2. Numbers of MHP on each village 1–3 Modes and source of energy for productive use operation

H.1. Modes H.2. Main fuel

Manual Motor/generator Gasoline Kerosene

15

Fair Secondary school Poor Poor Good Poor Good 10 – 15 kg watt 1-3

Manual Motor/generator Gasoline Kerosene

2.3. Economic Development Economic development indicators show the region potential, economic capital which can support economic development in the area. The indicators present the region potential which can be measured through economic parameters. It is different with potential areas for MHP development (for instance), in which the areas selection much rely on the natural resource potential, while for productive use development, the point interest is not only natural resource but economic capital. To understand the regional economic development status of both districts, the following economic indicators of both districts are presented and compared. Original District revenue (Pendapatan Asli Daerah) is the district income which obtained from district taxes, district retribution, district owned enterprises, utilization of district wealth and others. Gross Regional Domestic Product (GRDP) is an economic indicator to measure the aggregate of gross value added of all resident producer units in the region at particular time (year). The GRDP 14

High yielding variety, three times harvest a year Old rice species, two times harvest a year 16 Toraja Coffee 15

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includes regional estimates on the three major sectors including their sub-sectors such as (a) agriculture, including fishery and forestry; (b) Industry and Trade; (c) Transport and Communication. The Nominal GRDP measures the value of the outputs of the economy at current prices. Economic growth is the increase of aggregate income, typically reported as the annual rate. It is primarily driven by improvements in productivity which involves producing more goods and services with the same inputs of labor, capital, energy and materials. Table. 2.5 Economic Development Indicators of Luwu Utara and Mamasa Districts (All figures in Rp). No 1.

Indicator District Revenue*

Luwu Utara 17.047.000.000

Mamasa 14.721.033.276,8

2.

Gross Regional Domestic Product^

1.237.399,51

479.896,18

3.

Economic Growth^

6,83 %

6,67%

4.

Income per capita^

4.077.999

3.890.146

5. 6. 7.

Population# (persons) 313.674 178.025 District Area (km2) 7,503 3,006 Population Density 42 59 (person/km2) Sources: Central Board of Statistic, 2008*, 2007^, 2008#

Remarks Luwu Utara has better revenue than Mamasa Luwu Utara produce more goods and services compared to Mamasa The economic growth of both districts are equal Luwu Utara community have better income than Mamasa The man and land ratio in Mamasa is lower than Luwu Utara District

Table. 2.6 Economic Infrastructure of the district capital of Luwu Utara and Mamasa Districts No 1. 2. 3. 4. 5. 6. 7. 8.

Indicators Width of main roads (m) Road quality Flood and landslide hazards Number of market Number of Automatic Teller Machine Number of gasoline station Transportation Bank

Masamba 12 Good Low 1 2 (BRI, BNI) 1 Angkot and Ojek 2

Mamasa 6 poor high 1 1 (BRI) 0 Ojek 1

2.4. Productive Uses Activities and the problems 2.4.1. Present Productive Use Activities The present income generating activities in the survey villages can be sub-divided into four categories; (a) Small-holder farming (rice, cocoa, poultry, coffee); (b) Services (Rice-mill, 18 | P a g e Operation Wallacea Trust (OWT) |Report


tailors); (c) Home Industry (iron works/blacksmith, repair/welding shop, snack handmade, rattan handicraft, making palm sugar, wood working/fitter, making palm sugar); (d) Community enterprises (Ginger Instants, Sago milling). In terms of sites distribution, there are two types of income generating activities in the survey areas; the first is those which are common in all the survey villages and those which are only found in particular areas. Common productive uses which are common in both districts are family poultry, rice mill, tailor, rattan handicraft, iron work, wood working and welding shop. Those which only occur in Luwu Utara District are: (a) cocoa plantation; (b) palm sugar making; (c) sago milling, and (d) Ginger instant making. Those which only occurs in Mamasa District, is coffee farming. The variation of income generating activities in Luwu Utara is higher than in Mamasa. Table 2.7. The existing Productive Use Activities and sites distribution No

Income generating activity

Sites distribution

Remarks

Motive

Small-holder Farming 1.

Rice farming

2.

Cocoa farming

3.

Poultry

4.

Coffee farming

Luwu Utara: Malimbu, Tulak Talu, Parara Mamasa: Salumokanan , Rantepuang, Bombong Lambe, Orobua Selatan, Tawalian Timur, Mesakada Luwu Utara: Bantimurung, Malimbu, Tulak Talu, Parara Luwu Utara: Bantimurung, Malimbu, Tulak Talu, Parara Mamasa: Salumokanan , Rantepuang, Bombong Lambe, Orobua Selatan, Tawalian Timur, Mesakada Mamasa: Salumokanan, Rantepuang, Bombong Lambe, Tawalian Timur, Pasembu.

Most of rice production are only for subsistence uses

Economic

The production have sharply declined after 2002

Economic

Most of community raises chicken and some of them duck in traditional manner

Economic

Many villagers use this activity as the main source of livelihood. The wellknown ‘Toraja Coffee’ is largely originated from this area.

Economic

19 | P a g e Operation Wallacea Trust (OWT) |Report


Services 1.

Rice mill

Mamasa: Salumokanan , Rantepuang, Bombong Lambe, Tawalian Timur

Milled rice for home consumption

Business

It is a women (old and young) activities

Economic

Luwu Utara: Parara 2.

Tailor

1.

Iron works/blacksmith

2.

Repair/welding shop

3.

Snack handmade

4.

Rattan Handicraft

5.

Making palm sugar

6.

Wood working/Fitter

Luwu Utara: Malimbu, Tulak Talu, Parara

Mamasa: Rantepuang, Bombong Lambe, Tawalian Timur Home Industries Mamasa: Salumokanan, Produce agriculture Rantepuang, Bombong utensil: hoe, , dibble, Lambe, Tulak Talu axe, scoop, machete, sickle, scythe, cutter. Luwu Utara: Malimbu dan Motor bike repairs, Tulak Talu making house utensil (bed) Mamasa: Salumokanan , Rantepuang, Bombong Lambe. Luwu Utara: Tulak Talu, Women activities to Parara raise household income, sell in the market and school. Luwu Utara: Salumokanan, Tawalian Timur. Mamasa: Rantepuang, Produce various Bombong Lambe, Tawalian handicraft and house Timur, Pasembu. utensil Luwu Utara: Bantimurung, Many villagers use Malimbu, Tulak Talu, this activity as the Parara. main source of livelihood. The area is rich of naturally grown Arenga pi単ata. Luwu Utara: Malimbu, Tulak Talu, Parara

Side job based on order

Business

Business

Economic

Economic

Economic

Economic

Mamasa: Salumokanan , Rantepuang, Bombong Lambe, Tawalian Timur 20 | P a g e Operation Wallacea Trust (OWT) |Report


1.

Ginger Instants

2.

Sago extraction17

Community enterprises Luwu Utara: Parara This activity is conducted by one farmer group. It is pioneer activity using the local resources (palm sugar and ginger). Luwu Utara: Malimbu, Tulak Talu, Parara

To make flour out of sago trees

Business

Economic

2.4.2. Problems of the productive uses activities 2.4.2.1. No processing of the extracted resources The nature of income generating activities, excluding smallholder cocoa, used to be conducted in the form of traditional processing, some of them only collect and sell without processing, those are the case for extraction of timber and non-timber forest products from natural forest. Some of the survey villages (Malimbu, Tulak Talu, Parara/Luwu Utara and Salumokanan/Mamasa) still have secondary forest. People conduct selective logging and sell to traders who take timbers from the main road; some people process the collected timbers for house construction and furniture. Many also collect rattan (Calamus sp) and directly sell to rattan trader, some people process rattan for kitchen utensil. Tulak Talu, Parara and Malimbu are among of the durian (Durio cibetinus) production in the district, during the harvesting seasons (which are only about two months a year), local community have to sell their perishable durian quickly with low price before the fruit being

17

Sago extraction is conducted by splitting the stem lengthwise and removing the pith which is then crushed to release the starch before being washed and strained to extract the starch from the fibrous residue. The raw starch suspension in water is then collected in a settling container. Sago milling is laborious. Dependent on the ease access of clean water and the volume of the extracted tree, the extraction of one Sago tree may require 20-24 man-days (4 persons for 5-6 days). The underlined reasons; (a) the extraction site is not established at particular site, but it is mobile, in line with the position of the extracted tree; (b) it normally takes long time to collect and channel clean water (using bamboo or PVC pipes) to the extraction site. Water plays important roles on the extraction process. It is strongly define the quality of the starch. If the water is clear and clean then the resulted starch are white and hygienic; (c) The extraction equipment has to be set up in line to terrain condition. They use gasoline machine to operate crusher to release the starch. The extraction process in some cases destructs the environmental conditions (due to opening of vegetative cover to channel water, compaction of the surrounding extracted Sago trees). 21 | P a g e Operation Wallacea Trust (OWT) |Report


rotten. There are no efforts to process the durian to become non perishable food which can stay longer after harvesting. Some community’s members in the survey areas are still in the first step of natural resource management, extraction of natural resource, with limited efforts and skill to develop added value. 2.4.2.2. Most of productive uses are economic rather than business motives: The major motivation is economic; meaning that the engagement is merely aimed to maintain their economic survival rather than for profit or capital accumulation. The income generating activities which are conducted for business reasons are rice mill; the welding shop and the making of Saraba Instant (see Table 2.7). The nature of cocoa farming has changed from business activities during the period of 1990s to early 2000s to become economic activities now18. 2.4.2.3. Lack of access to capital Some businesses stay small after many years of development due to lack of capital. This is the case for small-scale Saraba Instant enterprise in Parara Village (Luwu Utara). They have invented ingredient for Saraba and have successfully developed and marketed the products to several towns, but after several years the products remain small due to lack of capital access. Smallholder cocoa farming is used to borrow capital from traders (cocoa collectors) with high interest rate, and have to sell the harvested cocoa to creditors with low price. The limited margin and debt trap are the major causes for the slow development of the income generating activities in the survey areas. Table 2.8 Economic and Business Motives No

Items

1

Nature of Activities

2.

Capital

3.

Use of profit

4. 5.

Economic motive

Business motive

Following their ancestors, the activities have been conducted for long period without any improvement. Capital is not required

Keep looking for new improvement and innovation.

Motivation

Profit is used for consumptive use. Enhance household income

Profit is used to raise the economic scale of the business Profit and capital gain

Development

Slow and immeasurable

Relatively quick and measurable

Capital is essential

18

As the case of cocoa farming, it was started with economic motive then change to business motive (during 1990s), after the declining of its production (due to the outbreak of PBK/pod borer disease), then become economic again. The nature of income generating activity in the survey area is still dominated by economic rather than business.

22 | P a g e Operation Wallacea Trust (OWT) |Report


Summarizing: The major problems of income generating activities in the survey area are: (a) Lack of knowledge and skills on enterprise management; (b) Lack of access to appropriate technology; (c) Lack of energy and machine to support their work; (d) Limited access to capital; (e) Limited market information. 2.4.3. Potential Development The existence of MHP in the survey area should be able to play roles as agent of changes for the rather gloomy picture of income generating activities in the survey areas. The generating power should be able to shed lights for the better livelihoods. It is true that the problem is not merely lack of energy and machine to support their work, but also local community attitude and business environment. The successful implementation of productive use will become a milestone of MHP’s best practice, it is expected to: (a) enhance strong ownership and awareness of local community on MHP sustainable management use, including catchment areas management; (b) enhance the establishment of sustainable livelihoods in the upstream areas; (c) As a driver of industrial revolution, accelerated and distributed income generation in the upstream/remote area. Some activities which are potential to be developed in the survey areas are listed in Table 2.9. Table 2.9. Potential development of the existing Productive Use Activities No

Potential use of electricity to generate power for

3.

Income generating activity Small-scale (family) poultry Smallholder cocoa farming Wood working/Fitter

4. 5. 6. 7.

Tailor Iron works/blacksmith Rice mill Repair/welding shop

8. 9. 10.

Snack handmade Sago milling Rattan Handicraft

Electrical sewing machine Heat blower, metal cutting and grinding machines Rice milling machine (to replace diesel/gasoline machine) Electrical equipment for welding shop ( metal cutting, grinding machines etc.) Electrical equipment for cooking (mixer, oven etc.) Sago milling machine (grater machine) Electrical equipment for rattan working

11.

Ginger Instants

Electrical equipment for cooking (mixer, grater, sealer etc.)

1. 2.

Hatchery (egg-incubator) Heat blower for cocoa drying machine Electrical equipment for wood working

23 | P a g e Operation Wallacea Trust (OWT) |Report


2.5. Conclusions and Recommendations Luwu Utara District is ideal for productive use development. The district has good economic infrastructure, accessibility and great support of local government. The government has strong development policy to develop and maintain the areas as a leading cocoa production in South Sulawesi Province. See Table 2.10. While Mamasa, the economic infrastructure is still under development and rather poor accessibility, but the district has excellent social capital and well-known as the center of MHP development in Sulawesi. Mamasa is still ‘virgin’ from project (‘money’) intervention and Mamasa community is badly needed technical assistances. See Table 2.10. By using a ‘first ready, first served’ approach, Luwu Utara has better opportunity as productive use pilots than Mamasa District, however understanding the specific conditions of Mamasa, it is good if the pilot projects can take place in two districts. Each district has its specific challenges and opportunities. Table 2.10. Environmental, economic and social indicators of Luwu Utara and Mamasa District No Indicators Luwu Utara Mamasa

1. 2. 3. 1. 2. 3. 4. 5.

1. 2. 3.

Environmental Accessibility +++ Natural Resources +++ Natural hazard + Economic Economic infrastructure ++ Economic indicators ++ Public service +++ Government interest to community +++ empowerment The variation of income generating ++ activities Social Social Capital ++ PNPM performance ++ Numbers of MHP +

+ + +++ + + + ++ +

+++ ++ ++

24 | P a g e Operation Wallacea Trust (OWT) |Report


Chapter III: Financial and Economic Analysis of Potential Productive Uses 3.1. Small-scale Poultry 3.1.1 Potential development Poultry are the smallest livestock investment a village household can make. Keeping poultry makes a substantial contribution to household food security. It helps diversify incomes and provides quality food, energy, fertilizer and a renewable asset in rural households. Small-scale producers are however constrained by poor access to markets, goods and services; they have weak institutions and lack skills, knowledge and appropriate technologies. Small-scale poultry is defined as small-scale poultry keeping by households or using family labor and, wherever possible, locally available feed resources to obtain food security, income and gainful employment for women and children. Poultry provide a major income-generating activity from the sale of birds and eggs. Occasional consumption provides a valuable source of protein in the diet. Women often have an important role in the development of family poultry production. Several study on income generation in rural areas showed that family poultry accounted for about 50 percent of the total income, and was used for food, school fees and unexpected expenses such as medicines. Small-scale poultry is the most popular and common household activities and mostly aimed as side income and home consumption. Chicken are housed at night but allowed free-range during the day, every household raise 5 – 10 hen/cock with chicks about 10-20. Eggs can provide a regular, albeit small, incomes while the sale of chicken provides a more flexible source of cash as required. Some households are able to sell chicken until 20 chickens and 150 eggs per year, but many of them only use the chicken and eggs for household consumption. Chicken hens can lay 50-60 eggs per year. Hens normally lay 10 eggs in 10 days; time to hatch is about three weeks (21 days), time to raise chicks is about three months, only about 2-3 weeks after stop caring of the chicks, hens start to lay eggs again, the duration between laying eggs is about 4 month (see Figure 3.1). Ducks have several advantages over chicken, in particular their disease tolerance. They are hardy, excellent foragers and easy to herd, particularly in rice-field where they tend to flock together. Both Luwu Utara and Mamasa Districts have excellent potential for duck keeping. The underlined reasons are: (a) Lot of rice fields, ponds as areas to herds; (b) Abundance natural feed, such as snails, worm, rice husk, rice bran etc.; (c) natural environment, little pollution, limited chemical pollutant; (d) space is available, a small flock of ducks can be kept in the yard of a household at a low cost; (e) big potential market, the current demand of duck and its eggs are supplied from outside districts. In many areas of this country herded flocks under the care of a single herdsman usually range in size from 50 to 90. During the day, a flock of ducks, usually mature females, is allowed to search 25 | P a g e Operation Wallacea Trust (OWT) |Report


for food in harvested rice fields and other areas where food is plentiful. At night, the flock is returned to a confinement, usually a bamboo pen, where eggs are laid during the night. Eggs are collected and sold, or used for food by the herdsman's family. The major part of the diet of herded ducks consists of whole grains and snails, plus small amounts of insects, leaf material, crabs and frogs. It is the job of the herdsman to move the flock, as often as necessary, to areas where food is plentiful. Portable bamboo fencing and other equipment is moved with the flock to each new location. A grassy area with some protection, such as provided by trees, is selected as a base camp where the fencing is set up. Supplemental feed is given to herded ducks only when the food supply in the fields is inadequate. The duck keeping in the surveyed areas is however small-scale and traditional. The numbers of hens range from 10 - 30. The population development is slow, some people have raised duck for 10 years but the numbers of hens are only 15. Generally speaking, the nature of poultry development in Luwu Utara and Mamasa Districts are economic (subsistence) and not business (See Table 3.1). Duck husbandry in Luwu Utara District can be found in Tulak Talu, Parara and Malimbu Villages, while in Mamasa District is in Tawalian Timur, Salumo Kanan and Rante Puang Villages. Potential Development: With improving poultry management and inclusion of electricity power, the family poultry production can be increased. This can be done through the following approaches: (a) Use lighting to improve egg production. This is simply done by put light on the hen cage, to extent day light from 12 to at least 18 hours; (b) Using hatchery to increase the hatchability and save the energy of the hen to maintain the productivity; (c) Use light to heat the chicks. Chicks are separated from their hens, so hens enable to lay egg again. By doing this, and supported with good local feed resources (especially for hens and young growing poultry/under two months of age), health care, adapted breeds and improved management, the family poultry in the surveyed areas can theoretically be expected to rise about 5 times higher than the present condition.

Figure 3.1. Egg incubator type RH120A, capacity 540 eggs. Length: 100 cm, width: 40 cm and height; 100 cm. The machine automatically turns eggs every three hours to prevent the yoke from settling to one side and to exercise the embryo19. 19

The actual quantity of eggs to be loaded in each machine at each set, the frequency of loading (once or twice a week) and the actual position of the set within the machine will vary with each manufacturer.

26 | P a g e Operation Wallacea Trust (OWT) |Report


3.1.2 The use of MHP for egg incubator (hatchery The function of egg incubator is to bring normal room temperature up to a desired temperature for hatching eggs. The example of hatchery machine is presented on Figure 3.1. The measure of success of any hatchery is the number of first-quality chicks produced. This number expressed as a percentage of all eggs set for incubation is normally termed hatchability. The hatchability is not influenced by the machine but also the fertility of the egg, the later is related to the quality of the farm condition (such as nutrition, disease, egg damage, egg sanitation, egg storage etc.). As such, the success use of hatchery is dependent on the whole improvement of the poultry farming system. 10 D

2W

1M

1M

1M

2W

Without technology

Time

Only 1x

With technology

Remarks:

1x

2x

3x

4x

5x

D= day, W= week, M= month Time to lay egg Time to hatch Period until lay egg again Time to raise chick of the mother hen

3.1.3. Financial analysis of chicken keeping To analyze the profitability of the business, the following assumptions are taken; (a) Household income per month is Rp. 400,000 or Rp 4.800.000 per year; (b) No starting fund is required, as community have been engaged on family poultry; (c) Hatchability is 83%; (d) Sale price of chicks of 2 months age is Rp. 20,000; (e) Sale price of a piece of egg is Rp 1,500; (f) One cycle production is period from production to sale; (g) By using hatchery and separating chicks from hen, egg productivity will raise significantly; the lay egg frequency is once a month or twelve time per year; (h) Number of households in the village is 350 and 200 of them raise chicken.

27 | P a g e Operation Wallacea Trust (OWT) |Report


3.1.3.1. Profitability of selling eggs Small-scale poultry, apart from providing source of protein, is often seen to provide a major income-generating activity from the sale of eggs. Such contention is not always well-proven. Based on interviews, the generating income from selling eggs are poor. Community is losing rather than gaining income. A household which three hens produce 80 eggs per year, feeding cost are 100,000 per month. The annual income from selling 80 eggs is Rp. 1,200,000; so the earning is equal with the feeding cost. If one considers labors cost of Rp. 10,000 per day or Rp. 360,000 per year, the household lost Rp. 360,000 or Rp. 72,000,000 at village level. 3.1.3.2. Financial analysis of selling DOC free range chicken Table 3.2 Financial analysis for selling DOC free range chicken Production Cost: Eggs 36 pieces @ Rp 1.500 Electricity power for hatchery (21 days) Operational cost to operate hatchery Feeding broiler hen per month Total cost Earning: Selling 30 DOC, @ Rp 3.500 Loses from 1 production cycle (1 month) Potential lost per year (12 months)

Amount (Rp) 54,000 15,000 15,000 75.000 159,000 105,000 ( 54,000) (648,000)

3.1.3.3 Financial analysis of selling 2 months grower A household which three hens produce 36 eggs in 12 days, the hatchability is 83%, or 30 out of 36 eggs. Sale price for 2 months grower is Rp 20,000. The feeding is semi-intensive during the first month, while the second month is supported with free-range.

28 | P a g e Operation Wallacea Trust (OWT) |Report


Table 3.3 Financial analysis of selling 2 months grower No 1

Item Feeding during the first and second month

Feed

Quantity

Unit

Cost

Amount

Rice-bran

40

kg

2,125

85,000

Maize

15

kg

6,500

97,500

Rice

15

kg

6,500

97,500

Concentrate

20

kg

7,000

140,000

Sub total

420,000

2 3 4

48,000 10,000 75.000 553,000

Medicine Electricity Feeding for hen

Total Production Cost 5 Selling price

30

20,000

600,000

6

Monthly profit

47,000

7

Annual profit (6 times sale per year)

282,000

3.1.3.4 Financial analysis of selling mature chicken Numbers of raise chicken is 30, with level of survival 75%, 70% hen and 30% cock. Sale price of mature hen is Rp. 55,000 and cock is Rp. 80,000. Chicken is feed extensively (combine with free-range), the cost of feeding of 30 chicken is Rp. 200,000 per month. The growing period is 5 months. Farmers can sell mature chicken twice per year. Table 3.4 Profitability of selling mature chicken Selling hen 16 @ Rp 55.000 Selling cock 6 @ Rp 80.000 Total earning: Raising cost for 5 months Profit per 6 months Profit per year

Rp 880,000 Rp 480,000 Rp 1,360,000 Rp 1,000,000 Rp 360,000 Rp 720,000

3.1.3.5 Comparison of small-scale chicken production From the above calculation, community can have opportunity to earn profit by selling 2 months grower and mature, while farmers are losing by selling eggs and DOC. Only little farmers are selling growers, many of them sell mature. In fact, the existing poultry practices are driven by economic rather than business motive, the underlined reasons are: (a) The low productivity of egg production; (b) High feeding cost. As results the inputs (time and cost to raise chicken) do not compensate well by the selling price. 29 | P a g e Operation Wallacea Trust (OWT) |Report


800,000 600,000 400,000 200,000

Income per household for 1 cycle

Eggs

DOC

Grower

Mature

(200,000)

Income per household for 1 year

(400,000) (600,000) (800,000)

Figure 3.2. Financial analysis of several chicken products

Table 3.5. Financial analysis of several products of chicken keeping No. Products Household earning per cycle 1. Selling eggs -30,000 2. Selling DOC broiler* -54,000 3. Selling 2 months grower* 47,000 4. Selling mature chicken* 360,000 Remarks: * using hatchery

Household earning per year -360,000 -648,000 282,000 720,000

Table 3.6 Comparison of productivity with and without hatchery No 1. 2. 3.

Item Lay egg frequency Egg production per year Earning

Without hatchery 3 times/year 30 pieces Rp 45.000

With hatchery 12 times/year 120 pieces Rp 180,000

Increment 8 times 90 times 3 times

3.1.4. Financial analysis of duck keeping Only few farmers practice duck keeping, mostly in group which consist of 5-10 households’ farmers. The nature of husbandry is extensive and traditional. Little adoption of new knowledge and skills, the sales product is mainly eggs.

30 | P a g e Operation Wallacea Trust (OWT) |Report


To analyze the profitability of the business, the following assumptions are taken; (a) The business is operated by farmer group (composed of 5-10 households), each household has income Rp 4.800.000 per year; (b); No starting fund is required, as community have been engaged on family poultry; (c) the numbers of duck are 30 and produce 18 eggs per day or 540 eggs per year; (d) Hatchability is 75%; (e) Sale price of 2 months grower is Rp. 20,000; (e) Sale price of egg is Rp 1,500; (f) One cycle production is period from production to sale; (g) The sale price of Day Old Duck (DOD) is Rp. 5,500 for hen and Rp. 1,500 for cock; (i) One hatching cycle is 40 days or 9 cycle per year; (j) Number of households in the village is 360 household and only one farmer group raise duck. 3.1.4.1 Financial analysis of selling eggs Table 3.7 Financial analysis for selling eggs Production Cost Ratio Maize Rice bran Concentrate Total production cost

1 6 1

Selling eggs Profit per month rofit per year

Weight (kg)

Price/kg

Amount (Rp)

16.88 101.25 16.88 135

4,000 1,100 3,925

67,500 111,375 66,234 245,109

540

1,300

702,000 456,891 5,482,688

3.1.4.2. Financial analysis of selling DOD 2 days: Time for eggs collection is 11 days, while hatchery time is 28 days Table 3.8 Financial analysis for selling DOD Production Cost 540 eggs @ Rp 1.300 Electricity power for 28 days Operational cost Total Production Cost

Amount (Rp) 702,000 15,000 15,000 732,000

Earning: 203 DOD hen @Rp 5.500 202 DOD cock @Rp 3.0500 Total earning Profit per production cycle

1,113,750 606,000 1,719,750 987,750

Profit per year

8,889,750 31 | P a g e

Operation Wallacea Trust (OWT) |Report


3.1.4.3. Financial analysis of selling 5 months grower duck Assumptions: (a) Numbers of DOD is 405; (b) Time to raise is 5 months (150 days); (c) Sale price for hen is Rp. 40,000 and for cock is Rp. 35,000; (d) Survival level until 5 months is 85% or 340 out 405 with equal sex ratio; (e) feeding is 50% of standard productive duck; (f) One production cycle is 185 days or two production cycle a year Table 3.9 Cost to raise 5 months grower

Maize Rice bran Concentrate Standard feeding cost per month Standard feeding cost for 5 months 50% of feeding standard

Ratio

Price per kg

Weight (kg)

Amount (Rp)

1 6 1

4,000 1,100 3,925 -

150 900 150 1,200

600,000 990,000 588,750 2,178,750 10,893,750 5,446,875

Table 3.10 Financial analysis of selling 5 growers Selling 170 hen @ Rp 40.000 Selling 170 cock @ Rp 35.000 Total earning Production cost Profit per month Profit per year

Rp 6,800,000 5,950,000 Rp 12,750,000 5,446,875 Rp 7,303,125 Rp 14,606,250

Table 3.11 Financial analysis of duck keeping No Products Household earning for one cycle 1 Eggs 456,891 2 DOD, 2 days 987,750 3 5 months Grower 7,303,125

Household earning for one year 5,482,688 8,889,750 14,606,250

32 | P a g e Operation Wallacea Trust (OWT) |Report


16,000,000 14,000,000 12,000,000 10,000,000

Income per household for 1 cycle

8,000,000

Income per household for 1 year

6,000,000 4,000,000 2,000,000 Eggs

DOD

Mature

Figure 3.3 Financial analysis of several duck keeping products

3.1.5 Economic analysis of chicken and duck keeping The impact of small-scale poultry at village level can be inspected on Table 4.11 and Table 4.12. Table 3.12 Comparison of household and village earnings from chicken keeping Household Household Increase Village No. Selling Products earning for earning for earnings for 1 cycle 1 year 200 households (30,000) (360,000) (72,000,000) (54,000) (648,000) (129,600,000) 47,000 282,000 56,400,000 360,000 720,000 144,000,000

Eggs 1. DOC 2. 2 months Grower 3. Mature 4. Remark: Present Income: Rp. 1,680,000,000.

economy by implementing the business 1,608,000,000 1,550,400,000 1,736,400,000 1,824,000,000

Increment (%) -8 -14 6 15

Table 3.13 Comparison of household and village earnings from duck keeping No. Products Farmer Group Farmer Group Village Increment economy with (%) earning 1 cycle earning

456,891 5,482,688 1. Eggs 987,750 8,889,750 2. DOD 7,303,125 14,606,250 3. 5 months Grower Remark: Present Income: Rp. 1,680,000,000.

(by) implementing the business 1,685,482,688 1,688,889,750 1,694,606,250

0.33 0.53 0.87 33 | P a g e

Operation Wallacea Trust (OWT) |Report


Summarizing DOD is the most profitable business, however as this is only involved few households in the village, the economic impact is minor. On the contrary, selling mature chicken only provide modest additional earning, however as this is widely practices in the village (200 households), the economic impact at village level is considerable. 2,000,000,000

1,500,000,000

Income all enterprise in village per year

1,000,000,000

500,000,000

Income all villager per year

Eggs C DOC Grower Mature Eggs D DOD, Mature C C D (500,000,000)

Figure 3.4 Comparison of income generation of chicken and duck keeping products

3.2. Cocoa bean drying 3.2.1 Potential Development Luwu Utara District is the leading cocoa production in South Sulawesi Province. The peak of production occurred from mid 1980s to early 2000. The outburst of pest and disease has strongly declined the cocoa production in the district. In response to the severe problems, after the failure of national program on farmer field school to eradicate cocoa pest and disease launched in 2001, from 2007, government launched new program called Gernas, Gerakan Sambung Samping Nasional, a national campaign for cocoa rejuvenation through side and shoot grafting. In this program, the infected disease of cocoa trees does not totally cut, but the stem is used as rootstock, while the entrees (upper stem) are taken from high quality cocoa planting materials. The Gernas is expected to enhance cocoa fruit production within two years. In this program, farmers, apart from receiving training and technical assistances; they also receive fertilizer and pesticides for maintenance. After two years implementation, the results of Gernas in Luwu Utara District have started to take affects. The cocoa fruit production has risen significantly while the pest and disease are controlled. 34 | P a g e Operation Wallacea Trust (OWT) |Report


Cocoa farming is labor intensive, every part of cocoa farming, from planting, harvesting to fermenting, is best done by hand, not machines. Pods must be removed from the trees individually, by hand, because not all ripen at the same time. Farmers generally use machetes or large knives attached to poles to slice down the ripe pods, taking care not to hurt nearby buds. The pods are split open by hand. Fermentation is the first critical process to develop the beans’ flavor. The beans, still covered with pulp, are placed in large, shallow wooden boxes or are left in piles and covered with banana leaves. Once fermentation begins, the sugar in the pulp is converted into acids that change the chemical composition of the beans. The fermentation process takes at least three days. In fact, the high rainfall and the absence of dry season during 2010/2011 led to the decline of the farmer’s income. Sun drying is still most widely used method due to its simplicity, low cost set up and requires only direct sunlight which is renewable and abundant. Farmers are used to drying cocoa beans on mats, raised on bamboo frames or spread on concrete surfaces and regularly turned. In fact, sun dried cocoa beans have better flavor quality and less acidic due to its gentle drying process. Sun-drying is simple and cheap: not requiring the expensive mechanical devices used in the artificial dryers, but it is also labor-intensive and there is much concern for a stable weather condition. Most farmers in Luwu Utara sell unfermented cocoa, while the different selling price between fermented and non-fermented is Rp. 5,000 per kg, meaning farmers experience opportunity loss of Rp. 500,000 by selling 100 kg cocoa. Why farmers do not ferment cocoa? The main reasons are the lack of labors and unstable weather. The sun-drying, dependent on the sun-shine, takes 34 days. If the cocoa bean does not dry within the period, the quality will decline and the price drop sharply. It is much simply for farmers to sell unfermented cocoa rather than fermented. Understanding the problems, the establishment of cocoa drying machine will guarantee the cocoa drying process after fermentation. As such the availability of drying cocoa machine will stimulate farmers to produce fermented cocoa.

3

1

2

4

Figure 3.5. Schematic of cocoa bean drying machine

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The capacity of cocoa drying machine varies from 300 kg – 1.5 tons. Using the drying machine, cocoa bean, which has been sun-dried for one day, can be dried-up within 5-6 hours (moisture content of 10-19%). The source of heating energy is from fuel-wood or kerosene. Electricity has low efficiency for heating; therefore the role of electricity power is not to generate heat but to blow hot air to the cocoa drying tray. The machine is composed of three components: (1) Fuel wood stove; (2). Hot steam blower; (3) Heat transmission pipe; (4). Cocoa drying tray. The drying process: The source of hot air is originated from fuel wood/kerosene stove. The hot air produce by the stove is blown (injected) by blower fan into metal pipes which are attached under cocoa drying tray. The constant flows of hot air to the pipes will heat the cocoa drying tray. The electricity generated by MHP is used as energy source of blower fan, which is currently used gasoline. 3.2.2. Financial analysis and economic of cocoa bean drying The analysis used the following assumptions: (a) The average of community cocoa plantation is 0.5 ha; (b) The cocoa harvest is 225 kg per year; (c) The selling price of non-fermented cocoa is Rp. 22,000/kg; (d) The selling price of fermented cocoa is Rp. 27,000/kg; (e) Number of households in the village is 350 and 200 of them plant cocoa; (f) Operational cost of drying machine is Rp. 100/kg; (h) Labor cost for drying is not considered. Table 3.14. Standard of cocoa harvest Plantation area Harvest

1 ha

0.5 ha

0.25 ha

Good (kg)

900

450

112.5

Moderate (kg)

450

225

56.25

Low (kg)

300

150

37.5

Table 3.15. Financial analysis of cocoa drying Price/kg Harvest/ha

Earning/year (Rp)

No of farmers

Aggregate earning (Rp)

Selling price of non fermented cocoa

22,000

225

4,950,000

200

990,000,000

Selling price of fermented cocoa

27,000

225

6,075,000

200

1,215,000,000

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Added value for selling fermented cocoa

5,000

-

1,125,000

225,000,000

Operational cost for drying machine is Rp 100/kg

22,500

4,500,000

Profit increment compared to non fermented cocoa

1,102,500

220,500,000

22%

22%

Percentage

With the application of the machine, the cocoa drying is shortened from 5-7 days to only 2 days. Farmers receive profit gain of 22%. As the smart practice is assumed to be implemented by 200 households in the village, this will add 220,500,000 fresh money circulations in the village, so village ‘income’ with business 1,900,500,000, compared to the village income without business is Rp 1,680,000,000, so the application of the machine can increase 13 % village income. Table 3.16. Contribution of cocoa drying to village economy Profit Profit Yearly profit Village gain/month gain/year gain from income from selling from selling selling without the fermented fermented fermented business cocoa cocoa cocoa at village level 0 1,102,500 220,500,000 1.680.000.000

Village income with business

1,900,500,000

Contribution to village economy (%)

13

Remarks: contribution to village economy= (220.500.000/1,680,000,000) x 100%

3.3. Tailor 3.3.1. Potential Development Tailor is mostly a side-job, while the job is not being main household income, the contribution is considerable, as this is the wife job (whom she can do it at home), so the household has two income sources. Many tailors, however, are lack of skill, insufficient equipment and have limited clients. This job apart from requiring skill, also need appropriate equipment. Apart from sewing machine, tailor also need embroidery machine and ‘obras’ machine, Most of tailors only have one and old sewing machine. Conventional sewing is used human energy, apart from taking time also unable to make mass production. Modern sewing machine use electricity power, which is quick and enable to produce better quality products so able to serve more clients. The nature of sewing orders in the rural areas are fluctuated, it is normally increase during independent day festival, beginning of school opening time, weeding season, fasting (near 37 | P a g e Operation Wallacea Trust (OWT) |Report


‘Lebaran-day’) for Moslem or Christmas. The conventional sewing machine is still needed in the case of no electricity power. The minimum requirement of tailor is the following: (a) electrical machine (Rp. 2,700,000); (b) Conventional sewing machine (Rp. 1,300,000); (c) dynamo machine; (d) ‘obras’ machine. 3.3.2. Financial analysis and economic of tailor The assumption of the calculation: (a) there are three tailors in the village; (b) the average order is 10 sewing a month; (c) the labor cost is not considered. Table 3.17 Financial analysis of Tailor Services Making women cloth Making children cloth Sewing bed sheet and others Repairing cloth Total services Cost Sewing materials Electricity power Total Earning per month Total earning per year (12 months)

Earning 80,000 30,000 40,000 5,000

Order frequency 2 3 1 4 10

Table 3.18. Contribution of tailor to village economy earning/month Total earning Yearly Increment of from tailor in year household household income income (%) before tailor 245,000 2,940,000 4,800,000 61

Total 160,000 90,000 40,000 20,000 310,000 50,000 15,000

Income three tailors in the village

Contribution to village economy (%)

8,820,000

0.53

Remarks: Village income before tailor: 1,680,000,000. Village income after tailor is 1,688,820,000 (1,680,000,000+8,820,000)

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3.4. Rice Milling (Huller) 3.4.1. Potential Development Sawah or semi-irrigated rice fields are found in all survey villages, except Bantimurung Village (Luwu Utara). The land-use is developed in the flat to gentle sloped terrain. Survey villages in Mamasa have larger sawah area than Luwu Utara. Luwu Utara communities, apart from rice, also eat Sago20 as the second staple food. All survey villages grow high yielding species with 4 months harvest or two times harvest a year. The productivity of sawah land here is poor, it is about 1 ton of husked rice per ha or 250 kg husked rice/0.25 ha. The figure is much lower if compared with the average production of Javanese sawah which is 5-6 ton for irrigated sawah. The average land holders is 0.25 ha per household, the harvested rice is only sufficient for home consumption. Paddy (husked-rice) in its raw form cannot be consumed by human beings. It needs to be suitably processed for obtaining rice. Rice milling is the process which helps in removal of hulls and barns from paddy grains to produce polished rice. Rice forms the basic primary processed product obtained from paddy and this is further processed for obtaining various secondary and tertiary products. Communities keep paddy in the storage and mill the paddy on regular basis. 3.4.2. Financial analysis and economic of village huller The assumptions of the calculation: (a) the average sawah land holder is 0.25 ha; (b) 200 out of 350 households own sawah; (c) 1 liter gasoline is required to mill 20 kg paddy; (d) The price of gasoline is Rp. 6,000/liter. The payment for rice milling is normally conducted in the form of share cropping, the rice huller receive 1 kg of every 8 kg milled rice 21; (e) one village only has one rice miller (huller). Each household produces 400 kg/year rice (milled paddy) or 80.000 kg rice per year at village level. The price of rice is Rp 6000/kg, so the total value of rice in the village is Rp. 480 million. Using share cropping system, the village huller receives Rp. 60 million per year.

Table 3.19. Financial analysis of rice huller 20

21

Both survey areas have abundance of paddy waste, such as rice husk/bran (sekam padi) and bran flour (dedak). Milling husked rice produces 50-64% rice, rice husk (20-30%), and bran flour (8-12%). If 1 ha sawah produces 1 tons of rice, the rice husk production is 200 kg. From this figure, one can imagine the annual rice husk production in this area. Unfortunately, so far the local community has not use of the abundant rice husks as a new source of income generation. Javanese farmers process rice husk for charcoal and use it for manure. Rice husk is good for compost making and for rice-husk charcoal; all of which can be used as materials to develop growth medium for seedlings.

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Item Earning from sharecropping Gasoline Cost Operator Cost Profit of rice mill per year Profit of rice mill per month

Amount 60,000,000 24,000,000 600,000 23,400,000 1,950,000

Table 3.20. Contribution of rice huller to village economy Earning per month

Total earning in year

Income all enterprise in village per year

Income all Income all villager per villager per year without year with the the business business 1,950,000 23,400,000 23,400,000 1,680,000,000 1,684,800,000 Remarks: % income increment per year per household is 488% (23,400,000/4,800,000)

Contribution to village economy (%) 0.40

3.5. Coffee Processing 3.5.1. Potential Development Coffee is the traditional product of Mamasa, the plantation has been developed since colonial time and the coffee in largely known as Toraja Coffee (mostly is Arabica Coffee). Peak harvesting season is normally between July and September. Coffee cherries produced are being grown in an ‘organic’ way (i.e. without chemical pesticides, herbicides or fertilizers). Since many coffee plantations are located near the settlement areas, farmers only pick ripe, red cherries. After harvesting, coffee cherries are fermented overnight, in sacks, buckets or other storing apparatus. Cherries are then washed to remove the mucilage, before the drying process. Drying is done in an open, flat space such as a yard or by the roadside. After a few days of drying, dry cherries are then sold to traders who come to the village or are kept for a time until traders arrive or the price is more favorable. The coffee processing activities are only conducted by 3-5 households in the village. The product is packed in the plastic sachets and retail to surrounding villages or to (sub) district market. 3.5.2. Financial analysis and economic of coffee processing The assumptions of the calculation: (a) 1 liter of coffee cherries can produce 30 plastic sachets; (b) The price per sachet is Rp. 1,000; (c) the production per month is 5 liters; (d) three households conduct the business in the village.

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Table 3.21 Financial analysis of coffee processing Item

Amount

Cost of coffee cherries per liter

7,000

Cost for grinding per liter

3,000

Overhead cost (plastic sachet and frying) per liter

5,000

Total production cost Sale price of pounded coffee per liter Profit per liter

15,000 30,000.00 15,000

Earning per month (5 liter) Earning per year (12 months)

225,000 2,700,000

Table 3.22. Contribution of coffee processing to village economy Earning per month

Total earning in year

Income all enterprise in village per year

Income all Income all Contribution to villager per villager per village year without year with the economy (%) the business business 225,000 2,700,000 8,100,000 1.680.000.000 1,684,800,000 0,50 Remarks: % income increment per year per household is 56% (Rp Rp 2.700.000/Rp 4.800.000)

3.6. Black Smith 3.6.1. Potential Development Black-Smith mostly produces agriculture utensil such as hoe, dibble, axe, scoop, machete, sickle, scythe, and cutter. The production process is manual; the work is normally conducted by two persons, one person strikes the iron while another generate wind blower to maintain the fire. They use charcoal to heat iron. 3.6.2. Financial analysis and economic of Black Smith The assumptions of the calculation: (a) Black Smith produces 15 utensils per week or 60 utensils per month; (b) They buy waste metal/iron 10 kg/week (@ Rp. 5000) or 40 kg a month (Rp. 200,000) or 480 kg per year (Rp. 2,400,000); (c) Labor cost is not considered, all the earning money is divided by two persons; (d) one village only has one Black Smith; (e) Composition of sale products: 5 sickles (@ Rp. 50,000), 4 machetes (@ Rp. 30,000), 3 scoops (@ Rp. 50,000), 3 axes (@ Rp.70,000).

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Table 3.23. Financial analysis of Black Smith Items 1 sickle 2 machete 3 scoop 4 axe Sale per month Cost of raw materials Profit

Price 50,000 30,000 50,000 70,000 5,000

Order/month Amount/month 5 250,000 4 120,000 3 150,000 3 210,000 15 730,000 40 200,000 530,000

Amount/year 3,000,000 1,440,000 1,800,000 2,520,000 8,760,000 2,400,000 6,360,000

Table 3.24. Contribution of Black Smith to village income Earning per month

Total earning in year

Income all enterprise in village per year

530,000

6,360,000

6,360,000

Income all villager per year without the business 1.680.000.000

Income all villager per year with the business 1,684,800,000

Contribution to village economy (%) 0.38

Remarks: % income increment per year per household is 133% (Rp 6.360.000/Rp 4.800.000)

3.7. Furniture 3.7.1. Potential Development Both rattan extractions and selective logging have destructive impacts to the ecosystem. To control natural resource extraction, efforts are required to change their current livelihoods from collectors to processors. Furniture is the existing livelihood, which can be developed as a way to reduce the speed of resource extraction, especially if this is compared by selling timbers. 3.7.2. Financial analysis and economic of furniture The assumptions of the calculation: (a) there are two units of furniture in the village; (b) the construction cost (including raw material) is 60 -75% of the selling price; (c) they receive 8 orders a year.

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Table 3.25 Financial analysis of furniture Cloth cupboard with 2 doors Cloth cupboards with 1 door Food cupboard Shop cupboard Wooden bed Quality 1 Wooden bed Quality 2 Wooden bed Quality 2 School chair and desks Total Sale Production cost 70% Profit 30% Profit per month Profit per year

Cost/item 1,500,000 1,000,000 1,500,000 2,000,000 800,000 600,000 450,000 50,000

Unit 2 1 1 1 1 1

Total (Rp) 3,000,000 1,000,000 1,500,000 800,000 600,000 450,000 7,350,000 5,145,000 2,205,000 183,750 2,205,000

Table 3.26. Contribution of furniture to village economy Earning per month

Total earning a year

Income all enterprise in village per year

Income all villager per year without the business

183,750

2,205,000

4,410,000

1.680.000.000

Income all villager per year with the business 1,684,800,000

Contribution to village economy (%) 0.26

Remarks: % income increment per year per household is 46 % (Rp 2.205.000/Rp 4.800.000)

3.8. Saraba Instant 3.8.1. Potential Development Ginger is one of the world’s most well known and frequently used herbs. Apart for food and beverage, the herb has also been used in traditional medicines. ‘Saraba’ is type of ginger based beverage, the main ingredient is ginger flour mixed with palm sugar and coconut milk. Serve as hot beverage in rainy season for old and young people, warm the body, invigorating and refreshing. It is normally served in the evening cafe along the roads, where people can meet; enjoy fresh air and warm up by Saraba. The beverage is very popular in South and Southeast Sulawesi Provinces.

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In Parara Village (Luwu Utara District), there is a women group (13 households members, name: Aren Makmur). All members group are being labors of the home industry, they do not receive wages, all the profit are invested as capital of the group. Since 2008, they have produced and marketed instant Saraba, the trade mark of the product is “Radjana’. They successfully market the products to Masamba Town and surrounding areas. The taste of the beverage is very nice and highly resemble with fresh Saraba. They have already been flooded with purchasing orders, but the production scale is small, due to lack of capital and production equipment which enable to develop mass production. All the production process is manual, each batch only produce 75 sachets. 3.8.2. Financial analysis and economic of Saraba Instant The assumptions of the calculation: (a) Production cycle is 12 batch/month or 144 batch per year: (b) The production capacity per batch is 75 sachets, 900 sachets/month, 10,800 sachets/year; (c) Average production cost per sachet is Rp 1.067; (d) Production cost per batch is Rp 80.000, Rp 960,000/month or Rp 11,520,000/year; (e) Selling price is Rp 1.350/sachet (200 gram) for 1 cup; (f) Labors cost is not considered.

Table 3.27. Financial analysis of Saraba Instant Amount Sale per month @ Rp 1.350 x 900 sachets Production cost per month @ Rp 1.067 x 900 sachets Profit per month Profit per year

1,215,000 960,000 255,000 3,060,000

The existing profit can be raised until 10 times, if the group enables to produce on optimum capacity. The current production still relies on capital, if the payment of selling products is delayed then all production process stop.

Table 3.28. Contribution of Saraba Instant Production on annual village income Earning per bath

Total earning a year

Income per Income all Income all Contribution to enterprise unit villager per villager per village in the village year without year with the economy (%) per year the business business 1,680,000,000 255,000 3,060,000 3,060,000 1,684,800,000 0.18% Remarks: % income increment per year per enterprise unit is 64% (Rp Rp 3,060,000/Rp 4.800.000)

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3.9. Conclusion and Recommendation 3.9.1. Conclusion: Inspecting Table 3.29, selling egg, DOC and Chicken grower are not feasible, as the percentage of increment of the income generating activities is less than the annual inflation rate (6 %). Table 3.29 Feasibility of income generation activities with 6% annual inflation rate No. Income generation % annual income Feasibility activities increment 1 Egg C -7.50% Not Feasible 2 DOC -13.50% Not Feasible 3 Grower 5.88% Not Feasible 4 Mature C 15.00% Feasible 5 Egg D 114.22% Feasible 6 DOD 185.20% Feasible 7 Mature D 304.30% Feasible 8 Drying machine 22.97% Feasible 9 Tailor 61.25% Feasible 10 Furniture 45.94% Feasible 11 Blacksmith 132.50% Feasible 12 Coffee 56.25% Feasible 13 Rice Milling 487.50% Feasible 14 Saraba ins. 63.75% Feasible

Inspecting Figure 3.6 and 3.7.: (a) The income generation from selling eggs and DOC is not profitable. (b) The highest income increment for poultry business is selling mature chicken, as the cost of free range (and feeding) is well compensated by the selling price. The economic impact at village level is considerable, as the activity is widely practiced by villagers. (c) Income increment from drying cacao bean is modest, as the drying machine only added Rp. 5,000/kg, however the economic impact at village level is the highest since the activity is potentially practiced by all cacao plantation holders. (d) Rice huller, as enterprise unit, is very profitable, however the economic impact at village level is low since this is only practice by one or two households.

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Figure 3.6. Percentage of income increment per year

Figure 3.6. Percentage of income increment per year.

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Figure 3.7. Percentage contribution to village economy per year

3.9.2. Implication (a) If the objective of the project is to accelerate income generation, the project has to select the most profitable enterprise business unit, regardless the economic impact of the business at village level. This is the case for: rice huller, coffee, duck keeping, black-smith and Saraba Instant; (b) If the objective of the project is to optimize revenue distribution at village level, the project has to select enterprise business unit which has high contribution to village economy, regardless the profitable at enterprise unit. This is the case for: chicken keeping and cocoa drying. 3.9.3. Recommendation Project is ideally able to combine the optimal application of the two different character of income generating activities. For income generating activities which accelerate income generation, the project has to socialize and facilitate the business to wider communities; this is the case for duck keeping. While for income generating activities which distribute revenue, the project has to improve the production efficiency, improve capital access and open new market access, this is the case for chicken keeping and cocoa drying.

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Chapter IV: Selection of Productive Use Village Models During the survey, we assessed 11 villages, 4 villages in Luwu Utara (Bantimurung/B, Malimbu/M, Tulak Talu/T and Parara/P) and 7 villages in Mamasa (Tawalian Timur/TT, Rante Puang/RP, Orobua Selatan, Salumokanan/SK, Bombong Lambe/BL Mesakada/M Pasembu/PS;). This chapter discusses the selection process of the village models.

4.1. Screening of the surveyed villages At present, there are still rare (or probably no) productive use village models in operation which can be used as smart practice example to convince people on MHP benefits outside lighting and entertainment. As such, the selected villages should be able to provide a quick-win to demonstrate the powerful of MHP for productive use activities. The selected village models should ideally fulfill both basic and other enabling conditions which can guarantee the success of the trial program within short time period, say in one or two years. Understanding this, we have to apply the principle of ‘first ready, first served’ approach to identify beneficiaries who are best prepared to succeed, while at the same time assisting new or less developed villages to become ‘ready’ to fully engage on productive use activities to replicate the success story of the program. To identify village which are best prepared to succeed, we defined two screening parameters, the first screening is used ‘primary filter’, while the second screening is used ‘secondary filter’. Table 4.1. Criteria, Indicator and verifiers of the primary filters Criteria

Indicators

Verifiers Good (5)

Fair (3)

Poor (1)

Electricity Power Accessibility

MHP Capacity

>60 Kwh

30 – 59 Kwh

< 30 Kwh

Roads Performance

Fair road only easily access during dry season

Difficult to access during wet and dry season

Potential target group

Number of KVC have been involved and interested to use MHP

Good road and easily access by public transportation all season More than 10 KVC have run business and interested to use MHP electricity power

Less than 10 KVC have run business and interested to use MHP electricity power

Less than 5 KVC have run business and interested to use MHP electricity power

Electricity power: The basic requirement for productive use development is the presence of MHP which has considerable electricity power. Each village has 1 – 3 MHPs which can be used as a power source for productive use. The MHP actual capacity dictates the possible productive use development alternatives, the larger power are the better. MHP capacity on each village is presented in Table 5.4. 48 | P a g e Operation Wallacea Trust (OWT) |Report


Accessibility: The degree of accessibility is put as the prime concern. The pilot project as pioneer activities, thereby they should be well exposed. The sites must not be located in isolated areas, but should be possible to reach no more than 1 hour traveling distance by car or motor-bike from the district capital. Accessibility is key criteria for the future replication of the best practices, in addition; the productive use products should be easily connected to the surrounding markets. Table 4.3. Accessibility of the surveyed villages No.

Village

Distance from Road Quality District capital (km)

1. 2. 3. 4.

Malimbu Tulaktalu Parara Bantimurung

1 2. 3. 4. 5. 6. 7.

Tawalian Timur Orobua Selatan Rante Puang Bombong Lambe Salumo Kanan Mesakada Pasembu

Luwu Utara 18 22 25 32 Mamasa 2 3 3 2 16 18 20

Time to reach car/motor-bike

Very Good Very Good Very Good Poor

30 minutes 40 minutes 50 minutes 1.5 hours

Good Good Fair Fair Fair Poor Poor

35 minutes 35 minutes 0.5 hour 0.5 hour 2 hours 2.5 hours 3 hours

by

Potential target groups: The success of the project at village level will be highly dependent on availability and the correct selection of target groups. This will be composed of key village champions who run business and have interest to use MHP as new source of energy. Table 4.4 Criteria, indicators and verifiers of the secondary filters Criteria

Indicator

Technical

MHP Number MHP initiators MHP Management Unit performance

Availability of MHP technical skill persons Village

Distance from local

Verifiers Good (3) >3 units Green PNPM Clear organization structure Good administration, electricity Fee is well collected Transparency The village has MHP skill persons

Near and easy access

Operation Wallacea Trust (OWT) |Report

Fair (2) 2 units MHPP & PNPM Rural One of the ‘good’ verifier is absence

Poor (1) 1 unit District agency

The village can use skill persons from nearby village Far but easy

No MHP skill persons from village and surrounding areas Far and difficult 49 | P a g e

Two or more of the ‘good’ verifiers are absence


condition

market Village Head Leadership Performance on Rural PNPM

Social Conditions

Social Integrity

Social Conflicts Business Numbers and Development variation types of the existing business initiatives

Strong leadership and well respected Well planning process Good implementation Good maintenance High participation Good loan performance Village social institutions active and voluntary works are regularly organized Never >5

access One of the ‘good’ verifier is absence One of the ‘good’ verifier is absence

access Both of the ‘good’ verifier are absence Two or more of the ‘good’ verifiers are absence

One of the ‘good’ verifier is absence

Both of the ‘good’ verifiers are absence

seldom 3-5

frequent <2

MHP Initiators: Based on our field observation, MHP initiated by Green-PNPM during 2009 and 2010 have better performance compared those initiated by MHPP, Rural PNPM and district government, this is certainly due to the present of GTZ-Technical Support Unit/TSU. TSU1 facilitate MHP project preparation and implementation, including site assessment, construction, plant commissioning and training to Green Facilitators, key village champions and operator teams.

4.2. Results of the Primary and Secondary Screening 4.2.1 Results of Primary Screening The screening results of the primary filters: Parara (15); Tulaktalu and Tawalian Timur (13); Mesakada, Malimbu and Rante Puang (9); Orobua Selatan and Bombong Lambe (7), Salumo Kanan, Pasembu and Banti Murung (5). Parara Village has the maximum score (15) as the village is well aligned with the three indicators; the MHP capacity is more than 60 Kwh, has easy access and high interest KVC. The headman is a business man who put concerns to enhance productive use activities as ways to 1

The objective of Micro-Hydro Power (MHP) Technical Support Unit (TSU) is to ensure MHP schemes financed with Green PNPM block grants fulfil a number of minimum requirements crucial for their sustainable preparation, implementation and subsequent operation & management. The TSU provides capacity building and on the job training on province, district, sub-district and village level to secure that PNPM staff together with local officers of PMD and where appropriate government agencies can independently facilitate MHP schemes by supervising the implementation and supporting the set-up of MHP-related village management and operation systems.

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enhance village welfare. The village has Saraba Instant Group who is interested to apply electricity power for production process. Tulaktalu and Tawalian Timur Villages have the second rank (13), both villages have high MHP capacity (around 80 Kwh) have easy access and moderate KVC. Mesakada Village has the third rank (9), the village has one MHP of 78 Kwh, however the village is far from Mamasa town and the existing road is poor, especially during the wet season. Malimbu Village has the third rank (9), the village has considerable MHP capacity (29 Kwh), has very good access from Masamba Town. Rante Puang Village has the third rank (9), the village has fair conditions for three indicators. Orobua Selatan Village (7), the village has low MHP capacity (20 Kwh) but has an easy access from Mamasa Town. Bombong Lambe Village (7), the village has low MHP capacity (20 Kwh) and fair access from Mamasa Town. Bantimurung, Pasembu and Salumokanan Villages have lowest score rank (5), have lowest MHP capacity (12, 10 and 8 Kwh) and difficult access from Masamba (Bantimurung) and Mamasa Town (Pasembu and Salumokanan villages). Table 4.5 Scoring of the primary screening Luwu Utara

1

Mamasa

B

M

T

P

TT

RP

OS

SK

PS

BL

M

1

2

3

4

5

6

7

8

9

10

11

5

5

5

MHP Capacity > 60 Kwh Good

5

5

30 -59 Kwh Fair

3

3

< 30 Kwh Poor 2

1

1

1

1

1

1

1

Accessibility Good road and easily access by public transportation all season Good

5

5

5

5

5

5

Fair road only easily access during dry season Fair

3

3

3

Difficult to access during wet and dry season Poor 3

1

1

1

1

1

Key Village Champions

51 | P a g e Operation Wallacea Trust (OWT) |Report


More than 10 KVC have run business and interested to use MHP electricity power Good

5

5

Less than 10 KVC have run business and interested to use MHP electricity power Fair

3

3

3

3

3

3

3

3

3

3

3

5

5

7

9

Less than 5 KVC have run business and interested to use MHP electricity power Poor Total

1 5

9

13

15

13

9

9

Remarks: B: Bantimurung; M: Malimbu; T: Tulak Talu; P: Parara; TT: Tawalian Timur; RP: Rante Puang; OS: Orobua Selatan; SK: Salumokanan; PS: Pasembu; BL: Bombong Lambe; M: Mesakada.

4.2.2 Results of secondary screening The screening results: Tulaktalu (32), Tawalian Timur (30); Parara (29), Malimbu (27), Rante Puang (26), Salumokanan (28); Banti Murung (22); Orobua Selatan (21), Bombong Lambe and Mesakada (20) and Pasembu (19) Tulaktalu village has the highest score (32), 8 of the 10 indicators receive highest score (3), except Village head leadership and social cohesiveness. The headmen has fair leadership, while the social cohesiveness is also fair, due to many of them are settlers from surrounding areas (see Chapter 2). The village has 1 MHP from Green-PNPM, 1 MHP from MHPP and 2 MHP from District Agency. Tawalian Timur Village has the second rank score (30), 7 of the 10 indicators receive highest score (3), except MHP Management Unit, Availability of MHP technical skill person and PNPM performance which has fair performance. The village has 1 MHP from Green-PNPM (2010, it is still under construction), 1 MHP from MHPP and 1 MHP from District Agency. Parara Village has the third rank score (29), 7 of the 10 indicators receive highest score (3), except MHP Management Unit, Availability of MHP technical skill person and social cohesiveness which has fair performance. The village has 2 MHP from MHPP and 1 MHP from District Agency. Salumokanan Village has the fifth rank score (28), 9 of the 10 indicators receive highest score (3). The village has 1 MHP from Green-PNPM (2009). Malimbu Village has the forth rank score (27), 7 of the 10 indicators receive highest score (3), except MHP Management Unit (poor), Availability of MHP technical skill person (fair) and social cohesiveness (fair). The village has 1 MHP from Green PNPM (2010, it is still under construction), 1 MHP from MHPP and 1 MHP from District Agency. Rante Puang Village has the sixth rank score (26), 6 of the 10 indicators receive highest score (3), except MHP numbers (fair), Village head leadership (fair), PNPM performance (poor). The village has 2 MHP from MHPP. 52 | P a g e Operation Wallacea Trust (OWT) |Report


Orobua Selatan: Banti Murung, Bombong Lambe, Mesakada and Pasembu Villages have score less than 25, 5-6 out of 10 indicators has fair or poor performance, i.e. they have only one MHP number, MHP management skill still poor, far from market, poor PNPM performance, poor social integrity (fair, Mesakada and Bombong Lambe), limited business development. Table 4.6. Scoring of the secondary screening B

Luwu Utara M TT

P

TT

RP

OS

1

2

3

4

5

6

7

3

3

3

3

Mamasa SK

P

BL

M

8

9

10

11

1

1

1

1

1

3

3

A Technical Factor 1

2

3

MHP Number >3 Units Good 3 2 Units Fair 2 1 Unit Poor 1 1 MHP initiators Green-PNPM Good 3 3

2

3

3

MHPP & PNPM Rural Fair 2 2

2

4

2

District Agency Poor 1

2

1

1

1

3

4

2

2

MHP Management Unit Clear organization structure, good administration, electricity fee is well collected and transparency on the management Good 3 3 3 3 3 One of the ‘good’ verifier is absence Fair 2

2

2

2

3

2

Two or more of the ‘good’ verifiers are absence Poor 1 1 4

3

1

Availability of MHP technical skill persons The village has MHP skill persons Good 3 3

3

The village can use skill persons from nearby village Fair 2 2 2 2 2

2

2

3

3

2

2

2

No MHP skill persons from village and surrounding areas Poor 1

B Village Conditions 1

Distance from local market Near and easy access Good 3 3

3

3

3

3

3

53 | P a g e Operation Wallacea Trust (OWT) |Report


Far but easy access Fair 2

2

2

Far and difficult access Poor 1 1 2

Village Head Leadership Strong leadership and well respected Good

3

3

3

3

3

3

3

One of the ‘good’ verifier is absence Fair

2

2

2

2

2

2

1

1

2

2

3

Both of the ‘good’ verifier are absence Poor 1 3

Performance on Rural PNPM Well planning process, good implementation, good maintenance, high participation, good loan performance Good 3 3 3 3 One of the ‘good’ verifier is absence Fair 2 2

2

Two or more of the ‘good’ verifiers are absence Poor 1

2 1

1

1

C Social Conditions 1

Social cohesiveness Village social institutions active and voluntary works are regularly organized Good 3 3 3 3 One of the ‘good’ verifier is absence Fair 2 2 2 2

3

3

2

Both of the ‘good’ verifiers are absence Poor 1 2

Social Conflicts Never Good

3

Seldom Fair

2

3

3

3

3

3

3

3

3

3

3

2

2

2

2

Frequent Poor 1

D Business Development Numbers and variation types of the existing business initiatives >5 Good 3 3 3 3 3 3–5 Fair

2

<2 Poor

1

2

2

1

54 | P a g e Operation Wallacea Trust (OWT) |Report


4.3. Conclusions and Recommendations 4.3.1. Conclusions The results of final screening were done by summing up the total score of both primary and secondary screening. The results of the final screening Luwu Utara District: Tulaktalu (45), Parara (44), Malimbu (36) and Bantimurung (27). Mamasa District: Tawalian Timur (43), Rante Puang (35), Salumokanan (34); Mesakada (31); Orobua Selatan (28), Bombong Lambe (26) and Pasembu (25). Table 4.7. Total scoring of primary and secondary screening Village

1 2 3 4

Tulaktalu Parara Malimbu Bantimurung

1 2 3 4 5 6 7

Tawalian Timur Rante Puang Salumokanan Mesakada Orobua Selatan Bombong Lambe Pasembu

Primary Screening Luwu Utara 13 15 9 5 Mamasa 13 9 5 9 7 7 5

Secondary Screening

Total

32 29 27 22

45 44 36 27

30 26 28 20 21 20 19

43 35 33 29 28 27 24

4.3.2 Recommendations Proposed village models for Luwu Utara District: Alternative A: Tulaktalu and Parara Villages. Reasons: Both villages are the best prepared to succeed Alternative B: Tulaktalu, Parara and Bantimurung Villages. Reasons: (a) to compare different cultural conditions between Tulak Talu-Parara and Bantimurung Village. The former is dominated by Bugis culture while the latter is Javanese culture (transmigrant); (b) Productive use in Bantimurung (only one MHP) is focused on cocoa bean drying; (c) Bantimurung is a good model for low MHP capacity village.

55 | P a g e Operation Wallacea Trust (OWT) |Report


Proposed village models for Mamasa District: Alternative A: Tawalian Timur and Rante Puang Villages. Reasons: Both villages are the best prepared to succeed Alternative B: Tawalian Timur, Rante Puang and Salumokanan Villages. Reasons: (a) Salumokanan will have a good access, after the road connected Mamasa and Mamuju is established; (b) Salumokanan is a good model for low MHP capacity village.

56 | P a g e Operation Wallacea Trust (OWT) |Report


Chapter V: Feasibility Analysis of Project Implementation 5.1. Designed consumption of productive use energy The use of electrical power for productive use machine should consider MHP installed capacity. The power consumption ideally should not exceed 75% of MHP installed capacity to guarantee electrical power supply and future development. The existing and potential productive use for each village survey can be inspected on Table 5.1; the demand of electrical power on every single unit of productive use is presented on Table 5.2., while the total productive use power consumption on village level is presented on Table 5.3. Table 5.1 The existing and potential productive uses on the surveyed villages No.

Village

1.

Malimbu

2.

Tulaktalu

3.

Parara

4.

Bantimurung

1

Tawalian Timur

2.

Orobua Selatan

Existing Productive use Luwu Utara District Tailor with manual machine Small scale chicken and duck keeping Sun-drying cocoa Tailor with manual machine Small scale chicken and duck keeping Blacksmith manual Sun-drying cocoa Tailor with manual machine Small scale chicken and duck keeping Paddy huller with diesel Saraba instant processing without electrical machine Sun-drying cocoa Small scale chicken and duck keeping Sun-drying machine Mamasa District Tailor with manual machine Small scale chicken and duck keeping Paddy huller with diesel Carpentry with gasoline machine Manual coffee processing Sun-drying machine Small scale chicken and duck keeping

Operation Wallacea Trust (OWT) |Report

Potential Productive use

Tailor with electrical machine Hatchery application to raise chicken and duck population Cocoa drying machine Tailor with electricity machine Hatchery application to raise chicken and duck population Blacksmith with electrical machine Cocoa drying machine Tailor with electrical machine Hatchery application to raise chicken and duck population Paddy huller with electricity Saraba instant processing with electrical machine Cocoa drying machine Hatchery application to raise chicken and duck population Cocoa drying machine Tailor with electrical machine Hatchery application to raise chicken and duck population Paddy huller with electricity Carpentry with electrical machine Electrical coffee machine Cocoa drying machine Hatchery application to raise chicken and duck population 57 | P a g e


3.

Rante Puang

4.

Bombong Lambe

5.

Pasembu

6.

Salumo Kanan

7.

Mesakada

Tailor with manual machine Small scale chicken and duck keeping Blacksmith manual Paddy huller with diesel Carpentry with gasoline machine Manual coffee processing Sun-drying machine Tailor with manual machine Small scale chicken and duck keeping Blacksmith manual Paddy huller with diesel Carpentry with gasoline machine Manual coffee processing Sun-drying machine Small scale chicken and duck keeping Small scale chicken and duck keeping Blacksmith manual Paddy huller with diesel Carpentry with gasoline machine Manual coffee processing Small scale chicken and duck keeping Manual coffee processing

Tailor with electricity machine Hatchery application to raise chicken and duck population Blacksmith with electrical machine Paddy huller with electricity Carpentry with electrical machine Electrical coffee machine Cocoa drying machine Tailor with electricity machine Hatchery application to raise chicken and duck population Blacksmith with electrical machine Paddy huller with electricity Carpentry with electrical machine Electrical coffee machine Cocoa drying machine Hatchery application to raise chicken and duck population Hatchery application to raise chicken and duck population Blacksmith with electrical machine Paddy huller with electricity Carpentry with electrical machine Electrical coffee machine Hatchery application to raise chicken and duck population Electrical coffee machine

Tabel 5 2 Power consumption of each single unit productive use No 1 1

Productive use

2 3 4

Chicken and duck Hatchery Automatic hatchery Tailor Sewing machine Sewing motor Hemming machine

5 6

Total power consumption Blacksmith Iron cutter Blower

2

3

Power Supply

Power Consumption (watt)

Ampere

220/1 phase

350

1.99

200/250- 1 phase 200/250- 1 phase 200/250- 1 phase

95 120 250

0.54 0.68 1.42

465 220/1 phase 220/1 phase

2,000 550

11.36 3.13 58 | P a g e

Operation Wallacea Trust (OWT) |Report


Total power consumption

2,550

4 7

Paddy huller Paddy huller 220/3 phase 1,500 5 8 Cocoa bean dryer Oven - electric 220/ 3 phase 6,000 Flat bed 220/ 1 phase 2,100 6 Carpentry 9 Sander machine 220/1 phase 340 10 Small angle grinder (gerinda) 220/1 phase 670 11 Drilling machine 220/1 phase 550 12 Planner machine (serut) 220/1 phase 710 13 Trimmer machine (profile) 220/1 phase 550 14 Circular saw 220/1 phase 1,050 Total power consumption 3,870 7 Coffee 15 Coffee grinder 220/ 1 phase 2,100 8 Saraba Instant 16 Mixer 220/50 Hz 300 17 Plastic sealer 220-240V/50-60Hz 500 18 Grater 200/250- 1 phase 750 Total power consumption 1,550 Table 5.3 The designed productive use electrical power consumption on each village Village

Hatchery

Tailor

Blacksmith

Paddy huller

Cacao been dryer

Banti Murung

350

Malimbu

350

465

Tulaktalu

350

465

Parara

350

465

1,500

6,000

Tawalian Timur Rante Puang

350

465

1,500

6,000

350

465

Orobua Selatan

350

Salomokanan

350

Pasembu

350

Bombong lambe Mesakada

350

Carpentry

Coffee grinder

Saraba Instant

34.09 11.93 1.93 3.81 3.13 4.03 3.13 5.97

11.93 1.70 2.84 4.26

Total Consumption

6,000

6,350

6,000

6,815

2,550

2,550

8.52

3,365

1,500

1,550

9,865

3,870

2,100

14,285

3,870

2,100

10,835 350

2,550

1,500

3,870

2,100

10,370 350

465

2,550

1,500

350

3,870

2,100

10,835

2,100

2,450

59 | P a g e Operation Wallacea Trust (OWT) |Report


Inspecting Table 5.2, the power consumption ranges from 350 watt – 6,000 watt2. Some of machines have already been used by local community, however the machines are currently used gasoline, such as carpentry machine and flat bed cocoa drying machine. Assuming that all the existing machines are converted into electrical power, the lowest power consumption is 350 watt (hatchery) while the largest is oven cocoa drying machine (6,000 watt). The specification and figure of the machines is presented on Annex G. Table 5.4 MHP capacity on each village Rank

Village

MHP Number and Initiator

1. 2. 3. 4. 5. 6. 7.

Parara Tulaktalu Tawalian Timur Mesakada Rante Puang Malimbu Orobua Selatan

3 (2 MHPP, 1 DA) 4 (1 Green PNPM/2009, 1 MHPP, 2 DA) 3 (1 Green PNPM/2010, 1 MHPP, 1 DA) 1 (Green PNPM 2008) 2 (MHPP) 3 (1 Green PNPM 2010), 1 MHPP, 1 DA) 1 (Green PNPM 2009)

Total capacity (Kwh) 95 81.5 80 78 35 29 20

1 (MHPP) 1 (Green-PNPM 2009) 1 (MHPP) 1 (Green-PNPM 2009)

20 12 10 8

7. Bombong Lambe 8. Bantimurung 9. Pasembu 10. Salumokanan Remark: DA: District Agency

5.2. Supply-demand analysis of productive use energy The MHP number on each village range from 1 to 4, the MHP installed capacity ranges from 8 Kwh – 78 Kwh. Several villages have only one MHP, such as Bantimurung, Salumokanan, Mesakada, Orobua Selatan, Pasembu and Bombong Lambe, while some villages have more than 2 MHP, such as Rantepuang, Malimbu (2 MHP), Tawalian Timur (3 MHP), Parara (3 MHP) and Tulaktalu (4 MHP). The current installed MHP capacity is used as primary consideration to develop suitable productive use for each village. Inspecting Table 5.5, all villages are able to supply electrical power of the designed productive used, except Salumokanan Village, in which the designed demand (10.3 Kwh) exceeds the supply (8 Kwh). Refer to Table 5.5; the average electrical demand is only 31% of MHP capacity. As such, the available MHP power is able to supply the designed demand and the future development (replication) of the productive use. 2

At present local community use gasoline machine between 0.5 – 1.5 HP2 which is equivalent with 367.5 - 1102.5 watt

60 | P a g e Operation Wallacea Trust (OWT) |Report


Table 5.5 Comparison of Village MHP capacity and productive use consumptions No

Village

1 2 3 4 5 6 7 8 9 10

Banti Murung Malimbu Tulaktalu Parara Tawalian Timur Rante Puang Orobua Selatan Salomokanan Pasembu Bombong Lambe Mesakada Total Average

11

Existing Village Capacity 12,000 29,000 81,500 95,000 80,000 35,000 20,000 8,000 10,000 20,000

Designed electricity power demand

Percentage Power Consumption

6,350 6,815 9,365 9,865 14,285 10,835 350 10,370 350 10,835

53% 24% 12% 10% 18% 31% 2% 130% 4% 54%

78,000 468,500 42,591

2,450 81,870 7,443

3% 31%

5.3. Designed and cost of installation network At present, community only uses MHP for lighting and entertainment (private use), once the potential for a productive use of energy is determined, a lot of technical questions have to be answered. The use of energy depends on time, which leads to varying potential for a productive use of energy. To overcome these problems the generated power can be used either for productive use or for private use in households. There are at least three network designs to transfer energy from MHP to productive use houses: (a) installing timer control arrangement; (b) Installing Automatic Transfer Switch (ATS) at turbine house; (c) Establish Productive Use Center Area (PUCA). Principle of safety electrical installation: (a) Establish transmission block (to ensure that the electricity power during the day is only used for productive use during the day); (b) Making safety star-up (on/off) system; (c) Install current protection; (d) Install appropriate size and quality of cable network; (e) Install cable grounding for efficient use of electricity;(g) Install step-up voltage regulator.

General assumptions for cost estimation: (a) 1 MHP is used by 60 houses; (b) 8 over 60 houses are productive use houses; (c) 5 over 8 productive houses have power input of more than 1,000 watt. 61 | P a g e Operation Wallacea Trust (OWT) |Report


5.3.1. Installing Timer control in every house MHP is running for 24 hours, flow of electricity power to every house is arranged by timer control, see Figure 5.1. Standard Operating Procedure: -

Alternating operation either private use or productive use 16.00 â&#x20AC;&#x201C; 07.00: MHP is used for private use (lighting and entertainment) 07.00 - 16.00: MHP is only used for productive used activities Flow of electricity to (non) productive-use houses is arranged by timer control Changed from productive-use to non-productive use activities or vice-versa in the productive use house is set by interlock. Turbine Generator

Timer Control

Timer Control

Interlock

Interlock

Housing with productive

Housing without productive use

Housing without productive use

Housing with productive use

Figure 5.1. Network design of installing timer control in every house

62 | P a g e Operation Wallacea Trust (OWT) |Report


Table 5.6 Cost of network installation for Timer Control Arrangement No

Equipment

Price/Unit (IDR) 3,500,000

Number 5

Total Price (IDR) 17,500,000

750,000

60

45,000,000

Remark

1

Switch Over (Interlock)

2

Timer

3

Socket/Receptacle

90,000

8

720,000

4

Distribution Panel

5,000,000

8

40,000,000

To observe the voltage

5

Cable Power (Meter)

151,000

300

45,300,000

Size: NYY 4 x25 mm2 for in-house installation

6

Push Button Start/Stop

450,000

5

2,250,000

For machine with power input more than 1,000 watt

7

Installation Cost

5,000,000

1

5,000,000

House installation

Total

For machine with 1000 watt up, i.e. paddy huller, Cacao bean dryer, Carpentry, coffee grinder and Saraba instant See General assumption Installed on every productive use houses

155,770,000

Figure 5.2. Network design of installing ATS at turbine house 63 | P a g e Operation Wallacea Trust (OWT) |Report


5.3.2. Installing Automatic Transfer Switch (ATS) at turbine house MHP is running for 24 hours, flow of electricity power to productive use and non-productive use houses are arranged by ATS installed at turbine house. See Figure 5.2. Standard Operating Procedure: From 16.00 â&#x20AC;&#x201C; 07.00, MHP is for private use, while from 07.00 - 16.00, MHP is only used for productive used activities. Table 5.7 Cost of network installation using ATS at turbine house (in IDR) No

Equipment

Price/Unit

Number

Total Price

23,200,000

1

23,200,000

Remark

1

Panel Generator

2

Socket/Receptacle

90,000

8

720,000

See General assumption

3

Distribution Panel

5,000,000

8

40,000,000

See General assumption

4

Cable Power (Meter)

151,000

2000

302,000,000

5

Push Button Start/Stop

450,000

5

2,250,000

Assuming the most remote productive use house is 2 km from turbine house. NYY : 4x25 mm2; For machine with power input more than 1,000 watt

6

Installation Cost (Work)

50,000,000

1

50,000,000

Total

Generator capacity is 20 Kwh

New installation

418,170,000.00

Figure 5.3 PUCA supported by three MHP

64 | P a g e Operation Wallacea Trust (OWT) |Report


5.3.2. Establish Productive Use Center Area (PUCA) Reasons to establish PUCA: (a) To ensure the use of electricity during the day for productive use; (b) To ensure the efficient use of power supply generated from MHP; (c) To ensure the safety use of electricity for local community. Additional assumptions: (a) 1 village has 3 MHP units which supply electrical power to 1 PUCA; (b) Distance of each MHP to PUCA is 1 km; (c) Village or villager provides land to establish PUCA.

Turbine Generator 1

Turbine Generator 2

Turbine Generator 3

Figure 5.3. Schematic system electricity network on PUCA

Figure 5.4. PUCA network design which is supplied by three MHP

The (dis)advantage of PUCA: Different entrepreneurs may help each other, share working equipment and tools and build a center for craft knowledge, so that a development of business activities can be expected. On the other hand, in many cases PUCA is impractical, especially for small scale home industry, as household members are distracted from their daily household work.

65 | P a g e Operation Wallacea Trust (OWT) |Report


Table 5.8 Cost of network installation for PUCA No

Equipment

Price/Unit (IDR) 23,200,000

Number

Price(IDR)

3

69,600,000.00

1

Panel Generator

2

Socket/Receptacle

90,000

8

720,000.00

3

Distribution Panel

5,000,000

1

5,000,000.00

4

Cable Power (Meter)

151,000

3,000

453,000,000.00

5

Push Button Start/Stop

450,000

5

2,250,000.00

6

Installation Cost

20,000,000

1

20,000,000.00

Total

Remarks For 3 MHP See general assumption Only for one PUCA Distance of each MHP to PUCA is 1 km, total 3 km For machine with power input more than 1,000 watt PUCA

550,570,000.00

ÂŤproductivity centreÂť carpentry

mill households

powerhouse

lines

switch

Figure 5.5 PUCA network design using one MHP (after Johannes, 2011)

5.5. Conclusions and Recommendations The power consumption ideally should not exceed 75% of MHP installed capacity to guarantee electrical power supply and future development. Except for Salumokanan Village, all the surveyed villages have excess power capacity against designed productive use demand. This provides space for development and replication of the pioneer productive use model facilitated by the project. Apart from MHP power supply, Salumokanan Village is a prospective productive use village model (total score 34, Chapter 4), it might be worth to enhance Salumokanan village MHP capacity in the near future. 66 | P a g e Operation Wallacea Trust (OWT) |Report


Pros and cons of electrical network installation: Installing ATS at turbine house and establishment of PUCA provide strong guarantee on the use of MHP for productive use only during the day, however, the cost for installation and maintenance is relatively expensive compare to installing timer control at every house, see Table 5.9. Table 5.9. Pros and cons of three installation alternatives No

Issue

Timer on every house

ATS at Turbine house

PUCA

X

X

Pros 1. 2. 3. 4. 5. 6.

1. 2. 3. 4. 5.

Cheap installation Strong guarantee the use of MHP only for productive use during the day Land is not required Time for network installation is relative quick Cheap maintenance Easy to add productive use Cons Expensive installation cost Possibility to use MHP for non-productive use during the day Land is required Time for network installation is relative long Expensive maintenance

X

X X X X

X

X

X

X

X

X X

X X X

X

The need to formulate Village Regulation: As MHP energy is used alternating either for private and productive use, to ensure the smooth implementation, apart from technical approach, regulation approach in the form of Village Regulation (Peraturan Desa/Perdes) is necessary, to establish new tariffs, limit the maximum currents, sanctions etc. The need to provide full facilitation on productive use development model: Realizing that productive use development is complex, involving many aspects, business development, improving capital and market access and MHP technical aspect, while there are no success story which can be used as learning sites, the establishment of productive use model requires full facilitation, i.e. training, awareness and intensive technical assistance.

67 | P a g e Operation Wallacea Trust (OWT) |Report


References: Cordes, Johannes.2011. Productive Use of Energy How to determine and use the available potential based on measurements in Sulawesi, Indonesia. A final internship report based on experiences and measurements made in Sulawesi in 2011. March, 2011. GTZ, 2010. Survey of Productive Use Potential at Selected MHP sites in West-Sulawesi. Version 18 November 2010. Hermawati, W., M.Thoha, N. Grace, Ishelina, 2010. Kajian Implementasi dan Pemanfaatan Pembangkit Listrik Tenaga Mini, Mikrohidro (PLTMH) untuk Peningkatan Usaha Produktif Masyarakat Perdesaan. LIPI. Hartono, T. and Isman, 2010. Kiat Sukses Menetaskan Telur Ayam. PT. Agromedia Pustaka Mulato, S., S. Widyotomo, E. Suharyanto, 2009. Cocoa Processing. Technology Development. An Integrated Approach. Indonesia Coffee and Cocoa Research Institute. Mulato, S. and E. Suharyanto, 2009. Post Harvest Coffee Processing in Indonesia: An Introduction to Good Manufacturing Practices. Indonesian Coffee and Cocoa Research Institute. Purwanto, E. and Ujang S.I. 2011. Annual Report. Capacity Building on Catchment Areas Management and Conservation to Sustain Micro-Hydro Power Schemes: Activities in Sulawesi. Operation Wallacea Trust, April 2011. Supriyadi, MM., 2010. Panduan Lengkap ITIK (Duck), Penerbit Swadaya. Wahyudi, T.R. Panggabean, Pujiyanto, 2008. Panduan Lengkap. Kakao, Manajemen Agribisnis, dari Hulu hingga Hilir. Penerbit Swadaya.

68 | P a g e Operation Wallacea Trust (OWT) |Report


Annex A: Profile of Survey Villages in Luwu Utara District 1. Bantimurung Village A. Accessibility A.1 A.2 A.3 A.4.

Distance from District Capital (Masamba) Distance from Sub-District Capital (Bone-Bone) Accessibility from Masamba to Bone-Bone Accessibility from Bone-Bone to Bantimurung

22 km 3 km Good Poor

B. Village Area and Population Transmigrant (1995)

B.1

Origin

B.2 B.3 B.4.

Area Number of hamlets Main livelihoods

18 km square 5 Rainfed agriculture Cocoa plantation Making palm sugar Collection of rattan and timbers

B.5

Population (2009) Male

1.653 persons 629 1024 200 Moslem Javanese 32 persons

Female Number of households B.6 B.7 B.8

Religion Dominant Ethnic Group Education: Passed secondary school

C. MHP and Potential Productive Use 1 Unit

C.1

Number of MHP

C.2

Power capacity, project initiator, hamlet location, and year of operation

12 KWH , Green-PNPM, in Trans hamlet, April 2011

C.3

Potential Productive Uses

Palm sugar processing Cocoa drying Small-scale poultry

2. Malimbu Village

A.1

A. Accessibility Distance from District Capital (Masamba)

14 km square

A.2 A.3

Distance from Sub-District Capital (Sabbang) Accessibility from Masamba to Sabbang

2 km Good 68 | P a g e

Operation Wallacea Trust |Report


A.4.

Accessibility from Sabbang to Parara Village

Good

A. Village Area and Population Local settlement New settlers from surrounding areas (Bone, Sengkang and Pangkep) come to the village on 1990s to cultivate cocoa

B.1

Origin

B.2

Area

24 km square

B.3 B.4

Number of hamlets Main livelihoods

B.5

Population (2009) Male Female Number of households Religion Etnic Group

8 Cocoa plantation Durian plantation Irrigated rice Making palm sugar Sago Extraction Collection of rattan and timbers 2409 1215 1194

B.6 B.7 B.8

432 Moslem

Bugis Luwu, Bugis Bone, Bugis Sengkang, Bugis Pangkep, Toraja

Education: Passed secondary school University Graduate

72 persons 18 persons B. MHP and Potential productive Use

C.1 C.2

Number of MHPs Power capacity, project initiator, hamlet location and year of operation

C.3

Potential Productive Uses

3 Units 8 KWH, District Government, at Makaluku Hamlet, 2005 10 KWH, District Government, at Malimbo Hamlet, 2006 11 KWH, Green-PNPM, in Mamea Hamlet, April 2011 Palm sugar processing Cocoa drying Poultry Sago Extraction Rice Milling

69 | P a g e Operation Wallacea Trust |Report


3. Tulak Talo Village A.1 A.2

C. Accessibility Distance from District Capital (Masamba) Distance from Sub-District Capital (Sabbang)

16 km square 6 km

A.3 A.4.

Accessibility from Masamba to Sabbang Accessibility from Sabbang to Tulak Talo Village

Good Good

B.1

Origin

D. Village Area and Population Local settlement New settlers from surrounding areas (Bone, Sengkang and Pangkep) come to the village on 1990s to cultivate cocoa

B.2

Area

12 km square

B.3 B.4

Number of hamlets Main livelihoods

5 Cocoa plantation Durian plantation Irrigated rice Making palm sugar Sago Extraction Collection of rattan and timbers

B.5

Population (2009)

B.6

Male Female Number of households Religion

1651 842 804 400

B.7

Dominant Ethnic Group

B.8

Education: Passed secondary school University Graduate

C.1 C.2

C.3

Moslem

Bugis Bone, Bugis Sengkang, Bugis Pangkep, Luwu, Toraja

35 persons 8 persons E. MHP and Potential productive Use Number of MHPs 4 Units Power capacity, project initiator, hamlet location 20 KWH, District Government, and year of operation 2005 79 KWH, MHPP, 2008 20 KWH, District Government, July 2010 11,5 KWH, Green- PNPM, at Tumandi Hamlet, August 2010 Potential Productive Uses Palm sugar processing 70 | P a g e Operation Wallacea Trust |Report


Cocoa drying Poultry Sago Extraction Rice Milling

4. Parara Village A.1

B. Accessibility Distance from District Capital (Masamba)

20 km square

A.2 A.3

Distance from Sub-District Capital (Sabbang) Accessbility from Masamba to Sabbang

10 km Good

A.4.

Accessbility from Sabbang to Parara Village

Good

F. Village Area and Population Local settlement New settlers from surrounding areas (Bone, Sengkang and Pangkep) come to the village on 1990s to cultivate cocoa

B.1

Origin

B.2

Area

16 km square

B.3

Number of hamlets

6

B.4

Main livelihoods

Cocoa plantation Durian plantation Irrigated rice Making palm sugar Sago Extraction Collection of rattan and timbers

B.5

B.6

Population (2009) Male Female Number of households Religion

1410 747 663 331 Moslem

B.7

Ethnic Group

Bugis Luwu, Bugis Bone, Bugis Sengkang, Bugis Pangkep, Toraja

B.8

Education: Passed secondary school University Graduate

52 persons 10 persons G. MHP and Potential productive Use

C.1

Number of MHPs

3 Units

C.2

Power capacity, project initiator, hamlet location

10 KWH, District Government, at 71 | P a g e

Operation Wallacea Trust |Report


and years of operation

C.3

Potential Productive Uses

Lena Hamlet, 2005 50 KWH, MHPP, at Parara Hamlet, April 2009 35 KWH, MHPP, at Sangkale Hamlet, June 2009 Palm sugar processing Cocoa drying Poultry Sago Extraction Rice Milling Tailor Making Instant Ginger Baverage

72 | P a g e Operation Wallacea Trust |Report


Annex B: Profile of Surveyed Villages in Mamasa District 1. Tawalian Timur Village

B.1

A. Accessibility Distance from District Capital (Mamasa) 4 km square Distance from Sub-District Capital (Tawalian) 2 km Accessibility from Mamasa to Tawalian Good Accessibility from Tawalian to Tawalian Timur Good Village B. Village Area and Population Origin Local settlement

B.2

Area

14 km square

B.3 B.4

Number of hamlets Main livelihoods

B.5

Population (2009) Male

7 Irrigated rice Coffee plantation Cattle Fish Pond Collection of rattan and timbers 2468 1108

A.1 A.2 A.3 A.4.

B.6 B.7 B.8

C.1 C.2

C.3

Female Number of households Religion Dominant Etnic Group Education: Passed secondary school Technical Diploma University Graduate

1360 638 Christian Toraja 162 25

20 C. MHP and Potential productive Use Number of MHPs 3 Units Power capacity, project initiator and year of 15 KWH, MHPP, at Salulotong operation Hamlet, 2006 15 KWH, District Government, in Tandung Hamlet, 2007 50 KWH, Green- PNPM, at Tanete Hamlet, 2010 Potential Productive Uses Poultry Coffee grinding Rice milling 73 | P a g e Operation Wallacea Trust |Report


Tailor Repair/welding shop

2. Rante Puang Village A.1

A. Accessibility Distance from District Capital (Mamasa)

4 km square

A.2 A.3

Distance from Sub-District Capital (Sespa) Accessibility from Mamasa to Sespa

2 km Good

A.4.

Accessibility from Sespa to Rante Puang Village

B.1

Origin

B.2

Area

B.3 B.4

Number of hamlets Main livelihoods

B.5

Population (2009)

Fair during dry season , poor during wet season B. Village Area and Population Local settlement 19,5 km square 10 Irrigated rice Coffee plantation Cattle Fish Pond 1247

Male Female B.6 B.7 B.8

Number of households Religion Dominant Etnic Group Education: Passed secondary school University Graduate

810 437 534 Christian Toraja

28 2 C. MHP and Potential productive Use

C.1

Number of MHPs

2 Units

C.2

Power capacity, project initiator, hamlet location and year of operation

C.3

Potential Productive Uses

15 KWH, MHPP, at Balakareke Hamlet, August 2009 20 KWH, MHPP, in Tanduk Bulawan Hamlet , August 2009 Poultry Coffee grinding Rice milling

C.4

Village champions

Sudirman, member of parliament at Province level (Gerindra)

74 | P a g e Operation Wallacea Trust |Report


3. Orobua Selatan Village A.1 A.2 A.3 A.4.

B.1

B.2 B.3 B.4

B.5

B.6 B.7 B.8

A. Accessibility Distance from District Capital (Mamasa) Distance from Sub-District Capital (Sesena Padang)

4 km square 2 km

Accessibility from Mamasa to Sesena Padang Good Accessibility from Sesena Padang to Orobua Good SelatanVillage B. Village Area and Population Origin Local settlement 8,5 Km square Area Number of hamlets 5 Main livelihoods Irrigated rice Coffee plantation Cattle Fish pond Population (2009) 1280 Male 657 Female Number of households

623 300

Religion Dominant Etnic Group Education: Passed secondary school University Graduate

Christian Toraja 50 20 C. MHP and Potential productive Use

C.1

Number of MHPs

1 Unit

C.2

Power capacity, project initiator and year of operation

C.3

Potential Productive Uses

20 KWH, Green- PNPM, at Rante-Rante Hamlet, April 2011 Poultry Coffee grinding Rice milling

75 | P a g e Operation Wallacea Trust |Report


4. Salumokanan A.1 A.2 A.3

A. Accessibility Distance from District Capital (Mamasa) Distance from Sub-District Capital (Rante Bulahan Timur) Accessibility from Mamasa to Rante Bulahan Timur

16 km square 2 km

B.1

Good during dry-season, poor during wet-season Accessibility from Rante Bulahan Timur to Orobua Good during dry-season, poor during SelatanVillage wet-season B. Village Area and Population Origin Local settlement

B.2

Area

B.3 B.4

Number of hamlets Main livelihoods

B.5

Population Male Female Number of households

B.6 B.7 B.8

Religion Dominant Ethnic Group Education: Passed secondary school University Graduate

A.4.

16 Km square 6 Irrigated rice Coffee plantation Cattle Fish pond 961 475 486 220 Christian Toraja 89 20 C. MHP and Potential productive Use

C.1 C.2

Number of MHPs

1 Unit

Power capacity, project initiator, hamlet location and years of operation

C.3

Potential Productive Uses

8 KWH, Green- PNPM, December 2010 Poultry Coffee grinding Rice milling Wood working Iron works/blacksmith

76 | P a g e Operation Wallacea Trust |Report


5. Pasembu Village A.1 A.2 A.3 A.4.

B.1

B.2 B.3 B.4

B.5

B.6 B.7 B.8

A. Accessibility Distance from District Capital (Mamasa) Distance from Sub-District Capital (Rante Bulahan Timur) Accessibility from Mamasa to Rante Bulahan Timur

16 km square 2 km

Good during dry-season, poor during wet-season Accessibility from Rante Bulahan Timur to Orobua Good during dry-season, poor during SelatanVillage wet-season B. Village Area and Population Origin Local settlement 15 Km square Area Number of hamlets 4 Main livelihoods Irrigated rice Coffee plantation Cattle Fish pond Population 457 Male 274 Female 183 Number of households 105 Religion Christian Dominant Etnic Group Toraja Education: Passed secondary school 82 University Graduate 5 C. MHP and Potential productive Use

C.1

Number of MHPs

1 Unit

C.2

Power capacity, project initiator, hamlet location and year of operation Potential Productive Uses

10 KWH, MHPP, at Pasembu Hamlet, 2009 Poultry Coffee grinding Rice milling

C.3

77 | P a g e Operation Wallacea Trust |Report


6. Bombong Lambe Village A.1 A.2

A. Accessibility Distance from District Capital (Mamasa) Distance from Sub-District Capital (Mamasa)

4 km square 4 km

A.3

Accessbility from Mamasa

Good

B.1

Origin

B.2

Area

B.3 B.4

Number of hamlets Main livelihoods

B.5

Population Male Female Number of households Religion Dominant Etnic Group Education: Passed secondary school

B.6 B.7 B.8

B. Village Area and Population Local settlement 10.5 km square 5 Irrigated rice Coffee plantation Cattle Fish pond 1429 713 716 342 Christian Toraja 72

University Graduate

20 C. MHP and Potential productive Use

C.1

Number of MHPs

1 Unit

C.2

Power capacity, project initiator, hamlet location and year of operation Potential Productive Uses

20 KWH, MHPP, at Bara-Bara Hamlet, August 2010 Poultry Coffee grinding Rice milling

C.3

78 | P a g e Operation Wallacea Trust |Report


7. Mesakada Village A.1

A. Accessibility Distance from District Capital (Mamasa)

18 km

A.2 A.3

Distance from Sub-District Capital (Melaan) Accessibility from Mamasa to Melaan

3 km Fair

A.4.

Accessibility from Melaa to Mesakada Village

B.1

Origin

B.2

Area

B.3

Number of hamlets

B.4

Main livelihoods

B.5

Population (2009)

Irrigated rice Coffee plantation Cattle Fish Pond 814

Male Female

401 413

Number of households Religion

260 Christian

Dominant Ethnic Group Education: Passed secondary school University Graduate

Toraja

B.6 B.7 B.8

Fair during dry season , poor during wet season B. Village Area and Population Local settlement 10,5 km square 4

74 5 C. MHP and Potential productive Use

C.1

Number of MHPs

2 Units

C.2

Power capacity, project initiator, hamlet location and year of operation

C.3

Potential Productive Uses

78 KWH, Green-PNPM 2008, start in operation since October 2010 Poultry Coffee grinding

79 | P a g e Operation Wallacea Trust |Report


Annex C: Contact Persons in Luwu Utara District No

Name

Potition

Working Area

Mobile Phone

1

Andi Baso Asri

Head of PMD

Luwu Utara District

0811429967

2

Ir. Ridwan

Technical Facilitator

Luwu Utara District

085242998069

3

Ir. M. Amal Alba

Community Empowerment Facilitator

Luwu Utara District

081342695009

4

Ir. Y. Muslimin

Finance Facilitator

Luwu Utara District

081355348586

5

Gazali

PJOKAB1 Green-PNPM

Luwu Utara District

6

Andi Kasmawati

PJOKAB Rural PNPM

Luwu Utara District

085656300521/ 082193140883 081342696315

7

Andi Baso

Forestry agency

Luwu Utara District

081355782467

8

Dewi Marwati

Forestry agency

Luwu Utara District

08124201223

9

Jasmani

Luwu Utara District

081355456175

10

Yulias

Trading and Industry Agency Social Agency

Luwu Utara District

082189532606

11

Husdi

Health Agency

Luwu Utara District

085255647177

12

Sahrum

Green-PNPM Facilitator

Luwu Utara District

081355739339

13

Abdul Rahman

Technical Facilitator

Sabbang Sub-District

081342141126

14

Andi Abd. Razak

District Facilitator

Sabbang Sub-District

081354652402

15.

Muh. Ali

Technical Facilitator

Bone-Bone Sub-District

081347970333

1

Official in charge to organize PNPM implementation at District level

80 | P a g e Operation Wallacea Trust |Report


Annex D: Contact Persons in Mamasa District No

Name

Position

Working Area

Mobile Phone

1

Petrus Poalangi

Head of BPMD

Mamasa District

081219656274

2

Pilipus

PJOKab

Mamasa District

081242120063

3

Andi Wahyudin

District Facilitator

Mamasa District

08124213782

4

Muhindar

TSU

Mamasa District

081354708586

5

Bram

TSU

Mamasa District

08137034435

6

Yunus Debuntu kareaeng

Industry Agency

7

M. Iqbal

District Facilitator

Mamasa District

08529942610

8

Herman Cahyadi

Technical Facilitator

Mamasa District

085242881236

9

Saifuddin

Technical Facilitator

Aralle Sub-District

081241257919

10

Irawan Daaming

Community Facilitator

Aralle Sub-District

081241273713

Welem

Community Facilitator

Syahrul Hidayat

Technical Facilitator

13

Benyamin

Community Facilitator

Pana Sub-District

081241010107

14

Gayus Santor Pakiling

Technical Facilitator

Pana Sub-District

085255918191

15

Saelan

Technical Facilitator

Bambang Sub-District

085299537346

16

Wilhem us jego

Community Facilitator

Tabulahan Sub-District

081339350743

17

Marzuki

Technical Facilitator

Tabulahan Sub-District

081241205594

18

Umar P.

Community Facilitator

Mehalaan Sub-District

085299388437

19

Basir

Technical Facilitator

Mehalaan Sub-District

085255579069

20

Kallah

Community Facilitator

Mambi Sub-District

081242407399

21

Wahyui

Technical Facilitator

Mambi Sub-District

081354736222

22

Raiz Mata

Community Facilitator

Sumarorong Sub-District

081355126665

11 12

and

Trade Mamasa District

Tanduk Kalua SubDistrict Tanduk Kalua SubDistrict

085243461706

081241382024 081343755500/ 085 756 400 308

81 | P a g e Operation Wallacea Trust |Report


23

Dahliah

Technical Facilitator

Sumarorong Sub-District

085355891415

Agustinus ,BP.

Technical Facilitator

Buntumalangka SubDistrict

081355305003

25

Jimmi Minanga

Technical Facilitator

Sesenapadang/Mamasa

081354114377

26

Nitha Sattu

Community Facilitator

Messawa Sub-District

085242480623

27

Nurmas

Technical Facilitator

Messawa Sub-District

081242850995

28

Betaria

Community Facilitator

Tawalian/Mamasa

085696162871

29

Triyanto

Technical Facilitator

Tawalian Sub-District

085299537346

Firman

Community Facilitator

Balla Sub-District

081342069448/ 08114207728

31

Rahmawati

Technical Facilitator

Balla Sub-District

08135432237

32

Yusuf Rahmat

Community Facilitator

Tabang Sub-District

085242024104

33

Hendra Tande Padang

Technical Facilitator

Tabang Sub-District

081242382804

Suhanto

Community Facilitator

Kristanto

Technical Facilitator

36

M. Rizal

Technical Facilitator

Nosu Sub-District

81343648142

37

Untung Rionaldi

Community Facilitator

Nosu Sub-District

81355672304

24

30

34 35

Rantebulahan Timur Sub-District Rantebulahan SubDistrict

081242336955 81343641731

82 | P a g e Operation Wallacea Trust |Report


Annex E: Contact Persons at Sub district and Village Level in Luwu Utara District No

Name

Position

Working Area

Mobile Phone

1

H. Baharuddin Iskandar

Kasimbong Village, Masamba Sub district

0811440645

2

Masdiana

3

Basri Abdila

KUB Sibale Resoe, Chocolate factory Manager KUB Mawar Merah, Cake industry manager Village Head

Salma; 085255795157 081342095345

4

Umar. C

Village Head

5

Mursalin

Village Secretary

6

H.Nurdin

7

Bp Agus

Oil refinery, patchouli and cloves Patchouli refineries

Poreang Village, Bone Bone Sub district Parara Village, Sabbang Sub district Malimbu Village, Sabbang Sub district Malimbu Village, Sabbang Sub district Salulemo Village, Sukamaju Sub district Salulemo Village, Sukamaju Sub district

081242123111 085343734657 Firman , 085299216602 0813424481199

83 | P a g e Operation Wallacea Trust |Report


Annex F: Contact Persons at Sub district and Village Level in Mamasa District No

Name

Position

3

Zefnat P.

Village Head

4

Teo Pilus S.P

Village Head

5

Andarias

Village Secretary

6

Agustisnus,

Village Secretary

7

Y Saya L Buntu, Sos

Village Head

8

Pa LU' Te

Village Head

Working Area

Mobile Phone

Tawalian Timur/Tawalian/Mamasa Rante Puang/ Sespa/Mamasa Rante Puang, Sespa Sub district Orabua Selatan Village Sespa Sub district Salomokanan Village, Rantebulahan Timur Sub district Bombong Lambe Village, Mamasa Sub district

081241660370 085299151892 085242467627 081342272066

081244700089

081343623336

84 | P a g e Operation Wallacea Trust |Report


Annex G. Capacity and Specification of Electrical Machines No

1

Activity

Machine

Type

Capacity/spec

Power supply

Power consumpti on (watt)

Amp ere

RPM

Price Estimation (Rp)

Rice huller

6N -60

100 - 160 kg/hour

220/3 phase

1,500

8.52

1,600

5,000,000

Paddy huller 1

5 years warranty

2

weight: 46 kg

Cacao bean dryer 2

3

Cacao bean dryer

Oven - Electric

500 kg

220/ 3 phase

6,000

34.09

-

Cacao bean dryer

Flat Bed

2- 3 m3 tons

220/ 1 phase

2,100

11.93

-

Coffee grinder

Coffee grinder

DJ-6220

60 kg/hour

220/ 3 phase

2,100

11.93

-

2,700,000

Chicken and duck Hatchery

Hatchery

Automatic Hatchery with heater element

500 eggs

220/ 3 phase

350

1.99

-

9,500,000

3

4

4

85 | P a g e Operation Wallacea Trust |Report


5

Furniture 6

sander

GEX 150 AC

Diameter: 150 mm Weight: 2.1 kg

220/3 phase

340

1.93

4,500 12,000

7

small angle grinder

GWS 6-100 (4")

Diameter: 100 mm Weight :1,45 kg

220/3 phase

670

3.81

11,000

8

Drilling machine

GBM 13-2

Maximum length: 32 mm Weight: 1.95 kg

220/3 phase

550

3.13

1,900

9

Planner machine

GHO 10-82

Width :82 mm

220/3 phase

710

4.03

16,500

10

Trimmer machine

GMR 1

Max depth: 30mm

220/3 phase

550

3.13

33,000

220/3 phase

1050

5.97

5,000

220/3 phase

2,000

11.36

3,500

Weight: 1.5 kg

11

Circular saw

GKS 165

Saw dimension: 160 mm

Wood of 4 to 7 inch Weight: 3.6 kg Subtotal power consumption

6

3,870

Blacksmith 12

Cut Off saw

GCO 2000

Bar Diameter : 65mm ( 2-9/ 16" ) Pipe Diameter : 120mm ( 4-47/

86 | P a g e Operation Wallacea Trust |Report


64" ) Shaped Steel : 130 x 130mm 13

Blower

GBL 550

Air volume : 2.7 m3 / min.

220/3 phase

550

3.13

-

Air Pressure : 75 mbar, weight : 1.7 Kg Subtotal power consumption 7

2,550

Tailor 14

Sewing machine

Brother LS 2125

200/250 -1 phase

95

0.54

15

sewing motor

DY-830C, national

200/250 -1 phase

120

0.68

16

hemming

200/250 -1 phase

250

1.42

Saraba Instant

Subtotal power consumption 8

465

Saraba Instant 17

18

mixer

plastic sealer

I/BSP - BM5

Bowl Capacity : 5,5 Liter Mix Hour Capacity : 0.5 kg Mix dough capacity : 50 % Water

220/50 Hz

300

1.70

4.000.000

Multi Functional Film Sealer (SF150W)

Sealing Speed : 0-12m/min

220240V/5 0-60Hz

500

2.84

4.200.000

Sealing Width : 6-15mm Sealing Film Thickness : 0.02-0.08mm

87 | P a g e Operation Wallacea Trust |Report


Conveyor Loading : 5kg Machine Weight : 35kg

19

Parutan/grater

SXYS-190

Capacity 90 kg / jam

200/250 -1 phase

750

4.26

20,485

116

2.950.000

Weight : 35 kg

Subtotal power consumption

1,550

Total Power Consumption

88 | P a g e Operation Wallacea Trust |Report

Profile for Operasi Wallacea Terpadu

OWT Report_Survey of Productive Use Potential  

OWT Report_Survey of Productive Use Potential  

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