value initiative program (vip)

Value Initiative Program (VIP)URBAN VALUE CHAIN

DEVELOPMENT: TOFU AND TEMPE SECTOR IN GREATER JAKARTA

URBAN VALUE CHAIN DEVELOPMENT: TOFU AND TEMPE

SECTOR IN GREATER JAKARTA

URBAN VALUE CHAIN DEVELOPMENT: TOFU AND TEMPE

SECTOR IN GREATER JAKARTA

Sector Tofu and Tempe (Soy bean based product)

Focus Area Greater Jakarta (Jakarta, Bekasi, Depok, Tangerang and Bogor)

Enterprise Tofu and Tempe Producers including Renter Producers; “Lopper/middlemen and Wet Market vendors; and Street vendors

Goal Increase income, improve working conditions, and diminish environmental impact of production for 40,000 enterprises in Greater Jakarta. Provision of safe food to 7.2 million consumers in Greater Jakarta

Purpose Increase efficiency and product quality for 4,500 entrepreneurs

Potential Market Implementation Partners

America Soybean Association, Forum Tempe, Cleaner Production Centre, Research Agency, Business Service Providers, Bank/MFI, Local Government, Metal Workshop Association, Vendor Association, MoE, Bank Indonesia

BackgroundBackground

Indonesia MapIndonesia Map

Project Target Areas

Project phase expansion plan across greater Jakarta

•In 2007, the total population of Indonesia was 232.9 Million people; approximately 40% of the population categorized as poor people

•The National Survey conducted in 2002 revealed that 34.64% of total poor people living in urban area

•50% of the total population live in urban areas; and 40% of urban residents are employed in the informal sector.

Why Urban?

Why Tofu/Tempe?

•Tofu/tempe a staple food for approximately 40 million poor people

•Most tempe/tofu producers and vendors live in urban areas and are informal workers.

•The tempe/tofu industry and vendors offers employment opportunities for individuals with limited formal education. It also offers an additional source of income for their extended families (remittances).

Owner Renter

Factory, raw material, housing for workers

Rent space and all equipment from owners

Fresh tofu,

60-500 kg soybean /day

Fresh tofu,

5-30 kg

Soybean

/day

$ 100/day $ 8-9/day

Avg : 6 workers; @ $ 4/day

No workers

Owner Renter

Factory, raw material, housing for workers

Rent space and all equipment from owners

Fresh tempe;

40-150 kg

Soybean

/day

Fresh tempe;

10-70 kg

Soybean

/day

$ 17/day $ 8-9/day

Avg : 2 workers; @ $ 2/day

No workers

Asset/Provision

Product-Capacity

Income

Tofu Producers Tempe Producers

Worker

Enterprises in the sector

Cart Owner Vendor

Owns cart. Rents cart and other equipment from owner

Cooked tofu/ tempe

Cooked tofu & tempe

USD

14-15/day

USD

3-4/day

No workers No workers

Asset/Provision

Product-Capacity

Income

Cart Vendors

Worker

Continued Enterprises…

Motorbike, kiosk.

Only sell fresh tofu/tempe and take margin

USD $ 8-10/day

No workers

Lopper (middlemen) / Wet market vendors

“Out door

eaters”

Consumer associations

Processing Food Preparation

& Snack Food Vendor

Consumption

Input Supply Informal and

Formal Marketing

Soybean wholesalers

Soybean Agents

Producer Group

Large/lead producers

Renter producers

Small producers

Take home consu-mers

Medium sized producers

Renter producers

Wholesaler/Agents

Food stalls

Wet Market / Cart Vendors

Association of soybean, tofu/tempe producers, and vendors; cooperative

Ministry of Environment, Ministry of Trade and Industry, Governments, Banks/ MFI, Research Institute

Food and hygiene inspection Body (BPOM)

Mini-Mart

Hospital

Catering

School

Fo

rmal

M

arke

t

Analyzing the Sector: Value Chain Map

10%

50%

20%

20%

80%10%

10%

Value Chain Analysis

Inp

ut s

upp

lyP

roce

ssin

g

Inp

ut s

up

p ly

Pro

cess

ing

Foo

d &

sna

ck

stre

et v

endo

r

Info

rmal

&

form

al

mar

ketin

g

Long term availability of traditional fuel

Used cooking oil & other toxic additives effect

human health

informal markets is the biggest market

Liquid waste can be used for biogasInefficient production

Use of formaldehyde in tofu

Cleaner production can reduce cost

Opportunity

Lim

ited

shel

f life

Lack

of a

cces

s to

fina

nce

Re-used oil stove for cart vendor will attract consumer

Constraints Consumed by large poor people

Bad

env

ironm

enta

l effe

ct d

ue to

liqu

id

was

te o

f tof

u pr

oduc

tion

Co

nsu

mp

tion

Only use 100% of fresh cooking oil will lead to increase sales

Constraint Underlying Causes

Service Market

Supply Assessment

Demand Assessment

Interven-tion

Activity

Inefficient production (tofu)

Producers don’t know :-How To do it-Where to get info

-Provide information -Training to apply cleaner production

MOE and BSM provide the loan for producers who will apply cleaner production

Many producers interest on how to reduce cost energy and increase time efficiency

Improve Production

-Renovate 1 tofu factory as model-Conduct TOT in cooperate w/ MOE- Linkages financial institution and producers

Unhygienic process production (tempe)

-Lack capital to invest in new hygiene equipment-Don’t know where to get the equipment

-Financial product-Provide information on appropriate hygiene equipment

- Many local workshops are available to be equipment suppliers

-Lack info on production process of tempe

Most producers aware: low quality of equipment (used drum)

Improve Production

-Renovate 1 tempe factory as model- Linkages between equipment supplier and producers-Linkages financial institution and producers

Health issue : use used cooking oil (street vendor)

-Lack of awareness-Use used cooking oil can keep low cost production-Don’t know the alternative tech

-Provide the alternative tech (used cooking oil stove)-Promote used cooking oil stove

- 2 local workshop are interested to develop and market used cooking oil stove

Introduce the used cooking oil stove

-Develop the design of used cooking oil stove in cooperation with consultant-Technical assistant by the consultant support from VIP-Linkages S-D

Analyzing the sector: Constraints and Interventions


Service Market

Supply Assessment

Demand Assessment

Interven-tion

Activity

Low productivity

-Factory facilities are too old (20-30 years)

- Producers do not know where they can get information

-Information on cleaner production (CP)-Information on financial product

-CP and finance program of MoE for tofu- Micro finance done by the state banks for tempe producers is available-Metal workshops are able to provide better equipment for tempe production

-Producers are looking proven technology-Most producers aware that better qualities, longer shelf life can increase sales

-Producers are willing to renovate factories as long as there are any financial support

Improve production

- Renovate 1 factory each for tempe and tofu-Organize IP experts with MoE-Organize GHP training for tempe equipment supplier-Assist MoE and equipment supplier in producing marketing tools-Organize business meeting between equipment suppliers and producers

Environmental pollution and threat of closure by local government

-Producers do not know where they can get information on how to handle the liquid waste

- Information on CP related to biogas

-CP and finance program of MoE- 1 Biogas supplier for tofu

- Producers are willing to handle their liquid waste

Improve production

- Biogas is included in tofu demonstration factory-Biogas supplier will be invited to join TOT for IP expert



Service Market

Supply Assessment

Demand Assessment

Interven-tion

Activity

Consumers eating unsafe food

-Consumers have no choice and this is the best food they get with their money-Producers do not know where they can get information on good hygiene practice

- Information on good hygiene practice

- Forum Tempe funded by America Soybean Association interest the hygiene issues of tempe and tofu

-The hygiene equipment gives benefit such as longer shelf life, better quality, etc

Improve production

-Hygiene practice will be inserted in IP expert training- GHP training for equipment supplier

No difference between healthy and non healthy product

-Producers and vendor do not understand about the importance of branding and marketing

-Information on better quality product

-No supplies of branding and marketing-MoE can give certification for CP-Cooperative may have an interest in using logo as safe food product

-Producers and vendor are looking way to promote their better quality product-Sales is the most important factor-Producers do not mind to put sticker in their product

Branding and marketing

- Product registration- Designing the label and packaging-Promote the labeled product to consumers


• Improve production process

– Improve production in tofu

– Improve production in tempe

– Improve the stoves for street vendors

• Promotion of cleaner healthy products

– Branding and marketing

Strategy & Interventions

Intervention Outreach

Intervention Plan

Pilot Uptake

Project support

Final beneficiaries

Improve production tofu

400 8000 20000

Improve production tempe

450 4500 15000

Improve Street vendors

600 600 5000

Improve branding and marketing

102* 2040* 20000*

Total 1450 13,100 40,000

Contract deliverable with SEEP reach 40,000 beneficiaries at goal level while 4,500 beneficiaries at purpose level

Note : * not counted due to the double counting with other interventions

Intervention Plans

Background

• What?

– Producers improve their facilities so that there is an increase in efficiency, hygienic production and improved environment in terms of reducing pollution and smoke

• Why?

– Reduce cost and improve the environment

– More hygienic and healthy products available in the market

• Problem?

– Producers are unaware of the options for improving production and addressing environmental issues

– Weak linkages with equipment supplies and technical assistance

Improve Production in Tofu


What Service? Pilot stage

• Information on cleaner production (CP) and good hygiene practice (GHP) provided with equipment as an embedded service to producers

• Information on CP and GHP provided by consultants to producers

• Information on successful pilot project to banks and the bank works with the IP experts developed by MoE.

Uptake• Training by MOE for new IP experts

• How?– Establish a pre-pilot

• Demonstration tofu factory that provides a working example to other producers and IP experts

Project will facilitate:– Pilot: 3 models– Uptake : 2 models



Tofu producers improve productivity and hygiene and produce less pollution

Tofu producers improve product quality Indicator: Renters and vendors’ comments on better product quality of tofu

Causal Chain for Intervention : Improve Production for Tofu - Pilot

Tofu enterprises applied Cleaner Production and GHP and use new equipmentIndicator: 1000 tofu enterprise applied Cleaner Production and GHP in their enterprise within the project period

Tofu enterprises increase salesIndicator: Sales of tofu in informal market increases 15% for tofu enterprises who applied CP and/or GHP in the Greater Jakarta area within the project period

Tofu enterprises increased income Indicator: Increased 15% of income for 8,000 tofu enterprises in the Greater Jakarta area within the project period as a result of applying CP and GHP.

Tofu enterprises increase profitIndicator: Profits of tofu enterprises who applied CP and GHP in the Greater Jakarta targeting the informal market increase 15% within the project period

Tofu producers reduce cost Indicator: Production cost reduces 15% for tofu producers who applied CP in the Greater Jakarta area within the project period

Community experience less odor

Indicator: Environmental condition of 400 tofu enterprises in the Greater Jakarta area improve within the project period

Producers more secure

Tofu producers provide information on better product quality of tofu to vendors

Indicator: 8,000 vendors provide information on better product quality of tofu to their customers

Workers experience improve working condition

Indicator: Working condition for 4,000 tofu enterprises and employees in the Greater Jakarta area improve within the project period

Tofu producers purchase IP Package/new equipments from IP ExpertsIndicators: 400 tofu producers purchase IP package/new equipments within the project period

MoE and NADFC conduct the pilot training to IP Experts in CP and GHP with supports from VIPIndicator: Participants’ comments/interest to enter tofu sector after attending CP and GHP training

1. VIP talks to National Agency for Drug and Food Control (NADFC) on IP Expert training. 2. VIP have a deal with NADFC, which will have the following:- VIP helps NADFC to produce training materials on Good Health Practice (GHP), if necessary.- NADFC will conduct the GHP pilot training with support from VIPIndicator: NADFC’s comments/interest to participate in this program

1. VIP talks to Ministry of Environment (MoE) on IP Expert training.2. VIP have a deal with MoE, which will have the following:- VIP helps MoE to identify the participants which will be the IP Experts that consist of equipment supplier, lead producers, and financial institution. - VIP helps MoE to produce training materials, if necessary.- MoE will conduct the Cleaner Production (CP) pilot training with support from VIP- VIP will help MoE to help the trainees in providing the services (IP Package) to the producers, if necessary. This support package must be developed.Indicator: MoE’s comments/interest to participate in this program

INTERVENTION ACTIVITIES

VIP troubleshoots implementation by building

a tofu factory model in Jakarta. While for Bekasi, the factory model is built through MOE program.

Indicator: Tofu enterprise’s satisfaction towards the IP Package/new equipments in pilot

PILOT BUSINESS MODEL

OUTCOMES

IMPACT

Equipment suppliers provide information on CP and GHP to tofu enterprises

Indicator: 5 business service i.e equipment supplier related to CP and GHP developed, introduced, and rolled out within the project period

Lead producers provide information on CP and GHP to tofu enterprises

Indicator: 12 business service i.e lead producers related to CP and GHP developed, introduced, and rolled out within the project period

Financial institutions provide information on CP and GHP and

financial support to tofu enterprises3 financial services related to CP and GHP developed, introduced, and rolled out

Tofu enterprises are aware of the CP, GHP, and access to finance for producers in terms of improving their productivity and quality of tofuIndicator: 1000 tofu enterprises are aware of the CP, GHP, and access to finance for producers within the project period


1. VIP will develop a business analysis on tofu which will be delivered to the Bank.2. VIP identifies which Bank that would be interested to provide access to finance to financial institutions3. VIP will talk and give the business analysis result to Bank and then have a deal with Bank i.e. Bank will provide access to finance to at least 10 financial institutions. VIP will just help the Bank to provide detail information to selected FI.

VIP will have a deal with MOE which will have the following:1. VIP will raise awareness about the IP expert training2. VIP will provide database on the potential IP experts in some areas.3. MoE will then prepare a training plan for the next coming years (depends on MoE but at least 2 years).4. MoE will conduct trainings on their own during the uptake stage. VIP will just help in the document preparation and marketing to the producers.5. VIP helps MoE to produce marketing documents – brochure/prospectus MoE will display the marketing documents/prospectus.

MoE conduct IP Experts trainings on their own Indicator: a. MoE conduct 2 IP Experts trainings on their own b. Participants’ comments/interest to enter tofu sector

after attending CP and GHP training


Many tofu producers improve product quality

Indicator: Renters and vendors’ comments on better product quality of tofu

Causal Chain for Intervention : Improve Production for Tofu - Uptake

Many tofu enterprises applied Cleaner Production and GHP and use new equipmentIndicator: 10,000 tofu enterprise applied Cleaner Production and GHP in their enterprise within the project period

Many tofu enterprises increase salesIndicator: Sales of tofu in informal market increases 15% for tofu enterprises who applied CP and/or GHP in the Greater Jakarta area within the project period

Many tofu enterprises increased income Indicator: Increased 15% of income for 20,000 tofu enterprises in the Greater Jakarta area within the project period as a result of applying CP and GHP.

Many tofu enterprises increase profitIndicator: Profits of tofu enterprises who applied CP and GHP in the Greater Jakarta targeting the informal market increase 15% within the project period

Many tofu producers reduce cost Indicator: Production cost reduces 15% for tofu producers who applied CP in the Greater Jakarta area within the project period

Many community experience less odor

Indicator: Environmental condition of 1,000 tofu enterprises in the Greater Jakarta area improve within the project period

Many producers more secure

Many tofu producers provide information on better product

quality of tofu to many vendors Indicator: 20,000 vendors provide information on better product quality of tofu to their customers

Many Workers experience improve working condition

Indicator: Working condition for 10,000 tofu enterprises and employees in the Greater Jakarta area improve within the project period

Many tofu producers purchase IP Package/new equipments from IP ExpertsIndicators: 1,000 tofu producers purchase IP package/new equipments within the project period

UPTAKE BUSINESS MODEL

OUTCOMES

IMPACT

More IP Expert provide information on CP and GHP to tofu enterprises

Indicator: 40 business service related to CP and GHP developed, introduced, and rolled out within the project period

More Financial institutions provide information on CP and GHP and financial support to tofu enterprises

Indicator: 10 financial services related to CP and GHP developed, introduced, and rolled out

Many Tofu enterprises are aware of the CP, GHP, and access to finance for producers in terms of improving their productivity and quality of tofuIndicator: 4000 tofu enterprises are aware of the CP, GHP, and access to finance for producers within the project period

Tofu sector increases market position/ competitiveness regarding productivity, hygiene and environmental friendliness

Bank provide access to finance to many financial institutionsIndicator: Financial institutions’ comments/interest to enter tofu sector

Business Models - Pilot

(5)Equipment

supplier (100)Tofu Producers

Information

Independent consultant

ConsultancyFee

IDR

(60) Tofu Producers

Equipments

(3) Financial Institution

Information & consultancy

Fee

IDR

IDR

Equipment supplier

Equipments

Information & consultancy (240) Tofu

Producers(12) Lead producer

IDR through commission in

sales

Equipment supplier


#1 Business Model #3 Business Model

#2Business Model

#1 Business Model – Market Uptake


Ministry of Environment

IP Experts

Training

IP Experts

IP Experts

Producers Vendors

Producers

Producers

Vendors

Vendors

2 time conduct training

40 IP’s Expert 800 Producers 16000 vendors


#2 Business Model – Market Uptake

BankAccess to finance

Financial Institution

Producers Vendors

Producers

Producers

Vendors

Vendors Financial Institution

Financial Institution Info

10 financial institution 200 producers 4000 Vendors

Background

Improve Production in Tempe

• What?

– Producers improve their facilities and technology so that there is increased efficiency and improved hygiene during the production process

• Why?

– Improved efficiency will enable greater quantities to be produced in less time and the working environment will be improved

– More hygienic and healthy products available in the market

• Problem?

– Producers are unaware of the options related to new technology and good health production standards



• Information on equipment as an embedded service to producers

• Information on access to financing options from financial institutions

• Metal Workshop Association provides information on equipment and design to workshops who then provide equipment to producers

• Access to financing from Banks and other financial institutions

Uptake

• How?– Establish a pre-pilot

• Build a demonstration tempe factory that provides a working example to other producers and IP experts

Project will facilitate:– Pilot: 2 models– Uptake : 2 models



Tempe producers improve productivity and hygiene and produce less pollution

Tempe enterprises use new equipment and apply GHP Indicator: 900 tempe enterprises use new equipments and apply GHP in their enterprise within the project period

Metal workshops provide information on tempe new equipments and GHP to tempe producers

Indicator: 10 business service i.e. metal workshops related to equipments and GHP on tempe developed, introduced, and rolled out within the project period

MFIs provide information on tempe equipments, GHP, and financial support to tempe producers

Indicator: 5 financial services related to equipments and GHP on tempe developed, introduced, and rolled out within the project period

1. VIP identifies metal workshops that will be interested to enter/access tempe sector2. VIP have a deal with GHP supplier such as Forum tempe, NADFC, etc. which will have the following:- VIP helps GHP supplier to produce materials on GHP, if necessary.- GHP supplier will be a key note speaker on the GHP workshop event3. VIP talks to metal workshop and have deal, which will have the following:- VIP will help metal workshops to identify producers who want to purchase equipment- VIP will organize a workshop event on GHP for metal workshops- VIP will facilitate a business meeting between metal workshops and producers- VIP will helps metal workshops to produce some marketing documents such as brochure, leaflet, etc.- Metal workshops should provide information on new equipments to minimally 20 producers. Indicator: Metal workshops’ comments/interest to enter tempe sector


VIP troubleshoots

implementation by renovating a tempe factory

including changing its

equipments as a model in JakartaIndicator: Tempe enterprises’ satisfaction towards new equipments in pilot.


OUTCOMES

IMPACT

1. VIP identifies MFIs who will be interested to enter/access tempe sector2. VIP will develop a business analysis on tempe which will be delivered to the MFI3. VIP will talk with MFIs and have deal which will have the following:- VIP will help MFIs in preparing and making financial product for tempe producers- MFIs should provide information on new equipments and financial support to minimally 20 producersIndicator: MFIs’ comments/interest to enter tempe sector

Tempe producers purchase new equipments and/or receive financial support (If needed) from metal workshop or MFI

Indicators: 450 tempe producers purchase new equipments within the project period

Tempe enterprises are aware of the new equipments, GHP, and financial product on tempeIndicator: 1500 tempe enterprises are aware of the new equipments, GHP, and financial product within the project period

Causal Chain for Intervention : Improve Production for Tempe - Pilot

Tempe producers improve product quality Indicator: Renters and vendors’ comments on better product quality of tempe

Tempe enterprises increase salesIndicator: Sales of tempe in informal market increases 15% for tempe enterprises who use new equipments and apply GHP in the Greater Jakarta area within the project period

Tempe enterprises increased income Indicator: Increased 15% of income for 4,500 tempe enterprises in the Greater Jakarta area within the project period as a result of producers using new equipments and applying GHP.

Tempe enterprises increase profitIndicator: Profits of tempe enterprises who use new equipments and apply GHP in the Greater Jakarta targeting the informal market increase 15% within the project period

Tempe producers provide information on better product quality of tempe to vendors

Indicator: 4,500 vendors provide information on better product quality of tempe to their customers

Workers experience improve working conditionIndicator: Working condition for 450 employees in the Greater Jakarta area improve within the project period


Tempe sector increases market position/competitiveness regarding productivity, hygiene and environmental friendliness

Tempe enterprises use new equipment and applied GHP Indicator: 3,000 tempe enterprises use new equipments and applied GHP in their enterprise within the project period

Metal workshops provide information on tempe new equipments and GHP to tempe producers

Indicator: 25 business service i.e. metal workshops related to equipments and GHP on tempe developed, introduced, and rolled out within the project period

More MFIs provide information on tempe equipments, GHP, and financial support to tempe producers

Indicator: 20 financial services related to equipments and GHP developed, introduced, and rolled out within the project period

1. VIP talks to metal workshop association and have deal, which will have the following: - VIP will provide information about tempe business analysis.- VIP will provide database on the potential tempe producers as target customers.- VIP will provide information on the appropriate design of tempe equipment referred to the pilot tempe factory in Jakarta .- VIP will help the association to produce marketing documents – brochure/prospectus - Metal workshop association will deliver information on design to its member minimally 25 workshops so that each workshops can deliver the information to minimally 20 producers.



OUTCOMES

1. VIP identifies which Bank that would be interested to provide access to finance to MFIs2. VIP will talk and give the Bank the business analysis on tempe and have deal which will have the following:- Bank will provide access to finance to at least 20 MFIs- VIP will just help the Bank to provide detail information to selected MFIsIndicator: Banks’ comments/interest to enter tempe sector

Tempe producers purchase new equipments and receive financial support (If needed) from metal workshop or MFI

Indicators: 1,500 tempe producers purchase IP package/new equipments within the project period

Tempe enterprises are aware of the new equipments, GHP, and financial product on tempeIndicator: 3,000 tempe enterprises are aware of the new equipments, GHP, and financial product within the project period

Causal Chain for Intervention : Improve Production for Tempe - Uptake

Bank provide access to finance to many MFIsIndicator: Financial institutions’ comments/interest to enter tempe sector

Metal workshops association provide information on equipment designs to many metal workshops

Indicator: Metal workshop’s comments/interest to enter tofu sector

IMPACT

Many tempe producers improve product quality Indicator: Renters and vendors’ comments on better product quality of tempe

Many tempe enterprises increase salesIndicator: Sales of tempe in informal market increases 15% for tempe enterprises who use new equipments and apply GHP in the Greater Jakarta area within the project period

Many tempe enterprises increased income Indicator: Increased 15% of income for 15,000 tempe enterprises in the Greater Jakarta area within the project period as a result of using new equipments and applying GHP.

Many tempe enterprises increase profitIndicator: Profits of tempe enterprises who use new equipments and apply GHP in the Greater Jakarta targeting the informal market increase 15% within the project period

Many tempe producers provide access to good quality product of tempe to many vendors

Indicator: 15,000 vendors provide access to good quality product of tempe to their customers

Many workers experience improve working conditionIndicator: Working condition for 3,000 employees in the Greater Jakarta area improve within the project period


Business Models - Pilot

Equipment supplier

TempeProducers

Equipment Information

IDR

Renters/Vendors

Info on good quality product

MFI Tempe

Producers

Access to finance

Interest

Renters/Vendors

info on good quality product

#1 Business Model

#2 Business Model

(10) (200) (2000)

(5) (250) (2500)


Business Model - Uptake

Info on

design

Workshop

Producers

Workshop

Producers

Workshop

Producers Renters/

Vendors

Metal Workshop Association

(MWA)

Renters/ Vendors

Renters/ Vendors

Access to good quality

product

Equipment Information

#1 Business Model- Uptake

(1) (25) (500) (5000)


#2 Business Model- Uptake

Bank

Financial

Institution

Producers

Vendors

Financial

Institution

Producers

Vendors

Producers

Vendors

Financial Institution

Access to finance

Information

Access to good quality

product

(1) (20) (500) (5000)

Improve Production for street vendor

Background

• What?

– Producers want to improve their productivity through reducing fuel costs. Per day, a street vendor has available 3 liters of used cooking oil. This used cooking oil has potential to be used for fuel rather then used again for cooking the following day

• Why?

– By using old cooking oil as a fuel instead of for cooking will have an impact on the quality of the product as it will be more hygienic and vendors will be able to reduce the food hazard risk

• Problem?

– Information gap: where can street producers can get information on the options for alternative stoves



Uptake

• Information on availability of stoves that burn used cooking oil

• Information and linkages to suppliers of cooking stove that burns used cooking oil

• How?– Project will facilitate the establishment of a pre-pilot that

will:

• Develop the basic design of a stove that burns used cooking oil and is appropriate for street vendors

Project will facilitate:

– Pilot: 2 models

– Uptake: 2 models



Causal Chain for Intervention 3 : Improve Production for Street Vendors - Pilot

Street vendors improve hygiene and production efficiency

Street vendors use the re-used cooking oil stove in their cartIndicator: - 600 cart vendors replace their cooking oil daily

Street vendors reduce production costIndicator: Fuel expenditures of street vendors who use re-used cooking oil stove decrease by 20%

Stove supplier provide information on this new technology of re-used cooking oil stove to street

vendorsIndicator: 5 stove suppliers related to energy efficiency of the street vendors developed, introduced and rolled out

Street vendors purchase re-used cooking oil stove from stove suppliers or lead vendor

Indicator: 600 street vendors in the Greater Jakarta purchase re-used cooking oil stove after the stove is available in the market within the project period



OUTCOMES

IMPACT

Street vendors improve product qualityIndicator: consumer’s comments on product quality

Consumers reduce risk of poison and disease

Street vendors increase salesIndicator: Sales of 600 street vendors who use re-used cooking oil stove increases 15% in the Greater Jakarta area within the project period

Increased income of street vendorsIndicator : Enterprise income of 600 street vendors who use re-used

cooking oil stove increases 15% within the project period

Street vendors increase profitIndicator: Profits of 600 street vendors who use re-used cooking oil stove in the Greater Jakarta increase 15% within the project period

1. VIP identifies stove supplier that would be interested to modify the preliminary design of re-used cooking oil stove in order to commercialize2. VIP talks with stove supplier and have a deal which will have the following:- VIP will contribute in a process of modifying the preliminary design of stove. - Stove supplier modifies the preliminary design of stove into a sufficient re-used cooking oil stove - VIP will help stove supplier identifying the street vendors/lead vendors who want to purchase the stove- VIP will conduct business meeting between stove suppliers and street vendors/lead vendors- VIP will help stove suppliers to produce some marketing documents such as brochure, leaflet, etc.Indicators: - Stove suppliers’ comments/interest to commercialize the re-used cooking oil stove

1. VIP identifies lead vendor who might be interested to use and sell the re-used cooking oil stove2. VIP talks with lead vendor and have a deal: - VIP will contribute three re-used cooking oil stove to be installed in lead vendor’s carts as pilot- Lead vendor use the re-used cooking oil stoves (funded by VIP) in his cart vendors - Lead vendor will market the stove to other cart vendors VIP will help link lead vendor to the stove supplier- If needed, VIP will help lead vendor to link with re-used cooking oil suppliers - Lead vendors’ comments/interest to adopt and market the re-used cooking oil stove - Lead vendors’ satisfaction towards the re-used cooking oil stove installed in his carts as pilot

Lead vendor provide information on re-used cooking oil stove to street vendors

Indicator : 5 lead vendors related to production process improvement introduced, developed and rolled out

Street vendors are aware of the re-used cooking oil stove technology Indicator : 1000 street vendors in the Greater Jakarta are aware of the re-used cooking oil stove within the project period

Preliminary activity: VIP in cooperate with stove researcher develop proper preliminary design of re-used cooking oil stoveIndicator: - Lead vendors’ comments on the stove design

Stove supplier successfully developed feasible re-used cooking oil stove and lead vendor is willing to use it in his carts as pilot

Indicator: 1 new technology for reducing health hazard i.e. re-used cooking oil stove introduced


Causal Chain for Intervention 3 : Improve Production for Cart Vendors - Uptake

Many street vendors improve hygiene and production efficiency

Many street vendors use the re-used cooking oil stove in their cart

Many street vendors reduce production costIndicator: Fuel expenditures of street vendors who use re-used cooking oil stove decrease by 20%

More stove suppliers provide information on this new technology of re-used cooking oil stove to street vendors

Indicator: 50 stove suppliers related to energy efficiency of the street vendors developed, introduced and rolled out

Many street vendors purchase re-used cooking oil stove from stove suppliers or Vendors Association

Indicator: 5,000 street vendors in the Greater Jakarta purchase re-used cooking oil stove within the project period



OUTCOMES

IMPACT

Many street vendors improve product qualityIndicator: consumer’s comments on product quality

Many consumers reduce risk of poison and disease

Many street vendors increase salesIndicator: Sales of street vendors who use re-used cooking oil stove increases 15% in the Greater Jakarta area within the project period

Increased income of many street vendorsIndicator : Enterprise income of 5,000 street vendors who use re-

used cooking oil stove increases 15% within the project period

Many street vendors increase profitIndicator: Profits of street vendors who use re-used cooking oil stove in the Greater Jakarta increase 15% within the project period

1. VIP will develop business analysis on re-used cooking oil stove to be delivered to the Metal Workshop Association2. VIP will talk with existing Metal Workshop Association and have a deal which will have the following:- VIP will provide database on the potential street vendors in some areas.- Metal workshop will provide information to its members on re-used cooking oil stove design- VIP will help stove suppliers to produce some marketing documents such as brochure, leaflet, etc.Indicator: Metal Workshops Association comments/interest to enter the sector

Many street vendors are aware of the re-used cooking oil stove technology Indicator : 10,000 street vendors in the Greater Jakarta are aware of the re-used cooking oil stove within the project period

Metal Workshop Associations provide information on re-used cooking oil stove designs to its members

Indicator: Metal workshop’s (member of the association) comments/interest to enter the sector


#1 Business Model – pilot

Stove supplier

IDR

Street vendor

info on stove

Lead street vendors

Street vendor

info on stove

#2 Business Model – pilot

(5) (500)

(5) (100)


#1 Business Model – uptake

Info on stove

design

Stove

supplier

Street vendors

Stove

supplier

Street vendors

Stove supplier

Street vendors

Metal Workshop

Association (MWA)

Info on stove

(1) (50) (5000)

Background

Improve Branding and Marketing

What?

– Producers want to differentiate between healthy and non-healthy tempe and tofu product through labeling and certification. Producers and vendors should know how to market their improved products to their consumers

Why?

– Labeling and certification may lead to increased sales.

Problem?

– Information gap: where can producers get information about product registration, labeling regulation and certification

– Where can producers access marketing and promotion tools


How?

Project will facilitate:- Pilot: 2 Models, - Uptake: 1 Model

What Service?

Pilot:

Producers provide information on product quality to vendors

Primary cooperatives provide information on branding and marketing to producers

Uptake

Secondary cooperative provide labeling services to primary cooperatives and other producers


Causal Chain for Intervention 4 : Improve Branding and Marketing - Pilot

Tofu/tempe enterprise increase salesIndicator: Sales of tempe and tofu for the local market increases 15% as a result of the enterprises branded their product and improve their marketing

Tofu/tempe enterprise increase income Indicator: Enterprise income for 2,040 tofu/tempe enterprises who brand their product and able to improve their marketing increases 15% within the project period

Tofu/tempe enterprise increase profitIndicator: Profits of tempe and tofu for the local market increases 15% as a result of the enterprises branded their product and improve their marketing



OUTCOMES

IMPACT

Primary Cooperative provide information on branding using cooperative label and marketing to producers

Indicator: Producers’ comments on information given from PC

Producers are aware of the benefit of branding using cooperative label and improving their marketing

Indicator: 200 producers are aware of the benefit of branding using cooperative label and to improve their marketing

Producers brand their product using cooperative label and improve their marketing

Indicator: 100 producers brand their product using cooperative label and improve their marketing

Consumers are aware of the branded tofu and tempe product having better qualityIndicator: 4,000 consumers are aware of the branded tofu and tempe products having better quality

Consumers tends to purchase branded tofu and tempe products having better quality

VIP talk to the producers who apply CP and GHP to encourage them to brand their products. Then VIP will have a deal which will have the following:1. Producers will go to the government agency to process their product registration.2. VIP will help the producers to design and produce the label 3. VIP will help promote the new label to the customers i.e. vendors and consumersIndicator: 100 producers and vendors aware of the benefit of branding their product

VIP talk to Primary Cooperative (PC) and have deal which will have the following:1. VIP will help PC on making Standard Operational Procedures (SOP) of CP and GHP for tofu and tempe enterprise.2. PC will put their logo in tempe/tofu products owned by producers who have applied CP and GHP for free as a pilot model.3. PC will provide information on branding, labeling and certification to producers as cooperative members.Indicator : Primary Cooperative’s interest to provide branding and labeling to producers

Producers provide information on branded tofu/tempe product having better product quality to vendors

Indicator: Vendors’ comments on product quality

Vendors provide information on branded tofu and tempe product having better quality to consumers

Indicator: Consumers comments on product quality

Producers brand their product using their own labelIndicator: Two producers brand their product using their own label

Consumers are eating healthy tofu/tempe product

Consumers reduce risk of poison and

disease

Vendors are aware of the branded tofu and tempe product having better qualityIndicator: 2,040 vendors are aware of the branded tofu and tempe products having better quality


Causal Chain for Intervention 4 : Improve Branding and Marketing - Uptake

Many ofu/tempe enterprise increase salesIndicator: Sales of tempe and tofu for the local market increases 15% as a result of the enterprises branded their product and improve their marketing

Many tofu/tempe enterprise increase income Indicator: Enterprise income for 20,000 tofu/tempe enterprises who brand their product and able to improve their marketing increases 15% within the project period

Many tofu/tempe enterprise increase profitIndicator: Profits of tempe and tofu for the local market increases 15% as a result of the enterprises branded their product and improve their marketing



OUTCOMES

IMPACT

Many Primary Cooperative provide information on branding using cooperative label and marketing to producers

Indicator: 10 Primary Cooperatives provide information on branding and marketing as embedded service.

Producers are aware of the benefit of branding using cooperative label and improving their marketing

Indicator: Producers’ interest to brand their products and to improve their marketing

Producers brand their product using cooperative label and improve their marketing

Indicator: 1000 producers brand their product using cooperative label and improve their marketing

Many consumers are aware of the branded tofu and tempe product that have better quality

Indicator: 200,000 consumers are aware of the branded tofu and tempe products

Many consumers tends to purchase branded tofu and tempe products

Many producers provide information on better product quality of tofu/tempe to vendors

Indicator: 20,000 vendors provide information on better product quality of tofu/tempe to their customers

Many producers provide information on better product quality to consumersIndicator: 1,000 producers are aware of the benefit of branding and improving their

marketing

Many consumers are eating healthy tofu/tempe product

Many consumers reduce risk of poison and disease

Secondary Cooperative provide “one label” Indicator: Secondary Cooperative’s comments/interest to brand/label the tofu/tempe product

1. VIP talks with the Secondary Cooperative about branding/labeling since the beginning of the intervention (pilot) so that they are aware of the plan/model2. VIP will have a deal which will have the following:- VIP will help SC to develop a mechanism/system of “one label”- Secondary Cooperative will have a single brand - VIP will help Secondary Cooperative to produce some marketing documents such as brochure, leaflet, etc.


Business Model - Pilot

Producers

Info on better

product qualityVendors

#1 Business Model

Primary

Cooperative Producers

Info on branding and

marketing

Vendors

Info on better product quality

#2 Business Model

(2) (40)

(1) (100) (2000)


Business Model - Uptake

Labeling

Producers

Producers

Primary

Cooperative Producers

Vendors

Secondary Cooperative

Vendors

Vendors

Primary Cooperative

Primary Cooperative

Info on branding and marketing

Info on better product quality

#1 Business Model

(1) (10) (1000) (20000)

• How a project engages with social networks• Women’s role in production• How to convince the Government to provide better

services from small and micro businesses?• What are the impacts of the sector on rural/urban

linkages?• How does branding work for consumer awareness in

products that matter for the poor?• How will financing work for small informal producers

(tempe)?• How can we make a difference when there are other

programs that have not been effective – what did we do differently?

• How can we work with large associations?

Some Key Learning Areas

1) Certification for the products (tofu and tempe) may not work?

2) Given the dispersed nature of the industry and the lack of clear industry leaders communications problems may hinder moving from pilot to uptake

3) How does the sector engage the relevant government agencies to support and facilitate the market uptake of specific interventions related to improving the environment and accessing financing.

4) Knowledge and awareness increases brought about by the project may not be transferred to other workers due to the migratory nature of the workers

Potential Challenges

Terima Kasih! – Thank You

value initiative program (vip)

Documents