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Study of the Supply Chain of Raw Materials for Aren Starch Home Industries

Study of the Supply Chain of Raw Materials for Aren Starch Home Industries in Pucang Miliran and Daleman Villages, Klaten Regency, Central Java


Background:

Indonesia and Denmark are cooperating through an Environmental Support Programme, with the current third phase (ESP3) running from 2013 to 2018. ESP3 is coordinated under the Ministry of National Development Planning (Bappenas), with the Ministry of Environment and Forestry (MOEF) and Ministry of Energy and Mineral Resources (MEMR), as primary implementing partners.

ESP3 pilot projects will be developed and implemented in Central Java Province, which is the ESP3 pilot province. One of the pilot projects that will be implemented under ESP3 is wastewater treatment from aren (Arenga pinnata) starch home industries in Daleman and Pucang Miliran villages, Klaten Regency. Pre-feasibility study and feasibility study (FS) have been completed. The FS indicates that a wastewater treatment project in the two villages is feasible. The technology selected is combined anaerobic and aerobic treatment with investment cost around DKK 5.3 million. The lifetime is estimated to be 20 years.

Replicability and sustainability are key considerations for ESP3 support. It is important that wastewater management from starch industries can be replicated elsewhere across Indonesia and that these home industries will still be operating at least for the next 20 years. To be able to operate for the next 20 years, a number of factors are relevant, including the supply of raw materials.

Based on information from the pre-FS, the raw materials (aren palm trunks) are imported from across Java, from such places as Trenggalek, Pekalongan, Ngawi, Boyolali, Purworejo, Purbalingga, Ciamis, Tasikmalaya, Kemalang-Klaten, Bojonegoro, and Cilacap. In addition to palm trunks, the primary producers in Daleman also bring in small quantities of sago semi-finished raw materials from South Sulawesi and Maluku to be processed into sago starch.

Considering that ESP3 is going to invest in wastewater treatment for starch home industries in Daleman and Pucang Miliran villages, it is important to understand the supply chain of these home industries to ascertain whether the starch production in the two villages will continue to be feasible and competitive or not. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or service to the customer. Given the limited time, this assignment will focus on analysing the supply chain of the raw materials, to the “factory gates” in the villages.

The raw material supply chain analysis will provide information on the complete network of players who are directly or indirectly linked and interdependent in supplying the starch producers with aren logs.

Objective:
The objective of the consultancy is to provide an assessment of availability of raw materials for the aren starch industry in Daleman and Pucang Miliran for the period of operation of the wastewater treatment facilities.

Output:
A study report.

Scope of the contract:
The assignment will require a maximum of 2.5 man-months spread over three months. The team shall consist of a team leader with national experience in natural resources economics and a social expert with significant experience in social research design and data gathering through surveys and face to face interview. The working language will be English but the consultant should be able to provide Indonesian language skills within the team.

Budget:
The total maximum all-inclusive contract sum which covers both consultant fees and reimbursables is DKK 150,000.

Timing:
The work is expected to be carried out between 01 October and 31 December 2016

Deadline for applications: 05 September 2016 15:00, Danish time

The standard application form should be used. Applications not using the standard form may be rejected. Applications received after the deadline shall be rejected.

Download application form http://um.dk/en/danida-en/business/contracts/short/contract-opportunitie/newsdisplaypage/?newsID=8EC58628-B10C-40A6-AD9D-C968A1E03A24.

Contact point:
Name of Programme Officer: Jacob Stensdal Hansen. Royal Danish Embassy in Indonesia
E-mail address, Programme Officer: This email address is being protected from spambots. You need JavaScript enabled to view it.
Telephone of Programme Officer: +62 (21) 576 1478

Criteria for selection:
A minimum of three and a maximum of five applicants with references best suited for this assignment will be invited to submit a tender. The consultant company should have recent experience in supply chain study, economic modelling or natural resources economics.

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Danida formats for contracts with value above 1,006,628 DKK

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