CHAMPIONING INDONESIA’S FOOD BIODIVERSITY PRODUCTS

TO THE GLOBAL MARKET BASED ON INDIGENOUS WISDOM & ETHICAL

TRADE

HELIANTI HILMAN

FOUNDER & CEO | PT KAMPUNG KEARIFAN INDONESIA

THE KEY FOR

PRODUCT DIFFERENTIATIONS & VALUE PROPOSITION

AT THE GLOBAL MARKET

BIODIVERSITY WHY MATTER?

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THE KEY FOR

DELIVERING PRODUCTS WITH INTEGRITY –

NOT BECAUSE OF CERTIFICATIONS OR FOR

PROFITS, BUT THE VIRTUE OF WISDOM

INDIGENOUS WISDOM

WHY MATTER?

Alm. Mbah

Suko

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

ETHICAL TRADE WHY MATTER?

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

continents • 90 Personnel

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CHALLENGES GOVERNMENT PROGRAMS

SCARCE INFRASTRUCTURE BEYOND JAVA & BALI

• Electricity

• Telecommunication

• Transportation

Impacting high economic cost per unit product.

DISRUPTIVE PROGRAMS

Example:

• Distribution of Subsidized Chemical or GMO seeds in region where organic farming exists

• Expansion on growth of rice fields, being forced to land that are not suitable for 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

IRRELEVANT TOWARDS MARKET TRENDS & REALITY

Example: SNI Garam Konsumsi. SNI is given only for iodine fortified salt, while there is growing premium market for pure sea salt with no additives.

EXPORT RESTRICTIONS THAT KILLS THE GRASSROOT ECONOMY

• Example #1: Restriction towards raw cacao beans, with no exceptions towards specialty or organic beans

• Example #2: export restriction towards semi processed rattan for fostering export of added value furniture, while in reality only few percent of such supply can be absorbed by local manufacturers.

INCOME TAX POLICY FOR SMEs.

Calculated against gross revenue, leaving many SMEs that still losing money are still 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