Hal 00 iii - xiii - Conservation International

Transcription

CONSERVATION COFFEE
Opportunities in Mandailing Natal and The
Gayo Highland of Northern Sumatera
Conservation Coffee: An Assesment of Opportunities for Intervention in Mandailing Natal &
The Gayo Highland of Northern Sumatera
C 2006 Conservation International Indonesia
Author : Lydia Napitupulu.
Published by
Conservation Support Division (CSD), Conservation International Indonesia
Jl. Pejaten Barat 16 A, Kemang Jakarta 12550.
Telp
: (62 21) 7883 8624, 7883 8626, 7883 2564
Fax
: (62 21) 780 6723
Website : www.conservation.or.id
Email : [email protected]
ISBN :
Any opinions expressed in this publication are those of the author and do not necessarily
reflect those of CI.
Design cover and Lay out: Ahad Point.
Cover photograph: Arabica coffe of Mandailing Natal, by Diah R.S.
Ateng
Abbreviation of Aceh Tengah; a popular variety of Arabica
CI
Conservation International
CII
Conservation International Indonesia
Bappeda
Local planning agency
BGNP
Batang Gadis National Park
CBS
Central Body for Statistics
FLO
Fair Trade Labeling Organization
FTI
Forest Trade Indonesia
GAM
Aceh independence movement
GLNP
Gunung Leuser National Park
GRDP
Gross Regional Domestic Product
Ha
Hectare
ICCRI
Indonesia Coffee and Cocoa Research Institute
IPM
Integrated pest management
KEL
Leuser Ecosystem
Kg
Kilogram
m
Meter
Madina
Mandailing Natal
MKP
PT Mandailing Kopi Prima, a private grower in Ulu Pungkut (Madina)
NASAA
National Australian Sustainable Agriculture Association
NSC
Northern Sumatra Biodiversity Corridor
Pers. comm.
Personal communication
PPKGO
Gayo organic farmers association
Rp
Rupiah
Skal
A Dutch organic certification agency
UPH
coffee processing unit
UPP
Central (coffee) processing unit
VOC
Dutch trading arm during the colonial period
All dollar ($) values in US dollars. Exchange rate used in this report is Rp9,300 per $1 (March 2005)
ACRONYMCS
ACRONYMS
1 km2 = 100 ha
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EXECUTIVE SUMMARY
An assessment of two regions, the Gayo Highland of Aceh and Mandailing Natal (Madina) of North
Sumatra was conducted to evaluate the social and ecological aspects of the local coffee industry. Both
regions comprise part of the Northern Sumatra Biodiversity Corridor (NSC), and therefore a target for
biodiversity conservation planning programs of Conservation International. The NSC is part of a global
‘hotspot’—areas of high biodiversity, yet also highly at risk and vulnerable to conversion and unsustainable
resource uses. CI is working with stakeholders across the region in advocating, planning and implementing
sustainable land use and economic activities to ensure the integrity of the whole Corridor. A thriving and
healthy ecosystem in the region will benefit the millions of people living in its confines.
The creation of the Batang Gadis National Park in Madina last year was an enormously positive
step in this direction. CII supported stakeholders—local and central government agencies, NGOs, the
private sector and communities—in the formal process of obtaining Park status, and now will continue
to support the planning and management of the Park to ensure its protection is not only a status.
Involving communities is one step, and this is particularly important in Madina since it is economically
still under-developed, even compared to its surrounding regions.
In 2003, the per capita Gross Regional Domestic Product of Madina was only little more than half of
provincial and national levels. The education level of its population is relatively low, and health services
lacking. Infrastructure and other services are basic, although it reaches relatively large part of the
population. An overwhelming part of the population relies on agriculture as the main source of livelihood,
but its development is lacking strategic direction, financial and technical support.
EXECUTIVE SUMMARY
Coffee cultivation was once an important part of the local agriculture. Madina is also amongst the first
coffee growing areas in Indonesia outside of Java. The local population first started growing coffee in the
mid 1800s—almost 150 years ago. Since then coffee cultivation has had its ups and down, and recently
it’s mostly a ‘down’—coffee prices are low, especially so at the farmer level. Increasingly coffee trees are
abandoned as farmers switch to other crops such as paddy rice, cocoa, and high-value-fruit trees.
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The various evidence seems to conclude that the coffee cherries produced in Madina are being
grown in an ‘organic’ way (i.e. without chemical pesticides, herbicides or fertilizers). However, yields
are low, and processed coffee is of low quality, sufficient only to fulfill the local or regional market
demand. Low yields are mostly attributed to the fact that coffee trees are not maintained: trees are old,
and pruning and cleaning of the grounds are not regularly undertaken. Farmers do not undertake
maintenance because it is too costly at current selling prices: coffee plants are located in the mountains
far from residential areas, the roads are bad, and transportation too costly.
In addition, processing of coffee cherries is undertaken with scant or negligible attention to quality.
Rather than use the processing stage to enhance the quality of coffee cherries, farmers spend a small
amount of time and attention in generating coffee that potentially can earn added value. Similarly,
processing is basic since farmers feel coffee prices does not warrant the time and effort spent on
ensuring good quality beans.
The lack of effort in producing coffee that is of the highest quality on the part of farmers is unfortunate
since the region then can not take advantage of the good international image already in place for
coffees originating from Mandailing. Instead, other regions in North Sumatra, and even outside of
Sumatra, uses the ‘brand’ to sell their coffees. Meanwhile, the ‘Mandailing’ or ‘Mandheling’ name has
gained wide international recognition, including in the up-and-coming specialty coffee market.
It seems that the most prominent weakness of the Mandailing coffee sector is the fact that it is
unorganized. Farmers are not organized in a sustained and systematic fashion; technical and financial
assistance are given in a piecemeal manner which does not leverage existing or potential other sources
of support. With facilitation and coordination, a coffee expert at the ICCRI is confident that the local
coffee sector can turn out acceptable, export-quality beans.
Poor cultivation and processing methods can also be attributed to the low level of farmers’ education in
Madina. In general, farmers in Mandailing have only elementary-level schooling. Additionally, farmers lack
sustained technical and financial support, both badly needed if coffee production is to succeed supplying
the more lucrative demand of international consumers, and especially that of the specialty coffee market.
The Gayo Highland is also located in the region designated as the Northern Sumatra Biodiversity
Corridor by CI. In administrative terms the Gayo Highland covers two Districts: Bener Meriah and Central
Aceh, located adjacent to each other in the vicinity of the Leuser Ecosystem. The Leuser Ecosystem, and
the Leuser National Park within it, is an area of high biodiversity and landscape, covering both coastal,
lowland and montane ecosystems. In contrast to elsewhere in Sumatra, the Sumatran large mammals
such as the Sumatran tiger, elephant and rhino and many different species of wild cats, as well as many
other species of fauna and flora, all live in the Ecosystem, some of which are unique only to the area.
The Gayo people were originally from the Karo Highlands of present-day North Sumatra Province.
The people retain a distinct cultural and social identity distinguished from its neighbors the Acehnese,
the majority of the Aceh population. The Gayos have retained hospitable attitudes and relationships
with in-migrants, and they resist movement toward independence that has been the cause of major
armed and political conflicts in Aceh for many years.
The economic performance of the Gayo people is relatively good compared to provincial indicators,
although still very much below national levels. The level of education is still relatively low, and health
services scarce, but the area is experiencing strong positive growth during the last few years. The
EXECUTIVE SUMMARY
The Leuser Ecosystem, however, face enormous pressures from human activity, including conversion
into agricultural and residential space, illegal logging and hunting of wild animals, pollution, and other
threats. These threats are also seen in the Gayo part of the area.
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EXECUTIVE SUMMARY
coffee sector is the engine for this growth, and in both Bener Meriah and Central Aceh together, more
than 90% of all households (more than 57thousand households) are involved in the coffee sector.
In contrast to Madina, the coffee sector in the Bener Meriah and Central Aceh Districts in the
Gayo Highlands is much more advanced. The Gayo people have been largely successful in taking
advantage of local comparative and competitive advantages in coffee cultivation and processing. The
‘Gayo’ name is now widely recognized internationally, after about two decades of intensive agricultural
and marketing efforts.
The coffee sector in the Gayo Highlands initially received particular attention from the provincial
government agencies (Estate Services and Provincial Planning Agency) and an international donor (the
Dutch Government). Promotion of the Gayo coffee brand and the organization of farmers with the aim of
creating international demand for local coffees is reaping its benefits now.
Today, farmers in the Gayo Highlands have a full option of choices in terms of cultivation and
processing methods. Conservation coffee best practices (i.e. organic, fair trade, shade-grown coffee)
are being implemented by several groups of farmers. Technical assistance and other support are available
to other farmers who desire to also implement conservation practices.
There are still minor drawbacks, however, which if not managed in the short term, may undermine
the gains and progress already achieved today by the Gayo coffee sector. These drawbacks are 1)
deteriorating government-sponsored technical and financial assistance to coffee farmers, notably the
previously good research and product development facilities, and 2) the length of time taken by
international certification agencies to process new applicants. Additionally, external factors such as
the political situation in Aceh are still posing higher risks and costs to coffee farmers.
EXECUTIVE SUMMARY
Price premiums are already being enjoyed by those farmers willing to expend the extra effort to
practice conservation coffee methods. Still others, however, do not consider the price premium to be high
enough to be ‘worth their while’. In fact, the generally good prices obtained from coffee have caused
‘casual’ or part-time farmers to be growing coffee with a view of obtaining profit with minimal effort. Some
of these part-time farmers or landlords have other fulltime jobs (e.g. in the civil service) and are piggybacking
in the coffee boom, generally without the interest of time to implement conservation coffee best practices.
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In view of the two sites, and considering especially the opportunities for developing and/or
strengthening conservation coffee activities, the following recommendations are made. In Madina, work
in direct partnership with existing group(s) in producing good quality coffee; provice small-scale marketing
assistance to local processors; undertake organic agriculture trainings and the local as well as provincial
levels. In the Gayo Highland, the priority activity should be mainstreaming of conservation coffee best
practices, working with local stakeholders; alternatives include providing support to local farmer groups
already implementing conservation coffee practices, supporting locally appropriate research and
development activities.
RINGKASAN EKSEKUTIF
Laporan ini merupakan tinjauan tentang aspek sosial-ekonomi dan aspek ekologis dari industri
kopi lokal di dua wilayah di Indonesia, yaitu di Dataran Tinggi Gayo di Provinsi Nanggroe Aceh Darussalam,
dan di Mandailing Natal (Madina) di Provinsi Sumatra Utara. Kedua wilayah ini merupakan bagian dari
Northern Sumatra Biodiversity Corridor (NSC), yang merupakan target bagi program konservasi
keanekaragaman hayati dari Conservation International (CI). NSC sendiri merupakan satu dari sekian
banyak hotspot yang telah diidentifikasi oleh CI: wilayah yang memiliki tingkat keanekaragaman hayati
yang sangat tinggi, namun pada saat yang bersamaan sangat rawan terhadap kegiatan konversi lahan
dan kegiatan pemanfaatan sumberdaya alam secara tidak berkelanjutan. Bersama dengan para mitra,
CI bekerja di bidang advokasi, perencanaan dan implementasi pemanfaatan lahan dan kegiatan ekonomi
yang berkelanjutan yang bertujuan agar integritas NSC tetap terjaga secara ekologis, karena ekosistem
yang sehat dan produktif di wilayah tersebut akan membawa manfaat bagi jutaan orang yang tinggal di
sekitarnya.
Penetapan Taman Nasional Batang Gadis (TNBG) tahun 2004 merupakan langkah besar ke arah
pemeliharaan integritas ekologis di NSC. CI telah menjadi bagian dari kelompok yang terdiri dari
pemerintah daerah, provinsi dan pusat, organisasi non-pemerintah, sektor swasta dan masyarakat
lokal yang bermitra dalam proses formal pengajuan usul penetapan status taman nasional, dan
selanjutnya CI akan mendukung proses perencanaan dan implementasi kebijakan pengelolaan TNBG
untuk memastikan bahwa proteksi tidak semata-mata berupa status tanpa didukung kondisi riil di
lapangan. Salah satunya adalah dengan cara melibatkan masyarakat lokal; hal ini sangat penting di
Madina mengingat bahwa kondisi kesejahteraan masyarakat setempat masih rendah, bahkan bila
dibandingkan dengan daerah di sekitarnya.
Budidaya tanaman kopi pernah menjadi bagian penting dari sektor pertanian di Madina. Madina
merupakan salah satu dari daerah pengembangan kopi pertama di Indonesia di luar luar Jawa.
Masyarakat Madina pertama menanam kopi pada pertengahan tahun 1800-an—sekitar 150 tahun
yang lalu. Sejak itu, budidaya kopi di sana mengalami pasang surut, bahkan dalam beberapa tahun
balakangan ini keadaan terutama ‘surut’—harga kopi sangat rendah, terutama di tingkat petani. Perlahan
tanaman kopi ditinggalkan oleh petani yang beralih ke tanaman lain seperti coklat, buah-buahan bernilai
tinggi dan menanam padi di sawah-sawah,
Beberapa petunjuk mengindikasikan bahwa biji kopi yang dihasilkan di Madina ditanam secara
‘organic’, i.e. tanpa pestisida, herbisida atau pupuk dari bahan kimia. Namun demikian hasil panen
RINGKASAN EKSEKUTIF
Pada tahun 2003, Produk Domestik Regional Bruto (PDRB) Madina hanya sekitar setengah daripada
PDRB provinsi dan PDB nasional. Tingkat pendidikan masyarakat masih relatif rendah, dan pelayanan
kesehatan sangat kurang. Walaupun menjangkau sebagian besar dari penduduknya, kondisi infrastruktur
dan pelayanan publik di Madina masih seadanya. Jumlah penduduk yang bergantung pada sektor
pertanian sangat besar, namung demikian pembangunan pertanian berlangsung tanpa arah strategis
dan tanpa dukungan keuangan dan tanpa pendampingan teknis yang memadai.
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cukup rendah, dan pemrosesan dilakukan dengan seadanya, sehingga kualitasnya rendah, hanya cukup
untuk memenuhi permintaan lokal atau regional. Hasil panen yang rendah disebabkan oleh kondisi tanaman
yang tidak terpelihara: tanaman sudah tua dan pemangkasan dan pembersihan lahan tidak dilakukan
secara teratur. Petani tidak melakukan pemeliharaan rutin karena hal ini memakan biaya yang cukup
tinggi, karena kebun kopi jauh letaknya dari tempat pemukiman (di bukit-bukit), kalaupun ada, jalan
sangat buruk kondisinya dan biaya transportasi mahal. Di lain pihak harga jual biji kopi rendah
Bersamaan dengan panen yang minim, pemrosesan biji kopi dilaksanakan dengan perhatian yang
minim, kalaupun ada, terhadap kualitas. Petani berusaha menggunakan waktu dan upaya sesedikit
mungkin dalam menangani biji kopi, sehingga tidak mungkin bagi mereka untuk menghasilkan biji kopi
dengan kualitas baik yang dapat menghasilkan harga yang lebih tinggi. Sekali lagi, hal ini dilakukan
petani karena mereka tidak optimis dapat memperoleh harga yang sebanding dengan waktu yang
upaya yang telah dikeluarkan.
Minimnya upaya petani untuk menghasilkan biji kopi bermutu tinggi patut disayangkan, karena
dengan demikian petani tidak bisa memetik keuntungan dari image internasional yang sudah terbentuk
mengenai kualitas kopi dari Mandailing. Malah daerah lain di Sumatra Utara (dan bahkan di luar Sumatra)
yang mengambil keuntungan dari ‘merk’ Mandailing untuk menjual kopi mereka. Bahkan berbareng
dengan meningkatnya permintaan terhadap specialty coffee (kopi dengan kualitas khusus untuk para
pehobi minum kopi), nama ‘Mandailing’ atau ‘Mandheling’ semakin dikenal luas.
Sepertinya kelemahan utama dari kegiatan budidaya kopi di Mandailing adalah tidak adanya
pengorganisasian. Petani tidak terorganisasi secara sistematik dan berkelanjutan; dukungan teknis
dan keuangan diberikan dalam bentuk sepotong-sepotong, dan dukungan satu dan lainnya tidak saling
bersinergi. Seorang peneliti senior di Badan Penelitian Kopi dan Coklat Indonesia bahkan berkeyakinan
bahwa kopi rakyat di Madina dapat menghasilkan biji kopi berkualitas ekspor apabila petani memperoleh
pendampingan dan koordinasi.
RINGKASAN EKSEKUTIF
Metode budidaya dan pemrosesan yang buruk juga mungkin bisa disebabkan oleh rendahnya
tingkat pendidikan petani di Madina. Umumnya petani hanya mengecap pendidikan tingkat SD, bahkan
tidak bersekolah. Petani juga tidak memiliki akses terhadap dukungan teknis dan keuangan, dan
kedua hal ini sangat penting bila ingin menghasilkan kopi bagi pasar internasional, apalagi bila berambisi
mengisi pasar specialty coffee.
viii
Dataran Tinggi Gayo juga terletak di wilayah yang termasuk dalam Northern Sumatra Biodiversity
Corridor yang ditetapkan oleh CI. Dalam konteks administratif, Dataran Tinggi Gayo mencakup dua
kabupaten: Kabupaten Bener Meriah dan Aceh Tengah, dekat dengan Ekosistem Leuser. Ekosistem
Leuser, dan Taman Nasional Gunung Leuser (TNGL) di dalamnya, merupakan suatu wilayah yang
memiliki keanekaragaman bentang alam yang tinggi, mencakup ekosistem pesisir, dataran rendah,
dan dataran tinggi (montane). Ekosistem Leuser dihuni oleh mamalia besar seperti harimau Sumatra,
gajah, badak dan macam-macam species kucing liar, dan juga spesies fauna dan flora lainnya,
beberapa di antaranya unik dan hanya terdapat di ekosistem ini. Hal ini berbeda dengan daerah lain
RINGKASAN EKSEKUTIF
di Sumatera di mana sudah terjadi penyempitan areal gerak sehingga mamalia besar tidak lagi
dapat ditemukan dalam satu lokasi.
Namun demikian Ekosistem Leuser menghadapi tekanan yang cukup tinggi dari kegiatan
manusia seperti konversi lahan menjadi tanah pertanian dan pemukiman, pembalakan liar,
pemburuan satwa liar, polusi dll. Tekanan-tekanan ini juga terjadi di wilayah Gayo yang berdampingan
dengan Ekosistem Leuser.
Orang Gayo awalnya berasal dari Dataran Tinggi Karo di Sumatera Utara, dan hingga saat ini
mereka memiliki identitas budaya dan sosial yang dapat dibedakan dari tetangganya dari etnis Aceh
yang merupakan penduduk mayoritas di Provinsi Aceh. Orang Gayo bersikap terbuka dan menerima
orang luar, termasuk immigran dari Jawa, dan mereka bukan bagian dari gerakan kemerdekaan Aceh
yang telah mengakibatkan kontak senjata dan komflik politik di Aceh dalam waktu yang cukup lama.
Indikator performa ekonomi di Gayo relatif lebih baik daripada rata-rata indikator tingkat provinsi,
walaupun masih jauh di bawah rata-rata nasional. Tingkat pendidikan masih relatif rendah, dan layanan
kesehatan sangat jarang, namun demikian pertumbuhan ekonomi daerah ini mengalami kenaikan
yang positif dalam beberapa tahun terakhir. Sektor kopi diperkirakan merupakan lokomotif bagi
pertumbuhan ekonomi, karena baik di Bener Meriah maupun di Aceh Tengah lebih dari 90% dari seluruh
rumah tangga (yang berjumlah sekitar 57,000 rumah tangga) terlibat dalam kegiatan penanaman kopi.
Berbeda dengan di Madina, sektor kopi di Bener Meriah dan Aceh Tengah, di Dataran Tinggi Gayo,
sudah jauh lebih maju. Mereka dapat memanfaatkan dengan baik keunggulan komparatif dan kompetitif
yang mereka miliki berkaitan dengan budidaya kopi dan penanganan pasca panennya. Nama ‘Gayo’
saat ini sudah dikenal secara luas di skala internasional setelah lebih dari 2 dekade upaya penanaman
dan pemasaran yang intensif.
Seorang petani di Dataran Tinggi Gayo sekarang dapat memilih di antara berbagai alternatif teknik
penanaman dan penangangan pasca panen. Bahkan teknik penanaman yang sejalan dengan kegiatan
konservasi sumberdaya alam seperti misalnya penanaman bersertifikasi secara organik, di bawah
naungan (shade-grown) dan perdagangan secara adil (fair trade) sudah dijalankan di Gayo. Bimbingan
teknis dan dukungan lainnya tersedia bagi petani, juga bagi petani yang ingin ikut dalam program
conservation coffee (i.e. budidaya kopi yang ramah lingkungan).
Namun demikian masih ada beberapa hal yang kurang optimal dilakukan, dan apabila tidak diatasi
segera, dapat menggerogoti keuntungan dan progres yang sudah dicapai oleh sektor kopi di Gayo. Hal
RINGKASAN EKSEKUTIF
Awal dari pengembangan sektor kopi secara modern dimotori oleh badan pemerintahan setingkat
provinsi (Dinas Perkebunan dan Badan Perencanaan Daerah) dan oleh donor dari negara Belanda.
Pembinaan di tingkat budidaya dibarengi dengan promosi merk ‘Gayo’ dan pengorganisasian petani,
dengan tujuan membangun permintaan internasional. Saat ini sektor kopi di Gayo sudah menikmati
manfaat dari upaya intensif selama bertahun-tahun tersebut.
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RINGKASAN EKSEKUTIF
tersebut antara lain 1) berkurangnya dukungan teknis dan keuangan yang dilakukan oleh pemerintah,
terutama berkurangnya kegiatan riset dan pengembangan produk yang sebelumnya sangat intensif
dilakuka; 2) jangka waktu panjang yang diperlukan oleh badan internasional untuk memproses aplikasi
baru program sertifikasi. Selain itu, faktor external seperti kondisi politik ikut membebani sektor kopi
dengan tingginya risiko dan biaya yang dihadapi petani.
Harga jual yang lebih tinggi sudah dinikmati oleh sebagian petani yang bersedia mengeluarkan
daya upaya lebih untuk bertanam kopi dengan metode yang ramah lingkungan (i.e. metode terbaik dari
program conservation coffee) di Gayo. Namun demikian, masih banyak petani lain yang beranggapan
bahwa daya upaya ekstra ini tidak sebanding dengan perbedaan/margin harga yang dapat diperoleh.
Harga untuk kualitas yang biasa-biasa saja sudah cukup bagi sebagian petani, terutama bagi mereka
yang pekerjaan utamanya bukan bertani dan hanya ikut menanam kopi untuk memperoleh pendapatan
tambahan. Yang masuk kategori ini antara lain tuan tanah setempat dan pegawai negeri yang juga
ingin memperoleh keuntungan dari boom kopi, tapi tidak memiliki ketertarikan dan/atau waktu untuk
menerapkan teknik tanam ramah lingkungan. Dari sisi ekonomis, hal ini dapat diinterpretasikan bahwa
margin keuntungan dari keikutsertaan dalam program sertifikasi belum cukup tinggi bagi para petani
‘berdasi’ ini.
RINGKASAN EKSEKUTIF
Berkaitan dengan profil kedua wilayah yang menjadi fokus dari tinjauan ini, dan dengan
mempertimbangkan peluang yang ada untuk mengembangkan dan/atau memperkuat kegiatan
conservation coffee, ada beberapa rekomendasi yang dapat diberikan. Di Madina, kegiatan dapat
difokuskan pada memberi dukungan pada kelompok petani kopi yang ada sehingga mereka dapat
meningkatkan kualitas kopi yang dihasilkan; menyediakan bantuan pemasaran skala kecil bagi usaha
pemrosesan kopi; dan mengadakan pelatihan budidaya organik pada tingkat lokal dan provinsi terutama
untuk tanaman keras. Di Dataran Tinggi Gayo, prioritas sebaiknya ditujukan pada pengarus utamaan
(mainstreaming) teknik-teknik terbaik dari program conservation coffee dengan bekerja bersama mitra
lokal. Alternatif kegiatan antara lain terus mendukung kelompok petani lokal yang sudah menerapkan
teknik budidaya kopi ramah lingkungan, dan mendukung kegiatan riset dan pengembangan yang sesuai
dengan kebutuhan lokal (locally appropriate).
x
ACRONYMS
EXECUTIVE SUMMARY
RINGKASAN EKSEKUTIF
INTRODUCTION
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PART A
Mandailing NataI
1
SECTION I
Natural resources, opportunities and conservation strategy
I-1
SECTION II
Cultural, political and socio-economic conditions
1. Demographic conditions
2. Economic conditions
3. Social conditions
4. Attitudes toward conservation
5. Local and community level political structure
II-5
II-5
II-6
II-8
II-10
II-12
SECTION III
Farm-level production system and support services
1. Factor inputs, resources and production patterns
2. Prevalent farming and biodiversity conservation practices
3. Extension services
III-14
III-14
III-21
III-23
SECTION IV
Local value chain and marketing strategy
1. Processing, commercialization and other services
2. Financial services
3. Marketing and industry strategy
IV-25
IV-25
IV-29
IV-30
PART B
The Gayo Highland
33
SECTION I
Natural resources, opportunities and conservation strategy
I-33
SECTION II
Cultural, political and socio-economic conditions
1. Demographic conditions
2. Economic conditions
3. Social conditions
4. Attitudes toward conservation
II-36
II-36
II-36
II-39
II-41
SECTION III
Farm-level production system and support services
1. Factor inputs, resources and production patterns
2. Prevalent farming and biodiversity conservation practices
3. Extension services
III-42
III-42
III-50
III-54
SECTION IV
Local value chain and marketing strategy
1. Processing, commercialization and other services
2. Marketing and industry strategy
IV-56
IV-56
IV-62
PART C
Summary and Recommendations
64
REFERENCES
ANNEX
71
Site selection diagram
75
TABLE OF CONTENTS
TABLE OF CONTENTS
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TABLE OF CONTENTS
LIST OF TABLES, FIGURES, MAPS AND BOX
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Figure
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Figure
Figure
Figure
1: Basic geographic profile of Madina
2: Major rivers in Madina
3: Population growth 1998-2003, households, and number of villages in Madina
4: GRDP by industrial origin, Madina
5: Population by ethnic group, Madina 2003
6: Incidence of sickness in Madina, 2003
7: Coffee area and production in North Sumatra, 2002
8: Arabica coffee area and production by sub-district in Madina, 2004
9: Robusta coffee area and production by sub-district in Madina, 2004
10:Area and production of smallholder estates in Madina by crop type 1999-2004
11:Cooperatives in madina, 1998] and 2003
12:Loans taken out at a state-owned pawn shop by Madina residents, 2001-2003
13:Area and production of smallholder coffee in Madina, 1998-2004
14:Population, area and population density in Central Aceh and Bener Meriah, 1997-2003
15:GRDP by sector n Central Aceh (nominal terms), 1993 and 2003
16:GRDP by sector in Central Aceh (constant 1993 prices), 1993; 2000-2003
17:Area and production of smallholder estates by crop type, Gayo Region
18:Incidence of sickness in Central Aceh, 2003
19:Coffee area and production by sub-district in Central Aceh, 2003
20:Coffee area and production by sub-district in Bener Meriah, 2003
21:Head of households involved in coffee planting and average holdings, Central Aceh
22:Head of households involved in coffee planting and average holdings, Bener Meriah
23:Coffee processing facilities in Central Aceh, 2003
24:Farmer organizations in the Gayo Region, 2003
25:Government-sponsored groups in Central Aceh, 2002
26:Coffee production in Central Aceh, select years
1: Madina population 1998-2001
2: Madina population pyramid, 2003
3: Haj participants in 2003 and their level of education
4: The Mandailings’ concept of village-level spatial arrangement
5: General coffee cherry processing flow, Madina
6: General coffee marketing flow, Madina
7: Coffee cherry processing flow at PPKGO
8: Distribution channel for PPKGO coffee
Map 1: North Sumatera
Map 2: Central Aceh
Box 1: Pak Mai, a small local processor
INTRODUCTION
1. Background
As with most commercially important cash crops presently grown in Indonesia, coffee is not originally from the country.
It was brought in by the Dutch through their trading arm, the Vereiniging Oost-Indische Companie or VOC. The first
record of successful planting of Arabica coffee (Coffea Arabica) in Indonesia was more than three centuries ago, in 1699 in
Batavia (present-day Jakarta). This was much earlier than other introduced crops such as cocoa (1780), tea (1826), oil palm
(1848), rubber (1876) and Robusta coffee (Coffea canephora, 1900). From Batavia Arabica coffee spread throughout
Indonesia. In Sumatra, coffee were first cultivated in the west coast of the Island across the Bukit Barisan mountain range,
first in Bengkulu (1833), and later in Mandailing and Angkola (1841) and Takengon of the Gayo Highland (1908)
[Yahmadi, 2000].
The first export of Arabica from Indonesia was in 1711, and production reached its peak between 1880 to 1884 when
almost 95,000 tons were produced annually. Thereafter, however, producer decreased steadily to the leaf rust disease
(caused by the mold Hemileia vastatrix). Most of the Arabica coffee trees in Indonesia were wiped out except those which
were planted at altitudes of 1,000 m or more, which include those in the Gayo Highland of Aceh and in the highlands of
Panyabungan (present-day Mandailing Natal) [Yahmadi, 2000].
Indonesia now mainly exports Robusta beans (more than 90% of coffee export), whereas world demand is mostly for Arabica
coffee [Susila and Herman, 2004]. However, the few Arabica that is being exported is in general of good quality—71% of the highest
grade, and about 95% at least Grade III. This is in contrast with the Robusta export where 74% is Grade IV and lower.
Northern Sumatra is one of the main producers of Arabica coffee. Two regions have been identified by Conservation
International Indonesia (CII) as having potential to be targeted for a conservation coffee project. The two areas are Mandailing
Natal in North Sumatra, and the Gayo Highland in Nanggroe Aceh Darussalam. To assess the suitability of these two regions
for a conservation coffee project, an assessment was conducted. This document synthesizes some of the main findings of the
assessment, highlighting the differing paths that the coffee-producing industries in the two regions haveundertaken . A complete
report is available from Conservation International Indonesia, “An Assessment of Opportunities for Conservation Coffee Intervention
in Mandailing Natal and the Gayo Highland of Northern Sumatra” [Napitupulu, 2005].
Given the limited availability of literature about the coffee sector in Northern Sumatra, and especially in Mandailing Natal, the
assessment relied on key informant interviews as much as literature and secondary statistics. The site visits were undertaken between 17
January—8 February 2005 and covered both the Gayo Highland and Mandailing Natal. Key informants were determined based on
previous visits of CII personnel, as well as through the further recommendations of the informants themselves.
Due to the security situation at the time, it was not possible (nor advisable) to be moving about independently while in
Aceh, even though the major cities of the Gayo Highland were relatively safe. In this respect, this report has heavily focused on
the activities of the Gayo Organic Farmers Organization (PPKGO) to illustrate the coffee sector of the Gayo Highland. In Madina
no security-related problem was encountered.
This report follows the guidelines set out for a conservation coffee assessment provided by CII as outlined in Annex A.
The main report is comprised of three main sections: Part A describes Madina, Part B the Gayo Highland, and Part C
summarizes the previous two sections as well as provides recommendations for conservation coffee projects/programs. The
main report is accompanied by a list of references and three annex (Annex A Context assessment guidelines, Annex B Site
selection diagram, and Annex C Select maps ).
3. Acknowledgments
The Assessment was possible through the willingness of many people to share their time and information. Bapak Zulkarnaen
(Dinas Kehutanan Kab. Mandailing) and Bapak Iswandy Idris (PPKGO in Aceh) went out of their way in assisting with
information, travel, facilitation, and even coffee samples. Iwan Wijayanto of CII provided needed support and absolute patience.
Diah Sulistyowati of CI Medan was a great companion during the travel to the Gayo Highland. Goetz Schroth and Grace Wong
of CI DC posed insightful questions and comments. To all: many, many thanks!
INTRODUCTION
2. Organization of the report
xiii
PART A: MANDAILING NATAL
PART A
SECTION I
N ATURAL N
ATURAL RESOUR
CES , INTERRELA
TION
NA
RESOURCES
INTERRELATION
WITH COFFEE OPPORTUNITIES, AND FIT WITH
CONSER
VATION STRA
TEGY 1
CONSERV
STRATEGY
Photo: Fachruddin Mangunjaya
The Mandailing-Natal District is geographically located between 99° 12' 45" to 99° 47' 10"
East and 0° 27' 15" to 1° 01' 57" North. It is made up of 17 Sub-districts, ranging from the
lowland and coastal areas of Batahan, Muara Batang Gadis and Natal, to the mountains of Muara
Sipongi (Table 1). The highest point is the summit of Sorik Merapi volcano at an elevation of
2,145 m.
In 2003 there were 366 villages making up about 662 thousand ha. Most of this area is
comprised of forests (56%), with the rest being agricultural land (11%) and fallows (9%), with
a very small percentage of built-up area (about 2%). The Madina regions has an interesting
geographic feature in that about 75 thousand years ago, a volcanic eruption created the Batang
Gadis River Valley (or also called Siondop Valley), which runs in the middle of two mountain
ranges. The Valley is a graben, formed the meeting of two geological vaults. Furthermore, this
high valley has features of a lacustrine— a river valley enclosed by lowland forests. During the
1
SECTION I
Rice field bordered by mixed garden.
This section is partly based on Perbatakusuma et al, 2004
NATURAL RECOURCES AND CONSERVATION STRATEGY
I-1
Table 1. Basic geographic profile of Madina
No.
Sub-district
Topography
Elevation (m
above sea level)
Rainfall
(mm/year)*
Distance from
sub-district
capital to
district capital
(km)
Area (Ha)
Area % of
total Madina
1 Batahan
Flat to undulating
0-300
2,294
124
66,971
10.12
2 Batang Natal
Undulating to hilly
500-700
2,838
48
65,151
9.84
3 Bukit Malintang
Flat to hilly
250-400
12
12,744
1.92
4 Kotanopan
Hilly to mountainous
400-800
40
32,515
4.91
5 Lembah Sorik Merapi
400-600
20
3,473
0.52
6 Lingga Bayu
Undulating to hilly
500-700
78
34,539
5.22
7 Muara Batang Gadis
Flat to undulating
0-600
173
143,502
21.67
8 Muara Sipongi
9 Natal
Flat to undulating
3,563
800-1,000
3,899
61
22,930
3.46
0-500
2,273
113
93,537
14.13
2,334
10 Panyabungan
Flat to hilly
250-800
0
25,977
3.92
11 Panyabungan Barat
Flat to hilly
400-800
16
8,722
1.32
12 Panyabungan Selatan
400-800
13
8,760
1.32
13 Panyabungan Timur
250-800
15
39,787
6.01
14 Panyabungan Utara
Flat to hilly
250-500
4
17,994
2.72
15 Siabu
Undulating to hilly
250-600
19
34,536
5.22
16 Tambangan
400-600
25
21,414
3.23
17 Ulu Pungkut
600-800
65
29,519
4.46
Total
662,070
100.00
2,386
Source: CBS Madina 2004
* Measured based on administrative boundaries prior to 2002 split
rainy season the area is flooded, and it is wet and productive throughout the year, providing sustenance
to the wildlife living in its vicinity.
Another feature of the region is that it is highly volcanic and somewhat disaster-prone. It is part
of the Great Sumatran Vault Zone: the Batang Gadis—Batang Angkola—Batang Toru Sub-vault.
The Vault is in a permanent state of motion, causing frequent earthquakes, the last major one of
which occurred in 1987. In addition, there is the Sorik Merapi volcano, which erupted last in the
1980’s but did not cause major casualties.
There are demonstrated advantages of being located in a volcanic area: Madina has an exceptionally
fertile soil, and gold is present in the ground. In fact, gold has been extracted by local communities
for many hundreds of years. In recent years a major mining company has undertaken exploration
activities in the area.
The unique and varied landscape making up Madina is part of the Angkola Lowland Wilderness,
an area of 400,000 ha which CI has identified as an important feature towards the development of
a Northern Sumatra Biodiversity Corridor2 (the NSC). In addition, it was from the Angkola region
that in 1641 the orangutan (Pongo abelii) was first described to modern science. The formation of
the Batang Gadis National Park (BGNP) in 2004 is an important step to realizing the NSC.
SECTION
I
The BGNP is comprised of two forest types: the Air Bangis-Singkil formation (at medium
elevation 300 to 1000 m), and the Bukit Barisan montane forest (at elevations of 1,000 to 1,800
I-2
The Northern Sumatra biodiversity corridor itself is estimated to be about 4.6 million ha that connects four major protected
areas: the Angkola Lowland Wilderness, the Western Toba Watershed, the Leuser Ecosystem, and the Seulawah Heritage
Forest. Whereas the corridor approach to biodiversity management focuses on increasing the likelihood of key species to
survive by allowing it the necessary range. Conservation is then achieved not only at the species level but also at the landscape
(habitat) and genetic levels.
2
CONSERVATION COFFEE OPPORTUNITIES IN NORTHERN SUMATRA
m). Many rare and endangered mammals can be found in the region, including the Sumatran tiger
(Panthera tigris sumatrae), wild goat (Naemorhedus sumatrensis), tapir (Tapirus indicus), honey
bear (Helarctos malayanus ). The tapir and wild goat, furthermore, have been identified as key
terrestrial herbivores that can be used as indicators to designing the protected area (i.e. ‘umbrella
species’).
Compared to other conservation areas of comparable size in Sumatra, BGNP has a high level of
bird diversity. There are at least 247 species of birds, 47 of which are placed in protected status by
the Indonesian government, and 7 are globally endangered. Furthermore, the presence of 14 raptor
species (the top of the food chain) indicate that the food web there is still in good condition.
In terms of flora, surveys indicate a diversity that is richer than other lowland forests in North
Sumatra, but less than in Borneo and the Malay Peninsula. Several endangered plants include the
Rafflesia sp, Nepenthes sp. and Amorphaphalus sp as well as other plants listed in the IUCN Red
List.
Map of North
Sumatra
NATURAL RECOURCES AND CONSERVATION STRATEGY
SECTION
I
In 2004, CII and partners conducted a rapid biodiversity assessment inside BGNP. The
assessment added information to the database on the flora and fauna of the region, but the area
1-3
Photo: Diah R.S.
will need more surveys before a comprehensive
information about habitat, life cycles and
distribution of more species can be developed.
This and other assessments showed, however,
that the landscape of the BGNP is relatively
non-fragmented, as residential areas and
economic activities have been kept at the
periphery of the Park, except for one village (an
enclave in side the Park). In fact, farms are
increasingly grouped together away from inside
the Park as former roads become inaccessible
and transportation costs increases. This includes
coffee plantations those located in mountains
and far from residential areas are increasingly
abandoned. According to farmers these are
increasingly abandoned since coffee prices have
not kept up with the cost of it cultivation [A.
Nasution and D. Nasution, 2005: pers.
comm.].
Photo: Fachruddin Mangunjaya
Mixed garden.
A setttlement of coffee growers.
Table 2 Major rivers in Madina
No.
Name of river
District
Length (km)
Width
(m)
Normal flow
(m3/second)
1 Batang Gadis
Panyabungan
138
45
2 Batahan
Batahan
28
40
30,974
5,582
3 Kunkun
Natal
27
40
5,452
4 Parlampungan
Muara Batang Gadis
39
45
8,712
5 Sulang-suling
Muara Batang Gadis
47
45
10,530
SECTION
I
Source: CBS Madina, 2003
I-4
The BGNP is part of four watersheds, with the Batang Gadis watershed being the largest at about
384,455 ha (about 58% of the District), comprising about 943 river and streams. There are several
major rivers in the region (Table 2), including the Batang Gadis River, for which the Park is named.
In total, the BGNP is the source of water for about 1,175 rivers and streams. The quality of these
rivers are presently relatively good and not impacted adversely by economic activities. Rivers are
particularly important for the agriculture of the region, and this was one of the main reason
strengthened protection status as national park for parts of the area. It is expected that there will be
many opportunities for linking environmental services with a coffee intervention. A precursor for
such link is already in place, i.e. the lubuk larangan no-take zone (refer to Section II).
While the level of threat to the BGNP and the larger Angkola Lowland Forest is still not yet as
high as elsewhere in Northern Sumatra, it is particularly important to strengthen local conservation
institutions and incentives. Protection of intact habitats owned by farmers, especially with an added
value of enhancing their livelihood, will contribute greatly to achieving conservation in Madina.
PART A
SECTION II
CUL
TURAL, POLITICAL
CULTURAL,
CONDITIONS
AND
SOCIO-ECONOMIC
2.1. Demographic condition
Prior to 1998 Madina was part of the South Tapanuli District. In 1998 it was declared a
District itself, with 8 sub-districts comprising 273 villages. Madina has since evolved into 17
sub-districts which together comprise 328 villages by February 2005. About 68 of these villages
border the BGNP [Perbatakusuma et al, 2004].
During the past 6 years, the population has more or less been increasing in the region, from
348.5 thousand people in 1998 to about 377.2 thousand in 2003 (Figure 1), or growing at an
annual average of 1.64%, higher than the national average of about 1.5%.
Figure 1 Madina population 1998-2003
390,000
380,000
374,513
352,973
355,285
348,536
60-64
340,000
55-59
330,000
50-54
Age group
320,000
45-49
40-44
1998
1999
Source: CBS Madina, various years
35-39
2000
2001
2003
30-34
25-29
20-24
Figure
2 Madina population pyramid, 2003
15-19
10-14
5-9
0-4
Population
2002
Year
Male
Female
The make up of the population is relatively
balanced between females and males, with
the highest proportion being those under
14 years old (Figure 2). There are two
possible explanation on the relatively large
size of the youth population (given that the
birth rate is not particularly high).
First, there is a high level of out-migration
amongst the young people completing basic
education, both to obtain education as well
as jobs. For example, one farmer mentioned
that out of 6 children, only one child remains
in Madina. Second, there is a sizeable
number of Islamic boarding schools in
Madina is frequented by a large number of
students from outside the region.
CULTURAL, POLITICAL, AND SOCIO-ECONOMIC CONDITION OF THE SITE
II
360,000
SECTION
Population
370,000
65-upw ards
350,000
377,186
368,652
Panyabungan District, where the district
capital is located, has the highest percentage
of the population (17.9%) and number of
households (almost 14 thousand
households). In terms of density, however,
the Lembah Sorik Merapi Sub-district (the
valley of the Sorik Merapi volcano) is highest
with about 459 people/km 2. The average
household size in Madina is between 4-5
people per household (Table 3).
II-5
The relatively larger size of the 65 and above population, on the other hand, is thought to be
caused by returning former residents, desiring to spend their retirement back in the village where
they came from.
Table 3 Population growth 1998-2003, households and number of villages in Madina
2003
No
Sub-district*
Population
Population % of
total
Population
density
(Person/Km2)
Number of
households
Average
household size
(Person)
Number of
villages
1 Batahan
29,530
7.83
44
6,428
4.59
18
2 Batang Natal
20,217
5.36
31
4,414
4.58
24
3 Bukit Malintang
15,023
3.98
118
3,281
4.58
12
4 East Panyabungan
12,100
3.21
30
2,699
4.48
12
5 Kotanopan
26,045
6.91
81
5,988
4.35
36
15,931
4.22
459
3,251
4.90
9
7 Lingga Bayu
28,675
7.60
83
6,094
4.71
28
13,341
3.54
9
3,012
4.43
11
9 Muara Sipongi
12,406
3.29
54
2,760
4.49
19
23,679
6.28
25
5,437
4.36
25
10 Natal
11 North Panyabungan
21,013
5.57
133
5,133
4.09
20
12 Panyabungan
67,534
17.90
260
13,993
4.83
33
13 Siabu
47,339
12.55
137
10,343
4.58
22
9,481
2.51
108
2,102
4.51
9
21,023
5.57
98
4,420
4.76
28
13
14 South Panyabungan
15 Tambangan
16 Ulu Pungkut
5,156
1.37
17
1,155
4.46
17 West Panyabungan
8,693
2.30
100
2,053
4.23
9
377,186
100.00
57
82,563
4.57
328
Total
2.2. Economic condition
The Gross Regional Domestic Product (GRDP) per capita of Madina in 2003 was Rp4,417,385
(about $475 million at exchange rate of Rp9,300/$1). It is more than half of the provincial
GRDP per capita (Rp7,957,800) and national GDP per capita (Rp8,304,300). In constant 1993
prices, however, income is only about Rp1,836,913.
SECTION
II
As with the rest of Indonesia, between 1998 and 1999 there was a significant contraction of
the Madina economy. However, we see that the local economy has been expanding in the last
few years. In 2001, as regional autonomy began to be fully implemented in Madina, the economy
grew by almost a third from it’s size in 2000 (in constant 1993 terms). Most of this growth is
attributed to the expansion of the trade, restaurant and hotel services sub-sector (Table 4).
II-6
The economy of Madina is dominated by the agriculture sector, comprising almost half
(48.47%) of the GRDP in 2003. About 83% of the working population is employed by the
agricultural sub-sectors (i.e. food and non-food crops, husbandry and fishery) [CBS Madina,
2004]. It is expected that in the future agriculture will continue to be an important source of
income and consumption goods for the region.
Table 4 Gross Regional Domestic Product (GRDP) by industrial origin in Madina District (at 1993
constant prices) 1998-2003, in million Rp
No
1
2
3
4
5
6
7
8
9
Sector
Agriculture
Mining and quarrying
Manufacturing industries
Electricity and water supply
1998
1999
2000
2001
2002
2003
% of total
2003*
295,579.40
300,843.11
310,624.75
318,485.49
324,797.11
335,796.55
1,621.08
1,628.05
1,666.63
2,551.50
2,748.47
3,125.83
48.47
0.45
20,633.24
20,828.14
21,331.92
27,278.57
32,185.99
39,956.35
5.77
1,423.34
1,454.70
1,585.65
2,012.07
2,776.35
3,191.35
0.46
Construction
23,318.70
23,589.54
24,592.10
34,344.83
36,116.28
39,300.89
5.67
Trade, restaurant, and hotel
88,335.18
23,589.54
24,592.10
123,235.55
126,627.38
134,077.84
19.35
Transportation and communication
29,350.71
29,789.57
31,055.33
43,441.38
46,099.99
47,110.16
6.80
Finance, leasing, and company services
41,479.32
41,786.91
42,728.85
44,562.32
46,245.64
48,488.21
7.00
Services
25,042.64
25,580.79
26,434.51
33,700.82
39,861.33
41,810.86
6.03
526,783.61
469,090.35
484,611.84
629,612.53
657,458.54
692,858.04
100.00
-10.95
3.31
29.92
4.42
5.38
Total GRDP
GRDP growth
*Preliminary data
SECTION
II
Photo: F. Mangunjaya
Within agriculture, the most extensive use of land is for growing cash (non-food) crops . In
2004, about 93.5 thousand ha (or about 14% of total the total area of Madina) was dedicated to
cash crop cultivation. Almost all cash crops are grown by smallholders, and rubber plantations make
up the largest plantation area in 2004.
Women getting ready to plant rice.
II-7
The most prevalent food crop is paddy rice; the extent of land used for paddy rice agriculture
(both wet- and dry-land paddy) was 38,892 ha in 1999, increasing to 44,828 ha in 2002. It has
been somewhat reduced to 41,722 ha in 2003. This slight decrease is attributed to the low prices
obtained for rice grains compared to the cost of growing and harvesting. Recently, farmers who grew
rice considered themselves lucky if they can recoup costs. Many plant rice paddy at a loss to prevent
land being abandoned and losing its productivity.
Farmers in Madina rely on a combination of crops for their income. In general, a farmer will
grow several types of cash crops in addition to some food crops. In the highlands, the combination
can be coffee, fruits, cassiavera and rice paddy. In the lowlands, it is increasingly rubber and oil palm
trees, paddy rice and some fruits and vegetables.
Farmers are quick to change their planting habits according to price incentives. Coffee were
produced fairly actively in 1998, during and right after the economic crisis. The prices offered to
farmers were fairly favorable at the time, most likely since the Rupiah weakened. Since 1999, farmers
have not continued maintaining their coffee plants due to low prices. Lately, mangosteens (Garnicia
mangostana) have been an important source of income in some areas of Madina. It is being exported
to meet international demands, including to China.
The second most important sector in Madina is the trade, restaurant and hotel services sector,
comprising almost one fifth (19.35%) of GRDP in 2003. This sector contracted in 1999 after the
financial crisis, but since then has expanded significantly. One explanation for this is the changed
status of Madina into a District, which brought with it expanded administration and budgetary
autonomy. The public sector, consequently, has grown bigger and in turn, the local economy has
been boosted, including the services sector catering to both the public sector and the general public.
Outside these two main sectors, there is a gamut of economic activities in Madina, albeit mostly
small in terms of scale, from trading to small industries such as gold-panning, smoked and dried fish
processing, and brown sugar processing.
2.3. Social conditions
The main indigenous group is the Batak Mandailing people, comprising more than 80% of the
population (Table 5). According to historical records, civilization in the region is thought to have
existed since at least the fifth century3. The first signs of civilization were in the form of structural
remains in the Simangambat area (Siabu Sub-district), dated from the 8th century in. Early kingdoms
in Madina are believed to have prospered through the discovery of gold.
SECTION
II
Gold facilitated the development of what is thought to be a highly advanced civilization at the time,
with a written language of its own. This written language later spread elsewhere in North Sumatra.
Islam is estimated to have first been introduced in Mandailing in the 17th century, when its practice
were mixed with animist beliefs. In the early 19th century, Moslem settlers (the Paderis) from the area
now called West Sumatra caused a large-scale exodus of the Mandailing people to the Malay Peninsula
This sub-section on Mandailing history, current social and cultural system, and the lubuk larangan system relies heavily on
Perbatakusuma, et al (2004)
3
II-8
Table 5 Population by ethnic group in Madina, 2003
Population
Ethnic group
Number
Mandailing
% of total
288,609
80.20
Malay
24,255
6.74
Javanese
22,681
6.30
Tapanuli/Toba
10,880
3.02
4,081
1.13
Nias
937
0.26
Aceh
244
0.07
Karo
114
0.03
Simalungun
57
0.02
Pakpak
20
0.01
Others
7,971
2.22
359,849
100.00
Minang
Total
(present Malaysia) due to religious and
other conflicts. Later influences in
Madina includes the Dutch zending
(Protestant missionaries) and colonial
administration.
Prior to the settling of the Dutch,
the Mandailing people were a thoroughly democratic group. The society was
managed by an institution called the
‘na mora na toras dohot raja’ made up
of local leaders at the village level and
headed by a chief. All decision-making
were conducted in a village meeting
house (‘ sopo godang ’) built without
walls to enable residents to witness the
deliberation process.
Upon their arrival, the Dutch tried
to instill a feudal structure to wield authority over the Mandailings. Locals
revolted against the system being
pressed on them, taking up arms and,
pioneering revolt against Dutch rule in
North Sumatra.
In modern times, the Mandailing
people group themselves according to
the clan system (marga). There are 13
main family groups in this modern
time, that dominate the Mandailing society. Three main language groups are
spoken: the coastal dialect, the Mandailing Muara and the Siponghi languages.
Students of Islamic boarding schools
(top) and children sitting in front of
their wooden house (bottom).
SECTION
Photos: F. Mangunjaya
II
Malay and Javanese immigrants
make up more than 13% of the population. Otherwise, interviews reveal that
in-migration is rarely encountered;
farmers think this is due to the lack of
economic opportunities in Madina.
II-9
No official data is available about in- and out-migration, but most in-migrants are believed to
have come from the neighboring West Sumatra Province and settle in urban areas. The town of
Panyabungan, the district capital and the seat of the Madina Local Government, is thought to host
many of these immigrants.
There is no trend of seasonal migration detected; the need for labor—in the agricultural, industrial
and services sectors—is fulfilled locally. Data is also unavailable regarding overseas workers, but it’s
estimated that there’s a number of people working overseas (mostly in Malaysia).
Open conflicts are a rarity in Madina compared to other places in North Sumatra. Most conflicts
are attributed to land issues amongst or within (extended) families.
Farmer associations. Farmers in Madina are less organized than in Java, and farmer organizations
are based fairly strictly on business interests, and in very much a local scope, most often for the objective
of receiving support (technical, material or financial) from the government. Local and national
government programs often require farmers to be organized into groups when receiving assistance. In
many instances, these groups dissolve once the money has been completely disbursed or the program
completed. Groups with longer lifespan were most likely formed as cooperatives.
Rarely do the farmer organizations serve social mandates in Sumatra—this is the general case for
Madina as well. The ethnic social structure is stronger and permeates every aspect of life, from birth
to death. In fact, several people mentioned that farmer organization may not be as successful in
Madina as in, for example, Java, since it is often undermined by familial ties.
The rrole
ole of women. Women in the Mandailing society is very much involved in household
decision-making, both in the urban and rural settings. In farming households, women work the
land, feed and maintain livestock, process crops, and have a say in the allocation of household
income. In households that grow coffee, women will be involved in maintaining coffee plants,
harvesting and processing cherries, even up to roasting the beans and packaging them for selling.
There are even women coffee collectors/traders by profession
As an illustration, while interviewing two different heads of household, the role of the wife is
very prominent. One head of household interviewed was a farmer with sizeable land holdings,
livestock, and a small coffee processing and retail selling business. In this household, the wife
participates in maintaining crops, taking care of the livestock, and roasting and packaging coffee
beans.
SECTION
II
The second head of household has a small-scale ground coffee production business. He travels
and buys coffee beans, and is mainly responsible for roasting and grinding it to a final product. His
wife manages the small shop in the house, and weighs and packages coffee for retail sale. Both were
interviewed together, and often the wife will provide clarification freely. The two households is the
norm of the role women play in the household.
II-10
Education. The local statistics office do not collect data on the level of education of total population
of Madina. But as an illustration, amongst the people embarking on the haj pilgrimage in 2003—
generally the most better-off in the community since they can afford the costly trip—the majority
only has elementary (6 years or less) education (Figure 3). It can be surmised, therefore, that the
education level of the general population is poorer than this.
Health. The prevalence of various illnesses such as diarrhea, malaria, bronchitis, dysentery and
TB is still quite high in Madina (Table 6). Infections are even more prevalent amongst children up
Figure 3 Haj participants in 2003 and their level of education
Technical
college
5%
Senior high
school
32%
University level
(bachelor and
graduate levels)
6%
Elementary
school
40%
Junior high
school
17%
to 14 years of age. One in 14 children in this age group have been inflicted with at least one of these
illnesses. Madina is also lacking in medical practitioners and facilities. For example, only 25 general
physicians were listed in 2003 for the whole district—a ratio of one per more than 75 thousand
people. There were also only 5 dentists and 5 specialist physicians in Madina [CBS, 2004].
Table 6 Incidence of sickness in Madina, 2003
Type of sickness
Diarrhea and cholera
Influenza
Bronchitis
Malaria
Dysentri
Total incidents
Number of children
4,088
3,204
420
2,460
1,296
11,468
Number of people
6,696
6,408
1,584
5,952
2,724
23,364
2.4. Attitudes toward conservation
In utilizing its surrounding natural resources, the Mandailings have a concept of spatial
arrangement consisting of five main areas: 1) the settlement area; 2) the fields, pond and rivers;3)
the fields, pasture, and mixed garden, 4) the forest as a source of medicinal plants, building materials
and as hunting ground, and 5) the forbidden forest which can not be entered by people and is
believed to have magical properties (Figure 4).
SECTION
II
The Batak Mandailing people have a concept of sustainable use of the environment based on the
needs of a village (huta) or several villages (banua). Each village will need to have a source of water, a
forest and grazing ground for livestock. Local myths are replete with stories about water and rivers.
Even now, villages are formed near water bodies and are named after rivers (batang), tributaries (aek),
streams and creeks (rura), or springs (mual).
II-11
Figure 4 The Mandailing’s concept of village-level spatial arrangement
Settlement
Pemukiman
Paddy field
Pond
River
Field, pasture
and mixed
crop garden
Forest
Forbidden
forest
Source: adapted from Perbatakusuma et al (2004)
Even though there has been changes in the social structure of the Mandailing people, one the
resource management concept that is today still enforced is the lubuk larangan code, or the protected
river area/no-take zone. This is a model of river management that was formally coded in the 1980’s out
of concern about ensuring the viability of rivers and springs. Local communities determine a portion of
river where fishing is not allowed, usually for between 6 to 12 months. Additionally, a fee is charged to
residents and visitors to catch fish in the larangan portion, with proceeds going to the village fund to be
used for development of village facilities such as a mosque, roads, educational scholarships, etc. The
system is in effect an independent enforcement of communal property to what was an open access
resource, in effect reducing pressure to the resource [Lubis, 2005].
Parallel to cultural norms, religion plays a major role in governing day-to-day activities in Madina.
Madina—and for that matter the south-eastern part of North Sumatra province—is predominantly a
Moslem society. The 2003 statistics lists 98.25% of residents as Moslem, with the rest mostly Protestants
and Catholics. In addition, there is a large presence of numerous Islamic boarding schools and religious
leaders in the region. In this environment, the role of the religious leaders—ulama—is paramount.
SECTION
II
2.5. Local and community level political structure.
II-12
Given that the Madina Regency was only recently formed, its public sector is still in its infancy.
Many of the staff were brought in from the South Tapanuli Regency, under which Madina belonged
prior to 1998. Others were transferred from other regencies in North Sumatra, and a few from
outside North Sumatra. Still more were newly recruited. For obvious reasons, therefore, the public
sector is only recently relatively prepared to fully administer its responsibilities.
In terms of agriculture, the Local Government has mostly left land-use decisions to individuals
and communities. It seems that the local agriculture service is currently more concerned with providing
technical assistance, and there is no evidence of a strategic plan in agriculture.
Photo:Diah R.S.
The Local Government—particularly the local forestry service—have shown that they are willing
to expend the required effort and resource to strengthening conservation status of an existing protected
area. The Batang Gadis National Park was formed through the initial proposal by the Local
Government, based on the desire of local communities in Madina to maintain the forests and ecological
services which they depend on for their livelihoods. In this respect, the process for establishing the
Park has been hailed as a novel and model approach in the context of regional autonomy in Indonesia,
where previously Parks were formed through a top-down manner by the central government.
SECTION
The road to acquiring national park status for the BGNP was not easy. Further, the Local
Government has since been in dispute with a mining company with a license (issued by the Central
Government) to operate inside the new national park. While the management structure of the new
National Park is still in the preliminary stages of design, the Local Government has been proactive in
socializing the new status for the park area, especially to communities living around and inside the
park. TheLocal Government has repeatedly indicated that the management regime for the park will
be participative in nature. Working with CII and other organizations, one of their first activities
upon the formation of the Park was to approach community leaders and other stakeholders to engage
them in the process of drawing up a management plan for the Park.
II
A portion of a river that is a no-take zone.
II-13
PART A
SECTION III
FARM-LEVEL PR
ODUCTION SY
STEM AND SUPPOR
T
PRODUCTION
SYSTEM
SUPPORT
SERVICES
3.1. Factor inputs, resources and production patterns
The original coffee planted in Madina was brought in from Java4. Today, locals still refer to
Arabica coffee as kopi jawa or java coffee; when locals refer to kopi Mandailing or Mandailing coffee,
they are referring to the local Robusta coffee.
While North Sumatra is an important coffee-growing center in Indonesia, the contribution of
Madina in coffee production is very small (Table 7), only about 5% of the provincial total in the year
2000. In comparison, the coffee sector in other Districts are larger and involve more households.
Table 7 Coffee area and production in North Sumatra, 2002
Productive area
(Ha)
Dairi
18,449
15,242
10,787
0.71
26,362
North Tapanuli
10,651
9,387
8,110
0.86
37,939
South Tapanuli
11,462
8,006
5,322
0.66
25,471
4,828
4,033
4,264
1.06
13,261
Simalungun
Production
(Ton)
Productivity
(Ton/Ha)
# of farmers
(Household
head)
Total Area (Ha)
Province
Karo
4,192
3,695
3,336
0.9
3,697
Mandailing Natal
4,777
3,660
1,945
0.53
5,426
Toba Samosir
3,145
2,410
2,143
0.89
11,922
Nias
1,617
1,093
767
0.7
1,635
Langkat
1,158
984
744
0.76
1,348
Deli Serdang
1,402
627
579
0.92
1,079
272
131
87
0.66
553
Labuhan Ratu
49
35
12
0.34
184
Asahan
Total North
Sumatera
38
34
18
0.53
129
62,040
49,337
38,114
0.77
129,276
Central Tapanuli
Source: Ministry of Agriculture 2002
SECTION III
Official statistics show that Arabica coffee is grown in all of the sub-districts of Madina (Table 8)
and Robusta in 14 out of 17 sub-districts (Table 9). Over the past years, however, it’s estimated that
much of the coffee farms have been abandoned or converted.5 In 2004, there was only about 521 ha
of Arabica estates. The Ulu Pungkut Sub-district has the largest expanse, totaling 74 ha. The largest
expanse of productive estate, however, was in Muara Sipongi (Map 1).
III-14
Some elder residents stated that coffee in Mandailing was originally introduced by Dutch Protestant missionaries who taught
locals how to plant Arabica, rather than the Dutch trade mission VOC.
5
It’s prudent, however, to be cautious of in using statistics in this way since it is based on estimates rather than on actual field
survey. In terms of coffee, the estimate is obtained by observing the volume of beans being traded in the local market and the
amount of seedlings distributed.
4
Table 8 Arabica coffee area and production by sub-district in Madina, 2004
Arabica
Area (Ha)
No.
Sub-district
Not
Not yet
Productive
productive
productive
(b)
(a)
( c)
1 Ulu Pungkut
50
19
5
2 Tambangan
26
38
3 Kotanopan
23
30
10
4 Lingga Bayu
15
35
5 Muara Sipongi
6
40
6 East Panyabungan
20
18
7 North Panyabungan
15
21
8 South Panyabungan
17
13
30
10 Batang Natal
25
11 Batahan
18
12 Siabu
10
13 Panyabungan
10
14 Natal
5
5
10
16 West Panyabungan
8
17 Bukit Malintang
5
Total
277
234
10
Source: modified and recalculated from Estate Services Madina, 2005
* Calculated by dividing production by productive area
** Reported based on estimates
Total
(a+b+c)
74
64
63
50
46
38
36
30
30
25
18
10
10
10
10
8
5
521
Production
(Ton)
Average
productivity*
(Kg/Ha/Year)
13
26
21
23
26
11
13
8
6
3
3
153
684.2
684.2
700.0
657.1
650.0
611.1
634.1
615.4
600.0
600.0
600.0
655.2
Estimated
average
productivity**
(Kg/Ha/Year)
700
700
700
675
650
650
650
650
700
675
650
600
650
650
600
650
600
655
The expanse of Robusta in 2004 was much larger than Arabica, about 2,823 ha, almost
a third of which is in Kotanopan (Table 9). Kotanopan also has the most productive Robusta
estates, though average yield seems to be low.
Table 9 Robusta coffee area and production by sub-district in Madina, 2004
No.
Sub-district
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Kotanopan
Ulu Pungkut
Muara Sipongi
Siabu
East Panyabungan
Tambangan
South Panyabungan
Bukit Malintang
Panyabungan
North Panyabungan
Batang Natal
West Panyabungan
Lingga Bayu
Lembah Sorik Merapi
Batahan
Natal
Muara Batang Gadis
Total
Not
Not yet
Productive
productive
productive
(e)
(d)
(f)
5
815
275
27
233
356
20
351
64
10
176
15
73
111
3
10
108
7
28
16
1
25
15
11
23
7
5
8
4
10
6
3
3
157
1,774
892
Total
(d+e+f)
1,095
616
435
201
187
118
51
41
34
12
12
10
9
3
2,823
Production
(Ton)
Average
productivity*
(Kg/Ha/Year)
65.4
353.4
228
95.5
62.7
70.5
24.2
23
18.4
6.6
2.2
5.5
1.6
1.8
958.8
80.2
1,516.7
649.6
542.6
564.9
7,050.0
864.3
920.0
1,672.7
942.9
550.0
533.3
540.5
Estimated
average
productivity**
(Kg/Ha/Year)
600
600
550
500
550
600
550
575
550
550
550
550
550
600
563
Source: modified and recalculated from Luas Areal dan Produksi Tanaman Komoditi Perkebunan 2004
** Reported based on estimates
FARM-LEVEL PRODUCTION SYSTEM
SECTION III
Robusta
Area (Ha)
III-15
SECTION III
III-16
More than 80% of the coffee produced in Indonesia is grown by smallholders. While data is not
available to clarify the average size of the individual land holdings of coffee farmers in Madina, in
general farmers in Indonesia have 1-2 ha of land on which coffee is grown [ICCRI, 2005]. The
average number of coffee plants per hectare is also unknown, but in general farmers plant coffee
interspersed with other crops in the same parcel.
Given low prices in recent years (explained in more detail in Section IV), coffee is being replaced
by other crops (cocoa and fruits such as durian, mangosteen). Planting mangosteen is becoming
popular for growing in Pekantan (Muara Sipongi).
In Madina, Arabica is thought to be grown at elevations of between 600 m from sea level up to
1600 m from sea level, depending on area. For example, in Pekantan, coffee is grown starting around
600 m from sea level. In Ulu Pungkut Sub-district, coffee is grown from about 1,000 m from sea
level. The reason for the good quality of coffee from Madina is thought to be due to the fertile
volcanic soil at altitudes of 1,000m upward [Wibawa, 2000].
The average yield per hectare for Arabica is estimated by the Local Estate Services office to be
between 600-700 kg of cherries per ha; for Robusta it is between 500-600 kg cherries per ha. If we
divide the estimated total production by the estimated productive coffee area, for Arabica coffee we
have results similar to the estimated productivity level above, i.e. yield of between 600-700 kg/ha,
or an overall average of 655kg/ha . However, the same estimate for Robusta, we came up with widely
varying yield levels, up to 7,000/ha! In this case, the explanation may be that coffee were grown in
one sub-district but were brought to another sub-district for trade.
When tended carefully, Arabica coffee can be quite productive in Madina. For example, the
common varieties grown in the Ulu Pungkut area are Kartika 1 and Kartika 2. The cherries of the
Kartika variety physically resemble Robusta, although a bit more longish. Harvests of Kartika and
the local Robusta have in 2004 been brought to the ICCRI for testing and were pronounced to be
of good quality [Matondang, 2005: pers. comm.]. As mentioned above, the environment in Madina
seems to be particularly suited for coffee, and other varieties are being planned for planting in Ulu
Pungkut, such as the S79 variety. There are critiques, however, that the new varieties are inferior in
terms of quality (aroma and taste) compared to the local older varieties.
In general land is abundant and farmers are willing to sell. Land is not at all costly in the rural
areas, especially since productivity is relatively low compared to the urban areas. Occupation of
public lands are quite common, however, especially since these public lands are originally communal
lands. It is expected, for example, that communities will need to have access to their land located
inside the BGNP. For example, there is an enclave of 5,000 ha in the park, as well as claims to
communal lands. Another community in Ulu Pungkut, for example, claims that there is about 5 ha
of land inside the BGNP which they would not like to relinquish.
The land is especially suitable for growing coffee. This is adat land, used to be rice paddy fields
but since distance too far not used anymore. In 1968 this land was accessible by road.
SECTION III
Land in Madina is passed down amongst families. Land is generally family-owned. Certification
level, however, is still low. Residents, and especially those in rural areas, are disinclined to certify
their land to avoid paying taxes on the land. However, tenure is relatively secure although registration
level is low, mostly since traditional community groups have their own land recognition system.
III-17
Most coffee farmers still used the traditional way of farming, including cultivation techniques
which they learned directly from their fathers through observation and directly being involved
in the land. Since coffee has been cultivated in the area since the late 1800’s, most farmers
planting coffee has inherited their crops and is familiar with the method for planting coffee
since fairly early in their lives.
The low level of productivity of coffee farms in Mandailing can perhaps be attributed mainly to
the lack of stable prices and stable demand for coffee. This has caused farmers to lag behind in
maintaining their coffee crops. In addition, farmers do not have the incentive to undertake better
handling and processing which result in better quality coffee cherries.
On the other hand, since the area’s farmers produce only small volumes of coffee—with a high
degree of variability in quality—buyers are reluctant to spend the time and resources to source from
the area. The cost of sourcing from Mandailing can be quite high given the quality of the crop, since
villages only produce coffee in small quantities while the transportation cost and the time required
to reach these villages can be substantial.
Processing of coffee cherries is so far conducted in very small scale in Madina, almost all at the
household level. Processing is conducted in a very casual manner. For example, coffee is dried in any
open areas, even along roadsides. It is not surprising, therefore, that debris can be detected in roasted
beans bought from local household processors.
In most cases, farm planning is limited to the diversification of crops to optimize income. No
business planning is involved, and commodity quality concerns are very low. In addition, coffee
farmers in Madina are less attuned to the commercial aspect of coffee farming and processing
compared to the neighboring regions, for example farmers in South Tapanuli or in Rao, their West
Sumatran neighbors. Ironically, coffee cherries are bought by neighboring Rao processors to process
into ground coffee, which in turn is sold back to consumers in Madina.
Most farmers sell coffee in the form of parchment (dried coffee but still with a high moisture
level, ready to be hulled) directly to local buyers. Having the coffee dried also allows farmers to store
the coffee and wait for better prices and/or collectors to come. This applies especially to farmers
whose farms are located far away from local markets and/or village roads. There is no incentive for
them to bring coffee directly to the local market since the transportation cost can be very high
compared to the volume of coffee they have.
SECTION
III
Villages in Madina are fairly reached by electricity, although power outages are quite common.
Roads are particularly a problem: there is a lack of maintenance of rural roads. In addition, the
shortest road to Medan, the capital of North Sumatra, has for some years been in a very rough
condition. People prefer to take a longer detour but traveling on better roads. This has raised the cost
of transportation to and from Madina, and lowers the price premium that may accrue to farmers.
III-18
Overall, farmers practice mixed crop system, both in one parcel as well as in separate parcels. For
example, a farmer will have cassiavera, coffee, orange and other crops in one parcel, and paddy rice in
another parcel. In fact, the traditional way of agriculture is mansela, which literally translates into
‘mixing of crops’ This practice is still very much followed A recent survey by the local statistics office
confirm the tendency for Madina farmers to spread their portfolio and by having many different crops
on their land6. Crops are grown both for household consumption and cash income.
In addition to coffee, various other cash crops being grown in Madina (Table 10). It seems that
the soil around Madina is particularly suited for rubber, and cassiavera. The best cassiavera in northern
Sumatra is considered to be found in Madina [Y. Nasution, 2005; pers. comm.].
Fairly recently, rubber (crumb rubber) production is increasing. Madina currently produces
about 15% of the total North Sumatra Province output of rubber (about 27 thousand tons). Rubber
trees are relatively easy and cheap to maintain, and the price of ‘wet’ rubber which farmers sell in the
local markets is reasonable. Most of the productive rubber trees are old, however, and about 60% of
all rubber grown was planted in Dutch times (before the 1940’s). About 60% of Madina farmers
make a living from rubber7.
Cocoa is only recently introduced to local farmers in Madina, but it has good potential. It is
being planted in small scale, especially in lower-lying regions, and it is being processed locally using
traditional methods. It has even been tried at higher elevations with good results, for example at
elevations of 800 m in Ulu Pungkut.
The quality of cocoa harvested locally is not inferior compared to the more-established estates in
the Asahan District, but the processing in Madina is of lower standard. The harvested cacao are
brought to either Kisaran (South Tapanuli District where there is a cacao auction) or to West Sumatra
(where the price is a little bit higher). Price for cacao at international level stable at about $1/kg, and
farmers rarely get less than Rp9,000/kg. Still, the profit margin for cacao is relatively slim.
Another relatively profitable crop currently is the mangosteen which is targeted for export. Other
fruits are both consumed and being sold for income, such as the local variety of the passion fruit.
SECTION
The Central Bureau for Statistics conducted a national agriculture census in 2004. In Madina, the census covered about 85
thousand head of households who were farmer, noting their planting habits as well as technological and other issues. The
data has not been entered and tabulated since they local statistics office lacks the financial resources to do this. They are,
however, willing to collaborate with external parties to tabulate part or all of the data when needed.
7
The profit margin made out of trading rubber mostly accrues to the middlemen since the marketing channel for rubber is
long. The rubber quality or grade, and thus its price, is determined by wholesalers. One of the aims of the Madina Estate
6
III
There is no data regarding the particulars of a coffee farmer’s age and level of education. In
general, however, the level of education in Madina is still very low. A 2002, a survey of smallholder
rubber producers in two sub-districts in Madina (Panyabungan and Kotanopan sub-districts) revealed
that almost half of rubber farmers (49.6%) received only received elementary level (6 years or less) of
education [BPS Madina, 2002].
III-19
III-20
SECTION
III
Table 10 Area and production of smallholder estates in Madina District by crop type 1998-2004
No
1
2
3
6
7
8
9
10
11
12
13
14
15
16
17
18
Crop
Area
(Ha)
1998
Production
(Ton)
Area
(Ha)
1999
Production
(Ton)
Areca nut/pinang
Aromatic oil/nilam
512
189
512
Candlenut/kemiri
Cardamom/kapulaga
1,282
411
1,282
Cassiavera/kulit manis
585
160
585
Clove/cengkeh
1,607
1,080
1,607
Cocoa/coklat
5,986
6,476
5,986
Coconut/kelapa
4,777
2,384
4,797
Coffee/kopi
Gambir
Ginger/jahe
Nutmeg/pala
231
46
231
Oil palm/kelapa sawit
Pepper/lada
42,842
49,431
42,892
Rubber/karet
519
848
Sugar palm/aren
Total estate use
58,340
61,026
57,891
Source: CBS Madina, various years; Estate Services Madina, various years
Note: empty cells indicate no data available
Area
(Ha)
2000
Production
(Ton)
Area
(Ha)
2001
Production
(Ton)
Area
(Ha)
2002
Production
(Ton)
4
2
Area
(Ha)
2003
Production
(Ton)
164
512
164
512
164
609
164
1,662
880
360
10
705
5,785
1,936
1,282
585
1,607
5,986
4,833
360
10
705
5,785
1,945
1,282
585
1,607
5,986
4,853
360
10
705
5,785
1,945
1,282
566
1,660
4,986
4,887
9
360
22
775
5,785
1,945
1
2,685
149
3,179
2,314
2,802
1,999
11
861
1,318
1,549
46
311
76
311
76
621,314
43,025
519
58,658
26,994
890
36,928
43,025
26,994
58,160
36,038
14,171
1
26,994
609
50,826
20,126
26,994
5,784
4
43,129
609
63,527
68,914
526
102,356
28,881
141
656,953
36,000
Given the low level of education, it is not surprising that farmers are quickly drawn to farming
schemes that at first seemed profitable but which actually is a scam to sell seeds and other products.
For example, there was a case of a pulp and paper company which promised to buy the harvest of a
‘blonde teak’ (“jati putih”) which was said to be the raw material for paper. Many farmers bought
seedlings and planted the tree in their farms. After a few years the paper company was not heard of
again and farmers were disappointed. Nowadays farmers are wary of ‘profitable’ crops. They adopt the
‘wait-and-see’ attitude before adopting new cultivation techniques or crops.
Almost all of coffee farm labor demand is met by the household. During harvesting season, neighbors may help each other in harvesting, which is the traditional way, during seasons when work is
abundant or needed to be done quickly. Some of the wealthier villagers or land-owners with other
occupation may hire poorer relatives to work their land on a sharecropping basis.
Seasonal migrants is not prevalent in Madina. Resident (local) laborers may be hired to tend
paddy fields. The level of wages have apparently been kept up with inflation by tying it with the
price of rice. Wages may also be payable in kind rather than in cash. Apparently, however, the selling
price of rice in the market has not kept up with the costs of laborers, and it has become unprofitable
to hire laborers to plant rice paddy.
Farmers may have land close to their place of residence or far away, or both. If the farm is located
close to the place of residence, a farmer can spend 12 or more hours daily tending their farm,
depending on season. If the farms are located far away from their residence and transport is difficult,
farmers tend to spend a few consecutive days at the farm rather than make the daily commute. For
example, there are farmers in Pekantan area whose coffee farms are located in the mountains 3 km
away from their place of residence. Still other farmers can only access their coffee plantations by
walking one way for many hours. During coffee harvesting season, farmers may spend 2-3 days at
time in their coffee garden.
3.2. Prevalent farming and biodiversity conservation practices in the site
Ten districts and about 68 villages border or is located inside the TNBG. Many of them are
coffee growing regions, including the five main Arabica producing areas. The are of Ulu Pungkut
Sub-district—the main producer of Robusta coffee and where it seems that remaining Arabica estates are located—is mainly located inside the BGNP.
SECTION
Farmers in Madina still uses many traditional ways of farming, including for growing coffee.
Farmers rarely uses chemical agents. For example, to prevent pests and to strengthen the coffee
tree’s resistance to pests, farmers undertake periodic smoking of a garden. In addition, it was
mentioned many times that fertilizers are generally not needed for coffee farms, especially forArabica coffee since they are grown high in the mountains where the soil is very fertile. Fertilizers
mostly used in growing paddy rice, and the most widespread use is of urea and TSP.
III
A typical farmer in Madina is relatively busy throughout they year, since they grow many different types of crops. The harvesting of Arabica coffee, for example, vary between regions. In Pekantan
Dolok (Muara Sipongi), for example, the peak harvesting season for Arabica will start around April,
and may last until July. In Hutagodang (Ulu Pungkut) harvesting is around June to September.
III-21
In general farmers practice contour planting, establishing live barriers and terracing. Fairly
recently, integrated pest management methods have been intensively promoted in Madina. Farmers
groups are being trained on these methods, and according to the Madina Estate Services staff, the
trainings have been well received by farmers, and that farmers adopt the new practice.
Most Arabica treees—and for that matter, Robusta—in Madina are planted under a shade canopy.
The use of shade for growing Arabica has been in effect for generations. Farmers give several reason for
using shade, such as to guard against too much sunlight which will cause extensive branching off
(meranggas), undergrowth, or having larger leaves and leaving less nutrition for the coffee cherries.
In Pekantan area, the traditional shade is the ‘dap-dap’ tree (elsewhere known as dadap, Erytrina
lithosperma or E. subumbrans ). In Ulu Pungkut, the traditional shade is the kayu embun
(Dacrycarpus imbricatus). Nowadays they are reverting to using a pest-resistant of the lamtoro
plant (Leucaena sp, especially the PG 79 variety). The relatively new coffee farm of PT Mandailing
Kopi Prima in Simpang Banyak (Ulu Pungkut) uses the lamtoro plant8.
In general, farmers are open to the type of shade used, especially if additional income from the shade
trees are possible. For example, the Ulu Pungkut farmers have heard that elsewhere the pepper tree is used
as shade (in Bengkulu Province); a farmer is considering to implement this in his coffee garden.
Quality issues are not the main concern for farmer in Madina, including in harvesting and processing of
coffee. The main reason is the lack of incentive to improving quality. Farmers are not yet producing to fulfill
standards international standards such as organic, fair trade, shade grown or ECO OK. Locally, the Indonesian
national coffee grading system9 is barely implemented. Local traders buy coffee according to weight.
Photo: Diah R.S
Expansion of coffee farms is not seen in recent times in Madina; on the contrary, coffee trees are increasingly
converted to other crops or being abandoned, transforming itself into forests. Degraded lands are also not
widely prevalent, and land clearance for cattle grazing is almost unheard of.
Neglected coffee trees
Simpang Banyak (Madina).
While there are types of lamtoro that are resistant to pests, Najiyati and Danarti (2004) do not recommend the use of this
type of tree since it is still very prone to attacks of the jumping flea, Heteropsylla sp.
9
The Indonesian national coffee grading system (Standard Nasional Indonesia or SNI) is based on the ‘defect’ system and has
been in place since 1983 [Yahmadi, 1999]. This standard has two components, a general requirements and a specific requirement.
The general requirements consists of various points including the minimum size of beans, moisture content, and others. The
specific requirements are based on the number of broken or defective beans per kilogram. It is used by the Indonesian Coffee
Exporter Association (AEKI) and developed by the government export inspection agency.
SECTION
III
8
III-22
Farmers do practice burning to clear land for cultivation. However, the size and frequency of
land clearing by burning is relatively low. Additionally, clearing is mostly practiced on abandoned
land rather than forests. Therefore unlike elsewhere in Sumatra, forest fires do not occur in Madina,
and therefore is not a threat.
Farmers in general understand that many species in the region are endangered, although perhaps
they do not know the formal legal status of these species. For example, farmers understand that
tigers are an endangered and protected species. Villagers report that tigers are seen in villages in Ulu
Pungkut, usually very early morning. Tigers seems to use the villages as acorridor for moving across
forests, and do not bother people nor livestock.
Farmers hunt wildlife as a side activity, mainly for consumption (e.g. deer), to a smaller
extent for sale, and as a method for pest control (wild boar). Traps are set in strategic places
which farmers will periodically check.
3.3. Extension services being provided and conditions of service delivery10.
The main provider of extension service in Madina is the Local Government through its respective
services office. In coffee agriculture and processing, extension is mainly provided by the Estate Services
office11. Additional support is also given by the Industry, Trade and Investment office, mostly in the
form of training and equipment/supplies for coffee processing. Most extension work however, is
concerned with the planting aspects of coffee growing, or with the conversion of from Robusta to
Arabica varieties, and less to the processing and marketing of beans.
Through the local Estate Services office, Madina is part of a national program (along with Deli
Serdang and Simalungun Districts) of Pengendalian Hama Terpadu (integrated pest management or
IPM). Sixteen extension staff have been trained for IPM in Madina, and they have conducted and
IPM training and fieldwork for coffee farmers (Sekolah Lapangan Pengendalian Hama Terpadu,
SLPHT). The IPM fieldwork promotes better seed selection, fertilization and maintenance of cash
crops, to only use pesticides if natural predators are not present, and to monitor crops effectively.
Specific modules are available, e.g. for coffee and cocoa farming.
Fifty coffee farmers have participated in 2004 from Hutanamora Village (Lembah Sorik Merapi
Sub-district), and in 2003 about 25 people from Ulu Pungkut Sub-district. Training was conducted
once a week for with up to 20 meetings, and the activity was financed by the local budget. Previously
coffee farmers have used pesticides, although in very small scale12 since they lack knowledge about pests
and its natural predator and disease types. The usual diseases attack the roots and leaves13. In general,
farmers were very receptive to the IPM training. These days farmers do not use agrochemicals at all
since it is costly compared to the selling price of coffee.
“Extension services” is used broadly to refer to both traditional agricultural assistance services as well as to any other
technical service provider, educator, organizational representative or community member that focuses at the household level
in the site. This may include development workers, health promoters, protected area guards and environmental education
staff, other governmental agency field staff, etc. It should not be narrowly associated with just the ministry of agricultures
technical staff.
11
The Agricultural Services office mainly targets the food crops sector.
12
For example, coffee farmers say that pest is uncommon in Ulu Pungut, perhaps since it is a cold place.
13
Unlike farmers in Gayo, farmers in Madina can not articulate (e.g. provide specific names) the disease types attacking
coffee plants.
SECTION
III
10
III-23
Photo: Diah R.S
Coffee
at Mandailing Kopi
Prima’s farm.
Apart from assistance/extension to the coffee sector, the Estate Services office is also actively
engaged in the promotion and expansion of the rubber sector since 2003. They have established
seed bank which have actively propagates and distributes rubber seedlings to farmers at cost. A
rubber auction market is planned for completion in 2005. Another plan in the offing is the
development of a 500 ha Local Government-owned estate comprising rubber, cacao and coffee.
Assistance by the local Industry, Trade and Investment Services office have come in the form of
technical advise on processing and packaging, and in the form of equipment (e.g. plastic bags14 with
and without labels and basic equipment for vacuum sealing). Processors in the ( Dolok Village and
some households roasters/grinders in downtown Panyabungan have received such assistance.
Apart from working with coffee farmers, the Industry, Trade and Investment Services office have
also worked with rubber farmers in creating a rubber cooperative in Kayu Laut Village (South
Panyabungan Sub-district) 15.
Additional support have also been given by the provincial-level services office. For example, a set
of coffee processing machines (from pulping to packaging) was provided to a cooperative in the
village Ulu Pungut using funds from the provincial budget. The machine comes with a set of technical
assistance from the ICCRI (which constructed the machine) as well as technical training for some of
the cooperative’s personnel16.
SECTION
III
Unfortunately, there is not yet collaboration with universities in the region, for example with
the North Sumatra University.
III-24
Both farmers and the Industry, Trade and Investment Series officer concede that paper or carton packaging is better for
ground coffee; however it is much more expensive compared to plastic packaging.
15
The rubber sector is much more organized than the coffee sector. In fact, there is a local branch of the
Asosiasi Petani Karet Indonesia
(association of rubber farmers of Indonesia).
16
The machine, however, is not yet being used since the cooperative lacks operating funds.
14
PART A
SECTION IV
LOCAL VAL
UE CHAIN AND MARKETING STRA
TEGY
ALUE
STRATEGY
4.1. Processing, commercialization and other services
4.1.1. Processing and commercialization
The processing system in Mandailing is in general using a very basic wet method (also called
the semi-washed method). The first stage of processing—harvesting—is done by hand. Since many
coffee estates are located far from residential areas, whereas yields are small, many farmers do not
only pick ripe cherries, but also unripe, green, ones. Processing of coffee cherries up to the parchment
level is generally conducted at the farm level (Figure 6).
After being harvested, coffee cherries are transported for further processing, usually at farmers’
home. Previously cherries are ground in stone grinders to separate the pulp. Nowadays many
farmer boil coffee cherries; by boiling even green cherries can be pulped easily [D. Nasution,
2005: pers. comm.].
Figure 5 General coffee cherry processing flow, Madina
Overnight
(dry)
fermentation
On farm
mechanical/hand
operated pulper)
Storage
Or
Local collector
Or
Direct to local market
Domestic or
international buyers
Hulling
Drying in
the sun
Drying
Hand sorting
Sorting
Drying
Next coffee cherries are fermented overnight, in sacks, buckets or other storing apparatus. Cherries
are then washed to remove the mucilage, followed by drying. Drying is done in an open, flat spaces
such as the yard or roadsides. Raised platforms are rarely used for drying.
After a few days of drying, dry cherries are then sold to collectors or are kept for a time until
collectors arrive or the price is more favorable. If a farmer has sufficient quantity of beans, he may
bring it directly to a local market to be sold. A peculiar aspect of the coffee market in Sumatra,
which seems to also be the tendency in Madina, is that cherries are sold at relatively
LOCAL VALUE CHAIN AND MARKETING STRATEGY
IV
Off farm
Washing
SECTION
Harvest
Pulping
(Crushing in stone
grinder, boiling, or
Transport to
processing
place
IV-25
high moisture level, more than 30%, which makes it more susceptible to molding [Ismayadi and
Zaenudin, 2003].
The amount of processing a farmer undertakes will depend on the current selling price and his
evaluation whether the price differential is worth the time and effort of processing. Farmers can even
sell cherries as they are harvested. Local farmers use the standard weight of a can (kaleng) of coffee to
indicate the level of processing (i.e. drying) cherries have undergone. A can of dried beans which will
obtain top prices will weigh about 3 kg. If less dry cherries will weigh significantly more, up to 4 kg. A
buyer will adjust the price at which he will buy the cherries depending on the weight of the cherries.
It is very rare that a farmer will process coffee exclusively from harvesting to roasting on his own.
Growers with only a small amount of cherry harvest may sell their harvest to a village-level collector,
who then may or may not process the cherries himself before selling it to another collector which
buys from several villages (in the sub-district). Ultimately the parchment will end up in the hands of
wholesalers in Medan (North Sumatra) and Padang (West Sumatra)
For traders, the cost of collection becomes high since each place can only provide low volume of
coffee. Roads to and from Madina from other cities in North Sumatra are also not in good condition,
making it more costly to transport coffee, especially to Medan. The flow of coffee as it changes
ownership is given below (Figure 7).
Figure 6 General coffee marketing flow, Madina
Farmers
Processing
units
Local consumers
(households, coffee
shops etc)
Village level
local collector
National buyers
Regional
collectors
Sub-district
collectors
International buyers
SECTION
IV
District
collectors
Provincial
collectors and/or
exporters
(in Medan or
Padang)
IV-26
In the Mandailing region, Kotanopan is the center for coffee trade, where local coffee collectors
meet with buyers who have come from outside the region. Most of the coffee is brought outside
the region; very little is being processed domestically, and usually by household or small-scale
processors (Box 1).
Box 1 Pak Mai, a small local processor
Pak Mai is a local processor working out of a small shop in the center of town of Panyabungan. He buys
coffee directly from farmers in the surrounding areas, sometimes travelling 35 km to villages in Kotanopan.
Most of the coffee he buys are Robusta; it is hard to find farmers who has Arabica beans. Whenever he can
find some Arabica, he buys it to be mixed with the Robusta. The aroma of local Arabica is different and much
better than the Robusta, so a mixture will result in more fragrant cup of coffee.
Nowadays he buys dry Robusta parchment at about Rp5,500-Rp6,000/kg, and Arabica at about
Rp7,000/kg. In general the quality of beans are about the same everywhere, but he observes that a lot of
farmers are switching to cocoa.
From about 100 kg of parchment Pak May is able to obtain 70 kg of pure ground coffee (without mixing
in other ingredients); he sells these for Rp14,000/kg. He makes two other grades of ground coffee: one type
coffee that is mixed with 20% corn powder is sold for Rp12,000, and another with 50% corn powder is
Rp8,000/kg. The corn powder he buys in the market, and he was told it comes from Siantar.
Pak May on average roasts twice a week. His customers are mostly local households and small
coffee shops. His coffee compete with those that comes from Pasaman in West Sumatra Province, which are
cheaper.
Source: Pak Mai, pers. comm.
Most of the coffee beans from Madina will ultimately end up either in Padang (West Sumatra) or
Medan (North Sumatra) after passing hands through many middlemen1. Through the creation of
many more local processors (Unit Pengolah Hasil or UPH), farmers will be able to sell directly to
processors and thus cut shorter the chain of middlemen. In Simalungun District, for example, the
price for coffee at farmer’s level (farmgate price) is a little higher than in Madina since the marketing
chain is shorter and there are many UPH operating everyday. Sometimes these UPH come to Madina
to buy coffee since their processing capacity is higher than local production. For this reason, a large
volume of coffee from Madina are thought to originate from the Sidikalang area2.
The market relationship between farmers, cooperatives, intermediaries and buyers are relatively
stable interacting in the market place (rather than one on one). There does not seem to be other type
of support provided by coffee buyers to farmers.
This is unlike rubber which is oriented to the market in Medan, and cassiavera which is oriented to Padang.
It is almost certain that coffee originating from different places are being mixed in Sidikalang, especially since Mandailing
coffees are generally believed to have a better aroma.
17
SECTION
Iv
In general, the coffee sector in Madina only caters for the local and regional markets, which are
not demanding in its quality requirements. There are indications, however, that the coffee cherries
produced by local farmers are of relatively good quality. A recent taste and quality test conducted at
the ICCRI on coffee from Ulu Pungkut pronounced that the quality of the coffee is good (Matondang,
2005: pers. comm.]. Another proof is that a local producer, PT Mandailing Kopi Prima, which caters
to the export market has had to buy cherries from local neighboring farmers to top off its own
production for export purposes [Rangkuti, 2005: pers. comm.]. It seems that with proper processing,
the farmers’ coffee meet the required international (non-organic) standards.
18
IV-27
4.1.2. Producer organizations
At one time or another farmers in Indonesia have belonged to, or at least requested to join, a
farmer’s group. Being a member of a group is often a prerequisite for obtaining support (financial,
technical, or material) or for participating in a government-sponsored program. In this case, it can
be said that most farmer’s organization are government-sponsored.
There are very few cooperatives in Madina, and in the years between 1998 and 2003, only two
additional cooperatives were formed (Table 11). To the best knowledge of local Estate Service staff,
there seems to be only two that specifically group coffee producers. The first is in Hutanamale
(Kotanopan Sub-district), which was formed a few years back (in 2000 or thereabout). The second
is in Huta Godang (Ulu Pungkut Sub-district), which has just been formed in 2004.
Table 11 Cooperatives
in Madina, 1998 and 2003
No
Sub-district*
1998
2003
1
Batahan
8
7
2
Batang Natal
2
3
3
Lingga Bayu
1
1
4
Kotanopan
2
2
5
Ulu Pungkut
1
1
6
Tambangan
1
1
7
Lembah Sorik Merapi
1
1
8
Muara Sipongi
1
1
9
Panyabungan
3
3
10
Panyabungan Selatan
1
1
11
Panyabungan Barat
1
1
12
Panyabungan Utara
1
1
13
Panyabungan Timur
1
1
14
Natal
10
10
15
Muara Batang Gadis
8
10
16
Siabu
4
4
17
Bukit Malintang
1
1
47
49
Total
The cooperative in Huta Godang was expressly formed
to receive a set of coffee processing machine provided by
the North Sumatra Provincial Estate Services office. The
set was constructed by the ICCRI is made up of many
components to undertake pulping to roasting and
grounding, to packaging coffee. The machine is not yet
operational since the harvesting season has not yet arrived19.
By procuring the machinery, it is hoped that the local
coffee-growing sector can be revitalized, since processing
will be easier (and less costly), and quality can be improved.
The cooperative is being modeled after a similar experience
in Sidikalang (Dairi District, North Sumatra). The Chief
(Camat) of the Ulu Pungkut Sub-district stated that several
potential buyers20 have expressed strong interest in making
continuous purchase from local farmers, given that a steady
volume of beans can be guaranteed. In addition, the group
also has plans to apply for the copyright of the term
“Mandily” for their coffee production.
SECTION IV
4.1.3. Business advisory services
Several sources of business advisory services are theoretically available to farmers and farmer
organizations: the government technical offices at the local, provincial or even national level
(such as the Trade, Industry and Investments Services; Cooperative Office; and the Estate Services
itself ). Thus far, however, these agencies have not had sustained programs directed at coffee
farmers. What have been available are fragmented and piecemeal assistance that were developed
without consultation with other relevant agencies and/or the prospective clients themselves
(i.e. the coffee farmers themselves). An example is the granting of a set of equipment to a village
cooperative as mentioned above, without the long-term facilitation and assistance which may ensure
the long term success of the operation.
19
20
IV-28
There is also the opinion that the cooperative lacks the funds to finance the initial operation of the machinery.
From Jakarta and Pekanbaru (Riau Province).
Suffice it to say that there is a host of resources (financial and technical) that can be tapped into
for assistance to coffee farmers. To access them effectively, however, a coordinating body working
closely with farmers for the long term is perhaps what is needed and is currently lacking.
4.2. Financial services
Commercial credit from formal financial institutions is not easily accessible to farmers in Madina,
and for that matter to farmers in Indonesia in general. The reason is that farmers often can not fulfill
the administrative requirements set by banks, and collateral is often not available in the format that
banks require 21.
Those in need of credit have resorted to borrowing from pawnshops and from unofficial sources,
i.e. friends and family members or local creditors (tengkulak or tauke ). The Padang Sidimpuan
branch of the state-owned pawnshop (Perusahaan Jawatan Pegadaian) reported that the amount
borrowed by Madina residents against pawned assets in 2003 totaled Rp13.46 billion (about $1.45
million), more than threefold the amount in 2001, with increasing value per unit of collateral. In
the years between 2001-2003 only less than 0.5% of collateral was not redeemed (Table 12). No
doubt the penchant of Indonesians—and, in particular, Sumatrans—for investing in the form of
gold jewelry facilitates borrowing from pawnshops.
Table 12 Loans taken out at a state-owned pawn shop by Madina residents, 2001-2003
Year
Number of units
placed as
collateral
Amount
Average value Value of collateral auctioned
borrowed
per unit
off/not redeemed
(in million Rp) collateral (Rp) (as % of amount borrowed)
4,225.16
737,504
0.32
2001
5,729
2002
12,044
10,264.87
852,281
0.12
2003
14,905
13,458.13
902,927
0.44
Compared to the interest charged by pawnshops (between 3 to 4% % per quarter), the interest
rate charged by these sources vary and can be quite high. However, since collateral is rarely required
such arrangements are still quite common.
21
Farmers may have fixed assets (land, house, etc) that can be used as collateral, however they rarely have the paperwork
to prove ownership (e.g. proof of registration or deeds). The reason is that farmers are reluctant to pay taxes for these
assets, or they do not see the benefit of registration. Even if they have the collateral, given the uncertainty of harvest,
farmers are reluctant to put up assets a collateral. They would rather go to an informal source of credit (e.g. neighbors,
family members, or local creditors/loan sharks) and put up future harvests as collateral.
SECTION
IV
Since the establishment of Madina as an autonomous District, several of the major national
banks have established a presence in Panyabungan. In addition, there are two privately-owned
credit agencies in Madina (one each in Kotanopan and Panyabungan). There are other potential
sources of financial support (both grant and credit) that is available at the national level for
IV-29
farmer groups22. However, these sources are competitive in nature, and farmer groups will need
facilitation in order to access them.
4.3. Marketing strategy and industry
‘Mandailing’ or otherwise known as ‘Mandheling’ or ‘Mandily’, has been known for many,
years internationally, ever since the first harvests of the Dutch-sponsored coffee estates were exported
to Europe.
Presently, the term Mandheling is mostly used to describe coffees from Sumatra in general,
rather than the origin or site where the coffee is grown.23 It is ironic, therefore, that Mandheling
coffee have gained ground in the international arena whereas coffee-growing in Mandailing itself is
increasingly abandoned.
Given the general profusion of descriptions, it’s unclear whether the descriptions or terms that
are generally used to describe ‘Mandheling coffees’ are actually applicable to coffees grown in
Mandailing. The confusion aside, the specialty market describe Mandheling Arabica as strong and
full-bodied; have good (low) acidity, and earthy and warm aroma, and rich, smooth and full-flavored
[Mawardi, 1999 and cross-referenced with various coffee internet sites].
While it may be confusing, the use of ‘Mandheling’ or ‘Mandailing’ as trade names seem to
project the image of good quality coffee, and should be a positive advertising for coffee from Madina24.
Unfortunately, good international image is apparently having no impact on coffee growers in Madina—
it has not helped boost production and quality coffee that caters to the international market. In fact,
the increased consumption of specialty coffees in the past few years, including in Indonesia, have
not been sufficient to prevent the negative growth of the coffee sector of Madina.
Based on statistics, production over the past few years25 have been decreasing, slightly picking
up in 200426. Local farmers indicate that the last immediate time coffee prices were favorable
In the aftermath of the financial crisis, it was observed that household, small-scale and medium enterprises were the most
resilient in surviving the economic downturn as they were not ridden with foreign currency debt, and were more flexible in
adapting their strategy to the new business environment compared to the large-scale enterprises and conglomerates. Since
then, the government has budgeted more resources (credit, technical assistance, etc) for micro-, small- and medium-sized
enterprises. In addition, policies were put in place requiring banks to allocate a larger portion of their credit to these
institutions.
23
Internationally, however, many people apparently think that Mandheling coffee actually comes from Mandailing. For
example, Mandheling is described as a one of “….two major growing regions” (www.indonesiancoffee.biz), and that
Mandheling coffee is grown in “…..districts around lake Toba in North Sumatra Province.” Yet others indicate that
Mandheling and An(g)kola coffees “….are grown near the port of Padang in west-central Sumatra,” (
www.lucidcafe.com). The confusion reigns deeper when “…a coffee labeled Sumatra…should consist entirely of beans from
a sing crop in a single country, Sumatra.”
24
An Australian man traveled to the Netherlands where he was told that the best coffee in the world comes from Mandailing.
Back in Indonesia, he worked with his Indonesian father in-law to find land in Mandailing. Having found suitable land in
Simpangbanyak Village in Ulu Pungkut, a small coffee estate was established: PT Mandailing Prima Kopi [Rangkuti, 2005:
pers. comm.].
25
Coffee production data for the past 10-15 years may be available from the statistics office in Sidikalang, South Tapanuli
District, where formerly Madina belonged; given limited time during the field visit a data collection trip to Sidikalang was not
undertaken.
SECTION
IV
22
IV-30
were in 1998-98 27 during the financial crisis, when price was about Rp17,000-18,000/kg of
parchment. Given that at such a favorable time local farmers were only able to produce 2,384 tons
of coffee, this is perhaps close to the current available production capacity.
Table 13
Area and production of smallholder coffee in Madina, 1998-2004
6,000
Area and Production
5,000
4,777
4,797
4,853
4,853
4,887
4,000
3,000
3,348
2,802
2,384
1,936
2,000
1,945
1,945
1,945
1,549
1,112
1,000
0
1998
1999
2000
2001
2002
2003
2004
Year
Area (Ha)
Production (Ton)
Source: CBS Madine, various years, Estate Services Madina, various years
There is no data on the size of the demand for coffee, but from interviews it seems that local and
regional demand are stable if not slightly growing. The growth may be due to the decrease in price
which can’t be met by supply, but since there are alternatives to local coffees, the gap in demand and
supply has not induce a price increase. At farmer level in 2004, Arabica was selling for Rp5,500Rp6,000/kg of parchment, Robusta at about Rp4,000/kg. Given these low prices, old coffee trees
were not maintained since it was not economical, especially considering that before 1995 price
reached Rp30,000/kg28. This year processors say that there are buyers who will shell out Rp15,00019,000/kg for good Arabica beans, yet there is no supply to be bought.
To ensure a steady supply of beans, farmers need to receive at least Rp10,000/kg for Arabica [A.
Nasution and D. Nasution, 2005; pers. comm.]. If coffee price can be stable, farmers would rather
tend to coffee than grow rice. The trend in the past was that price would go up and then there would
be an oversupply, which causes price to come down abruptly and significantly. Consequently farmers
are wary of price increase for coffee. If price can be stable for at least 5 years, farmers will have the
incentive to grow coffee and tend to production on their own.
26
The rise in area and production size in the statistics may be due to more to diligent data collection (for the purpose of
publishing a dedicated yearly statistics on cash crops), rather than actual expansion of the sector.
27
Or as locals put it, “…while Habibie was president” [Darwin, pers. comm.].
28
Villagers were told that in that year the international supply had gone down due to harvesting failure in Brazil. Many buyers
come to the villages to buy coffee from farmers. In the 1980
’s buyers came actively to buy from the villages to bring to Medan.
SECTION IV
From a village with 150 heads of household in Pekantan Dolok Village, about 5 tons of
Robusta can be produced by the village depending on the harvesting season; an exceptionally
good season will see 10 tons produced. On the other hand, perhaps only around 200 kg of
Arabica will surface in this Village.
IV-31
During Dutch rule, Robusta was not in demand, although the quality is also quite fine from the
area. Presently, there is always a local buyer for Robusta even though the price can be very low. Some
people bring the coffee to elsewhere in Sumatra (for example to Dumai in Riau Province) to be
mixed with other coffees. The cost of tending to Robusta trees are not so high since farms are located
closer to residential areas.
The major coffee buyers in the region currently are regional in nature; about half of the regional
buyers come from Medan with the other half from Padang (West Sumatra). A major regional buyer
is from the neighboring Rao and Pasaman in West Sumatra Province. Processors buy dry coffee beans
from Mandailing, produce ground coffee from it—packaging it under a ‘Pasaman’ brand—and market
it to major cities in Sumatra and Java, including back to Mandailing.
A study on coffee quality in the Indonesia coffee triangle (South Sumatra, Lampung and Bengkulu)
indicate that the presence of defects are high in coffees at the farmer and local/regional (small- and
medium-scale) collectors levels, but significantly lower at the wholesale level. This indicates that
significant re-processing are conducted by wholesalers to remove defective beans, and negligible
processing if at all at the local collector levels [Yahmadi, 1999]
The Mandailing Arabica has good aroma, much sharper compared to the local Robusta. Locals,
however, prefer Robusta. Sometimes when processing, the two are mixed. Additionally, by mixing in
corn powder, it’s possible for local ground coffee to be sold at lower prices than that paid for coffee
parchment.
The main local actors promoting the region’s coffee seems to have been the Local Government,
although it’s efforts are small in scale and of very limited exposure (i.e. directed only at the local or
regional audiences). For example, the local Madina Trade, Industry and Investment Services office
have for several years provided local producers with generic coffee packaging bearing the Mandailing
name. Fairly recently, the Local Government promoted a marketing tour to Penang, Malaysia.
However, there seems to be no direct communication between clients to farmers, perhaps since there
may be several layers of middlemen between farmers and consumers/ultimate buyers in Madina.
Consequently, farmers are only vaguely aware of quality requirements. For example, farmers in Ulu
Pungkut understand that they will need to improve post-harvesting treatment of their coffee if they
want to sell to international buyers.
Local government staff seem to be quite motivated in supporting the local coffee sector in recent
years. They point out to the success of marketing efforts from Lintong—in only a few years, the
Lintong brand has achieved success internationally.
SECTION
IV
Internationally, Sumatran coffees are generally sold as a varietal coffee, and is primarily used as a
component of a blend [Fricke, pers. comm.]. However, local informants believe that no international
buyers are buying directly from Madina. It may be that international buyers go through wholesalers
or exporters in Medan or Padang. One local buyer emerged last year, PT Mandailing Kopi Prima,
which bought about 3 tons of coffee from farmers near its estate to top off its own production which
was targeted for export to Switzerland [Rangkuti, 2005; pers. comm.]29.
29
IV-32
This information has not been confirmed with the management of PT Mandailing Kopi Prima itself.
PART B: THE GAYO HIGHLAND
PART B
SECTION I
N ATURAL RESOUR
CES , INTERRELA
TION WITH COFFEE
RESOURCES
INTERRELATION
TEGY
OPPOR
TUNITIES
VATION STRA
OPPORTUNITIES
TUNITIES,, AND FIT WITH CONSER
CONSERV
STRATEGY
The Gayo Highland is geographically located at 96° 27' to 96° 22' East and 4° 10' to 4° 58'
North, with elevations ranging from 200-2,600 m above sea level. It is type B (wet) on the SchmidtFerguson classification, with average rainfall of 2.184 mm/year in 162 days out of a year.
Administratively it is comprised of two districts, Central Aceh and Bener Meriah Districts, each with
10 and 7 sub-districts respectively. In 2002 there were 324 villages in the region [CBS Central Aceh,
2003; Widyotomo et al 1999].
Several protected areas intersect in the Gayo Highland: the Leuser Ecosystem (which includes
the Gunung Leuser National Park), the Lingga Isaq Game Park, and the Seulawah Heritage Forest
Ecosystem (Map 2).
Leuser Ecosystem (or locally known as KEL, the abbreviation of the Indonesian term of the area, i.e. Kawasan Ekosistem
Leuser) as a protected area in 1992, more than 10 years after the Gunung Leuser National Park, with the intention of including
areas of particularly high biological diversity and to provide the required range for the larger mammals [Wiratno, 2005; pers.
comm.].
30
NATURAL RESAURCES, INTERELATION WITH COFFEE, AND FIT WITHIN CONSERVATION STRATEGY
SECTION
PPKGO farmers’
coffee tree
I
Photo: Lydia Napitupulu
Part of the Gayo Highland is located within the Leuser Ecosystem, a 2.6 million ha area with
formal protected status given in 1998. Inside the Leuser Ecosystem is the 865 thousand ha Gunung
Leuser National Park (GLNP) which was established earlier in 1980 as one of the first national parks
in Indonesia 30 . Together, the Leuser Ecosystem is 150 km long, over 100 km wide and is
predominantly mountainous. It covers most of the West Barisan, West Alas and East Barisan ranges
and is nearly divided by the Alas Valley graben. About 40% of the Ecosystem, mainly in the north,
is
I-33
SECTION
I
steep and over 1,500 meters in elevation. In the lower southern half or about 12% of the Ecosystem,
it is below 600 meters and for 25km runs along the coast. Eleven peaks are over 2,700 m in elevation,
and the highest point is 3,466m (Gunung Leuser). The Ecosystem has a 3,000 mm rainfall in the
north, and up to 4,657mm in the lowland south. Temperatures average between 21° to 28°C and
the humidity is always above 60%, especially over 1,700m.
In total, the Ecosystem is spread over two provinces, North Sumatra and Aceh. The Ecosystem
holds Sumatra’s most threatened forest type, the Sumatra lowland forest, in addition to coastal and
montane forests. Superlatives abound to describe the Ecosystem: it holds 45% of plant species recorder
in the West Indo-Malayan region; at least 194 species of reptiles and amphibians; 387 species of
bird; rare mammals such as the Critically Endangered orangutan (Pongo abelii), Sumatran elephant
( Elephas maximus sumatranus ), Sumatran rhino ( Dicerorhinus sumatrensis ), Sumatran tiger
(Panthera tigris sumatrae ), wild goat (Capricornis sumatraensis ) dan at least seven of the nine
Indonesian cat species. Moreover, the GLNP has been declared a UNESCO Biosphere Reserve.
Apart from its highly diversified and unique landscape, flora and fauna, the Ecosystem
also provides important ecological services to the millions people living in its vicinity, including
the people of Gayo. These services include the flow of water for household, agriculture and
industrial use (estimated to serve more than 6 million people); the management and prevention
of erosion and flooding; a habitat for freshwater fishery resources; local climate control; carbon
I-34
sequestration; a source of genetic diversity; a beautiful landscape for tourists to visit; and many more
other services. One source calculated that in monetary terms, the Leuser Ecosystem generates about
Rp 1.9 trillion (about $204 million) of services annually [Beukering et al, 2003], and this is not
even counting the benefits it generates for people not living in its immediate vicinity.
In addition to the Leuser Ecosystem, the Lingga Isaaq Game Park and Forest Preserve and the
Seulawah Heritage Forest Ecosystem are all located in parts of the Bener Meriah Sub-district. The
mapping of the Game Park is only recently completed, and it covers an area of about 85,381 ha
[CBS Central Aceh, 2003]. The Seulawah Heritage Forest covers an area of about 1.4 million ha
that is yet without formal protection status, but which has been identified as a crucial area to be
conserved in order to maintain the genetic exchange of large vertebrates such as tigers, rhinos and
elephants. The area also harbors many endemic species, and acts as a watershed for major cities in
the northwestern part of Aceh.
Despite its protected status, the Leuser Ecosystem is facing increasing pressures from economic
activities such as illegal logging, plantations and other agricultural activities, and development of
human settlements. The National Park and its surrounding land classified as buffer zone or watershed
protection forest cannot be used for logging, plantation or agricultural schemes but reports of these
activities, even inside the Park itself, abound. Similar pressures are also impacting the Game Park
and the Seulawah Forest.
SECTION
I
Given the strategic importance of the Gayo Highlands to the establishment of a viable biodiversity
corridor in northern Sumatra, it’s important that land use and economic development planning
take into account conservation needs. An intervention directed influencing regional landuse strategy
and the type of economic activities undertaken may be a particularly effective way of nsuring the
achievement of conservation targets in the region.
NATURAL RESAURCES, INTERELATION WITH COFFEE, AND FIT WITHIN CONSERVATION STRATEGY
I-35
PART B SECTION II
CUL
TURAL, POLITICAL
CULTURAL,
CONDITIONS
AND
SOCIO-ECONOMIC
2.1. Key demographic indicators
Prior to 2003 the Central Aceh District comprised of more than 263 thousand people living in
322 villages. In 2003, Central Aceh District was split off into two districts, creating the new district
Bener Meriah. Today, the two Districts comprise the main coffee-growing area of the Gayo region.
During the 5 years between 1997-2002 the region’s population grew 15.3% or an average of
3.1% annually, much above than the national average of about 1.5% annually for the same period31.
In the last few years since 2002, however, the population seems to have grown at a very high rate. In
2002, a 9.6% jump in the population is seen for Bener Meriah, and 7.2% for Central Aceh. In
2003—the latest year demographic data is available—the population of Central Aceh District grew
by 4.6% (Table 14). One reason for the rapid increase in the population during these last few years
is that the region is now relatively safe, and so people who previously left the region have returned.
In addition, economic opportunities have led people from other areas, especially from North Sumatra,
to seek jobs there, mostly in the trading sector.
In terms of population density, the Bebesen Sub-district in Central Aceh is highest with about
448 people/km 2; the Kebayakan Sub-district in Central has the highest average household size
(more than 8 people per household).
Through the split, Bener Meriah has ended up with a lower proportion of the region’s population
and area, though not in similar proportions. Consequently population density is about twice of
Central Aceh. Bener Meriah also has a somewhat higher average family size.
The ratio of female to male population is not overly tipped to one gender for the region: for
Central Aceh it is 1 male to 99.3 female, for Bener Meriah the opposite, 1 female to 99.3 male.
2.2. Key economic indicators
SECTION
II
In nominal terms, the total Central Aceh GRDP in 2003 was Rp8.3 million (about $89.37
million), or a GRDP/capita of Rp5.3 million (about $570). This is lower than the provincial
II-36
Official statistics is not available for Bener Meriah population after 2002. Since the split, Bener Meriah District has yet to
have a fully functioning local government including the local statistics office which is not yet staffed and operational. On the
other hand, starting fiscal year 2004 the Central Aceh District has ceased to collect and report data that includes the Bener
Meriah District. Consequently, statistics for the year 2003 and 2004 for Bener Meriah is rarely available. In some cases it’s
possible to separate data for each district by using statistics prior to the division; in other cases this is not possible since data
is not broken down by sub-district. In this section, whenever a statistic is attributed to the
‘region’, this means both districts together.
31
Table 14 Population, area and population density in Central Aceh and Bener Meriah, 1997-2003
Area (Km2)
1997
1998
1999
2000
2001
2002
123,907
125,808
127,179
137,799
139,923
149,983
156,848
1.53
1.09
8.35
1.54
7.19
4.58
14,956
16,291
16,888
18,964
18,693
19,706
21,983
7,163
7,116
7,191
7,926
8,082
8,076
8,357
3 Takengon
24,298
24,247
24,430
26,023
27,629
28,857
5 Pegasing
16,147
16,636
16,760
18,557
17,884
6 Bebesen
23,456
23,509
23,653
26,560
7 Silih Nara
37,887
38,009
38,257
39,769
1 Linge
2 Bintang
8 Ketol
9 Kebayakan
10 Kute Panang
11 Celala
4 Lut Tawar
Total Central Aceh
Bener Meriah
Change (%)
1 Timang Gajah
2 Bukit
3 Bandar
4 Syiah Utama
Total Bener Meriah
36.32
36,835
4.26
2,263
9.71
5,427
4.05
429
19.48
1,864
4.48
--
--
--
--
--
18,865
12,514
128
97.87
4,837
2.59
26,611
30,746
21,138
47
447.93
6,764
3.13
28,098
30,621
27,298
767
35.59
5,672
4.81
12,926
13,112
6,962
405
17.21
2,219
3.14
24,308
56.34
431.45
2,732
8.90
9,448
35.06
269.48
1,732
5.45
7,036
89
79.06
1,701
4.14
17,804
99.56
178.83
3,887
4.58
156,848
4,318
36.32
36,835
4.26
4.92
average with oil and gas, which was
about Rp9.4 million and the
national
GDP127,179
which137,799
was 139,923
about 149,983
123,907
125,808
104,587 million
104,929
105,463
104,850Without
103,550
113,464
Rp9.5
in 2003.
0.33 32 0.51
-0.58
-1.24
9.57
oil39,960
and 40,059
gas 39,997
, however,
the 41,229
39,772
39,520
provincial
GRDP/capita
for 27,983
2003 34,710
31,662
31,756
31,934
29,290
32,965
33,114
35,788
33,979
34,302
is Rp4.7
million,33,532
to which
Central
2,068
3,223
Aceh
compares
104,587 GRDP/capita
104,929
105,463
104,850
103,550
113,464
favorably (Tabel 15).
Grand total Central Aceh
and Bener Meriah
228,494
230,737
232,642
242,649
2003
243,473
263,447
4,318
n.a.
2002
n.a.
n.a.
298.52
138.11
8,380
n.a.
172.8
200.87
6,605
5.26
n.a.
426.02
80.52
7,510
4.57
n.a.
560
5.76
740
4.36
iI
Change (%)
2003
Average
number of
people/
household
n.a.
1,457
77.86
23,235
4.88
SECTION
Sub-district*
Househo
lds
No
Central Aceh
Population
density
(person/
km2)
Coffee farms near PPKGO
processing facilities, Bener Meriah.
n.a.
5,776
45.61
60,070
4.39
Source: Central Aceh in Figures, various years
* Sub-district names were changed and added after the creation of Bener Meriah District
32
The oil and gas sector is only produced by 3 districts in Aceh: North Aceh, Aceh Tamiang and Lhokseumawe
CULTURAL, POLITICAL AND SOCIO-ECONOMIC CONDITIONS
II-37
Table 15 GRDP by sector in Central Aceh District (in nominal terms), 1993 and 2003
No
Sector
1
1993
Agriculture
2003*
(% of total)
2003*
125,408.40
577,127.32
69.44
Cash/estate crops
27,781.74
131,726.83
15.85
2
1,615.69
8,120.99
0.98
3
3,543.59
20,801.27
2.50
4
670.46
5,752.66
0.69
5
Construction
20,516.80
46,908.50
5.64
6
9,646.70
44,922.73
5.40
7
8
9
Services
Total GRDP
15,156.34
65,659.11
7.90
5,013.87
16,049.94
1.93
27,530.71
45,833.58
5.51
209,102.56
831,176.10
100.00
Central Aceh population 2003
156,848
Central Aceh GRDP/capita 2002*
4,990,136
Central Aceh GRDP/capita 2003*
5,299,246
Aceh Province GRDP/capita 2003 (without oil & gas)*
4,686,488
Aceh Province GRDP/capita 2003 (with oil & gas)*
8,514,354
Aceh Province GRDP/capita 2003 (with oil & gas)*
9,413,600
Indonesia GDP/capita 2003*
8,304,300
Source: CBS Central Aceh, 2004b
*Preliminary data
In nominal terms, between 1993-2003, the economy of Central Aceh grew almost threefold, or
an average of about 30% growth per year. This is misleading, since the inflation rate in Indonesia is
quite high. In constant terms (i.e. 1993 prices), Central Aceh GRDP in 2003 was only about
Rp277 billion (about $29.85 million), only 1.3 times larger than its 1993 size. This represents an
annual growth of only about 3.3% between 1993-2003 (Table 16). Accordingly, in constant prices
the GRDP/capita in 2003 was only about Rp 1.77 million (or about $190). In other words, the
economic situation has not really improved as nominal data seem to suggest.
Table 16 GRDP by sector in Central Aceh District (constant 1993 prices), 1993; 2000-2003
No
SECTION
II
1
Sector
Agriculture
1993
2000
2002
2003*
2003*
(% of total)
125,408.40
152,243.91
152,607.49
155,260.14
159,324.48
57.42
Cash/estate crops
27,781.74
43,717.42
31,451.13
32,519.35
33,795.29
12.18
2
1,615.69
2,729.88
2,749.79
2,999.53
3,123.50
1.13
3
3,543.59
9,112.43
9,175.89
9,409.75
10,096.92
3.64
4
670.46
1,907.87
1,928.18
1,963.50
2,035.96
0.73
5
Construction
20,516.80
15,216.48
15,540.70
16,359.39
17,199.12
6.20
6
7
8
9
Services
Total GRDP
9,646.70
12,437.69
12,823.71
13,542.27
14,188.68
5.11
15,156.34
29,860.95
30,345.29
31,542.95
33,398.08
12.04
5,013.87
5,353.05
5,979.07
5,922.51
6,988.18
2.52
27,530.71
29,145.23
29,718.20
30,237.89
31,094.06
11.21
209,102.56
258,007.49
260,868.32
100.00
Source: CBS Central Aceh, 2004b
*Preliminary data
II-38
2001
267,237.93
277,448.98
Population 2003
156,848
Per capita regional product 2003
1,768,904
Within the economy of Central Aceh, the most important sub-sector is agriculture; in nominal
terms it made up almost 70% of the economy in 2003. The cash/estate crops sub-sector is about
16% of the total economy. The second and third most important sectors in Central Aceh are the
transportation and communication sector and the services sector (contributing 12% and 11% of the
GRDP in 2003, respectively).
Within agriculture, the most extensive use of land is for growing cash crops. The main cash crop
in Gayo is coffee. Apart from coffee, sugarcane, tobacco plants, cassiavera and sugar palm make up
the five main crops in terms of land use in 2003 (Table 17).
Table 17 Area and production of smallholder estates by crop type in the Gayo Region, select years*
1998
No
Crop
Area
(Ha)
2000
Production
Area
(Ton)
(Ha)
2002
Production
Area
(Ton)
Production
(Ha)
(Ton)
1
Aromatic oil/nilam
5
0
81
8
2
Candlenut/kemiri
-
-
201
8
3
Cassiavera/kulit manis
41
-
103
0
4
Clove/cengkeh
40
1
61
2
5
Cocoa/coklat
-
-
5
0
5
1
6
Coconut/kelapa
-
-
49
3
49
5
7
Coffee/kopi*
73,373
28,968
73,781
28,357
73,821
26,747
8
Ginger/jahe
-
-
16
4
15
8
9
Kunyit
-
-
-
-
-
-
10
Nutmeg/pala
-
-
5
1
11
Oil palm/kelapa sawit
-
-
2
-
5
2
1
-
12
Pepper/lada
-
-
12
1
15
2
13
Sugar cane/tebu
2,963
7,938
5,932
44,958
2,932
2,437
14
Smallholder
n.a.
n.a.
2,971
15,392
n.a.
n.a.
15
Estate
n.a.
n.a.
2,961
29,566
n.a.
n.a.
81
201
4
11
87
21
7
1
16
Sugar palm/aren
-
-
-
-
-
-
17
Tobacco/tembakau
6
2
19
3
54
7
18
Quinine/kina
-
-
-
-
-
-
2003
Area
Production
(Ha)
(Ton)
63.5
0.65
148
28
311
181
39
2
19
1,200
37,556
13,827
4
30
5
17.05
8
6
2,723
8,929
402
733
2,321
8,196
216
605
355
2
-
Source: CBS Central Aceh , various years; Estate Services Central Aceh, various years
*Data prior to 2003 includes Bener Meriah
A lesser amount of land is used for growing food crops, and this appears to be only slightly
increasing in recent years. The total area for planting food crop in 2003 was 20,858 ha, mostly made
up of wetland paddy (14,804 ha) with the rest being tubers, vegetables and fruits [CBS Central
Aceh, 2004a].
A unique character of the Gayo people is their love for the arts. Not uncommonly heard is the
chanting of fishermen by the Lut Tawar Lake, and an all-nighter involving the singing of a didong is
not uncommon. It’s said that the only cultural center in Aceh can be found in Takengon [Kompas,
30 September 2000].
SECTION
Cultur
e. The main indigenous group in the Gayo Highland is the Gayo people, originally from
ulture.
the Karo Highlands in neighboring North Sumatra Province. Ethnically and culturally, the Gayos
have retained an identity that is distinct from their neighbors the Aceh and the Alas people. The
most apparent difference is in the language; even now, very few Gayos speak Acehnese.
II
2.3. Key social indicators
II-39
One curious feature of the Gayo is the high prevalence of suicide, so much so that it has been an
object of research for the Indonesian Police Force. Suicide does not only occur among the old and
destitute, but also the young and well-off. One psychologist’s explanation of this phenomenon is
that due to their gentle and submissive nature, the Gayos may find that ending their own life the
quickest solution to their problems [Kompas, 30 September 2000].
In addition to the Gayos, another major ethnic group is the Javanese. In the late 19th century, the
Dutch brought in laborers from Java to work in the plantations. Later in the 1970s and 80’s the
Indonesian government also sent in transmigrants to the area. Most of these immigrants have remained
in Gayo, and they are accepted by the Gayos as part of the community. Contrary to the hostile
attitude of Acehnese to immigrants from Java, the Javanese and other ethnic groups have had very few
problems with the Gayos, and inter-marriages amongst the ethnic groups are quite common. Today
most of the population in the Gayo Highland is made up by a majority of the Gayo people, and the
rest a mixture of other ethnic groups including Javanese, Karo, the Batak, Chinese and other ethnic
groups.
Another feature that distinguishes the Gayo Highland from the rest of Aceh is the unpopularity
of the independence movement (GAM). The GAM itself admitted to having difficulties establishing
a local office, much less recruiting people from this area the central Aceh area [Kompas, 18 June
2003c]. On the contrary, there are political moves to set up a separate province in southern Aceh
region, on the grounds that successive Aceh provincial governments (dominated by Acehnese) have
done little to help the indigenous Gayo, Alas and Singkil people of South and Central Aceh.
Before the colonial period, the area of central Aceh were ruled by the Gayos in a democratic
system made up of four components (sarak opat); the ruler (reje or penghulu), elders (petue), religious
leaders (imem), and the people (rakyat). Governance were conducted under the philosophy of sudere
genap mufakat or consultation for decision making [CBS Central Aceh, 2004a]. Until recently, this
traditional decision-making process is adhered to, although it has somewhat been eroded since the
advent of the larger role of the government in local decision-making.
Health. Illnesses such as diarrhea and cholera, malaria, bronchitis, dysentery and TB are still
quite prevalent in Gayo. Data for Central Aceh, for example, are given in the Table below (Table 18).
The region is also lacking in medical practitioners and facilities. Only 15 physicians (including
dentists) were listed in 2003 for the whole Central Aceh district—a ratio of more than 118 thousand
people per doctor—with no hospitals, only health centers (Puskesmas).
SECTION
II
In this relatively democratic environment, the women of Gayo hold important positions in the
households and the community. In households, women have a say in the allocation of resources and
in working the land. In the community, women are welcomed in formal economic institutions,
including in commerce and production. For example, about 20% of the farmer-members of the
PPKGO are women (and not necessarily widows) [Idris, 2005: pers. comm.].
II-40
Table 18. Incidence of sickness in Central Aceh, 2003
Type of sickness
Total number of
people inflicted
Diarrhea and cholera
Pneumonia
TB
Malaria
Dysentri
Total
Source: CBS Central Aceh, 2004a
4,973
138
518
6,600
1,972
14,201
R eligion. The majority (94% in 2003) of people in Central Aceh District is Moslem [CBS
Central Aceh, 2004a].
2.4. Attitudes toward conservation
Being an agricultural people, the general population in the Gayo Region have a high appreciation
for nature, and know that degradation of their environment will impact their agricultural livelihood.
Such concerns are voiced for example, over the decreasing water table of the Lut Tawar Lake, a major
source of water and freshwater fishery resource for many people living in its vicinity. Soil and land
conservation aspect also feature in the Gayos agricultural practice. Resistance by some farmers to
the use of agrochemicals is another indication for the high regard of farmers for their environment.
In addition, the Gayos are quick to adopt conservation practices in agriculture such as organic
cultivation.
SECTION
II
On the other hand, however, encroachment on the Leuser Ecosystem have also been reported,
including for coffee agriculture. Economic incentives seem to play a large part in the expansion of
agricultural lands into protected areas. As the population increases and greater revenues are obtained
from farming (especially from coffee farming), incentives for expansion are also heightened. Weak
management of protected areas and the lack of coordination in implementing a land-use plan have
also not contributed to curbing expansion into protected areas.
Laut Tawar Lake
Central Aceh.
II-41
PART B
SECTION III
FARM-LEVEL PR
ODUCTION AND SUPPOR
T SER
VICES
PRODUCTION
SUPPORT
SERVICES
3.1. Factor inputs, resources and production patterns
3.1.1. Production patterns
The origin of coffee plantations in Gayo began with the Dutch colonialists’ failed effort to establish
tea plantations. These were later converted into coffee plantations in the early 1900s. Snouck
Hurgronje, an early traveler to the region, noted that coffee were not grown purposefully by the
Gayo people, but rather were sown by accident. Coffee trees were considered wild plants; seed were
thrown in the year and were used as fencing. Coffee cherries were given to the poultry which further
distribute the plant [Kompas, 5 December 2004]. In the 1940’s fighting with the Indonesian
independence movement intensified, and, later the Dutch had to flee the area. After the declaration
of independence, in the late 1940’s were reclaimed by locals [Nur and Melala, 2001]. Since the area
is hilly in nature, it is more suitable for plantation agriculture rather than for paddy rice. These
became the smallholders of today [Fricke, 2005; pers. comm.].
Today coffee is the main source of livelihood in the Gayo Highlands of Central Aceh and Bener
Meriah.33 In 2003, the area planted with coffee in the Gayo Highlands totaled 75,524 hectares,
producing 23,825.8 tons of coffee cherries. This account for about 7.5% of the total area (1,001,603
ha) and 3.4% of total production (702,274 tons) of Indonesia in 2003. Since most of the coffee
grown in Indonesia is Robusta, and only about 10% is Arabica the coffee agriculture of the Gayo
Highlands may account for up to 75% of the Arabica planted in Indonesia, and about a third (34%)
of the total production [BPEN, 2005]. Additionally, an overwhelming 95% of all households in the
two Districts are involved in the coffee sector.
With the split of the region into Central Aceh and Bener Meriah Districts, the plantation area
and number of farmers have been split in almost equal parts between the two districts. The total size
of coffee plantations in Central Aceh District in 2003 was 37,556 ha (about 9% of the District’s
total area), producing about 13,827 tons of coffee cherries at varying productivity levels. Officials
estimate that productivity vary between the range of 650-750 kg/ha, with an average of 680 kg/ha.
Calculation of average production in terms of productive area, however, suggest that it might be
higher, up to 884 kg/ha (Table 19).
SECTION III
In Central Aceh, the largest coffee area can be found in the Silih Nara Sub-district (Map 3). But
more than half of these estates are either not productive or neglected. Unproductive and neglected
estates seem to be prevalent in Central Aceh, and at the extreme is Ketol, where about 83% of the
coffee estates are estimated to be neglected. In total, about 52% of all coffee estates are either not
productive or neglected in Central Aceh.
III-42
Coffee not only play an important role as a source of income, but is also serving a social function. Coffee shops in Gayo (and
in Aceh in general) have evolved into the main meeting place for local men (women generally do frequent coffee shops), where
information is exchanged
33
The total coffee plantation area in Bener Meriah District (Map 4) at about 37,556 ha in 2003
(about a quarter of the total district area) was slightly vaster than Central Aceh District (Table 20).
Production, however, was much lower at 9,999 tons in 2003. This is due to the fact that compared
to Central Aceh, even smaller tracts of coffee plantations are productive in Bener Meriah.
Officials estimate that the productivity of coffee plantations in Bener Meriah ranges from 600750 kg/ha, a slightly wider range than in Central Aceh District, although on average they are the
same at 680 kg/ha. However, calculations of average productivity by dividing production with
productive estates also suggest that productivity in Bener Meriah may also be higher than official
estimates in Bener Meriah. About 68% of all coffee estates are either not productive or neglected.
Table 19. Coffee area and production by sub-district in Central Aceh, 2003
No.
1
2
3
4
5
6
7
8
9
10
Sub-district
Silih Nara
Celala
Pegasing
Bintang
Linge
Kute Panang
Ketol
Bebesen
Kebayakan
Lut Tawar
Total
Average
Estimated
Area (Ha)
Production
Not yet
Total
Productive
Not
Neglected
productivity*
average
(Ton)
productive
(b)
productive
(d)
(a+b+c+d)
(Kg/Ha/Year) productivity**
297
5,361
5,229
1,257
12,144
5,105
952
650
143
2,024
1,140
1,099
4,406
1,970
973
650
398
1,349
1,677
313
3,737
955
708
700
359
1,383
1,284
458
3,484
968
700
700
552
1,278
974
338
3,141
1,030
806
750
356
1,350
1,065
275
3,046
877
650
650
167
166
134
2,200
2,665
996
6,010
600
94
1,215
708
9
2,026
912
750
750
118
917
633
75
1,742
596
650
650
70
598
442
58
1,168
418
700
700
2,553
15,640
13,284
6,080
37,556
13,827
884
680
Source: Estate Services Central Aceh, 2004
** Official's reported estimates
Table 20 Coffee area and production by sub-district in Bener Meriah District, 2003
No.
1
2
3
4
5
6
7
Sub-district
Permata
Pintu Rime Gayo
Timang Gajah
Bandar
Bukit
Wih Pesam
Syiah Utama
Total
Estimated
Area (Ha)
Average
Not
Not yet
Production
average
Total
Productive
Neglected
productivity*
productive
productive
(Ton)
productivity**
(a+b+c+d)
(b)
(d)
(Kg/Ha/Year)
( c)
(a)
(Kg/Ha/Year)
143
2,348
3,521
2,533
8,545
2,657
1,132
750
371
1,217
2,969
3,974
8,530
1,165
958
600
138
3,742
2,969
1,297
8,146
2,757
737
650
397
1,661
1,948
1,537
5,542
1,762
1,061
750
98
1,124
272
1,431
2,925
1,207
1,074
700
158
750
403
1,258
2,568
450
600
600
2
2
4
1,705
1,713
1
700
700
1,307
10,842
12,084
13,735
37,968
9,999
922
680
Current data on the average size of land holding of coffee producers is not available, but for Central
Aceh, it’s estimated that there were 28,024 heads households involved in coffee planting (about 76%
of total households in the districts). This translates to an estimated average of 1.34 ha of land for
coffee planting per household given information on the current total area of coffee plantations (Table
21). This seems to confirm a study in 1993 by the Gayo Coffee Research Center (cited in Erwidodo
et al, 1994) which estimated that the average coffee farm is between 1 to 3 ha in size.
SECTION III
** Official's reported estimates
III-43
SECTION III
III-44
SECTION III
III-45
In Central Aceh shade plants are
slowly replaced by lamtoro since it is
resistant to pest ( tahan hama ). The
traditional shade plant is the gamal tree
(kayu air or Glirisida maculata), however
it is slowly being replaced by lamtoro
which is more resistant to pest. Apart from
providing shade, the lamtoro tree yield
edible fruits and its wood can be used for
fuel. In coffee plantations located close
to towns, some farmers are switching to
fruit trees as shade, for example to citrus
trees (Citrus spp). If placed at least 8m
from coffee, coffee can still tolerate such
a shade, but any closer and farmer believe
the fruit tree compete with coffee for
nutrients from the soil.
No.
Head of
household
Area of coffee
plantation (Ha)
Kebayakan
1,245
1,742
2
Bebesen
1,446
2,026
3
Pegasing
2,669
3,737
4
Silih Nara
8,674
12,144
5
Bintang
2,488
3,484
6
Linge
2,242
3,141
7
Ketol
1,903
2,665
8
Kute Panang
3,175
3,046
9
Lut Tawar
1,036
1,168
10
Celala
3,146
4,406
Total
28,024
37,556
Table 22 Head of households involved in coffee
planting and average holdings, Bener Meriah 2003
No.
Sub-district
Head of
household
Area of coffee
plantation (Ha)
1 Bandar
3,997
2 Permata
6,103
8,545
3 Syiah Utama
1,223
1,713
5,542
4 Bukit
2,088
2,925
5 Wih Pesam
1,834
2,568
6 Timang Gajah
7,805
8,146
7 Pintu Rime Gayo
6,000
8,530
29,050
37,968
Total
Dry coffee cherries, Bener Meriah.
34
III-46
Sub-district
1
SECTION
III
Growing coffee under shade is the
dominant strategy in the Gayo
Highlands. For example, compared to
coffee growing in Lintong (North
Sumatra Province), Gayo farmers are using
shade more extensively. While there is no
official estimate of what percentage is
being shade-grown, Thomas Fricke of
Forestrade stated that shade-grown coffee
is already very popular in the coffee
growing regions of Aceh, and additional
promotion is not particularly needed. All
farmers under the PPKGO use shade in
growing coffee [Fricke, 2005: pers.
comm.].
Table 21 Head of households involved in coffee
planting and average holdings, Central Aceh, 2003
A larger number of households were
involved in coffee planting in Bener Meriah
in 2003: 29,050 households. This
translates also translates to an estimated
1.3 ha of coffee plantations per household,
similar to that in Central Aceh (Table
22) 34 .
The average size of landholding for PPKGO farmers is 1 ha [Idris, pers. comm.].
PPKGO farmers’
coffee farm, Bener
Meriah.
The variety of coffee grown in the Gayo Highlands are predominantly Arabica. Robusta are
planted but in much lower proportion; the main reason is that the price is low for Robusta
compared to Arabica. In fact, in recent years Robusta plantations were converted to Arabica.
Amongst PPKGO farmers, for example, about 200 ha converted from Robusta to Arabica.
There are conflicting accounts on which of the two distinct botanical varieties is the most dominant
in the region. One source states that about three quarters of Arabica planted are of the Typica variety
[Ismail, pers. comm.], while another source [Nur and Melala, 2001] points to the Catimor, which is
a Bourbon Maragogipe [www.ico.org]. It is possible that both varieties occur in similar abundance,
as indicated by a survey in 1998 by Nur et al (1998) in parts of the Gayo Highland.
The Typica variety of Arabica coffee can yield harvest after 3 years, but will last for decades,
perhaps even to one hundred years. There are some coffee trees of the Typica variety in the Gayo
Highlands that are already at least 58 years old, but still in a good productive condition.
SECTION
A national coffee study in the early 1990s revealed that there are about 35 varieties of coffee being
planted in the Gayo Highlands [Ismail, 2005: pers. comm.]. Coffee is grown at elevations between
800 to 1,600 m above sea level. Farmers believe that by growing coffee trees at higher elevations
coffee trees will be more resistant to pests and diseases. In Gayo coffee it is possible to grow
coffee at elevations below 800 m, but farmers believe that it will yield lower quality coffee and
will be prone to pests and diseases. Further more, at elevations more than 1,000 m the soil is
much more fertile since it is mixed with volcanic powder.
III
The Catimor variety is derived from the Red Caturra and Hibrido de Timor varieties. The Red
Caturra variety is characterized by a shorter tree with exceptionally high yields, whereas the Hibrido
de Timor variety is particularly resistant to the leaf rust disease. Outside of Gayo, this variety is
known as the Ateng variety (both for its short stature and for the fact that it comes from Aceh
Tengah or Central Aceh in Indonesian language). One variety of the Catimor, the Catimor Jaluk
variety, is particularly popular in the region. It can be grown at a density of 10,000 trees per
hectare for the first two or three harvests (after which 75% of them must be removed to allow for
better growth [Nur and Melala, 2001].
III-47
At the most ideal condition (i.e. farmers growing under the close supervision and guidance of
coffee researchers), farmers have been know to produce 2 tons of parchment (pergamino) per
hectare. Currently the highest production is about 1,500-1,600 kg of parchment per hectare, with
rare occurrences of up to 1,700 kg/ha. After processing, this result in about 800-1,000 kg of greens
per hectare. Coffee experts on visits to the Gayo Highlands have found that the coffee cultivation
and production system there is “state of the art” [Fricke, pers. comm.]35.
There are conflicting views, but some of the key informant interview mentioned that some
transmigrants in the Gayo Highlands have been more successful at growing coffee (and some other
agricultural commodities) than the indigenous Gayo people. Amongst the coffee growers,
transmigrants have been more consistently successful than locals producing 800 kg parchment from
a hectare of coffee estate. In general, however, those farmers with coffee plantations close to the road
system are more able to intensively cultivate coffee, resulting in higher yields. Farmers living far from
towns are face higher security risks so they are less able to intensively tend to their crops.
When the Dutch started creating plantations in Aceh, it was using common property or
community (adat) lands. When the Dutch left the Gayo Highlands, these lands were taken back by
community groups, and on these lands coffee agriculture continued, in addition to on individual
lands. Individual lands are passed down and divided amongst sons. In this case, land ownership is
increasingly in small parcels. Consequently, agricultural expansion have increasingly been into forests
and community lands further away from villages including in the buffer zone or the vicinity of the
buffer zone of the Leuser National Park.
Most of the coffee agriculture expansion, however, is still done by conversion from other
commodities, cultivation on neglected agricultural lands or on from former logging concessions,
rather than opening up of forests. Expansion seem to be directed to the area in Syiah Utama, Pegasing
and Linge Sub-districts. In Linge coffee estates have expanded into the Leuser Ecosystem (Jagung
and Bintang villages). Since generally the Gayo Highlands are at elevations of more than 900 m,
many lands are particularly suited to coffee agriculture. Other commodities that are expanding
include vegetables and horticulture.
For transmigrants, land were bought by the government and given to them when the relocated
to the Gayo Highlands. Land ownership/tenure is generally secure, with very rare cases of dispute or
land grab even though many lands are abandoned due to security reasons. Land is still available
widely for purchase or rent, from people who can not undertake agriculture on these lands themselves,
or from people who are changing professions (e.g. from planting to trading/commerce).
SECTION
III
Farmers of the Gayo Highland have a reputation for being progressive professionals, a reputation
that matches the reputation of the Karo farmers, their distant cousins in North Sumatra Province.
The Karo farmers, however, do not face the security risks that a Gayo farmer must deal with on a
daily basis, and which constrain their productivity and limit the efficient distribution of their harvest.
III-48
The Gayo farmers’ knowledge of farming techniques, and in particular coffee cultivation, goes
back to the early 1900’s when the Dutch started developing plantations in the Gayo Highlands.
As comparison, in Latin America yields are half of this. Reasons for the higher yield in Gayo include the longer coffeegrowing season, the ability to manage water from the rain, and the fertile quality of the soil [Fricke, 2005: pers. comm.].
35
Local people were employed as laborers (koeli) on the plantations, and were taught various
planting techniques, including how to plant coffee. Since then, the Gayo farmers have retained the
ability to implement good coffee agriculture, even matching those farmers in Java where coffee
agriculture started many years earlier (for example in Jember, Central Java).
In addition to using local laborers, the Dutch also brought in transmigrants in the early 1900s,
to work the tea plantations. Many of them never left the region, and continue to be farmers. They
are, however, inclined to grow tubers (palawija) although some are very good coffee growers. Some of
the cultivation practice in the region, therefore is already popular knowledge for many years, perhaps
even more than a hundred years, including the need for shade.
Not all coffee farmers, however, maintain good coffee-growing practice until now. The most
pertinent constraint is the cost (both in terms of out of pocket cost and/or the time and energy
required) associated with maintenance such us using compost, routine pruning, and using natural
means of combating pest. Routine pruning is especially important, since coffee trees in Gayo are
single stemmed. Pruning should be done after each harvest, and heavy pruning every few years.
However, many farmers feel that some maintenance activities are not worth the effort (i.e. represent
costs without significantly increasing revenues). For example, heavy pruning of a coffee tree will
result in zero yield from that tree for at least one harvesting season, so farmers have increasingly
disregard this practice.
Coffee in the Gayo Highlands are grown interspersed with other crops, including vanilla, chili
peppers, ginger, and fruit trees such as durian and citrus (jeruk keprok and jeruk siam, respectively
Citrus reticulata and Citrus suhuensis). In a survey in 1998 which covered then sub-districts Bandar,
Bebesen, Bukit and Takengon, Nur et al (1998) found that about 67% of farmers have undertaken
diversification on their farm. The most diversified are farmers in the Bandar Sub-district. Most
farmers still undertaking monoculture were found in Bebesen Sub-district. Some of the other trees
planted are bananas, oranges, avocado and passion fruit. The most popular plant is orange which was
found in all of the sampled location. The most common are the keprok and siam types.
Nur et al (1998) were only able to quantify the monetary contribution of citrus to a farmer’s income,
since farmers were not able to quantify the monetary benefits for the other crops (bananas, avocado and
passion fruit). Researchers found that citrus contribute between 19%-42% of a coffee farmer’s income.
SECTION
III
Farmers also may be growing other corps in a separate parcels, for example vanilla and vegetables.
A small portion is used by the household, but mostly harvests from crops are brought to the market,
providing additional income.
The affluent town
of Takengon, Central Aceh.
III-49
Intensive coffee farming, however, is the priority for many farmers such as members of the
PPKGO. While additional income from other crops are welcome, they recognize that there is a
balance that must be met to prevent other crops competing with coffee trees for nutrients from
the soil. Some high value crops such as citrus need to be carefully grown in the same parcel with coffee.
The second most important cash crop in terms of the area used for planting in the Gayo Highlands
is the sugarcane. Sugarcane plantations, are mostly grown in areas where the soil is sandy, and are
mostly not located in the vicinity of coffee trees.
Transmigrants from Java in particular like to grow tubers since they are relatively quick-yielding.
Harvest are brought to Medan in North Sumatra Province.
3.1.3. F
arming household pr
ofile
Farming
profile
There is no data on the particulars of coffee farmers, however the average education of PPKGO
farmers is high school level (between 10-12 years of schooling).
Full-time coffee farmers are generally aided by their family in carrying out the various tasks
associated with farm work. Given that farmers generally do not have extensive land holdings, almost
all of the labor effort required in tending the farm is provided by household or extended family
members. Farmers with large tracts of land, or land owners would rather rent out their farms to
other rather than hire workers to help them cultivate the land. Hiring workers require some level of
supervision, for which farmers have limited time.
Should a farmer decide to hire laborers to help with their cultivation, it is usually done by
contracting a set of tasks rather than by the level of effort. For example, maintenance work such as
pruning and clearing of underbrush are usually contracted lump-sum based on the size of the area
needing the work. Daily individual laborers are sometimes needed, e.g. during harvesting season,
and they are paid either in kind or its equivalent in cash. The fee rate for female workers are in
general lower than men.
There are many scale of producers in the Gayo Highlands, but most farmers still rely on manual
labor in cultivation. The processing of cherries, however, are increasingly mechanized. Many do not
have their own processing equipment but rather rent or have part ownership in a processing facility.
There are numerous facilities both in Bener Meriah and Central Aceh Districts.
At the height of armed fighting in year 2000, it was estimated that 60% of coffee farms were
neglected, and buyers and farmers alike were not able to travel to and from Gayo to Medan, the
SECTION
III
There are two main issues that loom large over the horizon of Gayo coffee farmers: the security
situation in Aceh and potential decline in coffee prices. In general the security in the Gayo Highlands
have been more stable than elsewhere in Aceh. The activity of the independence movement (GAM)
is fairly limited since there is little support for independence in the area. Still, there are some GAM
movements in the area, mostly in the form of extortions of locals, especially farmers living in outlying
areas. Once in a while gunfight erupts36.
36
Two weeks after the visit for this assessment in February, it was reported that the GAM gunned down a minibus
traveling on a major road [Sulistyowati, 2005; pers. comm.].
III-50
coffee trading center in North Sumatra Province. As recently as 2003, farmers have had to abandon
their villages and farms. As one farmer stated, in 2003 a group of people came and burned her village
of 80 houses. She lost her husband, a child and relatives. The bridge which connects them to their
farms was also destroyed and has not been repaired, making it impossible for her to tend to her farm
of coffee, durian and candlenut trees [Media Indonesia Online, 2004].
The second major risk is declining coffee prices, although for many years now prices have been favorable.
A decline in price in addition to escalating security risk, however, can make coffee cultivation and processing
too costly for farmers. In this respect, many farmers are investigating other higher value commodities into
which they may diversify their agriculture to hedge against the risk of falling coffee prices.
3.2. Prevalent farming and biodiversity conservation practices in the site
In the Gayo Highlands, coffee farming is still mostly conducted in the traditional way. Seeds are
obtained by manually selecting from the best (disease-free) trees, grown for a few months in a nursery,
and later the best seedlings are planted. The maintenance of plantations are mostly conducted by
hand, mostly using non-mechanical tools although a few farmer groups are acquiring mechanical ones.
Prior to the mid 1980s, no chemicals whatsoever were used to cultivate coffee in the Gayo
Highlands. Later, however, a well-connected businessman influenced the government to promote
the use of chemical herbicides to farmers throughout Aceh. Fortunately, it’s estimated that only
10% of the total area of coffee plantations use agrochemicals [Nur and Melala, 2001]. Even if
chemicals were used, it was in small quantities. Erwidodo et al (1994) reported that in 1994, coffee
farmers in the Gayo Highland were using fertilizers way below the ‘recommended’ levels. On average,
only about 22.5 kg of Urea, 14 kg of TSP and 10 kg of KCI were used per hectare per year.37
Presently, if chemicals are used, it is more likely in the form of a fungicide since the most
common diseases for coffee trees are the leaf rust disease (karat daun due to the mold Hemileia
vastatrix) and on the roots. On leaves, the fungus may cause them to fall out, resulting in coffee
cherries that are too heavy and therefore yielding lower quality. To treat this disease without chemicals,
all the coffee leaves must be cut off. Some farmers are reluctant to do this because throwing away
leaves diminishes the coffee plant’s ability to bear fruit.
Similarly, to treat diseases attacking the root system, farmers sometime use chemical fungicides.
Without fungicides, a temporary solution is to dig a trench around the diseased plant to isolate it from
expanding to other plants—the trench must be as deep as the root system of the coffee plant. The long
term solution, which a farmer is loath to do, is to cut the plant and wait one year before planting.
Either way, farmers need to eventually destroy the diseased plant if they are not to use agrochemicals.
37
The recommended level was 400 kg of Urea, 160 kg of TSP and 320 kg of KCI per hectare per year, with the
assumption of 2,000 productive coffee trees per hectare [Erwidodo et al, 1998].
38
It should be noted that the ICCRI have developed methods of dealing with diseases and pests without the use of
agrochemicals [Suara Pembaruan, 2003]. Apparently these methods have not been widely socialized, at least to the coffeegrowing center in Gayo.
SECTION
III
So those not on an organic program tend to use agrochemicals. If there are alternative—organic—
means which does not require tree-cutting, farmers would most likely adopt it. But the problem is that
III-51
buyers always insist on not using agrochemicals, but do not come up with organic means or alternatives
to eradicate diseases or pests [Idris, 2005: pers. comm.]38.
Previously many years ago, a widespread case of the jumping fleas (kutu loncat, Heteropsylla sp.)
affected the shade plant lamtoro which warranted the use of chemicals by farmers in the area. Widespread
attack on the lamtoro tree has ceased, especially since many farmers now use a more pest-resistant
variety of lamtoro.
In terms of fertilizer, for example, organic matters are used. In places close to roads (i.e.
transportation is convenient and not costly), waste from coffee processing are being used as organic
fertilizer il conservation practices such as contour planting, live barriers, and terracing are widely
adopted, these are some of the good agricultural practices that the Dutch had taught locals to do,
and are sustained by various (governmental) extension services. There is, however, a small percentage
of farmers not implementing coffee best practices.
Since coffee is the major crop in the region, the farm management cycle is similar across households.
The peak coffee harvesting season is usually February through April, with harvesting occurring later at
higher elevations, so for the whole region harvesting season is relatively long. During the peak harvesting
season, rainfall is scarce so it is ideal for drying coffee out in the sun. Arabica trees yield harvest once a
year; for Robusta it is possible for harvesting to take place twice in a year.
Coffee is harvested manually by hand. The most skillful pickers can pick up to 200 liters (100 cans)
of cherries a day. Harvesting is usually conducted by farmers and family members, with occasional hiring
of additional laborers. In general farmers do pay attention to making sure that they do not damage coffee
cherries while picking or transporting them, as good quality beans can command top prices.
SECTION
III
Several producer groups in the region conduct coffee planting and processing based on
international standards.
III-52
Waste from
fermenting and
washing process,
Bener Meriah.
The Gayo Organic Farmers Association (PPKGO), for example, has shade grown, organic, fair
trade and coffee kids programs39. They are about to develop a bird-friendly program. PPKGO’s
organic coffee are certified fair trade by Fair Trade Labeling Organization (FLO), organic by Skal (a
Dutch certification agency) and by the National Australian Sustainable Agriculture Association
(NASAA).
Another large farmer group is under the management of the Genap Mupakat coffee company,
which is Skal-certified to producing organic coffee.
Although there is no data on what percentage of coffee cultivation and production are under
certification, certification is exception rather than the norm in Gayo. However, farmers are enthusiastic
to be certified. On the other hand, producer groups have limited resources to help farmers undergo
the certification process. Sometimes the certification agencies themselves can not keep up with
certification demand, which is the case faced by PPKGO. Farmers’ application for certification can
take a year or more to be processed by certification agency.
Apart from international certification, there is a national and a local grading system (refer to
Part A, Section 3.2.)
In 1989 the total area of coffee plantation was estimated to be around 68,800 ha. Fourteen
years later in 2003, according to official statistics this has increased to about 75,524 ha (an increase
of about 10% over the 14 years or an average of 0.7% annually).40 One source indicate that expansion
during the decade 1990-2000 are in order of 25,000 to 30,000 ha. Most of the expansion have into
forests, including in transmigration areas. Notable expansion is in the direction of the Linge Subdistrict toward East Aceh, which is close to the buffer zone of the Leuser Ecosystem.41
In Bener Meriah expansion is being planned in the direction of abandoned fields, which is
currently under discussion to be allocated to returning refugees (mada or internally displaced persons
or IDPs) from the tsunami-hit areas. In addition, there is about 10,000 hectares of degraded land in
both Central Aceh and Bener Meriah Districts, and there are discussions of rehabilitating these
lands by planting shade coffee.
During the last year, an estimated 6,000 ha of agricultural lands in the Gayo Highlands were
neglected due to the implementation of the martial law and it’s accompanying military operation
directed at the GAM. But this lower than previously in 2002, when about 60% of coffee farms were
estimated to have been abandoned or not at maintained since security condition is not conducive.
These farms are those located in the in the periphery/far from towns and villages. Rather than grow
degraded, however, abandoned lands seem to be thriving and retuning into a forest-like state, including
those previously residential areas.
SECTION
Contrary to its name, the coffee kids program do not encourage coffee consumption by kids, but rather provides support
to coffee-growing families so their childern can have a better life.
40
Caution must be exercised when interpreting official statistics, which do not have a reputation of being very reliable in
Indonesia.
41
Only a small number of PPKGO coffee growers have farms located in the buffer zone of the Leuser Ecosystem. In Kerinci
farmers are already starting to protect NP since they realize its value for their farms. In Leuser this is not yet seen, as farmers
are more passive to the issues of the protected area.
39
IV
As mentioned in Section I, several protected areas overlap in the Gayo Highland. Farmers do live
and work in protected areas. For example, amongst PPKGO farmers a few are located in 6 villages in
IV-53
Linge. Two of these villages, Tanah Abu and Merah Pupuk villages, are located within the Leuser
Ecosystem, accessible by small roads going to the farms that trucks can pass.
Land conservation issues, also lies closer to town, where the water table of the Lut Tawar Lake is
decreasing every year. This is attributed to the decreasing tree cover surrounding its hills [Kompas
18 June 2002c]. Trees are being cut down to be converted to agriculture as well as to be used as fuel
and for local construction. The Lake is a source of drinking water for the Town of Takengon, as well
as providing energy for a couple of local power-generation plants (PLTA Peusangan I and II).
3.3. Extension services being provided and conditions of service delivery42.
In the 1980s to early 1990s, the provincial and central government agencies were the main proponents
of coffee extension service in the Gayo region. An early major effort was the Central and North Aceh
Development Program (CANARD), and a major component of this project was smallholder Arabica
coffee development.43 The implementation agency for ‘the coffee project’ was the Provincial Planning
Agency in collaboration with ICCRI. Major accomplishments of this project included the formation of a
local coffee research agency, demonstration plots and extension service to local farmers, provision of seed,
equipment and supplies, and the undertaking of a major marketing effort (including overseas).
One of the early efforts of the provincial government was to develop a large and modern processing
firm, PD Genap Mupakat, in the early 1980s, together with strengthening the local coffee research
center. One of the accomplishments of the research center was the development of local Arabica
varieties, including hybrid varieties which grow and yield harvest more quickly, and is now popular
throughout the rest of Sumatra
Another major effort is the successful development of an organic coffee farming system with local
farmers. The first organically certified (by Skal) product was shipped for export by Genap Mupakat
in 1992 under the brand ‘Gayo Mountain Coffee Organic’.44
Another major funding was created in 1992 by the Organic Coffee Research Project, funded by
the national government budget (APBN). Research was conducted by ICCRI, and results of the
research was exposed in Central Aceh in a seminar in 1995 [Mawardi, 2002].
The Local Government has also provided support to the coffee sector, especially in recent
years as they gain more autonomy. In fact, for the local Central Aceh Estate Services office
SECTION
IV
42
IV-54
“Extension services” is used broadly to refer to both traditional agricultural assistance services as well as to any other
technical service provider, educator, organizational representative or community member that focuses at the household
level in the site. This may include development workers, health promoters, protected area guards and environmental
education staff, other governmental agency field staff, etc. It should not be narrowly associated with just the ministry of
agricultures technical staff.
43
Local civil servants and others still remember the ‘large coffee project’ that was the ‘LTA 77’—Loan Technical Assistance
No. 77/A for Central Aceh. Many coffee cultivation and processing research and projects were undertaken. The Central
Aceh planning and estate services office, however, did not have any remaining document from the project. Unfortunately
I did not have enough time to track down documents from the local coffee research center, where presumable some of these
documents may be stored.
44
In 1997, after encountering mismanagement and financial problems, the Genap Mupakat company and its facilities were
acquired by the Holland Coffee Group, an international coffee supplier. Amongst its objectives, Holland Coffee stated that
it will be reviving the coffee research center. As the most advanced coffee processing center in the area, GM had provided
technical and other assistance to farmers in coffee growing. For example, during the installation of a set of equipment at the
Sumber Rejeki cooperative in 1999 (in Jagong Jeged Village, Linge) [Mulanto, 1999]. This partnership seems to have
dissolved, however.
Photos: Lydia Napitupulu
Coffee cherries
being dried on concrete
platforms by PPKGO
workers, Bener Meriah.
Coffee drying
in the streets of downtown
Takengon, Central Aceh.
SECTION
Apart from the Estate Services office, other branches of the Local Government have regular programs
targeted at coffee farmers and the coffee industry, such as the training on small-scale business
management by the local Cooperative Services office and the training on the processing and marketing
of coffee by the Trade and Industry Services office. In general, government support (notably local and
provincial government) for the coffee industry is strong in the Gayo Highlands.
II
programs and trainings for the coffee sector make up the bulk of their work. For example, training
was given to provide know-how of eradicating diseases plaguing coffee trees, in controlling quality,
and in introducing mechanical means of coffee processing. Additionally, in association with the
provincial Estate Services office, a series of training for pest management and control is being
conducted. The trainers usually come from the ICCRI the local coffee research center. Since the
number of coffee farmers are large, training is not conducted one-on-one but rather in groups.
Farmer groups themselves also arrange for training and demonstration for their members. For example,
Forestrade have sent their farmers to attend training at the ICCRI in Jember, and to Padang for ISO 2025.
III-55
PART B
SECTION IV
LOCAL VAL
UE CHAIN AND MARKETING STRA
TEGY
ALUE
STRATEGY
4.1. Processing, commercialization and other services
4.1.1. Processing and commercialization
The general processing of coffee in Gayo is the simple wet method similar to that described for
Madina. However, in Central Aceh much more attention is paid to harvesting, including picking
only ripe cherries. This is due to higher prices obtainable for better quality beans. Farmers then have
the option of bringing their harvest to processing centers in the region for mechanical processing
such us pulping and hulling. In 2003, for example, there were 42 pulping and hulling facilities in
the Central Aceh District alone (Table 23).
Table 23 Coffee processing facilities in
Central Aceh District, 2003
Pulping and hulling facilities
No
1
2
3
4
5
6
7
8
9
10
Sub-district
Linge
Bintang
Lut Tawar
Pegasing
Bebesen
Silih Nara
Ketol
Kebayakan
Kute Panang
Celala
Total
Unit
3
3
n.a.
6
11
7
5
3
n.a.
3
41
Employee
18
6
n.a.
26
38
27
13
18
n.a.
12
158
Capitalization
(000Rp)
274,010
58,500
n.a.
226,800
218,394
130,820
63,750
324,200
n.a.
80,600
1,377,074
SECTION IV
Source: CBS, 2004a
Larger processing plants of farmer groups implement a more complete wet processing method. For
example, PPKGO farmers and their processing partner Trimaju implement both the dry processing
and wet processing methods according to customer’s request. Before becoming members of PPKGO,
farmers were not acquainted with the wet processing method. This wet technique is similar to that
done in Ethiopia, and is characterized by wet fermentation and by hulling in the wet parchment
form (elsewhere in the world it is dry parchment method that is used). This processing method is
said to be what gives it a distinct flavor profile.
PPKGO has two different ways in which coffee harvesting and processing are conducted. The first
process is where the cleaning, sorting, pulping, fermenting and drying are done at the local processing
centers. Each of these centers serve about 25 coffee farmers. A collector45 gathers the harvest of this
assigned farmer group and brings it to the local processing center. Here cherries are processed to the
parchment form, when then it is brought to the main processing center to be further sorted, weighed,
dried, hulled, and dried further before it is ready to be sent to the Medan storage facilities. In
Collectors are chosen by farmers amongst their own. Each collector will need to have a means of transport for picking up
and delivering harvest to the processing center. In return, collectors receive some fee and a portion of profits.
45
IV-56
Medan it is further weighed, dried and sorted according to customer specifications, before being
bagged for export.
A second way is where cherries are brought in by collectors directly to the main processing center
to undergo the complete processing stages, either in the from of wet processing or dry processing.
This main processing center has a pulping machine that has a processing capacity of 6,000 kg per
hour, and is able to operate 24 hours a day, where about 30 peoples work fulltime, sometimes in
shifts. Throughout the process, speed is of essence, as Arabica will ferment quickly. Robusta, which
the PPKGO also produces, can keep for longer.
The processing stages undergone by the PPKGO is illustrated below (Figure 7). Activity at the
farm gate (on farm) ends with harvesting, weighing and getting cherries ready for transport to the
main processing facility. Alternatively, processing can be done at the local processing facility up to
the parchment form, where it then will be brought to the main facility for hulling and completing
the rest of the process.
The collector gathers beans from many farmers, which will then be brought to the main processing
facility. The collector’s task does not end here, as that person will also gather the rejected beans for
sale to the local market.
The rest of the process is undertaken at the main processing center, and in this case by the
processing partner firm, Trimaju. Once ready from the huller, it is dried and prepared for transporting
to Medan, where the final processes for export are implemented, including ensuring the moisture
level of beans.
The water used by the PPKGO and its partners for the processing of coffee cherries in the main
processing center—and some of the local processing centers—are especially channeled from a source
in the Burbur Mountain, about 5 km away. Water is also channeled separately to supply residential
areas. This water source and its method of channeling are also included in the periodic inspection by
certification agencies, so there is a lot of incentive for farmers to maintain the water source.
Forestrade Indonesia (FTI) as the exporting partner of PPKGO and Trimaju, receives the processed
dry cherries in Medan. FTI will undertake further processing, such as drying up to moisture level
required by buyers (generally 18%). Sorting and bagging are further done to exact specifications.
FTI usually do not buy coffee at beginning or end of the season since quality is less satisfactory.
Lower quality beans are sold to be made usually into instant coffee. In the complex in Medan where
FTI warehouse is located, there are other coffee warehouse-coffee processing centers.
SECTION
Most of the PPKGO farmers’ production are directed for export. But all along the processing
path some beans get rejected and these are processed separately though this will end up at the hands
of Medan coffee wholesalers as well (Figure 9).
IV
The local center for coffee trade for Central Aceh is in Takengon, and trading is dominated by
migrants from West Sumatra (Padang) and people of Chinese descent. The role of most farmers are
limited to growing coffee, and so much of the value added from trading is enjoyed by those controlling
the coffee trade [Kompas 18 June 2002].
IV-57
Figure 7 Coffee cherry processing flow at PPKGO
Processing phase
Actor
Location
Harvesting
Farmer
On farm
Weighing
Famer-collector
Off farm
Transport to processing facility
Weighing at processing facility
Group processing facilities
Pupler
Wet fermentation in water
Washing
Drying
Weighing
Huller
Drying
Bagging
Weighing
Labeling
Document preparation
Transporting to Medan
Weighing in Medan storage
Drying
SECTION
IV
Sorting (mechanical and manual)
Weighing
Drying
Bagging for export
IV-58
Exporter
Figure 8 Distribution channel for PPKGO coffee
Farmer
Local processing
center
Rejects
Local or regional buyers
Rejects
Main processing
center
Exporter in Medan
Wholesalers in
Medan
Rejects
International buyers
Distance and transportation is an issue in the Gayo Highland. Travel to Medan, the final processing,
trading, and processing center for Gayo coffee is not easy and takes many hours. From Takengon to Medan
via the eastern coastal road, for example, can take more than 10 hours by passenger cars, although the
roads are in relatively good condition; trucks will require longer traveling times. Shorter distance to Medan
is from the inland road through Blangkejeren, but since roads are bad it can take up to 20 hours. Whichever
route is taken, there are many checkpoints along the way which can mean travel delays.
SECTION
Export of coffee production is conducted out of Medan, North Sumatra Province, so it is difficult
to pinpoint the amount of coffee produced for international consumption and those for domestic
use. Most of the coffee produced by the FTI partnership in Gayo, however, is directed for the export
market. Beans that do not meet the quality standards of international buyers are set aside for domestic
or local use. Given the increasing demand of international buyers for Gayo coffees, it is reasonable to
conclude that cultivation and processing activities meet international clients’ requirements.
IV
The tripartite collaboration between FTI (intermediary and exporter), PPKGO (farmers) and Trimaju
(processor) seems to have been relatively stable since its creation in 1997. Buyers have also been particularly
supportive of farmers from which they source their coffee. In fact, the PPKGO was formed with funding
and support of a buyer (Green Mountain Coffee). Buyers have continued to provide support to farmers,
for example through the provision of financial, equipment and technical assistance, training, and social
development initiatives such as the Coffee Kids program. Buyers’ support continued beyond coffeerelated activities, as exemplified by the sizeable amount of donations coffee buyers and drinkers have
channeled through Forestrade for tsunami victims in Aceh [Blanchett, 2005; pers. comm.].
IV-59
While clients’ quality requirements are known by coffee farmers, they are in the dark about the
prices at which their coffee is selling and the profit margin made on them. This has not been—yet—
a problem in the partnership, although there are indications that PPKGO is less than satisfied with
this situation.
For other farmers and/or groups, the distribution chain may mean that a farmer sells to a village
collector, which in turn sells to the sub-district and/or district level collectors, before finally reaching
Medan. Some of these local coffee buyers provide cash advances to farmers. Some sources indicate
that these local buyers—agents of Medan-based traders—do not buy coffee from farmers at a fair
price [Media Indonesia Online, 4 February 2004]. It must be noted, however, that there is a certain
amount of security risk involved in conducting buying trips to Gayo. Plus, transportation costs are
high. Consequently, it should be expected that lower prices are offered compared to Medan. Farmgate prices for Arabica beans ready for export in Gayo is currently about Rp36,000-37,000/kg.
4.1.2. Producer organizations
According to the Estate Services office, in 2003 there were 4004 farmer groups in Central Aceh
and 360 in Bener Meriah (Table 24). However, no further data is available on the particulars of these
farmer groups (i.e. size of membership, type of group, etc), nor on the portion of all farmers which
are member of producer groups.
The relative abundance of farmer groups
Table 24 Farmer organizations in the
in Gayo is further confirmed by Mulato et al
Gayo Region, 2003
(1999) which indicated that in 1999 in the
village of Jagong Jeged, a transmigration village
Number of
No
Sub-district
Villages
and a relatively progressive coffee-growing area,
groups
there were at least 3 groups of coffee farmers:
Central Aceh
two groups were cooperatives and one group
1 Kebayakan
40
21
working under the auspices of the Genap
2 Bebesen
33
26
Mupakat firm. Around this time, processing
3 Pegasing
47
44
4 Silih Nara
72
45
by farmers as a group was a relatively novel
5 Bintang
23
23
approach [Mulato et al, 1999].
6 Linge
57
39
7 Ketol
18
17
8 Kute Panang
48
19
9 Lut Tawar
24
15
42
17
404
266
1 Bandar
71
45
2 Permata
51
26
3 Syiah Utama
20
29
4 Bukit
61
41
10 Celala
Total Central Aceh
SECTION
IV
Bener Meriah
5 Wih Pesam
43
25
6 Timang Gajah
51
40
7 Pintu Rime Gayo
Total Bener Meriah
63
22
360
228
IV-60
As a cooperative, the PPKGO were
formed in 1997 with 86 farmers in 2 villages.
Every year the number of farmer joining the
association has increased. Currently there are
1,375 active organic farmers organic farmers.
Interestingly, apart from the active members,
there are many other members which are in
various states of suspension due to their
violation of some code of the organic farming
agreement. Amongst these are 95 farmers on
probation (which means that if they do not
violate any of the requirements again they
can be reinstated as active members) and 262
farmers are already in the transition phase
out of organic farming since they did not
pass the probation stage (which lasts 3
years). Further, since the formation of PPKGO, 82 (former) members have been disqualified from
organic farming altogether.
Given that it is not easy to get certified in the first place, the number of farmers violating the
organic code seems to be high. The process for joining a certified program can take a year or more,
which starts with farmers banding together in a group of 30 (not necessarily from the same village) and
submitting an application to the PPKGO. The PPKGO will then send out an internal inspection teams
which will put together a baseline data and submit it to a certification agency. The certification agency
will then send an inspector, and here there seems to be a bottleneck since it may take a year before an
inspector/inspection team is sent.
Farmers are not assessed fees for joining the program, just that they are required to adhere to the
organic farming regulation. Funding for PPKGO’s operational expenses comes from the split in
profit from selling coffee beans which is split three ways between FTI, PPKGO and Trimaju. In
addition, there are also some contribution from buyers provided directly to farmers for farm upkeep, and for training and other technical assistance.
The largest farmer grouping in the area is under the Genap Mupakat operation, although it
seems that for several years the operation has been floundering. It is not clear how many groups and
members there are left in the Genap Mupakat operation. Several former members of the Genap
Mupakat group have joined PPKGO.
2002
No
Sub-district
Area of
coffee farm
served
(Ha)
Unit
Farmers
involved
Central Aceh
1 Bintang
1
117
122
2 Takengon
1
260
270
3 Pegasing
1
219
194
4 Bebesen
1
288
206
5 Silih Nara
Total Central Aceh
2
417
351
6
1,301
1,143
Bener Meriah
1 Timang Gajah
1
560
334
2 Bukit
1
300
317
3 Bandar
2
750
425
Total Bener Meriah
4
1,610
1,076
Source: CBS Central Aceh, 2003
4.1.3. Business advisory services
There seems to be no noteworthy and
sustained business services provision
available to farmers in general, much less
to coffee farmers. Farmer groups such as
PPKGO will provide basic training to
farmers, and the Local Government services
office (such as the Industry Services office
or the local Village Cooperatives Center)
may provide training once in a very long
while, for example on bookkeeping and
credit management, but a specialized
agency or office to which farmers can
consult on a continuous basis is nonexistent. In addition, services have been
provided only to a limited number of
farmers and does not reach all farmers. Any
service provided by government offices,
however, are generally free and funded by
governmental budget (local or national).
SECTION
Table 25 Government-sponsored groups in Central
Aceh District, 2002
I
Farmers are also grouped around a central processing unit (Unit Pengolahan Kopi or UPP)—a
communally owned set of facilities. In 2002, there were 10 projects in the region, involving 2,219
farmers and 2,911 ha of land between them—an average of 1.3 ha of land per participant (Table 25).
This is only a very small fraction (about 4%) compared to the total number of farmers and land
involved in coffee cultivation in the region.
IV-61
4.2. Marketing strategy and industry
Prior to the 1990s, the Gayo Region as a coffee-producing region was not as popular as today.
One reason was that most of the coffee produced in the Gayo highlands were brought to Medan
where it is further processed, packaged and exported. The Medan traders used other terms for Gayo
coffee, for example calling it Sidikalang or Mandheling/Mandailing coffee. Nowadays, at the
international commodities wholesale market the region’s coffee is known as Mandailing. At the
specialty and organic coffee market, the Gayo coffee is gaining recognition.
While international buyers prefer Arabica coffee from the Gayo Region, local Gayo tastes are
geared more to Robusta. Locally, coffee is ground without the addition of other ingredients such as
corn powder as elsewhere in northern Sumatra or in Java. Additionally, contrary to popular belief,
ground coffee from Gayo is not mixed with marijuana [Idris, 2005 pers. comm.]
During the last few years, the trend in coffee production for the Gayo Region has been decreasing
(Table 26). Since exporting is conducted out of Medan, North Sumatra, what percentage of this is
exported is unknown. However, the Head (Bupati) of Central Aceh stated that about 75% of coffee
produced are exported, contributing $10 million of foreign exchange per year46. In addition to foreign
exchange earnings, the local coffee industry contributes 60% to Local Government revenues [LIN, 2004].
Table 26 Coffee production in
Central Aceh District, select years
Year
1998
2000
2002
2003
Area (Ha)
Production (Ton)
73,373
73,781
73,821
75,525
28,968
28,357
26,747
23,826
Source: CBS Central Aceh, various years; Estate
Services Central Aceh, 2004
SECTION
IV
The supply of coffee from the Gayo region is affected more by the political and security situation
rather than a lack of demand. For example, out of the estimated total coffee area, at any given year up
to 60% may be unproductive and/or neglected. This is also the reason for the seemingly low
productivity level of the coffee agriculture.
Demand, on the other hand, have been increasing for many producers, which is somewhat reflected
by price. This is also the reason that producers have not switched to other crops. On the contrary,
coffee cultivation seems to be expanding and non-farmers are even conducting coffee agriculture.
There is no data on the main international clients for coffee from the region, but PPKGO Manager
Iswandy Idris mentioned that Robusta coffee produced by the group is mostly sent to Europe,
whereas Arabica to the United States. Most international buyers have agents at the local level to
do the buying for them.
This is likely a low estimate. Assuming that annual production is 23,000, and 75% of which is exported at a price of $1/
kg (or $1,000/ton), then the foreign exchange earned should be at least $17.25 million.
46
IV-62
Packaged ground coffee
produced by Genap Mupakat,
Central Aceh
Domestic use (Indonesia-wide) of Gayo coffee is relatively small, and distribution is done out of
Medan in North Sumatra Province. The domestic use in Aceh is even smaller, most coffee being
consumed in Banda Aceh, the provincial capital.
Internationally, coffee from the Gayo region is primarily used as a component of a blend, since it
has a strong body and moderate acidity [Fricke, pers. comm.; Nur and Melala, 2001]. This is especially
the case in the US, where blended coffee is particularly popular. Gayo coffees are often blended with
coffees originating from South America.
SECTION
In the case of PPKGO farmers, buyers’ quality requirements are communicated to farmers through
various ways, including perhaps the most effective by having buyers visit the sites where farmers
work, as well as bringing key farmers and/or managers to major coffee markets and to meet key
buyers. Several times the PPKGO managers exclaimed his amazement at how discerning and articulate
international coffee experts are about coffee from the Gayo area. Additionally, these cross-visits instilled
recognition that Gayo coffees are competing with coffees sourced from all over the world.
IV
In the early 1980’s, the provincial government of Aceh (notably through the Genap Mupakat
coffee company) were active promoters of the region’s coffee, conducting regular marketing trips
abroad. Presently, the most common promoter of the region’s coffee are the certification bodies and
vendors of specialty coffees. For PPKGO, the fair trade certifier organization (FLO) is an especially
active promoter of its coffee.
IV-63
PART C
SUMMAR
Y AND RECOMMEND
ATIONS
SUMMARY
RECOMMENDA
The Mandailing Natal District is located in an area that CI has identified as part of a ‘hotspot’ in
the northern Sumatra region—an area of high biodiversity, yet also highly at risk and vulnerable to
conversion and unsustainable resource uses. The CI Indonesia program in the area is an important
part of an overall Northern Sumatra Biodiversity Corridor program (NSC), which endeavors to work
with stakeholders in planning for and implementing sustainable land use and human activity to
ensure the integrity of the whole Corridor. A thriving and healthy ecosystem in the region will
benefit the millions of people living in its confines.
The creation of the Batang Gadis National Park in Madina was an enormously positive step in
this direction. CII supported stakeholders—local and central government agencies, NGOs, the private
sector and communities—in the formal process of obtaining Park status, and now will continue to
support the planning and management of the Park to ensure its protection is not only a status.
Involving communities is one step, and this is particularly important in Madina since it is economically
still under-developed, even compared to its surrounding regions.
In 2003, the per capita Gross Regional Domestic Product of Madina was only little more than
half of provincial and national levels. The education level of its population is relatively low, and
health services lacking. Infrastructure and other services are basic, although it reaches relatively large
part of the population. An overwhelming part of the population relies on agriculture as the main
source of livelihood, but its development is lacking strategic direction, financial and technical support.
PART C
Coffee cultivation was once an important part of the local agriculture. Madina is also amongst
the first coffee growing areas in Indonesia outside of Java. The local population first started growing
coffee in the mid 1800s—almost 150 years ago. Since then coffee cultivation has had its ups and
down, and recently it’s mostly a ‘down’—coffee prices are low, especially so at the farmer level.
Increasingly coffee trees are abandoned as farmers switch to other crops such as paddy rice, cocoa,
and high-value-fruit trees.
The various evidence seems to conclude that the coffee cherries produced in Madina are being
grown in an ‘organic’ way (i.e. without chemical pesticides, herbicides or fertilizers). However, yields
are low, and processed coffee is of low quality, sufficient only to fulfill the local or regional market
demand. Low yields are mostly attributed to the fact that coffee trees are not maintained: trees are
old, and pruning and cleaning of the grounds are not regularly undertaken. Farmers do not undertake
maintenance because it is too costly at current selling prices: coffee plants are located in the mountains
far from residential areas, the roads are bad, and transportation too costly.
In addition, processing of coffee cherries is undertaken with scant or negligible attention to
quality. Rather than use the processing stage to enhance the quality of coffee cherries, farmers spend
a small amount of time and attention in generating coffee that potentially can earn added value.
64
PART C: SUMMARY AND RECOMENDATIONS
Similarly, processing is basic since farmers feel coffee prices does not warrant the time and effort spent
on ensuring good quality beans.
The lack of effort in producing coffee that is of the highest quality on the part of farmers is
unfortunate since the region then can not take advantage of the good international image already in
place for coffees originating from Mandailing. Instead, other regions in North Sumatra, and even
outside of Sumatra, uses the ‘brand’ to sell their coffees. Meanwhile, the ‘Mandailing’ or ‘Mandheling’
name has gained wide international recognition, including in the up-and-coming specialty coffee
market.
It seems that the most prominent weakness of the Mandailing coffee sector is the fact that it is
unorganized. Farmers are not organized in a sustained and systematic fashion; technical and financial
assistance are given in a piecemeal manner which does not leverage existing or potential other sources
of support. With facilitation and coordination, a coffee expert at the ICCRI is confident that the local
coffee sector can turn out acceptable, export-quality beans.
PART C
Poor cultivation and processing methods can also be attributed to the low level of farmers’ education
in Madina. In general, farmers in Mandailing have only elementary-level schooling. Additionally,
farmers lack sustained technical and financial support, both badly needed if coffee production is to
succeed supplying the more lucrative demand of international consumers, and especially that of the
specialty coffee market.
Mixed garden.
SUMMARY AND RECOMMENDATIONS
65
The Gayo Highland is also located in the region designated as the Northern Sumatra Biodiversity
Corridor by CI. In administrative terms the Gayo Highland covers two Districts: Bener Meriah
and Central Aceh, located adjacent to each other in the vicinity of the Leuser Ecosystem. The
Leuser Ecosystem, and the Leuser National Park within it, is an area of high biodiversity and
landscape, covering both coastal, lowland and montane ecosystems. In contrast to elsewhere in
Sumatra, the Sumatran large mammals such as the Sumatran tiger, elephant and rhino and many
different species of wild cats, as well as many other species of fauna and flora, all live in the
Ecosystem, some of which are unique only to the area.
The Leuser Ecosystem, however, face enormous pressures from human activity, including
conversion into agricultural and residential space, illegal logging and hunting of wild animals,
pollution, and other threats. These threats are also seen in the Gayo part of the area.
PART C
The Gayo people were originally from the Karo Highlands of present-day North Sumatra Province.
The people retain a distinct cultural and social identity distinguished from its neighbors the Acehnese,
the majority of the Aceh population. The Gayos have retained hospitable attitudes and relationships
with in-migrants, and they resist movement toward independence that has been the cause of major
armed and political conflicts in Aceh for many years.
66
Coffee trees
grown under shade, Bener
Meriah.
The economic performance of the Gayo people is relatively good compared to provincial indicators,
although still very much below national levels. The level of education is still relatively low, and health
services scarce, but the area is experiencing strong positive growth during the last few years. The coffee
sector is the engine for this growth, and in both Bener Meriah and Central Aceh together, more than
90% of all households (more than 57thousand households) are involved in the coffee sector.
In contrast to Madina, the coffee sector in the Bener Meriah and Central Aceh Districts in the
Gayo Highlands is much more advanced. The Gayo people have been largely successful in taking
advantage of local comparative and competitive advantages in coffee cultivation and processing. The
‘Gayo’ name is now widely recognized internationally, after about two decades of intensive agricultural
and marketing efforts.
The coffee sector in the Gayo Highlands initially received particular attention from the provincial
government agencies (Estate Services and Provincial Planning Agency) and an international donor
(the Dutch Government). Promotion of the Gayo coffee brand and the organization of farmers with
the aim of creating international demand for local coffees is reaping its benefits now.
Today, farmers in the Gayo Highlands have a full option of choices in terms of cultivation and
processing methods. Conservation coffee best practices (i.e. organic, fair trade, shade-grown coffee)
are being implemented by several groups of farmers. Technical assistance and other support are
available to other farmers who desire to also implement conservation practices.
There are still minor drawbacks, however, which if not managed in the short term, may undermine
the gains and progress already achieved today by the Gayo coffee sector. These drawbacks are 1)
deteriorating government-sponsored technical and financial assistance to coffee farmers, notably the
previously good research and product development facilities, and 2) the length of time taken by
international certification agencies to process new applicants. Additionally, external factors such as
the political situation in Aceh are still posing higher risks and costs to coffee farmers.
Price premiums are already being enjoyed by those farmers willing to expend the extra effort to
practice conservation coffee methods. Still others, however, do not consider the price premium to be
high enough to be ‘worth their while’. In fact, the generally good prices obtained from coffee have
caused ‘casual’ or part-time farmers to be growing coffee with a view of obtaining profit with minimal
effort. Some of these part-time farmers or landlords have other fulltime jobs (e.g. in the civil service)
and are piggybacking in the coffee boom, generally without the interest of time to implement
conservation coffee best practices.
In view of the two sites, and considering especially the opportunities for developing and/or
strengthening conservation coffee activities, the following recommendations are made.
1.1. Direct partnership with a farmers group or local producer
The opportunity that immediately stands out is the potential to work with the newly-created
cooperative in Huta Godang, Ulu Pungkut Sub-district. The cooperative have the support and
backing of the current Chief of the Sub-district, and what seems to be strong local leadership. In
addition, most of the Ulu Pungkut area is located immediately inside the newly-created Batang
PART C
1. In Mandailing Natal
67
Gadis National Park, which makes implementing conservation coffee best practices in the region
directly relevant.
Another opportunity is to work with the estate of PT Mandailing Kopi Prima, a privately-owned
coffee estate also in Ulu Pungkut, which currently grows 30 ha of Arabica coffee in Simpang Banyak
Village, also in the Ulu Pungkut Sub-district. Obvious advantages include the shorter set-up time of
the program, since there are less parties involved, and can serve as an initial model for working in the
area. The drawback will be that the activity do not involved local farmers directly at the beginning,
although some local residents work as laborers on the estate.
Another potential coffee farmers group is the older one in Hutanamale (Kotanopan Sub-district).
If Madina is chosen as the site of the conservation coffee project, then an immediate activity will
be to quickly compare the capacity and organizational readiness of these three alternative groups, i.e.
the farmers cooperative in Huta Godang, PT MKP in Simpang Banyak, and the farmers group in
Hutanamale. Potential partners in this undertaking include FTI, ICCRI and the Bitra Consortium.
1.2. Small-scale marketing assistance
Activities that are smaller in scale, but which will have immediate positive benefits to local
growers and producers is the setting up of a marketing scheme that promotes local coffee to outsiders
(tourists, business visitors, people returning for family visits). Indonesians have a tradition of bringing
back ‘oleh-oleh’, souvenirs or edibles from a place they have visited. Madina is now receiving a steady
flow of outsiders, most notably business visitors. They area potential customers that can be easily
persuaded coffee products at a price premium, especially if it is place in attractive packaging. Currently
there does not seem to be such products.
To undertake this activity, a partnership with the local Trade, Industry and Investment Services
and Estate Services offices, as well as the Bitra Consortium already working in the area should be
relatively easy to set up.
1.3. Organic agriculture training
A discussion should be held with the Madina Estate Services office to assess whether a partnership
can be undertaken in implementing the IPM trainings, for example by expanding the current
curriculum or by expanding the service to more farmers in the area.
PART C
1.4. Organic agriculture workshop with the Provincial Estate Services office
The Provincial Estate Services of North Sumatra is interested in organic agriculture for cash
crops, including for coffee. A small workshop on organic, specialty and other coffees may potentially
be influential in determining future programs of this office, and other, provincial-wide, stakeholders.
This would also be a good occasion in articulating the mutually beneficial linkages between forest
management and estate crops development. Potential partners include ICCRI, FTI and the
University of North Sumatra.
A study by the Cooperative League of USA (CLUSA) on the differences in production costs between a conventional versus
organic production system showed that it is lower for the later [Sorby, 2002]
47
68
2. In the Gayo Highland
2.1. Mainstreaming of conservation coffee best practices
Mainstreaming conservation coffee best practices in local agricultural policy and extension should
have the greatest potential to both contributing to the outcomes of the key biodiversity site as well
as strengthening the coffee agriculture itself. More than 50 thousand households are involved in the
coffee sector of the Gayo Region. The potential gain of having these households embrace even only
the basics of conservation coffee best practices are potentially very significant.
In this respect, the focus of an intervention would be in identifying how conservation coffee best
practices can be mainstreamed. For a start, identification and promotion of the monetary benefits of
conservation coffee—if any—should be done, especially from the costing point of view. A
demonstration of the cost saving features of conservation coffee will potentially have a large influence
on changing cultivation behaviors47.
Other alternatives include:
-
Identification of distortion policies at the local level, and investigating how they can be
removed (e.g. subsidized agrochemicals, etc);
-
Revitalizing coffee research, focusing research of local-specific solutions that are
environmentally friendly and cost-effective;
-
A rapid assessment of the extent of coffee plantation in the Leuser Ecosystem, and the
degree to which these plantations resemble a forest-like environment;
-
Articulating the linkages and benefits of conservation coffee best practices to the desired
biodiversity outcomes. Especially since coffee is an exotic species (i.e. introduced recently),
therefore it should be interesting to see what its impacts it has had on the key biodiversity
area.
2.2. Expansion of conservation coffee practice by farmer groups
Another alternative for a conservation coffee project is a) to work directly with existing farmer
groups which are already certified, either to strengthen and expand conservation coffee practice, or
b) to work with farmers groups not on any conservation coffee programs.
Genap Mupakat farmers are certified organic, but not fair trade and other certification. In
addition, in recent years it has somewhat lost farmer-members. Support can be given in the form
of expanding the standards already in place, and expanding membership/scope to new farmermembers.
PART C
In terms of expansion of conservation coffee practice, existing farmer groups include the PPKGO
and the Genap Mupakat farmers. These are two groups that are already certified for part of
conservation coffee practice. For PPKGO, support can be given to expanding their network and
facilitation capacity so that they are able to bring on more farmers to join the cooperative. In
addition, certification can be expanded to also include bird-friendly and other standards.
69
There are still many groups which are not yet on any conservation coffee program, and these
could be a target of intervention. However, since set up and development of a team on the ground is
time and resource consuming, such a program will most likely go through an established
team such as the PPKGO. In this respect, perhaps it is more convenient to let existing groups
continue with their process and let market mechanisms induce other farmers to join a
certification program.
PART C
Potential partner organizations include Genap Mupakat, the PPKGO, and the Center for
Gayo Coffee Research, Estate Services offices both in Bener Meriah and in Central Aceh.
70
REFERENCES
REFERENCES *
*Internet resources were accessed between December 2004-March 2005
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www.bisnis.com
Blanchett, S. 19 January 2005. Personal communication.
Central Board of Statistics Indonesia (CBS). 2004. “Indonesia Macro Indicators, 2003.” Available
online www.bps.go.id
Central Board of Statistics Central Aceh (CBS Central Aceh). 2004a. Central Aceh in Figures 2003.
______. 2004b. Produk Domestik Regional Bruto Kabupaten Aceh Tengah Berdasarkan Lapangan
Usaha 1993-2003.
______. 2003. Central Aceh in Figures 2002.
Central Board of Statistics Mandailing Natal (CBS Madina). 2004. Mandailing Natal in Figure
2003 .
______. 2002. Inventarisasi Tanaman Perkebunan Karet Rakyat Kabupaten Mandailing Natal: Analisa
Kuantitatif Tanaman Karet Rakyat Kecamatan Panyabungan dan Kotanopan 2002"
Dinas Perkebunan Kabupaten Mandailing Natal (Estate Services Madina). 2005. “Luas Areal and
Produksi Tanaman Komoditi Perkebunan Tahun Anggaran 2004”.
Erwidodo, K. Noekman, M. Syukur, Sugiarto, A. Zulham, G.S. Hardono, T. B. Purwantini, I.
Setiaji and H. Tarigan. 1994. Potensi, Peluang dan Kendala Produksi dan Ekspor Beberapa Komoditas
Pertanian. Monograph Series No. 16. Pusat Penelitian Sosial Ekonomi Pertanian, Badan Penelitian
dan Pengembangan Pertanian.
Fricke, T. 18 and 19 January 2005. Personal communications.
Indonesia Coffee and Cocoa Research Institute (ICCRI). 2004. Available online www.iccri.net
Ismayadi, C. and Zaenudin. 2003. “Pola Produksi, Infestasi Jamur, dan Upaya Pencegahan
Kontaminasi Ochratoxin-A pada Kopi Indonesia.” Warta Pusat Penelitian Kopi dan Kakao
Indonesia, 19(1):45-60
REFERENCES
FAOSTAT data, 2004. Available online http://faostat.fao.org
71
Kompas. 30 September 2000. “Negeri “Aman” yang Tidak Aman.” Available online at http://
www.kompas.com/kompas-cetak/0009/30/daerah/nege31.htm
______.18 June 2002a. “Kabupaten Aceh Tengah.” Available online at http://www.kompas.com/
kompas-cetak/0206/18/NASIONAL/kabu08.htm
______.18 June 2002b. Beda Bahasa dan Budaya Sakitnya…. . Available online at http://
www.kompas.com/kompas-cetak/0206/18/NASIONAL/beda08.htm
______. 18 June 2002c. Kabupaten Aceh Tengah: Keindahan yang Terbengkalai. Available online
at http://www.kompas.com/kompas-cetak/0402/21/Wisata/686360.htm
______. 5 December 2004. “Perjalanan ke Negeri di atas Awan.” Available online
Lubis, Abdur-Razzaq. 2005. Islam memasuki Mandailing. Available online at www.mandailing.org
______. Lubuk Larangan: community-based ecological resource management practise in Mandailing.
Available online http://www.gbf.ch/ab_received.asp?no=36&lg=EN&app=&now=1#7
Matondang, I. 27 January 2005. Personal communication.
Mawardi, S. 1999. “Kopi Specialti Sebagai Alternatif Pengembangan Kopi di Indonesia.” Warta
Pusat Penelitian Kopi dan Kakao Indonesia, 15(1):28-40
______. 2002. “Kendala Pengembangan Pertanian Organik di Indonesia.” Warta Pusat Penelitian
Kopi dan Kakao Indonesia, 18(2): 48-57
McCarthy, John. 2002. “Power and Interest on Sumatra’s Rainforest Frontier”. Journal of Southeast
Asian Studies. Available online http://www.indopubs.com/in2.html
Media Indonesia Online. 4 February 2005. “Kopi Gayo Belum Mampu Mengangkat Kesejahteraan
Petaninya”. Available online http://mediaindo.i2.co.id/
Ministry of Agriculture. 2002.
REFERENCES
Najiyati, Sri and Danarti. 2004. Kopi: Budi Daya dan Penanganan Pasca Panen, edisi revisi. Depok:
Penebar Swadaya.
72
Napitupulu, L. 2005. Assessment of Opportunities fo Conservation Coffee Intervention in Mandailing
Natal and Gayo Highland of Northern Sumatra. Report submitted to Conservation International Indonesia
Nasution, A. 27 January 2005. Personal communication.
REFERENCES
Nasution, D. 27 January 2005. Personal communication.
Nasution, Y. 26 January 2005. Personal communication.
Nur, Abdul Mukti and Hendro Winarno. “Diversifikasi di Kebun Kopi dalam Rangka Menunjang
Keberlanjutan Usaha Tani Kopi” (Diversification in coffee farms to sustain coffee enterprises). Available
online
Nur, Abdul Mukti, Zarmansyah, M. Ali, Junaidi, Khalid, Sulwan Amri, Sukanto and Usman.
1998. “Penerapan Diversifikasi Kopi Arabika di Dataran Tinggi Gayo, Aceh Tengah.” Warta Pusat
Penelitian Kopi dan Kakao Indonesia, 14(1): 103-109
Nur, Win Wan and Yahya Melala. “Organic/specialty coffee—the Indonesian experience” in The
first Asian regional round-table on sustainable, organic and speciality coffee production, processing
and marketing, February 2001 in Chiang Mai, Thailand. Keith Chapman, Suranant Subhadrabandhu
(Ed.). Available online http://www.fao.org/documents
Perbatakusuma, Erwin A., Didy Wurjanto, Prie Supriadi, Budi Ismoyo, Wiratno, Luhut Sihombing,
Iwan Wijayanto, Barita O. Manullang, Safaruddin Siregar, Abdulhamid Damanik and Abu H. Lubis.
2004. Kelayakan Teknis: Menuju Efektivitas Pengelolaan Ekosistem Taman Nasional Batang Gadis
Melalui Kolaborasi Pengelolaan. Policy paper. The Initiation Team for the Collaborative Ecosystem
Management of the Batang Gadis National Park. Panyabungan: Indonesia Ministry of Forestry,District
Government of Mandailing Natal and Conservation International Indonesia.
Rangkuti, G. 27 January 2005. Personal communication.
Sorby, Kristina. 2002. ‘Production Costs and Income from Sustainable Coffee,” document number
29598, a background paper to World Bank Agricultural Technology Note 30 “Toward More
Sustainable Coffee”. Available online www.worldbank.org
Sri-Mulato, O. Atmawinata, Yusianto, S. Widyotomo and Martadinata. “Kajian Penerapan Pengolahan
Kopi Arabica Secara Kelompok: Studi Kasus di Kabupaten Aceh Tengah.” Warta Pusat Penelitian
Kopi dan Kakao Indonesia, 15(1): 143-160
Suara Pembaruan. 2003. “Melawan Hama Kopi tanpa Pesitisida.” Available online http://
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Susila, Wayan R. and Herman. 2004. “Perbaikan Mutu Kopi tidak Bisa Ditunda.” Lembaga Riset
Perkebunan Indonesia online. Available online www.ipard.com
REFERENCES
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73
van Beukering, P.J.H., Cesar, H.S.J. and Janssen, M.A. 2003. “Economic Valuation of the Leuser
National Park on Sumatra, Indonesia.” Ecological Economics Vol. 44(1): 43-62
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Indonesia.” Warta Pusat Penelitian Kopi dan Kakao Indonesia, 16(3):206-217
Widyotomo, S. Sri-Mulato, Yusianto and Martadinata. “Pengolahan Kopi Arabika di Tingkat
Perkebunan Rakyat di Desa Jagong Jeged, Aceh Tengah.” Warta Pusat Penelitian Kopi dan Kakao
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Yahmadi, M. 1999. “Beberapa Catatan tentang Perkembangan Mutu Kopi Ekspor Indonesia 19831998.” Warta Pusat Penelitian Kopi dan Kakao Indonesia, 15(1):49-63
______. 2000. “Sejarah Kopi Arabica di Indonesia.” Warta Pusat Penelitian Kopi dan Kakao Indonesia,
16(3):180-188
Internet resources:
Coffee vendors:
www.lucidcafe.com
www.indonesiancoffee.biz
www.hollandcoffee.com
Official site of the Local Government of Central Aceh District: www.arigayo.com
Official site of the Local Government of Mandailing Natal District: www.madina.go.id
Gunung Leuser National Park:
Indonesia Ministry of Forestry site: http://www.dephut.go.id/INFORMASI/TN%20INDOENGLISH/tn_leuser.htm
UNEP World Heritage Site: http://www.unep-wcmc.org/sites/wh/forests_of_sumatra.htm
REFERENCES
International Coffee Organization: www.ico.org
IV-74
ANNEX: SITE SELECTION DIAGRAM
ANNEX
ANNEX
SITE SELECTION DIAGRAM
75
Key issue
Summary
ANNEX
Component 1: Natural resources, interrelation with coffee, opportunities and fit within CI’s
conservation strategy
76
1.1. Threats of coffee production
for Conservation Outcomes
(species, PA, corridor)
Madina: Coffee production is currently decreasing, however
farms are thought to be located inside and on the buffer
zone of a National Park. When and if there is a price
increase, there is a change that old farms will be revitalized.
When this happens, it is good if coffee are grown in a way
that also maximizes the integrity of the protected area.
Gayo: Coffee production is increasing, but somewhat
curbed by the security and political concerns. Expansion
into protected area (Leuser Ecosystem) is reported.
1.2. Proximity of coffee fields to PA
Madina: Coffee fields inside National Park is thought to be
abandoned.
Gayo: Coffee fields inside and in the buffer zone of a
protected area are active and expanding.
1.3. Opportunity for coffee project
to contribution to Conservation
Outcomes
Madina: Coffee project has good opportunity of contributing
to Conservation Outcomes through compatible landuse in
the buffer zone of the BGNP.
Gayo: Coffee project also has good opportunity of
contributing to Conservation Outcomes through
1.4. Opportunities for
environmental services market
development
Madina: Significant opportunity for developing a market for
environmental services.
Gayo: Significant and demonstrated opportunity for
environmental services market development.
1.5. Synergies of coffee project
with other conservation actions
(CI, partners)
Madina: Excellent potential for synergies with CII projects
in Madina and Northern Sumatra in general, with CII CEPF
program for conservation advocacy, and with local
government conservation strategy.
Gayo: Good synergies with CI strategy for Northern Sumatra
Biodiversity Corridor, and with CI Verde Ventures program
for strengthening the integrity of Leuser NP buffer zone
management.
1.6. Established presence of CI or
local partners in the region
Madina: CII established presence in the District, with plans
for a full time team in Madina. In addition, the region is
located between two of CII’s main offices in Sumatra
(Medan and Padang). Local CEPF-funded partner, the Bitra
Consortium, also have had a presence in the region for a
few years already.
Gayo: CII do not have presence in the Gayo Highlands,
have some connection with local partners in the region
through CI Verde Ventures and CEPF programs.
ANNEX: SITE SELECTION DIAGRAM
Key issue
Summary
Component 2: Cultural, political and socio-economic conditions of the site
2.1. Awareness/ commitment of
local population for conservation
Madina: Local population extremely aware of and have good
commitment for conservation, demonstrated by
implementation of local policies such as setting aside a notake zone, and in supporting the creation of a national park.
Gayo: Local population have good awareness and have
good commitment to conservation, demonstrated through
their embrace of organic and environmentally-friendly
agriculture.
2.2. Level of commitment of local
authorities
Madina: Local authorities deeply committed to economic
development that is compatible with maintaining the
sustainability of the environment and natural resources.
Gayo: Local authorities somewhat committed to
conservation, but do not have a strategy and strong
enforcement of conservation actions in place.
2.3. Consistency of local policies
with conservation coffee approach
Madina: Local policies, especially in the cash crop sector,
seem to be compatible with conservation coffee approach.
Other policies seem not to be in conflict with conservation
coffee approach.
Gayo: Local policies compatible with conservation coffee
approach.
2.4. Capacity of local civil society
organizations who could assume
leadership
2.5. Importance of coffee to
household income/welfare
Madina: Capacity of local civil society organizations who
could assume leadership unclear, but potentially good with
strong facilitation and assistance.
Gayo: Proven capacity of local civil society organizations
who could assume leadership.
Madina: Contribution of coffee agriculture to household
income is decreasing.
Gayo: Coffee contributes significantly to household income
and welfare.
3.1. Compatibility of current
production pattern with conservation
Madina: Current production pattern very compatible with
conservation.
Gayo: Some current production pattern demonstrated
compatible with conservation, slight incompatibility present
which, if persisten and given the size of the coffee sector in
the region, can lead to greater impact to the protected area.
3.2. Profitability of coffee/cocoa
farming (current and trend)
Madina: Coffee cultivation increasingly abandoned because
it is not profitable.
Gayo: Coffee cultivation highly profitable that non-farmers
are entering the industry.
ANNEX
Component 3: Farm-level production system and available support services
77
Key issue
Summary
3.3.Availability of production
support service (access and
quality)
Madina: Production support services is not widely available,
but for specific cases or in smaller scale sufficiently may
be available.
Gayo: Production support services widely available.
3.4.Compatibility of extension
provider’s existing extension
messages with conservation
Madina: Existing extension messages compatible with
conservation.
Gayo: Existing extension messages compatible with
conservation.
3.5.Organizational capacity of
extension service provider
Madina: Sufficient organizational capacity of extension
service providers.
Gayo: Good organizational capacity of extension service
providers.
3.6.Financial sustainability of the
extension provider (not
dependence on outside subsidies)
Madina: Sufficient financial sustainability of extension
provider given the relatively small size of the target group.
Gayo: Insufficient sustainability of extension providers given
the size of the target group.
ANNEX
Component 4: Local value chain and marketing strategy
78
4.1.Volume of existing coffee
cultivation in the KBA
Madina: None or very small amount of existing coffee
cultivation in the KBA.
Gayo: Unknown but potentially sizeable volume of existing
coffee cultivation in the KBA.
4.2.Existing wet processing
infrastructure
Madina: Minimal wet processing infrastructure.
Gayo: Good wet processing infrastructure for various
processing scale (small, medium and large).
4.3.Potential for quality of the site’s
coffee
Madina: High potential for quality of the site’s coffee with
facilitation and support.
Gayo: Already generally good quality of the site’s coffee,
and some of excellent coffee.
4.4.Existing client’s preference for
coffee from the site
Madina: If quality can be consistently good, clients will have
preference for coffee from the site
Gayo: International and domestic clients already have
preference for coffee from the site.
4.5.Market reptutation of coffee of
the site
Madina: The site name has good international recognition
and the site name brand has good reputation.
Gayo: Good reputation of coffee from the site.
4.6.Capacity of commercialization
of service provider (quality,
services, effectiveness,
sustainability)
Madina: Presently some capacity of service provider but
need coordination.
Gayo: Some service provider have good capacity for
commercialization.

Hal 00 iii - xiii - Conservation International

Transcription

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