CHAMPIONING INDONESIA’S FOOD BIODIVERSITY PRODUCTS TO THE GLOBAL MARKET BASED ON INDIGENOUS WISDOM & ETHICAL TRADE HELIANTI HILMAN FOUNDER & CEO | PT KAMPUNG KEARIFAN INDONESIA
BIODIVERSITY WHY MATTER? THE KEY FOR Photo by Alex Tjoa PRODUCT DIFFERENTIATIONS & VALUE PROPOSITION AT THE GLOBAL MARKET
INDIGENOUS WISDOM WHY MATTER? THE KEY FOR DELIVERING PRODUCTS WITH INTEGRITY – NOT BECAUSE OF CERTIFICATIONS OR FOR PROFITS, BUT THE VIRTUE OF WISDOM Alm. Mbah Suko
ETHICAL TRADE WHY MATTER? THE KEY FOR PENETRATING CONSCIOUS-DRIVEN MARKET THAT APPRECIATE IMPACT AND USE THEIR POLITICAL POWER AS CONSUMERS TO SHAPE THE VIRTUE OF THE SUPPLY CHAIN
JAVARA EXPERIENCE ETHICAL TRADE • Equitable relationship within the supply chain • Safer working condition • Integrate social security insurance & capacity building into the product price structure • Develop added-value products to guarantee price
OUR JOURNEY 2008 • 10 farmers | 8 commodities • Door to Door Marketing • 3 Personnel 2016 • 52,000 farmers | 747 products • 240 organic certified US, EU, JAS • Domestic >300 business clients (retailer, hotel, resto, catering) • Export to 19 countries in 4 Photo by Sendy continents • Kefas 90 Personnel
CHALLENGES GOVERNMENT PROGRAMS SCARCE INFRASTRUCTURE DISRUPTIVE PROGRAMS BEYOND JAVA & BALI Example: • Electricity • Distribution of Subsidized Chemical or GMO seeds in region where organic • Telecommunication farming exists • Transportation • Expansion on growth of rice fields, being Impacting high economic forced to land that are not suitable for cost per unit product. rice: Sago, Sorghum POORLY DESIGNED GRASSROOT PROGRAMS • Requirements to tap into Kredit Usaha Rakyat will be difficult if OJK does not endorse customized risk mitigation manuals for grass root business/family farms
CHALLENGES GOVERNMENT REGULATIONS EXPORT RESTRICTIONS THAT KILLS IRRELEVANT TOWARDS MARKET THE GRASSROOT ECONOMY TRENDS & REALITY • Example #1: Restriction Example: SNI Garam Konsumsi. towards raw cacao beans, with SNI is given only for iodine no exceptions towards fortified salt, while there is specialty or organic beans growing premium market for pure sea salt with no additives. • Example #2: export restriction towards semi processed rattan INCOME TAX POLICY FOR SMEs. for fostering export of added value furniture, while in reality Calculated against gross only few percent of such supply revenue, leaving many SMEs can be absorbed by local that still losing money are still manufacturers. oblige to pay income tax
CHALLENGES & BARRIERS : Bureaucracy – Mostly on Business Permits BUREAUCRACY (BUSINESS PERMITS) Examples of issues • PSAT – KEMENTAN • IZIN DOMISILI & PIRT – DINKES • MD – BPOM • EKS – Ekspor Kopi Sementara
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