BRAVO: Barrier Removal Assessment and Viability Overview

Sungai Putri Pit Swamp Forest Complex

BRAVO: Barrier Removal Assessment and Viability Overview

BRAVO: Executive Summary

What:The barrier removal tool used in this site is facilitating the establishment of Credit Union (CU).

CU is a group of people who trust each other, have one unifying bound and agree to save their

money in order to accumulate collaborative capital to be lent to the members of it for the sake

of productivity and welfare.

Through CU in Sungai Putri, the community is empowered and the people are able to help

themselves. Their collaborative effort will create a place to circulate the capital and an easy

access to the capital employed. Then, they will be encouraged to improve their existing

business or to create a new potential business. People will leave their illegal logging activity as

CU will satisfy what the community needs: capital. It is hoped that the existence of CU will

decrease the threat to Sungai Putri.

Based on the qualitative survey carried out in 4 villages around Sungai Putri, the community

generally lives by farming or fishing. Activities related to timber are done to meet the people’s

tertiary needs. Some timber-related workers work in groups supported by their own money,

while others work as labors and receive their wage from cukong (intermediary). This self-

helping group of workers works only 10 months per year, depending on the situation and the

availability of money. One group usually consists of 5-6 persons. In one month, this group will

visit the forest twice. From one visit, they can get 5 cubic of timber. Meranti, punak and perepat

are the types of wood wanted. For every 1m³, they will get net profit of IDR 200,000. This

means that in one month they will get IDR 2,000,000. This benefit will then be equally divided;

each person will get around IDR 330,000 to IDR 400,000.

BRAVO Scores

Feasibility Score: 3.1

Impact Score: 3.42

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Copyright © 2008 Monitor Company Group, L.P. — Confidential — XXXCAS-COD-Prez-Date-CTL 3

Labors’ work schedule is not fixed, depending on the order of activities related to timber that the cukong gets.

Labors’ monthly wage (related to activities at a sawmill) is varied: buruh gesek gets IDR 4000 per log, tukang dorong

IDR 2000 per log, tukang pikul (carrier) who takes the log to the pick up car gets IDR 1000 per log. Normally in one

day they can get 30 logs; this means that in one day buruh gesek gets IDR 120,000, tukang dorong IDR 60,000 and

tukang pikul IDR 30,000. With this low and unpredictable income, it is difficult for the community to grow their

agricultural business.

If they have their capital, the community may grow various businesses, e.g. livestock farming business. A broiler

farmer, for example, needs IDR 3,900,000 to have a box of 100 chicks, a chicken house and chicken feed. In 40

days, the chickens are ready to harvest: +/- 1.5 kg each. One kilogram of chicken is IDR 18,000; then, the price of

one chicken is IDR 27,000. With 10-20% of DOC mortality risk, the first selling profit of these broiler chickens is IDR

2,160,000 – IDR 2,430,000. The farmers will get their BEP after 4 times of selling their products.

Raising kampong chicken is another chance. Initially, IDR 950,000 of capital is needed to have the chicken parents

(1 male chicken and 5 female ones), a chicken house and chicken feed. The investment in kampong chicken house

is different from that in the broiler chicken’s one: kampong chickens are usually free ranged, and the chicken house

is not very much. As for their feed, kampong chickens usually find their own food, but their owner may add husks

and left-over rice. After being raised for two months, the hens will lay eggs. These eggs will be hatched on the third

month. Assuming that 1 hen will get 10 chicks, these 5 hens will bring to the farmer 50 chicks. The next three

months, the second generation of the initial hens will be hatched, and so forth. Six month old, the first generation,

1.5 kg each in average, is ready to be sold. One kilogram of the chicken is IDR 27,000; then, the price of one

chicken is IDR 40,000. Supposing that none of the chicks dies, these chickens are picked and bought by peraih

(middleman) at the farm. The first selling result will be IDR 2,000,000. By raising kampong chicken, farmers will get

their BEP after keeping the chickens for 8 months and get net profit of IDR 600,000 (after deducted for the chicken

feed cost for the next six months).

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Executive Summary

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Executive Summary

Three months after the first selling, farmers may sell 50 chickens of the second generation for IDR 2,000,000 in total,

and so forth. Based on this assumption, the selling of the second generation (on the 11th month of the production) will

get IDR 2,000,000 of net profit. This is around IDR 666,000 per month bigger than what the people get from the timber-

related works. In Ketapang, the market for kampong chickens is quite good, and the price of each kilogram of the

chicken keeps rising.

It is expected that CU may also change the instant mind set of the people. They are used to directly get loan using

collateral. In CU. They are thought to get used to the idea of creating their capital by saving their money first, and use

that money by taking it as a loan after that.

In West Kalimantan, there are many success stories of CU which is very helpful in providing capital employed to the

community. This organization’s success in empowering the community has already been realized by many areas in

West Kalimantan. In Ketapang, for example, there are two solid Credit Unions which have proved themselves of

supporting the community’s business: CU Pancur Solidaritas and CU Gemalak Kemisik.

Who:The target group is the communities of four villages (including farmers and loggers). For the first year of CU, at least 200

people are targeted to be this organization’s members. Partner organizations for developing this Sungai Putri CU are

Lembaga Gemawan - Pontianak and Pancur Solidaritas CU – Ketapang. Lembaga Gemawan has agreed to facilitate

the people to develop CU and to help building the capacity of CU board of those four villages. In January 2009,

Lembaga Gemawan has disseminated information regarding CU in one of those target villages. Meanwhile, CU Pancur

Solidaritas has agreed to help the dissemination of CU concept.

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Executive Summary

When:

This program will start in June 2009. It starts with the dissemination process. This CU dissemination process will be run

parallel with the dissemination of the ecological and economical values of pit swamp forest. After the dissemination process

in four villages is finished, there will be an agreement regarding the representatives of the communities who will be the

board of CU. These representatives will then be sent to existing Credit Unions to have their one month of internship. After

this internship is completed, there will be a strategic planning to determine the Articles of Association (AD/ ART) of the said

CU.

How:

The fund needed in terms of developing Credit Union is around $ 5500. Fundraising is considered as part of the

community’s role since the development of CU should be based on communal needs; from the community and to the

community. This means that the facilitation process will be accompanied with an awareness education on social, economy

and natural resources context.

Besides helping the community to have an easy access to the capital, the existence of CU may indirectly reduce the

number of illegal logging activities in Sungai Putri. In its rules and regulation, CU will not provide any capital loan for illegal

activities. If they want to be one step ahead and grow their business, the community should be willing to leave their logging

activities.

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ToC

CR

To reserve Sungai Putri pit swamp forest as a habitat for Kalimantan orangutan

TR

A decrease of 10% in the number of lumbering in Sungai Putri

BC

• The community supports CU by willingly becoming its members

• The community uses CU in terms of generating capital employed

• The community develops their business (or starts their new business) and leaves their illegal logging activities step by step

K+

Knowledge on the ecological function of pit swamp forest, the usage of environmental service, CU, the possible local government’s program/support for the village

A+

To have an agreement on the following: a well-maintained pit swamp may prevent the introduction of sea water and failed harvest, the usage of environmental service may economically benefit the community, local government’s program/support may be maximized in order to develop the community’s agricultural/ livestock/plantation farming business, CU may strengthen the community’s capital employed

IC+

Discussions on ecological function of pit swamp forest, credit union, local government’s program that may support the development of community’s agricultural/plantation and livestock farming business

BR

To improve community’s access to any local government’s support/program regarding the development of agricultural/plantation and livestock farming businesses

To introduce and establish a micro financial institution for the purpose of strengthening the community’s capital employed

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BRAVO Drafting Guidelines

Economics (1 of 3)

Criteria Explanation Score

Co

sts

Preliminary projected costs

•Preparation Phase

ORGANIZING

•Transportation to and/or from the site

•Local transportation

•Daily Subsistence Allowance

DISSEMINATION

•Transportation to and/or from the site during the preparation (4 times)

•Local transportation


•Kampong meetings for the CU dissemination (4 times)

•Material multiplying

•Transportation for CU establishment facilitators from/to Pontianak

•Accommodation for CU facilitators

•Comparative study to CU Pancur Solidaritas (Ketapang)

INTERSHIP

•Transportation to/from Pontianak (CU office)

•Local transportation within Pontianak

•Living cost during one month internship at CU office in Pontianak (3 persons)

•Overnight cost during one month internship (3 persons)

CU ESTABLISHMENT

•Strategic planning meetings

•Transportation from Pontianak to Ketapang for the board of BK3D (Badan Koordinasi Koperasi Kredit Daerah Kalimantan or Coordinating Agency of Credit Cooperative of Kalimantan) (2 persons)

•Costs for CU establishment facilitators from/to Pontianak (2 persons)

•Accommodation for 4 persons

•Deed making

•Operational cost of CU office

•1 unit computer, CU office supplies and stationery

•Brochure production for promotion and member recruitment

•Basic education

•Trainings for improving the capacity of CU board

•Incentive for the CU board for one year before CU is able to pay the board’s salary (optional)

•Monitoring phase

•Transportation to/from the site


Estimation of total cost $ 5500

Predictability of cost burden 4

Cost per behavior changed (ie per person in target audience

Target: 200 people

Cost per person: $ 27.5 $

Average Score 4

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Economics (2 of 3)


Reven

ues

Description of revenue streams

Fundraising total: $ 300 Sources: Collective community participation

Earned income total: $ 0 Sources:

Percentage of total cost available

2: 25- 50%

The fund available at the moment will be used only for communication and education activities regarding the pit swamp forest and the usage of environmental service

$ 5500 for community organizing and CU establishment in Sungai Putri is needed.

2

Likelihood of fundraising success

If the community agrees to establish CU by themselves, there is a possibility of having CU establishment fund collected by the community. 2

Fundraising timing

The fund can be collectively collected by the community at the same time when the preparation and early dissemination of CU establishment is made.

Funding Alignment

Sustainable Funding

Unknown.

Pro

fit / (Lo

ss)

Difference between Revenues and Costs

The amount of fund likely collected collectively by the community to establish CU is still unknown.

Average Score 2

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Inco

me S

ub

stitu

tion

(if ap

plicab

le)

New income source relative to old income

1 = Income source is reduced by 20% or more; 4 = Income source is increased by 20% or more

(Use 1-4 scale) If income substitution is a key barrier, and barrier removal involves providing an alternative form of income for community members, indicate whether or not the alternative income will exceed former source of income. Provide details on new income source and programs, infrastructure, and support that need to be in place to help secure alternative income source.

Note: The existence of CU will not directly add the community’s income. CU will only answer the community’s need of business capital.

1-4

New income source sustainability

1 = New income source is unsustainable; 4 = Income source is highly sustainable

(Use 1-4 scale) Describe details around the dependability of the alternative income and its sustainability in the long term. Provide details on the needed support, structures, organizations needed in order to increase probability of sustainable income from alternative income source.

1-4

Average Score 1-4


Economics (3 of 3)

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Tech

no

log

y

Attainability &

Availability

Depending on the situation, the partner organizations (Lembaga Gemawan or CU Pancur Solidaritas) may provide assistance in introducing and establishing CU

4

Technology assistance 4

Appropriate for circumstances

It is expected that once the target groups becomes members of CU and are able to have access to capital, they will have their initiative to do business.

4

Average Score 4


Technical (1 of 2)

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Cap

acity

/

Org

anizatio

nal A

bility

Barrier Removal Partner support

Lembaga Gemawan has been succeeded in facilitating the establishment of CU Muare Pesisir and CU Sari Intugin, the coastal community-initiated CUs. This organization is willing to provide such assistance for the community around Sungai Putri to develop CU.

Another potential partner is Pancur Solidaritas CU in Ketapang. This CU is willing to approach the coastal community to introduce the concept of CU.

4

Barrier Removal Partner’s ability to drive change

4

Budget planning and cost efficient execution

CU MP, whose establishment was facilitated by Lembaga Gemawan, has been in existence for 6 years. Those who have become its members feel that, regarding financial service issues, CU MP are such a good help for the members.

CU PS has been in existence since 2001 and has 8000 members to date.

4

Average Score 4

Oth

er Partn

ers

Other critical partners

1 = Other partners do not exist or will not be impactful 4 = Other partners are available and capable of assistance

(Use 1-4 scale) In the narrative list all other partners that may be required. List roles and responsibilities, levels of engagement, and conditions involved. For example if the success of the project is reliant on a 3rd partner even if this partner has a “minor” role to play, then list mitigation factors if engagement is not possible. Summarize timing of partner availability. Does availability align across partners? If unknown, write unknown.

4

Average Score 4


Technical (2 of 2)

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Co

mm

un

ity Lead

ership

Leaders and influencers in the community

From several meetings with the community, some quite prominent and open-minded leaders who are likely to encourage changes have been identified. 3

Leadership willingness to endorse

Having a discourse on CU, some community leaders have shown positive response and been enthusiastic enough about supporting the program.

3

Average Score 3


Cultural/Political (1 of 2)

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Po

litical En

viro

nm

en

t

Current legislative and legal landscape

4

Ability to drive legislative change

Irrelevant with the strategy

1-4

Average Score 4

Valu

es and

No

rms

Assessment of norms

4

Ability to address normative obstacles

4

Average Score 4


Cultural/Political (2 of 2)

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Co

nservatio

n Im

pac

t

Likelihood of conservation impact

One of some factors that encourages the community to practice logging is the limited capital to start a business. CU can answer the community’s need of capital.

4

Impact

sustainability

Communities who have benefited from CU will keep developing CU and their businesses.

4

Average Score 4


Impact and Metrics (1 of 2)

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Tip

pin

g P

oin

ts

1st Tipping Point The first tipping point is that the local government (pemda) has made Memorandum of Understanding on the conservation and usage of environmental service of Sungai Putri pit swamp forest.

The second tipping point is that, based on the result of qualitative survey, the community would like to stop cutting the trees if they can have alternative business/work to do. They are afraid already of using the trees in Sungai Putri forest.

The third tipping point is that, while it is difficult to get access to capital (especially from the bank), the community does need capital employed. CU is such an interesting chance.

4

2nd Tipping Point

2

3rd Tipping Point

4

Average Score 3.3

Metric

s

Measurable outcomes

1 = The program lacks clear metrics or are difficult to measure; 4 = The program has established clear, measureable metrics

It is expected that after being CU members, loggers stop their wood activities. Outcomes can be measured by recognizing the decreasing number of illegal loggers in Sungai Putri. 3

Average Score 3


Impact and Metrics (2 of 2)

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Category Subcategory ScoreAverage

Category ScoreFeasib

ility

Economics

Costs 4

2.33 Revenues 2

Income Substitution 1

Technical

Technology 44

Capacity / Organizational Ability 4

Other Partners 4

Cultural / Political

Community Leadership 3

3.6 Political Environment 4

Cultural Norms 4

Feasibility Score 3.1Imp

act

Impact and Metrics

Conservation Impact 4

3.42 Tipping Points 3.3

Metrics 3

Impact Score 3.42

Barrier Removal Assessment and Viability Overview (BRAVO)

Composite Score

Enter average scores in the right hand column. Then take the feasibility score and enter it into Miradi and the Impact score and enter it into

Miradi. Where either score is below X for either feasibly or impact, consider the strategy to be inappropriate and assess the need to conduct

a second BRAVO that reviews a different strategy.

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Risk Factors

Risk Factors Consequence Mitigation Strategies

- The community fundraising may not reach 10% of the fund required to establish CU

- To cover the whole fund needed to establish CU

- To encourage the community so that they have their sense of belonging over the establishment of CU and realize that it has been the community’s need and that it answer their problems of having access to capital.

FFI cannot afford CU establishment facilitation. CU cannot stand as a separate one, but should be the branch of any existing CU.

To have a collaboration with CU PS or CU MP in terms of facilitating the establishment of Tempat Pelayanan (TP) or Service Point.

List any risk factors, consequences and mitigation strategies that may need to be adopted.

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Authors and approvals

List BRAVO authors and their affiliation

Hermawansyah Lembaga Gemawan

Documents

BRAVO: Barrier Removal Assessment and Viability Overview