Facilitating Trade of Small Agricultural Enterprises : Relevant Paperless Application and Constraint in Implementation A Perspective From Indonesia

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1 Facilitating Trade of Small Agricultural Enterprises : Relevant Paperless Application and Constraint in Implementation A Perspective From Indonesia Tomy Perdana Center for Agricultural Supply Chain and Logistics System Studies Faculty of Agriculture, Padjadjaran University Asia Pacific Trade Facilitation Forum 2014 in Bangkok

2 Background Development of Indonesian fruits and vegetables products is a strategic effort in developing the Indonesian agriculture The fruit and vegetables (FFV) demand (local and export) is not balanced with the FFV supply from the domestic production Traditionally, most of the Indonesian FFV producers have small scale economics and scattered in several production centers

3 Background How to change The Tradi onal (unstructured) Agri supply chain Production/Supply Expenses Market To The Modern (Structured) agri supply chain Production/Supply Expenses Market 3

4 Introduction Facilitating FFV small farmers to involve in modern agri supply chain is a strategic effort in globalization and free market To be more effective and efficient, modern FFV supply chain that involving small farmers need using paperless system This presentation will explore paperless aplication and its obstacles in implementation of modern FFV supply chain development that involving small farmers to fulfill market demand

5 Integrating small farmers to modern FFV supply chain agribusiness cluster development 3 rd iteration Action Research agricultural logistics service development 2 nd interation Inclusive supply chain management development 1 st iteration 5

6 ! The Triple Helix as an institutional ) innovation in agri cluster development! 8 4 M>!LDM8! :, 9)!N &9)!<&&0!O/ 2( 0, )+/ (! #! $%&' #" ( $)* #" ' * +', #%- -. /&* - $0!"!!! #$!! *+, (!- &*), ( +, (!! - &' &*+( ),.!%/ ),!0, (!%, 123, )&(! - &' &*+( ),.!4, &*,.!5, 6,!7, *, )!! %&' &( )&*+, (! ). ++" / *. ( *" &)-)) 89/ 9+, 9+!: ; 93/ *)+*!<, =2*!4 Government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niversity FFV SC - 29, )!</ 9+, B!: ; / ( / ' +!0, (!%&1+G, ;, (!- &*), ( +, 7,( B, I!! +!7 &9, *!- &( 0+0+;, (!- &*), ( +, (! 7, B, +!- &( &B+)+, (!<, =2*, ( I!! 7, B, +!7 &9, *!- &( 0+0+;, (!- &*), ( +, (! ) *&( $%&. ( *" &. 1)2. %( &$%+)-!) K<8>4!! 3/ *&!! 84 M>!LDM8! ) *&( $%&. ( *" &. 1)2. %( &$%+)-!) K<8>4!! 8 3/ *&!! 8 4 M>!LDM8! :, 9)!N &9)!<&&0!O/ Universitas 2( 0, )+/ Padjadjaran (!! :, 9)!N &9)!<&&0!O/ 2( 0, )+/ (!!! - 29, )!</ 9+, B!: ; / ( / ' +!0, (!%&1+G, ;, (!- &*), ( +, ( I!! 7, B, +!- &( &B+)+, (!<, =2*, ( I!! 7, B, +!7 &9, *!- &( 0+0+;, (!- &*), ( +, (! *&( $%&. ( *" &. 1)2. %( &$%+)-!) K<8>4!! 8 3/ *&! Private APRINDO AESBI

7 The Role of Each Actor in Facilitating Small Farmer Farmer Farmer Supplying consistency Group University Gives services in technical, managerial, institutional, access to technology, financing, and market. Giving the supporting facilities such as packing house with cold chain system, irrigation etc Ministry of Agriculture Food Crops and Agricultural Services of West Java Other Parties (Banks, Syngenta Foundation, Supermarket, food industry) Reduce risks such as cancelled order, delayed payment, climate change Funding trainings and building some demonstration plots Central Bank, Supporting Agencies Market guarantee Market

8 Facilitating Trade of Small (Flow of Materials) Growing Collec ve produc on system Group Post harvest, sor ng, grading, packing, pre-cooling, cooling, storage,trading, transport Group Rural Logistcs Group The Triple Helix Facilitation Consolida on, quality control, branding, marke ng Distributor Exporter Consolida on, quality control, marke ng Consolida on, quality control, marke ng Modern Retail Logis cs Services Transporta on, administra on Domes c market Tradi onal Market Importer (Buyer) Interna onal market

9 Facilitating Trade of Small

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12 Facilitating Trade of Small (Flow of Information and Money) Group Group Distributor Rural Logistcs Exporter Group Chain Information Management By The Triple Helix Facilitation Domes c market Modern Retail Tradi onal Market Logis cs Services Importer (Buyer) Interna onal market Web Based Services (Paperless)

13 Chain Information Management Systems E-Trade E- Compliance E-Tracebility Web Based Services (Paperless Systems) The Triple Helix Facilitation E- Relationship Management Cyber Extension E-Money

14 Obstacles of Chain Information Management (Paperless Systems) Application Understanding the value of transparency among supply chain players and stakeholers In the food chain, the main power lies within distributors, exporters and retail. The transformation from paper based to paperless systems must be driven by them Lack of awareness and coordination among chain actors and stakeholders in facilitating small farmers using paperless systems Lack of IT infrastructure in rural areas

15 Recommendations Buy in of chain information management systems is necessary from chain actors and stakeholders Requires strong market player motivation University can be a hub of interaction/coordination between chain actors and stakeholders Requires regulations for each component in chain information management systems (paperless systems)

16 Thank You Asia Pasific Trade Facilitation Forum 2014 in Bangkok