RESULT AND DISCUSSION 1 Feasibility of coffee as a seeded non wood forest products

Bogor, 21-22 October 2015 434 Nimax = maximum value of the indicator i of the criteria c c = criteria economic, biophysic, institution, social and technology Table 1: Indicators and standards of seeded NWFPs Indicators Standards Value Indicator 1 a. Standard a b. Standard b c. Standard c 3 2 1 Indicator 2 a. Standard a b. Standard b c. Standard c 3 2 1 Indicator ... a. Standard a 3 b. Standard b c. Standard c 2 1 Indicator n a. Standard a b. Standard b c. Standard c 3 2 1 4 Calculating Total Seeded Value TSV of coffee by adding WIV of all criteria, or TSV = WIV of economic + WIV of biophysic + WIV of institution + WIV of social + WIV of technology 5 Determining seeded value SV of coffee as a seeded NWFP, using the following parameters : - SV 1 is a coffee with TSV = 78-100 - SV 2 is a coffee with TSV = 54-77 - SV 3 is a coffee with TSV = 33-53 Coffee was assessed as a seeded NWFP of the Forest District of South Bandung if it has SV 1 or SV 2. 3. RESULT AND DISCUSSION 3.1 Feasibility of coffee as a seeded non wood forest products 3.1.1 Economic criteria Results of the analysis of economic feasibility criteria of coffee as a seeded NWFP of the FDSB were presented in Table 2. It could be seen that the coffee had a weighted indicator value WIV of 31.67. Indicators which accounted for the high value were local trade, range of marketing, potential of international market, coverage concession and business investment, and indicator which accounted for moderate value was market chain. Coffee international market potential of West Java was high due to consumer demand in West Java coffee from various countries, including the United States, Germany, France and Japan Bisnis Indonesia, 2014. However, most of the South Bandung coffee production, which amounted to 3,000 tons grain coffee per year, was sold to local and domestic markets. With the price of grain coffee Rp 15,000 per kg, the value of South Bandung coffee trade was Rp 45 million per year KPH Bandung Selatan, 2012. Meanwhile, the indicator which accounts for low value was export trade. Until mid-2013, West Java has not had a coffee geographical indication certification GIC, which isone of the prerequisites of a region can be directly exported coffee. In this condition, West Java coffee Bogor, 21-22 October 2015 435 was exported indirectly through on behalf of other areas that already have GIC, generally Medan and Surabaya. The volume of West Java coffee exports indirectly estimated 200 tons per year with a value of approximately Rp 13 billion per year Sindonews, 2012. Thus, the value of indirect coffee exports from the FDSB expected to be less than US 500 000 Rp 5.75 billions per year. Table 2: Indicators and standards of economic feasibility criteria of coffee as a seeded NWFPweight35 Indicators Standards Values 1. Export trade value a. High tradevalue per year ≥ USD 1 millions 3 b. Moderate trade value per yearUSD 0,5 – 1 million 2 c. Low trade value per yearUSD 500 thousands 1 2. Local trade value a. High trade value per year Rp 1 billion 3 b. Moderate trade value per year Rp 0,5 – 1 billion 2 c. Low nilai perdagangan per year Rp 500 millions 1 3. Range of marketing a. International, national dan local 3 b. international and national, international and local, or national and local 2 c. Local 1 4. International market potency a. High demanded by 3 nations 3 b. Moderate demanded by 1-3 nations 2 c. Low not demanded by other nation 1 5. Market chain a. High involving gatherer, small and medium bussinesses,big bussinessindustryandGovernment 3 b. Moderate involving gatherer, small and medium business, andgovernment 2 c. Simple involving gatherer,and small and mediumbusiness 1 6. Coverage concession a. Consist ofupstream, middle and downstream industries 3 b. Consist of upstream and middle industries 2 c. Only consist of upstream industries 1 7. Business investment a. Many ≥ 5 already invested enterprises and or existing large employers 3 b. A little 5 already invested enterprises or existing large employers 2 c. None there is no invested enterprise 1 ∑ indicator value 19 Maximum indicator value 21 Weighted indicator value 31.67 Remarks: assessment results Although coffee exports from the FDSB were still limited, investment in coffee business was quite high. Business entities that invest in the coffee business, among others, were 29 coffee farmer cooperatives KPH Bandung Selatan, 2012 and five 5 medium-scale coffee processing industries Dinas Perindustrian dan Perdagangan Kota Bandung, 2012. 3.1.2 Biophysic and environment criteria Results of the analysis of biophysical and environmental feasibility criteria of coffee as a seeded NWFP of the FDSB were presented in Table 2. It coul be seen that coffee had aWIV of 15. All indicators accounted for the high value, indicating coffee was suitable to be cultivated in the FDSB. As a crop, the coffee plant is not included as a conserved plant not listed in Appendix Citex. As a shade-tolerant plants Budiman, 2012; Cahyono, 2011, coffee is suitable to be grown Bogor, 21-22 October 2015 436 under forest stands. In the FDSB, coffee cultivated in forest area bordering the 111 villages. The coffee was planted with a distance of 2 m X 2.5 m about 2,000 trees per hectare under eucalyptus and pine stands which were planted at a distance of 4 m X 4 m KPH Bandung Selatan, 2012. Furthermore, the villages around the forest had paved roads or macadam so the coffee harvest could be transported throughout the year. Table 3: Indicators and standards of biophysical and environmental feasibility criteria of coffee as a seededNWFP weight 15 Indicators Standards Values 1. Potency of plant a. High procentage of the number of trees per ha 60 normal condition 3 b. Moderate procentage of the number of trees per ha 40-60 normal condition 2 c. Low procentage of the number of trees per ha 40 normal condition 1 2. Distribution a. Evenly there is in ≥ 23 the area concern 3 b. Fairly evenly there is in13-23 the area concern 2 c. Unevenly there is in 13 the area concern 1 3. Conservation status a. Not listed in CITES Appendix 3 b. Listed in CITES Appendix II 2 c. Listed in CITES Appendix I 1 4. Cultivation a. Production of NWFP ≥ 70 of cultured 3 b. Production of NWFP 40-70 of cultured 2 c. Production of NWFP 40 of cultured 1 5. Accessibility to source of coffee a. Easily accessibly by land transpotation or water throughout the year 3 b. Easily accessibly by land transpotation or water not throughout the year 2 c. Difficult to reach by land transpotation or water throughout the year 1 ∑ indicator value 15 Maximum indicator value 15 Weighted indicator value 15 Remarks: assessment results 3.1.3 Social criteria Results of the analysis of social feasibility criteria of coffee as a NWFP of the FDSB were presented in Table 3. It could be seen that the coffee had a WIV of 7.5. The indicator of business ownership accounted for a high value three, while the indicator of involvement of local community contributed a low value one. In the FDSB, coffee cultivation was carried out based on an agreement or through a partnership between the company and groups of farmers. In the agreement, the farmers were given the opportunity to cultivate coffee under forest stand and obliged to participate in forest management. Coffee production was divided, 85 for the farmers and 15 for the company KPH Bandung Selatan, 2010. Through such cooperation, coffee cultivation in the forest was expected to take place sustainably. Local people directly involved in coffee business was estimated 20,000 people. They were farmers, coffee traders, coffee processing industries workers and coffee entrepreneurs. However, the percentage of local people who were absorbed in the coffee business was still low considering there were 319,000 households families who live around the forest KPH Bandung Selatan, 2011; Ekonomi hijau, 2012. If there were two labor forces in each Bogor, 21-22 October 2015 437 household, the number of labor force in the FDSB and surrounding areas was 638 000 people and the percentage of local people absorbed in coffee business was only 3.1320,000 divided by 638 000 multiplied by 100. Table 4: Indicators and standards of social feasibility criteria of coffee as a seeded NWFP weight 15 Indicators Standards Value 1. Community involvement a. Mostly involve local community percentage involved 20 3 b. Involve some local community percentage involved 5 –20 2 c. Involve local community little persentase yang percentage involved 5 1 2. Business ownership a. Local people in partnership with firms 3 b. Only locally owned community 2 c. Only owned by firms 1 ∑ indicator value 3 Maximum indicator value 6 Weighted indicator value 7,5 Remarks: assessment results

3.1.4 Institutional criteria

Results of the analysis of institutional feasibility criteria of coffee as a NWFP of the FDSB were presented in Table 3. It could be seen that the coffee hada WIV of 17.7, which showed high institutional support to the coffee business. At the central level, support was given in the form of: acluster development of the coffee processing industry in the coffee-producing regions, including West Java Kementerian Perindustrian, 2009, b export policy to improve the competitiveness of Indonesian coffee in world trade Kementerian Perdagangan, 2009, and c the determination of Indonesian coffee quality standards imposed since 1990, and the current was SNI 01-2907-2008 Badan Standarisasi Nasional, 2008. High Government support on coffee business was reasonable since Indonesia is the third largest coffee producer in the world AEKI, 2013; Rochmat, 2012. At the provincial level, support is given in the form of: a West Java Governor Regulation No. 112006 on Empowerment of Communities Around State Forests and Estates Gubernur Jawa Barat, 2006, b the Governors commitment in supporting the development of coffee under forest stand Garutnews, 2011 and c the arrangement of geographical indication certification GIC of West Java coffee, which was completed at the end of 2013 Pemerintah Propinsi Jawa Barat, 2013. However, the support of the Provincial and District Government in the form of coffee facilities and infrastructure development was still limited. According to employees of the Department of Industry and Trade of Bandung Regency, and employees of the Department of Agriculture, Plantation and Forestry of Bandung Regency, Bandung District and other districts in West Java has not had a training center, trade center and laboratory processing of coffee. In such circumstances, coffee facilities and infrastructure development in the FDSB was estimated on the local level. Bogor, 21-22 October 2015 438 Furthermore, the support of local coffee business group in West Java on coffee business was not as high as the support of other local coffee business group Aceh, North Sumatra, West Sumatra, Jambi, South Sumatra, Bengkulu, Lampung, Central Java, East Java, NTT and South Sulawesi, which has had a Regional Governing Body RGB Association of Indonesian Coffee Exporters and Industries AICE. RGB protects coffee exporters and industries that exist in the working area AEKI, 2013. West Java has not had RGB, or just have a Governing Council GC Indonesian Coffee Exporters Association, which its staff to be definitive Ekonomi hijau, 2012 and formally GC was not included in the structure of AICE AEKI, 2013. Table 5: Indicators and standards of institutional feasibility criteria of coffee as a seeded NWFPs weight 15 Indicators Standards Values 1. Number of business group producercooperative a. Many there are5 business group producers cooperatives 3 b. Some there are 1 – 5 business group producers cooperatives 2 c. None there is no group producercooperative 1 2. Association business group a. High there are association, cooperative, farmer group and private 3 b. Moderate there are cooperative and farmer group 2 c. Low there are only farmer groups 1 3. Rules on commodities a. There is a Minister Decree or higher 3 b. There is a rule of Echelon I official, Governor or Regent 2 c. There is no rule on the commodity 1 4. Institution roles a. High there is support from various institutions such as: Local Government, Technical Unit and NGO 3 b. Moderate there is support only from one institution 2 c. Rendah there is no support from institution 1 5. Commodity Standard a. Having been set in Indonesian National Standard or other NationalInternational Standard 3 b. Just a guideline 2 c. There is no fixed standard 1 6. Commodity development tools a. International standard development tools 3 b. National standard development tools 2 c. Local standard development tools 1 ∑ indicator value 15 Maximum indicator value 18 Weighted indicator value 16,7 Remarks: assessment results At the district level, support was granted by the FDSB in the form of opportunities to cultivate coffee under forest stands and facilitating the formation of farmers groups and cooperatives. Forest areas used for coffee cultivation were 3,713 ha and farmers engaged in the cultivation were 5,148 people, who were members of 111 farmer groups and 29 farmer cooperatives KPH Bandung Selatan, 2012. 3.1.5 Technology criteria Results of the analysis of technology feasibility criteria of coffee as a seeded NWFP of the FDSB were presented in Table 3. It could be seen that the coffee has a WIV of 10. Indicators cultivation technology and processing technology each contributed a value of 2 two, or the weighted value of 5 five. Bogor, 21-22 October 2015 439 As a matter of fact, coffee cultivation technology has been mastered by some farmers. They have received training from the Coffee and Cocoa Research Center Jember, received guidance from the Department of Agriculture and Forestry Plantation of Bandung Regency, and conducted comparative study into the various coffee producing areas. In practice, the coffee plants did not cultivated intensively so that the results were not optimal, less than one ton grain coffee per ha per year Perum Perhutani Unit III, 2012; Dinas Pertanian, Kehutanan dan Perkebunan Kota Bandung, 2012, or below optimal production, which reached two tons grain coffee per ha per year Budiman, 2012; Cahyono, 2011. Furthermore, some of the coffee processing technology that produced high added value has been mastered. Results of interviews with farmers showed that some farmers groups in the FDSB produced luwak coffee raw and powder, whose price were high. Furthermore, varieties of ground coffee in the packaging, which were produced by the coffee processing industries of South Bandung, were displayed in the showrooms of the FDSB and the Department of Agriculture, Forestry and Plantation of Bandung Regency. Most of the ground coffee packs were listed Sucopindo and quality certificates of Coffee and Cocoa Research Center Indonesia, as well as the license number from the Department of Health. Table 6: Indicators and standards of technology feasibility criteria of coffee as a seeded NWFP weighvalue 15 Indicators Standards Value 1. Cultivation technology a. Cultivation technology has been mastered 3 b. Partially cultivation tehnology has been mastered 2 c. Cultivation technology has not mastered 1 2. Processing technology a. Processing technology to enhance added value has been mastered 3 b. Partially processing technology to enhance added value has been mastered 2 c. Processing technology to enhance added value has not mastered 1 ∑ indicator value 4 Maximum indicator value 6 Weighted indicator value 10 Remarks: Assessment results Overall, the analysis showed that a the weighted indicator values WIV of coffee as a seeded NWFP for economic, biophysical and environmental, institutional, social, and technology criteria respectively amounted to 31.67, 15, 7.50, 15.56 and 10 and b the total seeded value TSV of coffee was 79.23. This means that coffee was feasible to be determined as a seeded NWFP of the FDSB, with seeded value of one. 3.2 Implications Factually, coffee was feasible to become a seeded NWFP of the Forest District of South Bandung, ie a NWFP that profitable to be cultivated and had important role in driving the regional economy. Formally, the development of coffee in forest is constrained byconvention that puts the coffee just as agricultural products. The convention causes the cultivation of coffee in forestsillegal, and generally cultivation of coffee in forest was conducted by people who encroach the forest. However, the convention does not fully apply in the Forest District of South Bandung and West Java forest area. In West Java, thedevelopment ofcoffee under Bogor, 21-22 October 2015 440 forest stand was supported by many institutions: Government Centre, Province, District, local coffee association, enterprises and cooperatives. Therefore, the convention needs to be revisited and launched policies that supports : a the development of coffee under forest stands and b recording obtained from the forest in the Environment and Forestry Statistics. Coffee development under forest stands in the Forest District of South Bandung and other forest areas are needed not only to support the local economy but also to enhance the support of stakeholders in forest management.

4. CONCLUSION