Scholarly article on topic 'Preparation for Designing Business Strategy of Bamboo Cultivation in Bondowoso'

Preparation for Designing Business Strategy of Bamboo Cultivation in Bondowoso Academic research paper on "Agriculture, forestry, and fisheries"

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{"bamboo plants" / "SIDa (Sistem Inovasi Daerah/Regional Innovation System)" / clusters / "business strategy"}

Abstract of research paper on Agriculture, forestry, and fisheries, author of scientific article — Sri Gunani Partiwi, Elly Agustiani, Anny Maryani

Abstract Given the potential of abundant natural resources in Bondowoso, it is continued to keep developing new plantation commodities. One of them is bamboo. The development of bamboo has benefits to improve economic field which is residents’ income. However, it is also able to provide benefits to nature conservation in saving the critical land, especially land in the watershed. Based on the types of plant, bamboo is a plant that has many benefits and produced products. Bamboo processed products can be from leaves, branches, buds, middle stems, bottom and base of the frond and root and rhizome. Thus, many SME (small and medium-sized enterprises) will be established to process and produce the products. One of the products that will be developed is bamboo processed for textiles. Based on the potential for preparation development of bamboo plants, the regency has the advantages, namely the potential of local government support and education, bamboo farmers and SME's bamboo processed and markets that will accommodate. However, this time is still not well structured business strategies for the development of the bamboo plant. The appropriate method in the preparation of strategic business is SIDa (Sistem Inovasi Daerah/Regional Innovation System). Appropriate approach for this business is cluster approach. Thus, preparation of business strategies research through the cluster approach for bamboo plants is important.

Academic research paper on topic "Preparation for Designing Business Strategy of Bamboo Cultivation in Bondowoso"

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ScienceDirect Procedia

MANUFACTURING

Procedia Manufacturing 4 (2015) 568 - 575

Industrial Engineering and Service Science 2015, IESS 2015

Preparation for designing business strategy of bamboo cultivation in

Bondowoso

Sri Gunani Partiwia, Elly Agustianib, Anny Maryania*

Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember, Kampus ITS Sukolilo, Surabaya 60111, Indonesia Department of Chemical Engineering, Institut Teknologi Sepuluh Nopember, Kampus ITS Sukolilo, Surabaya 60111, Indonesia

Abstract

Given the potential of abundant natural resources in Bondowoso, it is continued to keep developing new plantation commodities. One of them is bamboo. The development of bamboo has benefits to improve economic field which is residents' income. However, it is also able to provide benefits to nature conservation in saving the critical land, especially land in the watershed. Based on the types of plant, bamboo is a plant that has many benefits and produced products. Bamboo processed products can be from leaves, branches, buds, middle stems, bottom and base of the frond and root and rhizome. Thus, many SME (small and medium-sized enterprises) will be established to process and produce the products. One of the products that will be developed is bamboo processed for textiles.Based on the potential for preparation development of bamboo plants, the regency has the advantages, namely the potential of local government support and education, bamboo farmers and SME's bamboo processed and markets that will accommodate. However, this time is still not well structured business strategies for the development of the bamboo plant. The appropriate method in the preparation of strategic business is SIDa (Sistem Inovasi Daerah/Regional Innovation System). Appropriate approach for this business is cluster approach. Thus, preparation of business strategies research through the cluster approach for bamboo plants is important.

©2015 The Authors. Publishedby ElsevierB.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.Org/licenses/by-nc-nd/4.0/).

Peerreview under responsibility of the organizing committee of the Industrial Engineering and Service Science 2015 (IESS 2015) Keywords: bamboo plants; SIDa (Sistem Inovasi Daerah/Regional Innovation System); clusters; business strategy

CrossMarl

* Corresponding author. Tel.: +61-31-5939361; fax: +62-31-5939362. E-mail address: maryani.anny@yahoo.co.id

2351-9789 © 2015 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

Peer review under responsibility of the organizing committee of the Industrial Engineering and Service Science 2015 (IESS 2015) doi: 10. 1016/j .promfg .2015.11.077

1. Introduction

Bondowoso regency has abundant potential of natural resources. One of the potential that is likely to be developed is new plantations. One of commodities to be developed is bamboo plant. Reference [1] said that apart from the economic field, the development of clusters of bamboo is also a nature conservation program to save the critical area. There are currently 14,000 hectares critical lands or approximately 9% of the total area. Just like in other areas in districts of East Java, Bondowoso changes in land and income of farmers are also serious problems. With these problems, the development of the bamboo cluster is one good option to be developed.

Therefore, the identification of potential, issues, strategic and technical studies is required to help formulating a proper plan in an effort to realize the bamboo cluster in the regency. It is important to show that bamboo plant has a high value so that people like to plant and grow bamboo by applying proper innovation.

Based on [2], innovation is a research, development, implementation, assessment, engineering, and operation hereinafter referred to KELITBANGAN aimed at developing a practical application value and context to new knowledge or new ways to apply science and technology in a product or the production process. Innovation in agriculture has been done in various countries such as vertical farming, micro irrigation, and so on. The process of innovation and identification will facilitate local government, academic, and businessmen to determine strategies that can solve the problems that arise in the agricultural sector.

In addition [3], the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI) 2011-2025 and SIDa (Sistem Inovasi Daerah/Regional Innovation Systems), the strengthening of the food sector become the main focus for the corridor area II. Thus, the study of design business strategy through an innovation with cluster approach for bamboo plant in the regency needs to be done. This study is a continuation of the first year of research that resulted in the identification of an increase in added value sectors, especially plantation bamboo plants that have high potential. The conducted series of study is one part of the implementation of MP3EI program and SIDa.

2. Research method

The research method is arranged as a reference phase of the researchers in the study. It is important that this research can achieve the objectives and benefits that have been set.

2.1. Analysis stages

The steps in this research are divided into several stages. The stages that will be carried out as follows:

a. Survey

At this stage, survey is conducted in the regency. The purpose of this survey is to obtain primary and secondary data to be processed in this study. The required data in this study includes:

• Stages in the process of bamboo planting until harvesting,

• Problems faced by farmers involve planting, sales, etc.,

• Total industry and SME related to the bamboo plantation crops,

• Stages of processing bamboo plantation crops,

b. Stakeholder identification

This is the next stage of the survey stage, where the potential and problems of each stage has been measured. Based on these data, mapping of the potential and problems of bamboo plantation is made. Based on the potential that has been determined, it is possible to identify the stakeholders involved in the preparation of the bamboo industry cluster. This led to the identification and measurement of preparation of the role of each stakeholder.

c. Preparation of bamboo industry cluster

This stage is the final stage of this research. This stage will produce the bamboo industry cluster arrangement that can be applied in the regency. This cluster arrangement indeed will involve the preparation of the department of Forestry and Plantation in Bondowoso.

Based on the description of the stages, all steps are done based on community empowerment process (both farmers, businessmen, academics and local government). It is done so that solving the problem is not only examined from the technical point of view but also in other fields (economic, social, policy, etc.).

2.2. Analysis method

Analysis methods include SWOT analysis and cluster analysis. Meanwhile, the parties involved in the analysis is expected all stakeholders, primarily the Department of Forestry and Plantation and researchers. Focus group discussion (FGD) is conducted as a platform to gather information from various parties.

2.3. Sustainability

Sustainability of this research is to produce two outcomes in the two study phases. The first is the cluster shape that corresponds to the bamboo in Bondowoso and the second is the technical proposal of strategic bamboo processing industry.

3. Outcomes

3.1. Result of previous studies

To support this plan, archaeological study is carried out which study the physical state of a region. Based on archaeological studies produced by [4], it is tabulated in Table 1.

Table 1. Results of archaeology study [4]

No Land Condition Description

1. Dry Land 1. Petung Bamboo (Dendrocalamus Asper) 2. Surat Bamboo (Gigantochloa Pseudoarundiancease) 3. Apus Bamboo ( Gigantochloa Apus) 4. Legi Bamboo (Gigantochloa Atter) 5. Ampel Gading Bamboo (Bambusa Vulgaris V. Striata) 6. Ampel Hijau Bamboo (Bambusa Vulgaris V. Vitata) 7. Ori Bamboo (Bambua Blumeana)

2. Wet Land/often flood/marginal 1. Ampel Gading Bamboo (Bambusa Vulgaris V. Striata) 2. Ampel Hijau Bamboo (Bambusa Vulgaris V. Vitata) 3. Duri Bamboo (Bambua Blumeana)

Bamboo cultivation can be done in three ways: stem cuttings, branches cuttings and rhizome cuttings. Three ways of cultivation are adapted to the type of bamboo.

Another more economical way and still in the early phase of development is to use tissue culture technique which has lower costs. Planting techniques will largely determine the success of the bamboo cultivation. One of them is plant spacing. Large bamboo plant spacing of 8 x 8 m and 8 x 6 m is 150 clumps and 200 clumps of bamboo respectively.

Economic studies have been conducted by [4] to see whether it is feasible to cultivate bamboo in the regency.

Economic analysis is conducted on Petung Bamboo (Dendrocalamus Asper) for the project life of 30 years and interest rate of 16%. Results of the cashflow and the calculation of Net Present Value (NPV) showed that bamboo cultivation is feasible to be done. Also, the feasibility calculation is conducted for refined products such as 'brenyek' and furniture.

Further studies linked to this economic analysis are done. Product innovations that will be discussed in this study is the pulp and paper. In addition to the economic analysis, it will also be conducted suitability and feasibility studies related to technology that can be used.

Institutional study which has been carried out by University of Jember research team showed that the completeness of institutional sector is very important. This is in line with research that is being done which is the formation of bamboo cluster. The shape of the cluster would involve many stakeholders, including both central and

local government, educational and training institutions, financial institutions, marketing, suppliers and consumers. The final result association.

3.2. SWOT analysis

In drafting the cluster, it is necessary to note a few basic things namely, the results of SWOT analysis, supply chain analysis, Porter diagram portraits and ultimately produce a draft model of bamboo cluster.

Based on the results of SWOT analysis (strengths, weaknesses, opportunities and threats), it is found that the regency has advantages, strengths and opportunities outweigh the weaknesses and threats [5]. Thus, the formation of bamboo clusters needs to be realized. SWOT analysis in this study refers to the results of SWOT analysis from first year research. Table 2 shows the results of SWOT analysis of bamboo in Bondowoso regency.

Table 2. SWOT Analysis of bamboo in Bondowoso

Strength Weaknesses

• Bondowoso regency has 32 species of bamboo. • There is available local market for bamboo. • Government concern (Department of Forestry and Plantation and Department of Cooperative, Industry and Trade) is sufficient. • Officers participate directly in the field • SME is engaged in the processing of bamboo in 17 districts. • Labor is widely available • Land in the watershed is available. • There is no deliberately managed plantation (wild plants). • Appropriate technology has not properly applied. • Knowledge of plantation has not been sufficient. • There is no strong cooperation partner for nursery/marketing. • The quality and quantity of plantation crops is uncertain. • Production system is still job order manually. • The speed of business development is limited due to lack of training and cooperation with other parties. • The length of the marketing chain causes prices that cannot be controlled.

Opportunities Threats

• There is an opportunity to work together in the nursery, cultivation with other more developed regions • The willingness of Bondowoso people to cultivate bamboo plants. • The existence of watershed land as bamboo plantation. • Increased people income through bamboo farming and SME of bamboo craftsmen. • Variation of bamboo is very varied according to the needs of SME of bamboo craftsmen. • Woven bamboo products which vary from area around Bondowoso threaten home-based products (hereditary), if there is no change. • Bamboo supplier from outside the regency which currently meets SME needs of bamboo craftsmen.

Results of SWOT analysis propose several parts that need to be strengthened, namely:

1. Stakeholders' preparation and their obligation/contribution.

2. Improved quality of processed bamboo products through training and the use of appropriate technology.

3. Development of processed products marketing outside Bondowoso regency.

4. Planting is planned and scheduled.

5. Training and counseling for bamboo farmers.

6. Provide fund assistance for business development.

7. Establish appropriate infrastructure which is according to the needs.

8. Increase cooperation with parties who market processed bamboo products.

9. Create policies that support bamboo clusters.

10. Promotion to the community so that they can be bamboo farmers.

3.3. Pulp and paper production proces

Pulping process (industrial scale) of bamboo raw materials is carried by acetocell process because the process is environmentally friendly, energy requirements and the use of chemicals are relatively low and to improve yield and pulp quality. This process carried out several stages: 1) pre-treatment, 2) cooking, 3) bleaching, and 4) post

treatment.

Pulping from bamboo materials requires pre-treatment before it goes into the cooking process. This process aims to transform the size of bamboo into chip or wood chip. Raw materials are waste from processed bamboo activities which are kept in storage at a temperature of 32oC (minimum 3 years old).

From the warehouse, the waste from processing activities is transported by conveyor belt toward the drum chipper to be chopped into pieces with a size of ± 6 mm thick flakes. Qualified chip will be brought to the burskdisk screen while the unqualified chip will be taken toward solid waste. The chip enters the screening which aims to separate chips with standard size from ones that do not meet the standard size based on chips classification. Furthermore, the chip will go into cooking stage.

The chips that have gone through the process of pre-treatment then go to the cooking stage which is brought to the impregnation tank so that 90% Acetic Acid chemicals enters the pores through the capillary structure of bamboo. Furthermore, chip is cooked by using Pandia digester at a temperature of 170OC ± 180 minutes in a pressure of 7.6 atm. In the cooking process, degradation of lignin cause previous cellulose is bound by lignin will be separated from the lignin in order to get the level of pulp with higher cellulose level. Cooking reaction mechanisms and degradation of reeds can be seen in the following equation:

[C10H10O2]n + nCH3COOH + nH2O nC6H3C4H9O3 + nCH3COOH (1)

Lignin Acetic Acid Water Aseto Ligninat Acetic Acid

Cooking is done by using continuous Pandia digester. After cooking is complete, the resulting pulp is flowed into the blow tank by opening the valve on the pulp lines which will be blown from the digester to the blow tank. Then, the pulp is pumped into the washer for bleaching stage.

After the cooking stage, bleaching process is done in several stages to eliminate the cellulose without damaging the lignin. Pulp slurry from the cooking process then enters the mixing tank to bleach pulp by mixing a solution of 2.5% NaOH and 1.25% H2O2 with consistency of 10% pulp slurry. Then, the pulp is reacted in a reactor at a temperature of 80°C. After the pulp slurry is pumped into a rotary vacuum filter, the filtrate washing results are collected in a tank for subsequent entry to the waste treatment process. The washed pulp slurry is brought toward the storage tank.

The final stage is Post Treatment where the pulp slurry is ready to be made pulps which are sent to the head box. From head box, pulp is molded into a sheet on top of wire with a size of 70 mesh gauze. Furthermore, it is out of the wire part of 42% moisture level. Pulp sheet is then passed to the press part roll process to lower levels in the pulp sheets up to 22% of pulp weight. Then, the pulp heads to the drum dryer, out of the dryer, the pulp sheet has moisture level of 10% of by pulp weight. Then, the pulp heads to the cutter to form pulp in the form of pulp sheets. Block diagram of pulp production process is shown in Figure 1.

Pulp Product

Figure 1. Block diagram pulp production process

4. Further research

4.1. Stakeholder model draft of bamboo cluster Value Chain Analysis

Adjusted value chain analysis is made to identify process and parties involved in the bamboo cluster later. To be able to make the supply chain, it will require an understanding of the production process. The information needs to be gathered through value and interviews to meet the input supply, production, trading, distribution and support. Figure 2 shows a scheme for the analysis of the value chain. Each chain needs to identify the participants and activities. It also describes the resources used in these activities.

Figure 2. Value chain proposals for bamboo cluster

Porter Chart

Depictions of the initial conditions of the clusters will be formed by using porter diagram portrait to identify things that support the development of clusters. The factors of observation focus include:

1. Strategy, structure and companies' competition: Explain the current strategy and the existing structure between bamboo clusters participants and competition.

2. Demand conditions: Explain the condition of processed bamboo product demand that can be met by industry (SME).

3. Condition factor: Explain things which become critical success of bamboo clusters, for example human resources, creativity and so on.

4. Industry related support: Explain industry that supports bamboo clusters development, especially those that are directly related to raw materials providers and product distributors.

5. Government: Explain the government's influence on the success of bamboo clusters, both central and local governments.

6. Conditions for change: Other matters e.g. public response and other industries including industry competitors.

Bamboo Cluster Model of Bondowoso

Determination of stakeholders starts from the core participants by looking at the value chain from upstream to downstream until the final product is consumed by consumers. Figure 3 shows a general model of industrial clusters stakeholders. Based on the general model, it is necessary to collect information from relevant parties.

Figure 3. General model of stakeholders industry cluster

4.2. Feasibility of pulp and paper production

Innovation of pulp and paper production from bamboo waste material is an innovation that needs to be analyzed further on its feasibility. Therefore, the next research phase will be conducted a study on the feasibility of this innovation. Feasibility will be tested on the availability of technology, human resources, raw materials and economic studies.

5. Conclusion

Based on this initial research implementation, it can be drawn some conclusions which include:

1. Bamboo cultivation in Bondowoso regency is worthy to be followed by the study of agro-ecological, economic, institution and SWOT analysis.

2. Various types of bamboo that allows for development is petung Bamboo (Dendrocalamus Asper), Surat Bamboo (Gigantochloa Pseudoarundiancease), Apus Bamboo (Gigantochloa Apus), Legi Bamboo (Gigantochloa Atter), Ampel Gading Bamboo (Bambusa Vulgaris V. Striata), Ampel Hijau Bamboo (Bambusa Vulgaris V. Vitata) and Ori Bamboo (Bambua Blumeana).

3. Activities which support the development of bamboo in Bondowoso are the preparation of the stakeholders and their obligation/contribution, Improved quality of bamboo processed product through training and the use of appropriate technology, marketing development of the processed products outside the regency, planting is planned and scheduled, training and counselling for bamboo farmers, providing fund assistance for business development, developing infrastructure according to the needs, increased cooperation with marketing parties of bamboo processed products, making policies that support bamboo clusters and Promotion to the community so that they can be bamboo farmers.

References

[1] Head of Forestry and Plantation in Bondowoso, 2014.

[2] Joint Regulation of Ministry of Research and Technology and Ministry of Home Affairs No. 3 and No. 36 in 2012.

[3] Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia 2011 -2015.

[4] Tim Peneliti, Rencana Kegiatan Pengembangan Potensi Tanaman Bambu di Kabupaten Bondowoso, 2014, Lembaga Penelitian Universitas Jember.

[5] E. Agustiani, S. G. Partiwi, A. Maryani., Strategi Pengembangan Daya Saing Industri Agro (IKM) dalam Mendukung Pengembangan SIDa di Kabupaten Bondowoso, 2014.