System Engineering Of Sago Agro-industry Development Using a Regional Approach

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1 System Engineering Of Sago Agro-industry Development Using a Regional Approach LA RIANDA BAKA Graduate Program, and Faculty of Agriculture Kampus Kemaraya, Kendari rianda.baka@gmail.com TUFAILA HEMON Graduate Program, and Faculty of Agriculture Kampus Bumi Tridharma Anduonohu, Kendari m.tufailahemon@yahoo.co.id YULIUS B PASOLON Graduate Program, and Faculty of Agriculture Kampus Bumi Tridharma Anduonohu, Kendari yulpas_59@yahoo.com ALBERTH Graduate Program, and Faculty of Teacher Training and Education Kampus Bumi Tridharma Anduonohu, Kendari alberth@programmer.net Abstract: - The cultivation and development of the sago agro-industry in Southeast Sulawesi occurs naturally without holistic and comprehensive integrated planning. The cultivating and processing skills have long been handed down from generation to generation. The study aims to: 1) examine the response of sago farmers towards the development of integrated and sustainable sago agro-industry; 2) identify ideal land distribution for cultivation and processing of sago, on the basis of suitability of land, the areas of which become the centre of sago agroindustry in rural areas; 3) determine the priority areas for development of the sago agroindustry in Southeast Sulawesi. Research methods applied were: 1) the survey method and the use of Geographic Information System (GIS) to analyse the suitability of land for sago development and cultivation (and the regional mapping), especially for locations considered to be suitable for sago development and cultivation and; 2) descriptive method to determine the characteristics and responses of sago farmers towards the development of sago agro-industry; and 3) Process Hierarchy Analysis (PHA) used to determine the priority areas of sago agro-industry development. The results showed that, as far as farmers response to the development of integrated sago agro-industry is concerned, where sago farmers also become industry owners, as many as 118 people (78.67%) strongly agree with the plan and 32 people (21.33 %) agree. When asked about the idea of agroindustry, where farmers only serve as material providers to the industry, % of the respondents expressed their disagreement strongly, % disagree, and 10% rather disagree. Total land area considered to be suitable for the development and cultivation of sago palm was hectares with the following details: East Kolaka comprises hectares, Konawe hectares, and South Konawe hectares. ISBN:

2 Results of PHA analysis indicate that in terms of the priority areas for sago agro-industry development, the first priority area is South Konawe district, followed immediately by East Kolaka and Konawe districts respectively. The main problems, as far as the development of sago cultivation is concerned, is the inavailability of a large quantity of seeds at a given time. From the standpoint of processing, the main problem concerns difficult access to quality and standard spring water as required by a sago processing industry. Key-Words: - Sago, Agro-industry, System engineering, Regional approach 1 Introduction Sago palms (Metroxylonsp) are a food commodity containing carbohydrates. Sago is both a staple and supplementary food in several regions in Indonesia, such as Maluku, Irian Jaya and Sulawesi, especially in South Konawe. Sago can also be used as a raw material for the food industry. It can, among others, be processed into foods such as bagea (traditional cake), pearl sago, dry cake, noodles, biscuits, crackers, laksa (fine noodles similar to vermicelli), and bio-ethanol. In 2007 the total sago plantation area in Southeast Sulawesi Indonesia was estimated to be approximately 5,607 hectares [1]. Southeast Sulawesi was previously reported to have a sago plantation area of 10,000 hectares with possible extensions due to Southeast Sulawesi havinga large amount of swamp areas, which are ideal for sago cultivation. The decline of sago plantation in Southeast Sulawesi is due to many sago plantations being converted into rice fields, residential areas, and the most prevalent, the introduction of mining concessions. In Southeast Sulawesi, sago grows in three different environmental conditions: dry land, swamp, and riverbank with the most common in swamp and the least common in the river bank. Presently, the cultivation and development of agro-industry of sago in Southeast Sulawesi occurs naturally without holistic and comprehensive integrated planning. Many project-based programs related to sago development are run routinely in accordance with a project s financial year, failing to leave significant and sustainable benefits for sago farmers and processors. As a result, many involved in sago processing cannot continue their business, primarily due to unreliable material supplies, limited skills, and natural and conventional agro-industry design. In other parts of the world, the sago plant is highly sought after, especially in Japan. This is due to the sago starch being safe from pesticide contamination compared to other carbohydrate foods. Not surprisingly, the world demand for sago starch has continuously been increasing overtime. In terms of developing the sago industry, Indonesia is trailing Malaysia as they are currently leading in the cultivation and processing teachnology of sago palms. Research studies are therefore required to design integrated sago agroindustry development, coupled by careful planning and strong commitment by both sago cultivators (farmers) and agro-industry actors and, most importantly, commitment by the local government. 2 Objectives and Significance of the Research The objectives of this study were three fold: 1. to examine sago farmers responses to the development of an integrated and sustainable sago industry; 2. to identify land distribution for cultivation and processing of sago on the basis of land suitability which will become the centre of sago agroindustry in rural areas; 3. to determine the priority areas for the development of agroindustry in Southeast Sulawesi. The research is expected to be useful: 1. for entrepreneurs (business actors) either as farmers or sago agro-industry processors in managing sustainable sago agri-business; 2. as an input to local government, especially government at a district/city level and within the scope of Southeast Sulawesi province to reinforce the direction and commitment to the development of integrated sago agro-industry on the basis of careful and holistic planning; 3. as a reference for academics concerning the development of an integrated sago agroindustry model. 3 Methods The study took place in regions of Southeast Sulawesi, where there was high potential for sago cultivation and development. These areas included the districts of: Konawe, South Konawe, East Kolaka, and Bombana, Southeast Sulawesi, ISBN:

3 Indonesia in the period of September November The study conducted an analysis of land suitability for the development of sago and regional mapping, especially in areas that have been identified to be potential areas for sago development. Both were conducted using the Geographic Information System (GIS) survey method, with the support of secondary data, consisting of analysis of soil and interviews. The result of the GIS survey, as well as other secondary data, then became the input for establishing the suitability of land areas for sago cultivation using the Protocol Method. This process would produce a map of suitable areas for the cultivation of sago. With reference to the regional map produced in each region, the next step is to use the map as the input based on total area, infrastructure, productivity, and local government policy to establish priority areas for both cultivation centres and centres for the development of integrated agro-industries. Determination of a prioritised centre for sago agroindustry was conducted using a Process Hierarchy Analysis method [2]. Analysis of the community s response to the development of sago agroindustry was conducted using a descriptive analysis. The stage of the research is presented in figure 1 below: 4 Results and Discussion 4.1 Farmers Response to the Development of Agro-Industry Past experience shows that a top-down developmental program design launched by the government proved to fail. One reason for such failure is because such a program design does not go together with what the community need. Therefore, there is a need for a participatory program involving the community who will run and be affected by the program. The present study examines community response to the development of the sago agroindustry. The results showed that both sago cultivators and sago processors in the study area expressed their agreement with the development of an integrated sago processing industry, developed from the cultivation stage to the starch processing stage into one unified system of agro-industry. The distribution of the sago farmers to the development of integrated agro-industry is presented in table 1 below: Table 1. Farmers Response to the Development of Agro-Industry Fig 1. Research stage comprising input-process and output. As seen in table 1, the development of a sago agro-industry where farmers only serve as suppliers of raw sago materials was not approved by the respondents as none of them expressed his/her agreement. As many as 15 respondents (10%) rather disagree, 45 respondents (28.67%) disagree, and 92 respondents (61.33%) strongly disagree. In other words, as far as a sago agri-business is concerned, sago farmers want to play a more significant role, more than just providing raw materials. Furthermore, when asked about the idea of developing sago agri-business where sago farmers partnered with sago processing agencies, all respondents expressed their agreement with the idea. As many as 86 respondents (57.33 %) agreed and as many as 64 respondents (42.67%) agree strongly. Finally, the third option, where sago cultivators are also processors/owners of sago industry (integrated), appears to be the most preferred option ISBN:

by the farmers in which case, all respondents expressed their agreement, in which case 118 respondents (78.67%) agree strongly and 32 respondents (21.33%) agree with this third option.

of the industry from the stage of cultivation (plantation) up to the processing stage producing sago stratch as an integrated and inseparable system.

4 by the farmers in which case, all respondents expressed their agreement, in which case 118 respondents (78.67%) agree strongly and 32 respondents (21.33%) agree with this third option. Based on the above findings regarding farmers preference for the development of the sago agroindustry, it is important that agro-industry development be designed involving the community as the owner of the industry from the stage of cultivation (plantation) up to the processing stage producing sago stratch as an integrated and inseparable system. The integrated development of the sago industry opted for by the respondents of the study can schematically be presented in figure 2 below: has resulted in the land, both actual and potential areas, declining overtime. This is evident from the results of the study indicating the potential land area for sago has declined. Details of actual and potential land area at each study site are presented in Table 2-4. As seen from Table 2 and 3 above, the potential land area for sago development is relatively wide with 981,28 hectares in East Kolaka and 1277,03 hectares in South Konawe respectively. Potential areas of sago development map in both South Konawe and East Kolaka are presented in Table 4. Table 2. Distribution of Actual and Potential Land in South Konawe Distric. Fig. 2 Integrated Sago Agroindustrial Development System. In this system, it is clear the sago centre in each region is supported by small and medium entreprises (SMEs) and is within one unified whole system as illustrated by the dotted line in the same box with integrated agro-industrial company acting as a draft and exporters. Each centre consists of an SME of sago agro-industry development accompanied by the Business Development Services (BDS) the role of which can be played by a Non Governmental Organisation (NGO), Bank Partner Financial Consultant (BPFC), and universities as supporters of sago development centre. The model of the development of sago agroindustry is in agreement with the engineering system of the development of agroindustry estate commodities which combine BDS, NGO, SMEs dan BPFC in one system [2, 3, 4, 5, 6, 7, 8]. Selain itu, Austin [9] dan Brown [10] menyatakan pula bahwa pengembangan agroindustri pada berbagai level pengolahan memerlukan keterpaduan system. Table 3. Distribution of Actual and Potential Land in Kolaka Distric. 4.2 Potential Land Area for Sago Development Sago development has so far occurred naturally. The lack of attention paid to the development of sago ISBN:

5 Table 4. Distribution of Actual and Potential Land in Konawe Distric. 4.3 Sago Agro-Industry Development Priority Sago agro-industry development priority is determined on the basis of five criteria: potential land area, actual land area, sago production, infrastructure readiness and government policy. When viewed from potential and actual land area, South Konawe achieved the highest weight, but when viewed in terms of government policy, East Kolaka achieved the highest weight, while Konawe is only superior in terms of readiness of infrastructure when compared to other districts. The weighting of each criterion in each district is presented in Table 5. Table 5. The weighting and sago agro-industry development priorities. Results calculated by AHP method as shown in Table 5 show that if measured from the average weights obtained from the total score, the obtained priority for agro-industry development is South Konawe, followed by East Kolaka and then Konawe. Although South Konawe was a top priority, strong support of government policy for the developmet of sago agro-industry is still required. It was also found during fieldwork that the main problem, as far as the development of sago cultivation is concerned, is the unavailability of a large quantity of seeds at a given time. From the standpoint of processing, the main problem concerns difficult access to quality and standard spring water as required by a sago processing industry, outdated equipment, as well as unreliable supply of raw materials due to the fact that raw materials only come from naturally grown sago without being cultivated by farmers. 5 Conclusion and Recommendations 5.1 Conclusion The results of the study can be summarised as follows: 1. Farmers responses towards the development of a sago agro-industry whereby farmers only act as suppliers of raw materials were not favourable, for as many as 15 people (10%) disagree, 45 people (28.67%) rather disagree, and as many as 92 people (61.33%) strongly disagree. 2. Farmers responses towards the development of a sago agro-industry model, whereby sago farmers partnered with sago processing agencies, were relatively more favourable than the first model in which case 86 people (57.33%) agreed and as many as 64 people (42.67%) strongly agree with the idea. 3. Farmers responses towards the development of a sago agro-industry model whereby farmers serve as both cultivators and suppliers of industrial raw materials and owners of the industry appear to be the most preferred model. As many as 118 people (78.67 %) agree strongly and as many as 32 people (21.33%) agree. 4. In terms of the priority area for sago agroindustry development, South Konawe was found to be the first priority, followed by East Kolaka and then Konawe, while Bombana and North Konawe were not prioritized. 5. The main problem in the development of sago cultivation is the unavailability of a large quantity of seeds at certain times, while from the standpoint of processing, it is difficult to obtain quality water as required for sago processing. 5.2 Recommendations With reference to the findings, the following recommendations can be made: 1. It is important that sago production areas be officially determined, through the regional planning, as a sago agro-industry development area for each district. 2. It is important that the district governments provide strong support for the development of sago agro-industry which has so far received relatively little attention, if any. 3. It is important that sago farmers be involved in the development of sago agro-industry starting from stage of cultivation up to the processing as an integrated system. ISBN:

6 4. Further research concerning the design of business plan for sago agro-industry within each prioritised centre needs to be conducted. 5. Further research should be done to design business plan sago agro-industrial centres on each priority. References: [1] Badan Pusat Statistik, Badan Pusat Statistik Sulawesi Tenggara. Kendari, [2] T. L. Saaty, Pengambilan Keputusan Bagi Para Pemimpin. Proses Hirarki Analitik untuk Pengambilan Keputusan Dalam Situasi Kompleks. (translation) PT. Puataka Binaman Pressindo, Jakarta, [3] Eriyatno, Ilmu Sistem : Meningkatkan Mutu dan Efektifitas Manajemen. Jilid satu. Bogor: IPB Press, [4] Eriyatno, Paradigma Baru Teori Pembangunan Perekonomian Nasional. Pembangunan Perekonomian Nasional. LSKPI. Jakarta, [5] Eriyatno. Sistem Pengembangan Perekonomian Daerah Berlandaskan Kemampuan Sumberdaya Lokal. LSKPI. Jakarta, [6] La Rianda, Eriyatno, N.S. Indrasti, Marimin, M.H. Bintoro, and D. Supriady. Pemberdayaan Pekebun Melalui Sistem Agroindustri Terpadu. Kasus, Komoditas Kakao Rakyat Di Sulawesi Tenggara. Jurnal Ilmiah Pertanian Gakuryoku, Vol. 6, No. 2, [7] La Rianda, Eriyatno, N.S. Indrasti, Marimin, M.H. Bintoro, and D. Supriady. Disain Hubungan Kelembagaan Dalam Sistem Agroindustri Terpadu. Jurnal Penelitian Mimbar Akademik. No. 17, Tahun XII, Oktober [8] La Rianda. Membangun Agroindustri yang Berbasis Sumberdaya Lokal melalui Pendekatan Sistem, Fokus dan Berkelanjutan. Orasi Ilmiah Pengukuhan Guru Besar. Universitas Haluoleo. Kendari, [9] J. E. Austin..Agroindustrial Project Analysis. The Johns Hopkins University Press, Maryland, [10] J. L. Brown, Agroindustrial Investment and Operation. EDI Development Studies, Wold bank Pub., Washington, ISBN:

STRATEGY OF EMPOWERING FARMERS CAPABILITY AT INTEGRATED FARMING BEER CATTLE AND PADDY WITH ZERO WASTE. Agustina Abdullah ABSTRACT

STRATEGY OF EMPOWERING FARMERS CAPABILITY AT INTEGRATED FARMING BEER CATTLE AND PADDY WITH ZERO WASTE Agustina Abdullah Animal Husbandary Faculty, Hasanuddin University, Makassar Indonesia Jl. Perintis