report · feasibility study and incentive mechanism for local economy-conservation based economy in...

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REPORT

FEASIBILITY STUDY Feasibility study and incentive mechanism for local economy-conservation based

economy in Ogotua, Malala, and Santigi Village Toli-Toli Regency, Sulawesi Tengah Province

This Project is executed by the Mohamed bin Zayed Species Conservation Fund, with financing from the GEF, implementation

support by UNEP and technical support from the CMS Dugong MoU Secretariat.

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Feasibility study and incentive mechanism for local economy-conservation

based economy in Ogotua, Malala, and Santigi Village Toli-Toli Regency, Sulawesi

Tengah Province

Author:

DSCP IPB Bogor Team, Indonesia

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Preface

Duyung (Dugong dugon) or dugong is one of 35 sea mammals that often found in

seagrass, and is a protected animal nationally and internationally. The effort for dugong

and its habitat conservation in Indonesia not only conducted by government, but also

supported by some international organizations, they are United Nation Environment

Programme-Conservation Migratory Species (UNEP-CMS) who collaborates with

Muhamed bin Zayed Species Conservation Fund (MbZ) through Dugong and Seagrass

Conservation Project (DSCP) program. ID3 implementation in Toli-Toli Regency is more

focused to seagrass habitat and dugong conservation that is community-based.

Community’s involvement in monitoring marine and fishery resources is very

important and effective as an extension of government in the field, so the presence of

community surveillance group (pokmaswas) is necessarry for preserving dugong and

seagrass habitat. Besides, one thing that could support conservation with community-

based is giving incentive mechanism. Incentive is given to motivate and push people

that have done seagrass and dugong conservation (not transactional) and develop local

economy. Giving incentive is expected could be a stimulant and investation in economy,

social, and environment so it could give people motivation in conducting conservation.

Toli-Toli, February 2018

Author

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Table of Contents

Preface ................................................................................................................................... 3

Table of Contents .................................................................................................................. 4

Daftar Table ........................................................................... Error! Bookmark not defined.

Daftar Gambar ....................................................................... Error! Bookmark not defined.

Chapter 1. Introduction........................................................................................................ 1

1.1. Background ......................................................................................................... 1

1.2. Objectives............................................................................................................ 1

1.3. Activity Location ................................................................................................ 1

Chapter 2. Methodology ....................................................................................................... 2

2.1. Method of Obtaining Data .................................................................................. 2

2.2. Data Analysis ...................................................................................................... 2

2.2.1. Descriptive Analysis of Economical Activity, Potency, and Local

Community Needs .................................................................................... 2

2.2.2. Financial Feasibility Analysis of Local Economy Business ................... 3

2.2.3. Multi-Criteria Decision Making Analysis................................................ 4

Chapter 3. Potential Local Economy Activity ..................................................................... 8

3.1. Local Economy Activity ..................................................................................... 8

3.2. Local Economy Profile ..................................................................................... 10

3.2.1. Production Aspect .................................................................................. 10

3.2.2. Human Resource Aspect ....................................................................... 12

3.2.3. Technology Aspect ................................................................................. 13

3.2.4. Marketing Aspect ................................................................................... 15

3.2.5. Social Aspect 16

3.2.6. Environmental Aspect ........................................................................... 16

3.2.7. Conservation Aspect .............................................................................. 17

Chapter 4. Community Needs ............................................................................................ 18

Chapter 5. Business Feasibility of Local Economy Activity ............................................. 20

5.1. Ogotua Village ................................................................................................... 20

5.1.1. Capturing Fish Using Fishing Tools ...................................................... 20

5.1.2. Capturing Fish Using Trawl .................................................................. 23

5.1.3. Capturing Fish Using “Bubu” ................................................................. 26

5.1.4. Capturing Fish Using “Sero” .................................................................. 29

5.2. Malala Village.................................................................................................... 33

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5.2.1. Fishing Using “Bagan Perahu” Tools .................................................... 33

5.2.2. Teri and Rucah Fish Processing ............................................................ 36

5.2.3. Ratu Ampat Ecotourism ........................................................................ 39

5.3. Santigi VIllage ................................................................................................... 43

5.3.1. Seaweed Cultivation .............................................................................. 43

5.3.2. Capturing Fish Using Rod ...................................................................... 46

5.3.3. Capturing Fish Using Trawl .................................................................. 50

Chapter 6. Priority and Development Form ..................................................................... 54

6.1. Development Priority ...................................................................................... 54

Ekowisata : Ecotourism ................................................................... 68

6.2. Development Form .......................................................................................... 69

Chapter 7. Incentive Mechanism ....................................................................................... 71

References ........................................................................................................................... 72

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List of Tables

Table 1 Criteria of determining aspect for development priority and incentive ..... 4

Table 2 Profile of main local economy activity of community in every village ......... 8

Table 3 Production profile of local economy activity ........................................................ 10

Table 4 Human resource aspect on local economy activity ............................................ 12

Table 5 Applied Technology profile within the local economy ..................................... 13

Table 6 Marketing product profile from local economy activity ................................... 15

Table 7 Social Profile of local economy activity ................................................................... 16

Table 8 Environmental impacts profile of local economy activity ............................... 16

Table 9 Relation profile of local economy activity toward conservation aspect .... 17

Table 10 Local economy activity, problems and development recommendation

from community in village locations of DSCP IPB, Toli-toli Regency .......... 18

Table 11 Fishery development investment per fishing tool unit in Ogotua ................ 20

Table 12 Business development of rod fishing tool in Ogotua ......................................... 21

Table 13 Fishing tool cashflow analysis in Ogotua ................................................................ 22

Table 14 Investment for Trawl Fishery Development (per unit) .................................... 23

Table 15 Business development of trawl fishing tool in Ogotua ..................................... 24

Table 16 Cashflow analysis of trawl fishing tool in Ogotua ............................................... 25

Table 17 Fishery development investment per fishing tool unit in Ogotua ................ 26

Table 18 Business development of fishing using “bubu” in Ogotua ............................... 27

Table 19 Cashflow analysis of “bubu” fishing tool in Ogotua ............................................ 28

Table 20 Fishery development investment for “sero” fishing tool (per unit) in

Ogotua ................................................................................................................................... 29

Table 21 Business development of fishing using “sero” in Ogotu ................................... 30

Table 22 Cashflow analysis of “sero” fishing tool in Ogotua .............................................. 31

Table 23 Fishery development investment for “began perahu” fishing tool (per

unit) in Ogotua ................................................................................................................... 33

Table 24 Business development of fishing using “bagan” in Malala .............................. 34

Table 25 Cashflow analysis for “bagan” fishing tool in Malala ......................................... 35

Table 26 Teri and Rucah Processing investment in Malala ............................................... 36

Table 27 Teri fish processing business analysis in Malala ................................................. 37

Table 28 Cashflow analysis of teri and rucah processing in Malala ............................... 38

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Table 29 Ecotourism investment in Malala .............................................................................. 39

Table 30 Ecotourism business analysis in Malala .................................................................. 40

Table 31 Cashflow analysis of ecotourism business in Malala ......................................... 41

Table 32 Specification technique for one planting season of seaweed cultivation

in Santigi ............................................................................................................................... 43

Table 33 Seaweed cultivation with off base pegs system in Santigi ............................... 44

Table 34 Seaweed cultivation with longline method per cycle in Santigi .................... 44

Table 35 Cashflow analysis of seaweed cultivation in Santigi ........................................... 45

Table 36 Investment for Rod Fishery Development (per unit) ........................................ 47

Table 37 Business development of rod fishing tool in Santigi .......................................... 48

Table 38 Cashflow analysis of rod fishing tool in Santigi .................................................... 49

Table 39 Investment for Trawl Fishery Development (per unit) in Santigi................ 50

Table 40 Business development of trawl fishing tool in Santigi ...................................... 51

Table 41 Cashflow analysis of trawl fishing tool in Santigi ................................................ 52

Table 42 Criteria score for every scoring aspect for making priority decision ......... 54

Table 43 Weighting score from feasibility aspect and criteria of local economy

development in Ogotua .................................................................................................. 57


development in Malala ................................................................................................... 58


development in Santigi ................................................................................................... 59

Table 46 Development priority of local economy activity in Ogotua............................. 60

Table 47 Development priority of local economy activity in Malala .............................. 63

Table 48 Development priority of local economy activity in Santigi ............................. 64

Table 49 Development aspects priority based on chosen local economy activity

in every village ................................................................................................................... 67

Table 50 Direction of activity forms of local economy development ............................ 69

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List of Figures

Fig 1 Priority of village as incentive receiver according to feasibility criteria:

Malala has become first priority, followed by Ogotua as the second and

Santigi as the third ........................................................................................................... 68

Fig 2 Mechanism of giving incentive .................................................................................... 71

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Chapter 1. Introduction

1.1. Background Feasibility study is a consideration aspect of making a decision, does an activity or

project could be categorized feasible to be done or developed. The “feasible” means

on feasibility study it could be seen from benefits aspect, in finansial benefit and in

social benefit. Not every feasibility aspect is absolute in making decision, but it has to

consider environment and conservation as main objectives on this work. Readiness

in organization and strong social capital, also assurance and sustainable program

commitment must be the main considerations. Next, there needs scoring, combined

with production, human resource, technology, marketing, social, environment, and

conservation, so there would be comprehensive assessment.

Feasibility that’s conducted also could be the foundation in deciding which factors

that become weakest point to develop activity and existing effort, in this is local

community economy. According to existing score and quality, the intervention effort

could be made based on needs through exact intensive mechanism.

1.2. Objectives The objectives of this study are:

1. Identify existing local economy activity and potency to be developed; 2. Identify community’s needs in developing economy and local potency; 3. Measuring feasibility and potency of economy activity effort by local community; 4. Rating priority and development form of economy activity by local community

through intencive, and; 5. Arranging to give incentive mechanism that is effective and efficient, to push

community welfare increasing and also increase conservation effort that is community-based.

1.3. Activity Location This feasibility study is going to be conducted in three villages in Toli-toli Regency,

they are Ogotua, Malala and Santigi.

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Chapter 2. Methodology

2.1. Method of Obtaining Data Obtaining data is conducted through deep interview, group interview, and direct

observation in the field. Sampling is conducted randomly structured, with accidental

and snowball sampling method.

Respondents are chosen based on criteria below:

1. Respondent is 17 years old and above; 2. Living in research location minimum for the past three years; 3. Understanding location condition well, and 4. Local economy doer.

Beside those criteria, the authorities and public figure are also important to be

respondents for deep interview. Those key respondents are chosen deliberately, or

purposive sampling based on certain characters that are assumed have strong

relationship with known existing population (Margono, 2005). Because of that, the

sample unit that is called should be adjusted with certain criteria that is applied based

on research objective. The certain criteria are:

1. Fishermen that are made respondents must be owning boats and still active on conducting capture fishery in studied villages (Santigi, Malala, and Ogotua) in Tolitoli Regency.

2. Seaweed cultivators that are still active in their enterprise at studied villages Pembudidaya rumput laut yang masih aktif menjalankan usahanya di desa studi (Santigi, Malala, and Ogotua) in Tolitoli Regency.

3. Coastal community and public figures to dig another potency that has ever been done and could be done for enterprises in studied villages (Santigi, Malala, and Ogotua) in Tolitoli Regency.

2.2. Data Analysis

2.2.1. Descriptive Analysis of Economical Activity, Potency, and Local Community Needs

Descriptive analysis of activity, potency, and needs of local community are part of

identifying and analyze potential condition of one region, which includes those

aspects: financial, production, human resource, technology, marketing, socio-culture,

environment, and its relation with conservation effort within existing programs. The

expected result from this analysis are mapping village’s potential, strategic problem

for natural resource management, and local economy development of coastal

community in Tolitoli. Besides, there should be analysis regarding people’ main needs

to solve existing problems and attempting to develop economical activity. The

analysis result would be arranged using tabulation.

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2.2.2. Financial Feasibility Analysis of Local Economy Business

Business analysis is conducted through profit analysis, NPV, B/C Ratio, and PP

(payback period). These are conducted to find out the feasibility business in studied

areas. The business analysis that needed are:

1. Business income analysis

Income analysis has objective to find out input and output components that are

involved within the business and the profit that the business obtains (Umar 2009).

The business income could be obtained by this equation below:

𝜋 = 𝑇𝑅 − 𝑇𝐶

Where 𝜋 is profit; TR is reception (capture result x fish price); and TC is total price

(default price + variable price), with condition if TR > TC, then the business is having

profit, and if TR = TC, then the capture business is within even; and if TR < TC, then

the capture business is in loss.

2. NPV (Net Present Value)

NPV is the difference between investation score in present and the clean cash

receptions in the future. To calculate present score, there needs relevant interest rate.

NPV analysis could be conducted through this equation (Umar, 2009) :

𝑁𝑃𝑉 = ∑(𝐵𝑡 − 𝐶𝑡)

(1 − 𝑖)𝑡

𝑛

𝑡=1

Which B is income/ benefit; C is cost; i is discount rate; and t is operational year. If

NPV > 1, then the business is feasible; NPV = 0, then the business could be feasible;

and NPV < 1, then the business is not feasible.

3. IRR (Internal Rate of Return)

Internal Rate of Return (IRR) is the return rate that causes NPV project equals to zero.

This is a percentage return rate according to predicted cashflow. IRR could be counted

by this equation (Riyanto 2010):

𝑟 = 𝑃1 − 𝐶1

𝑃2 − 𝑃1

𝐶2 − 𝐶1

Which r is IRR we’re looking for; P1 is 1st interest rate; P2 is 2nd interest rate; C1 is the

1st NPV; and C2 is 2nd NPV. If IRR > determined rate of return, then investation could

be accepted; and if IRR < determined rate of return, the investation could be rejected.

4. B/C Ratio (Benefit-Cost Ratio)

Profit and cost analysis (B/C Ratio) is a comparison between gross profit and total

cost. The B/C Ratio could be counted using the equation below (Tibrani 2010):

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𝐵/𝐶 𝑅𝑎𝑡𝑖𝑜 =𝑇𝑜𝑡𝑎𝑙 𝑝𝑟𝑜𝑓𝑖𝑡

𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡

If B/C Ratio > 1, then the business is profitable and it would be feasible; B/C Ratio =

1, then the business is not profitable and is not loss (even); and if B/C Ratio < 1, then

the business is at loss so it shouldn’t be feasible.

5. PP (Payback Period)

Payback period is a period needed to close back the investment cost with neto

cashflow. Through that, the payback period from an investment shows the length of

time needed to gain back the whole invested fund (Riyanto, 2010). The calculation of

payback period is investment number minus net cash in the first year, then the result

is reduced by net cash in the second year, then the result is reduced by net cash at the

n-year, so that result could be divided with net cash of n-year, then the result is

multiplied by 1 year (Riyanto, 2010).

If Payback Periode score < 3 years, then the return of business capital is fast; if

Payback Periode 3 – 5 years, then the return of business capital is categorized

medium; and if Payback Periode > 3 years, then the return of business capital is

categorized slow.

2.2.3. Multi-Criteria Decision Making Analysis Multi-Criteria Decision Making (MCDM) is a decision making method to establish

decision-making method based on some particular criteria. The criteria usually is

measurements or rules or standars that are used in making decision (index system)

(Table 1).

Table 1 Criteria of determining aspects for development priority and incentive

No Aspect/ Criteria Score

1 3 5

Production

1 Convenience to buy raw

material or production tools

Difficult Common Very easy

2 Convenience to produce Difficult Common Very easy

3 Production continuity Often not

producing

Produce

ocassionally

Always produce

Human resource

1 Employment < 3 people 3-10 people > 10 people

2 Employee availability Unavailable Few available Enough

3 Woman involvement within

the business

Unavailable Available, ≤ 30

%

Available, ≥ 30

%

Technology

1 Technology availability Unavailable Available, from

outside the

village within

the regency

Available,

within the

village

5

No Aspect/ Criteria Score

1 3 5

2 Convenience of technology

application

Very hard to

apply/ Not

present

Easy, needs to

be a training

and assistance

Easy with

training

3 Availability of human

resource that understand

technology

Unavailable Available, but

needs namun

butuh training

and assistance

Available, well

trained

Marketing

1 Area coverage Within the

area

Neighbor area Regional

2 Convenience in marketing Difficult Common Very easy

3 Marketing price Low/ even Profit <25 %

from even

Profit >25 %

from even

Social

1 Conflict aspect Fatalities or

mutual

disbelief

Commotion or

mutual silence

Not present

2 Community participation Not interested Just follow the

crowd

Participative

3 Social capital in business Not present Present, giving

profit to one

side

Present, giving

profit to all

sides

Environment

1 Water pollution High Moderate Not present

2 Environment’s beauty Bad Not changed Better

3 Colored air Concentrated Moderate Nothing

4 Smelly air Very smelly

and hard to

vanish

Smelly and

easy to vanish

Not smelly

5 Hotter air Very hot Hot Not hot

6 Physically felt when close by

the event

Hard to breath

and hurting

eyes

One of them

(Hard to

breath and

hurting eyes)

Not different

Conservation aspect

1 Production area within

seagrass ecosystem

Yes Ocassionally Not

2 Production area that is

dugong habitat

Yes Ocassionally Not

3 Friendly for coastal

ecosystem

Not friendly Friendly

enough

Friendly

Within this feasibility study, to obtain proportional score, there is scoring weighting

using information entropy weight (IEW)/ entropy model that is created by Shannon

in 1948 (Shannon 1948). Entropy is an uncertainty measurement related to random

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variable. Entropy method could determine the index weight and avoid bias that is

cause by subjectivity. The calculation steps are as followed:

1) Standardization Standardization is conducted to eliminate dimention effect and interests. This process

impacts scale and unit difference between indexes within the same measurement unit

so it could be compared, though in this study the scoring has already used scoring

system. Standardization is using this equation:

𝑋𝑖′ =

𝑋𝑖 − 𝑋𝑚𝑖𝑛

𝑋𝑚𝑎𝑥 − 𝑋𝑚𝑖𝑛

Which 𝑋𝑖′ is normal score; 𝑋𝑖 is index original score i; and 𝑋𝑚𝑎𝑥 and 𝑋𝑚𝑖𝑛 each is nilai

maximum and minimum score from each variable.

2) Calculating index proportion j in every local economy i (𝑅𝑖𝑗)

𝑅𝑖𝑗 = 𝑋𝑖𝑗′ ∑ 𝑋𝑖𝑗

′

𝑒

𝑖=1

⁄

Which 𝑅𝑖𝑗 is proportion index j within local economy i from total existing local

economy (e); and 𝑋𝑖𝑗′ is standard index j within local economy i. If 𝑋𝑖𝑗

′ = 0, then to

calculate 𝐻𝑗, 0 score is changed to 0.00001.

3) Calculating entropy index j (𝐻𝑗)

𝐻𝑗 = −1

ln 𝑛∑ 𝑅𝑖𝑗 × ln 𝑅𝑖𝑗

𝑒

𝑖=1

Which 𝐻𝑗 is entropy index j information score with range from 0 to 1.

4) Calculating entropy redundancy (𝑑𝑗)

𝑑𝑗 = 1 − 𝐻𝑗

Which 𝑑𝑗 is entropy index j redundancy score.

5) Calculating weight index j (𝑤𝑗)

𝑤𝑗 = 𝑑𝑗 ∑ 𝑑𝑗

𝑛

𝑖=1

⁄

Which 𝑤𝑗 is weight index score j and n is number of index subclass from every

subsystem.

6) Calculating single index of local economy (e) from each village

𝑒 = ∑ 𝑤𝑒 × 𝑥𝑒′

𝑛

𝑒=1

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Which e is local economy integration score; 𝑥𝑒′ is single indicator score from e; and n

is number of indicators that are used in evey local economy activity.

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Chapter 3. Potential Local Economy Activity

3.1. Local Economy Activity Local community economy activity in three villages is dominated by fishery activity,

they are capture fishery and seaweed cultivation (Table 2). Nevertheless, there is also

cattle and poultry farm, clove and fruit plantation. Farming and planting is also side

activity when there’s no fish in the sea or when the plants are ready to be harvested.

Table 2 Profile from main local economy activity of community in every village

Village Main local economy activity

Technical method/ dominant object

Condition

Ogotua Capture fishery 1. Fishing rod 2. Trawl 3. “Bubu” 4. “Sero”

Is a living source of people, but on its operation still depends on capital support from collectors, like boats, ice, coolbox, and fuel. Fish catch is then sold to the collectors who help giving capital to the fishermen. Their main catch are “ikan batu”, like “kerapu sunu”.

Seaweed cultivation 1. Longline Not operating because of disease attack (ice-ice) and moss attack.

Malala Capture fishery 1. Boat “began” Is the most effective capturing tool with

Fish processing 1. Dry fish Fish processing by draining is the main community’s activity, the ones who ship or not. People could take as many fishes as they could from fishermen’ capture, which then being dried at their own houses, then being sold with price that’s adjusted with the market from fresh fishes price which would be paid toward the fishermen/ boat’s owner. The drying business system in the village is mutual belief. At fishing season, fishes are abundant, so the fish price would drop, even wasted.

Beach and island tourism

1. Island tourism 2. Beach tourism 3. Coral reef

Tourism activity is economy activity of new village known as Ratu

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Village Main local economy activity

Technical method/ dominant object

Condition

Ampat. Ratu Ampat name is chosen because of condition of surrounding small islands, so it’s assumed that it’s just like the famous Raja Ampat.

Santigi Capture fishery 1. Rod 2. Trawl

Capturing fish using rod and trawl is an activity that is done by every fisherman. Trawl is their main fishing tool, but if it’s on fish rarity season or bad weather, fishermen choose to use rod to capture fish with “ikan batu” as the target.

Seaweed cultivation 1. Longline Seaweed species that is cultivated is Eucheuma cottonii. This cultivation activity is conducted in group. There are six groups in this village, and three groups are already having certificate.

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3.2. Local Economy Profile

3.2.1. Production Aspect

Table 3 Production profile of local economy activity

Village Local

economy

activity

Convenience of

raw material or

production tools

Convenience to

produce

Production

continuity

Ogotua Rod So easy to get the

tools needed.

Technically and

operationally

are very easy to

be done.

Activity is always

conducted even

though in windy

season, but the

coverage area is

limited.

Trawl Needs of tool are

generally could

be obtained, and

could be fixed

alone if broken.

Capture effort is

generally done

by people, but

needs special

skill and

experience.

Dependent on

wind season is

still high, so the

production

sometimes is zero

when wavy

season or when

there’s no fish.

“Bubu”

“Sero”

Malala “Bagan” “Bagan” is

difficult to be

built. Besides,

it’s very

expensive.

Easy to be done

by people.

Production is

only conducted at

“dark months”

and the target is

seasonal fish.

Drying fish Fish raw

material is so

abundant and

sometimes

excess, but the

species is

depending on

season and

fishermen’

capture.

Common

practice in

community.

Depend on fish

season.

Ecotourism Common

practice in

community or

group

community.

Very easy,

because it

already has

beautiful

scenery

Object could be

visited each year

because it is

protected.

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Village Local

economy

activity

Convenience of

raw material or

production tools

Convenience to

produce

Production

continuity

Santigi Seaweed

cultivation

Production tools

is very easy to

get, but the seed

is sometimes

hard to get and

unavailable.

Very easy and

well trained.

Dependence

toward seed

availability and

bad weather

could make

production

process sometimes

stopped when

there’s no seed

available.

Rod Very easy to get

the tools needed.

Technically and

operationally

are very easy to

be done..

Is conducted

when trawl is not

used, usually

when fish is rare.

Trawl The tool is hard

to get because its

far access to the

town.

Capturing effort

is generally

done by people,

but needs

special skill and

experience

Production is

only conducted

when the season

and weather are

nice.

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3.2.2. Human Resource Aspect

Table 4 Human resource aspect on local economy activity

Village Local economy

activity

Employment Employee

availability

Women involvement

in business

Ogotua Fishing Generally

conducted alone or

at least by two.

Usually with his

own family

member.

The presence of

human resource on

this activity is

pretty much, even

though not every

person involved.

No woman who

involves in the

activity directly.

Trawl Capturing using

trawl is involving

many human

resource, moreover

the one done in

group.

No woman who

involves in the

activity directly.

“Bubu” Capturing fish using

“bubu” is usually

done alone.

No woman who

involves in the

activity directly.

“Sero” Capturing activity

using “sero” is not

involving many

people, generally

done by 2-3 people.

No woman who

involves in the

activity directly.

Malala “Bagan” “Bagan perahu” is

usually done by 6-8

people for one

“began” unit.

The presence of

human resource is

plenty, and almost

everyone has the

ability to fill for the

existing activities,

except for tourism

that needs

increasing capacity.

No woman who

involves in the

activity directly.

Drying fish The drying fish

process is generally

done by 2-4 people.

It’s usually done by

a family, husband,

wife, and kids.

Almost every activity

within the drying is

done by women that

is helped by men.

Ecotourism Ecotourism absorbs

many human

resource. Almost

every person in the

village is involved in

this, directly or not.

Many women

involved in tourism

activity and

preparing tourist

needs.

Santigi Seaweed

cultivation

Seaweed activity is

generally done by

only two people,

and is done by

family members,

like husband and

wife and in daily

treatment is usually

done alone

The availability of

human resource is

there but few. This

is because

community

activities have

already been

categorized

according to

Women involvement

is present but little.

Usually in one group

there is one or two

women. Women are

much involved

during tying the

seeds and drying

process.

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activity

Employment Employee

availability

Women involvement

in business

Rod Generally is done

alone, or at least

two people. Usually

done together with

family member.

interest and family

business.

No woman who

involves in the

activity directly.

Trawl Capture activity

using trawl is

involved many

people, moreover

the one done in

group.

No woman who

involves in the

activity directly.

3.2.3. Technology Aspect

Table 5 Applied Technology profile within the local economy


activity

Technology

availability

Technology

Application

Human resource

availability that

understand

technology

Ogotua Rod Every (simple)

technology needed

is available within

the village, and if

it’s not present then

it could be acquired

in Tolitoli City.

Applying new

technology is

relatively easy to be

done, but for it to

be effective and

efficient, needs

continuous training.

People who deeply

understand

technology, moreover

modern , is still

unpresent. If there’s

one, it’s usually not

locals who live to

work there.

Technology transfer

is generally done

naturally from person

to person or related

agency.

Trawl

“Bubu”

“Sero”

Malala “Bagan” Technology needed

to implement

activity present in

Toli-toli.

New technology

that’s hard to apply.

Generally because

the difficulty level

of operational or

the community are

already convenient

enough with the

existing ones.

Capable human

resource are

available, but needs

training and special

assistance.

Drying fish Applying fish

processing

technology is

relatively easy, but

it needs training

and special

14


activity

Technology

availability

Technology

Application

Human resource

availability that

understand

technology

assistance for the

upcoming things.

Ecotourism Available, within

the village

Easy, needs training

and assistance

Available and well

trained.

Santigi Seaweed

cultivation

Technology needed

for cultivation are

available and easy

to get.

Technology is very

easy to apply, and if

needs training not

only updating.

Available and well

trained.

Rod Every (simple)

technology needed

is available within

the village, and if

it’s not present then

it could be acquired

in Tolitoli City.

Applying the

technology is

relatively easy, but

it needs training

and special

assistance.

Capable human

resource are

available, but needs

training and special

assistance.

Trawl

15

3.2.4. Marketing Aspect

Table 6 Marketing product profile from local economy activity


activity

Coverage area Marketing

convenience

Market price

Ogotua Rod Fish is only sold nearby the

village and regency.

From fishermen collectors

then to local market.

Market is relatively

easy to reach

because it’s close by

fish auction place

and village market.

Profitable, but not

more than 25%

from even. Trawl

“Bubu”

“Sero”

Malala “Bagan” Fish is only sold within the area. If

there is need of fish from the

other village, then the collectors

who would come.

From fishermen collectors


Or,

From fishermen to community.


easy, but if when fish

is abundant, the fish

is not absorbed by

market.

Profitable, but not

more than 25%

from even. Drying fish

Ecotourism Tourist who come is not only local

people, but from other regency,

province, and Jakarta. Once in a

while there is also foreigner come

visit.

Profit could be

more than 25%

from even,

because it needs

no huge capital.

Santigi Seaweed

cultivation

Seaweed production is only sold

in the village.

From cultivators to collectors


Or,

from fishermen to community

then to collectors.

Seaweed product is

high in demand.

Profitable, but not

more than 25%

from even.

Rod Fish capture from fishermen is

sold through Palu and Gorontalo.

From fishermen to small

collectors (village) then to big

collectors (Toli-toli) then to

project, or restaurant, or Palu and

Gorontalo.

Or,

From fishermen to small

collectors (village) then to

pickup (Buol).


easy, because there

are four collectors

within the village.

But if the amount is

not filled, usually the

fish is dried or salted

first, then the

collectors sell those.

Trawl

16

3.2.5. Social Aspect

Table 7 Social Profile of local economy activity


activity

Conflict aspect Community

involvement

Social capital in

business

Ogotua Rod There’s no openly

conflict, but it could

be felt closely.

Disbelief appears

occasionally from

community but still

in mutual silence.

Community interest

within development

activities are still

lacking. The

government

apparatus are still

taking part.

According to existing

program and activity,

many who give profit

to only one side.

Trawl

“Bubu”

“Sero”

Malala “Bagan” There’s no seen and

felt conflict.

Besides, the people

have high mutual

faith.

People are

contributing in local

economy and social

activity.

The profit goes to

“began” owner only,

15 of them.

Drying fish The existing activity

gives profit to all

party. Ecotourism

Santigi Seaweed

cultivation

The emptiness of

village government

and the mutual

disbelief is shown.

The cultivator has

huge interest but

most of them are

only followers.

Community business

group that are already

divided make

program and activity

to only give profit to

one party. Rod Fishermen’ interest

are lacking. Trawl

3.2.6. Environmental Aspect

Table 8 Environmental impacts profile of local economy activity


activity

Water

pollutio

n

Environment

beauty

Colored

air

Smelly

air

Hotter Could be

physically felt

Ogotua Rod Not

affectin

g water

conditi

on.

Not changing its

beauty.

Not

affecting

air color.

Not

affecting

air smell.

Not affecting

the air

hotness

Not affecting

the physical

environment Trawl

“Bubu”

“Sero”

Malala “Bagan”

Drying fish

Ecotourism Good

arrangement

and effort to

increase salve

value would

make the

environment

better.

Santigi Seaweed

cultivation

Not changing its

beauty.

Rod

17


activity

Water

pollutio

n

Environment

beauty

Colored

air

Smelly

air

Hotter Could be

physically felt

Trawl

3.2.7. Conservation Aspect

Table 9 Relation profile of local economy activity toward conservation aspect


activity

Production area within

seagrass ecosystem

Production area

within dugong

habitat

Coastal ecosystem friendly

Ogotua Rod Production activity

location is not only

within seagrass

ecosystem, because the

fish capture target is

rock and pelagic fishes.

Production location

is dugong habitat

Tools and operational is

coastal ecosystem friendly.

Trawl Tools and operational is

friendly enough for coastal

ecosystem, but occasionally

disrupts the existing

ecosystem.

“Bubu”

“Sero”

Malala “Bagan” Moving activity from

abundant fish location,

and sometimes activity

above the seagrass

ecosystem.

Production location

is dugong habitat

Tools and operational is

coastal ecosystem friendly.

Drying fish The activity is in the

land.

Not related with

dugong habitat.

The activity is not directly

involved with coastal

ecosystem.

Ecotourism The main activity is in

the land and beach, also

coral reef ecosystem.

The activity is not

within dugong

habitat

Coastal ecosystem is only

objects for tourism.

Santigi Seaweed

cultivation

Activity is within

coastal water and

sometimes around the

seagrass ecosystem.

The activity is not

within dugong

habitat

The activity is a little

intersects with coastal

ecosystem.

Rod Production activity

location is not only

within seagrass

ecosystem, because the

fish capture target is

rock and pelagic fishes.

Alat dan operasional ramah

terhadap ekosistem pesisir.

Trawl Activity is mainly in open

water. Even so, the swallow

water make spressure

toward existing coastal

ecosystem,

18

Chapter 4. Community Needs

Community needs from interview result with community, authorities, group

discussion, and field observation are different in each villages. This depends on local

economy and existingpotential. Besides, community needs to see future development

prospect. Fishery sector still comes first within the study, but different in main

activity context.

Table 10 Local economy activity, problems and development recommendation from community in village locations of DSCP IPB, Toli-toli Regency

Village Local economy activity

Problems Development recommendation from community

Ogotua Fish capture • Small business capital and should always be supported by fish collectors

• Capture area that is far enough using small boat

• Boat helps • Fishing tools help • “Rumpon”

Seaweed cultivation

• Moss attack and ice-ice disease

• Broken facility and infrastructure

• Development and support for facility and infrastructure for seaweed culture

Malala Fish capture • Fish capture result that is not absorbed by market when fishes are abundant

• Fishes are sold dry and relatively cheap price

• Assisting continuous fish processing, including fish processing and packaging training

• Market development and promotion program

Beach and island tourism

• There’s no directions for tourism development

• Lack of facility and infrastructure

• Lack of promotion

• Creating design for tourism development

• Creating facility and infrastructure for supporting tourism

• Creating promotion program of tourism potential

Santigi Fish capture • There’s no continuous processing for captured fish, mainly in maintaining fish quality

• Depending on local market

• Sometimes the capture yield could be absorbed by market because it’s too few, so the fish must be drained and salted

• Fishing tools help • Processing fish

capture, mainly regrading fish quality to attract market

19

Village Local economy activity

Problems Development recommendation from community

with decrease price as consequence.

Seaweed cultivation

• Attacking of ice-ice disease

• Difficulty to find seeds to be cultured

• Loose of seeds from rope because of wave and current

• Market coverage is only local

• There’s no continuous process to increase product additional mark

• Training for increasing seaweed cultivators regrading seaweed production and processing aspects

20

Chapter 5. Business Feasibility of Local Economy Activity

5.1. Ogotua Village Business feasibility for local economy activity is an economy activity and community

income source that are on going right now and potential to be developed.

5.1.1. Capturing Fish Using Fishing Tools Investment cost component of fishery resource development consisted of serving

fleets, machines, and other tools. This investment cost component exclude

maintaining and operational cost. Business analysis is done in every fleet unit. This

additional fleet is expected to gain more optimum result for economy and community

welfare. This fishery economy development plan and investment feasibility include

feasibility investment components are gained based on primary and secondary data

(Table 11).

Table 11 Fishery development investment per fishing tool unit in Ogotua

N

o

Description Number

of unit

Sort of

unit

Price per unit

(Rp/unit)

Total price

(Rp)

Economical

age (years)

Balance

(Rp)

Residual price

per year (Rp)

1 Fishing fleet 1 unit 7.000.000 7.000.000 5 700.000 1.260.000

2 Motorized

machine of 3 PK

1 unit 4.000.000 4.000.000 2 400.000 1.800.000

3 Other tools (box,

bucket, etc)

1 set 2.000.000 2.000.000 2 200.000 900.000

Total 13.000.000 1.300.000 3.960.000

Total investment cost needed to prepare fleet and fishing tool per unit is around Rp.

13.000.000,- for beginning stage. This cost exclude operational and maintaining cost.

Operational cost data taken from the field with assumptions of 240 trips per year for

each boat unit is Rp 37.200.000,- per year. Operational cost per trip spend mostly at

fuel. Besides, fishermen should serve maintaining cost, mainly for boat, fishing tools,

and machines. Maintaining cost per fleet as showed in the table is IDR 2 millions. This

cost must be paid for one boat unit in one year.

Investment feasibility analysis at this stage has objectives to picture investment

feasibility level for fishery capture economy development mainly rod as fishing tools

(Table 12). This analysis is needed in preparing summary of fishery development

policy in Ogotua.

21

Table 12 Business development of rod fishing tool in Ogotua

No Description Number of

unit

Sort of unit Price per

unit

(Rp/unit)

Total (Rp)

A Receiption

- Rock fishes 3600 kg 15.000 54.000.000

Total Receiption 3600 54.000.000

B Cost

B.1 Fixed cost

residual 1 year 3.960.000 3.960.000

boat treatment 1 Year 2.000.000 2.000.000

machine treatment 1 Year 2.000.000 2.000.000

rod 1 year 2.000.000 2.000.000

Total Fixed Cost 9.960.000

B.2 Biaya Variabel

Mixed gasoline 2400 litre 10.000 24.000.000

ice 1200 Packet 1.000 1.200.000

Supplies for sailing 240 day 50.000 12.000.000

Total Variable Cost 37.200.000

Total Cost 47.160.000

C Profit 6.840.000

D R/C 1,15

E BEP unit (kg) 2.134

F BEP harga (Rp) 32.014.286

G PP (Payback Period) 1,90

Total reception from fishery capture is Rp.54.000.000,- from selling 3600 kg of batu

fishes per year. Biggest variable cost for fuel is around Rp.24.000.000,-. Reception to

cost ratio (R/C) is 1.15 which means the reception is 1.128 times compared to 1 total

cost spent. Break event point happens when the capture is 2.134 kg or when the

income reaches Rp.32.014.286 per year.

In total, fishing tool business in Ogotua, Toli-Toli regency has given profits and is

feasible to be developed to be community’s occupation (Table 13).

22

Table 13 Fishing tool cashflow analysis in Ogotua

No Description Year

0 1 2 3 4 5

A Inflow

Fish capture

selling 54.000.000 54.000.000 54.000.000 54.000.000 54.000.000

Residual value 1.300.000

Total Inflow 0 54.000.000 54.000.000 54.000.000 54.000.000 55.300.000

B Outflow

B.1

Investment and

Replacement

Fishing fleet 7.000.000

Motorized

machine of 3 PK 4.000.000

Other tools (box,

bucket, etc) 2.000.000 2.000.000 2.000.000

Total Investment

Cost 13.000.000 0 2.000.000 0 2.000.000 0

B.2 Fixed cost

residual 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000

boat treatment 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000

machine

treatment 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000

Total Fixed Cost 6.000.000 6.000.000 6.000.000 6.000.000 6.000.000

B.3 Biaya Variabel

Mixed gasoline 24.000.000 24.000.000 24.000.000 24.000.000 24.000.000

ice 1.200.000 1.200.000 1.200.000 1.200.000 1.200.000

Supplies for

sailing 12.000.000 12.000.000 12.000.000 12.000.000 12.000.000

Total Variable

Cost 37.200.000 37.200.000 37.200.000 37.200.000 37.200.000

Total Outflow 13.000.000 43.200.000 45.200.000 43.200.000 45.200.000 43.200.000

C Net Benefit

-

13.000.000 10.800.000 8.800.000 10.800.000 8.800.000 12.100.000

Discount Rate 13,00%

D Discount Factor 1 0,884955752 0,783146683 0,693050162 0,613318728 0,542759936

E Present Value

-

13.000.000 9.557.522 6.891.691 7.484.942 5.397.205 6.567.395

F NPV 22.898.755

G IRR 73,21%

H Net B/C 2,76

According to analysis result at the table above, it could be seen NPV score is Rp

22.898.755, which means the profit that would be obtained while the project is 5

years old in the future is Rp 22.898.755. Net B/C score is 2,76 which means in every

Rp. 1,- that spends would yields income 2.76 from the outcome as long as the business

23

is 5 years old and interest rate 13%. IRR number 73,21% means that business could

give return or profit 73,21% per year from all investment during 5 years old business.

Analysis at this stage concluded that the fishery business development using fishing

tools gives profit looking from its NPV, IRR, and Net B/C so it would be feasible to be

developed. This condition must give profits for every fishery capture management

within the area including the fishermen, so the production optimation won’t interrupt

the sustainability or preservation of fishery resources.

5.1.2. Capturing Fish Using Trawl Investment cost components of fishery resources development consisted of fleet,

machine, fishing tool, and other tools procurement. This cost component exclude

maintaining and operational cost. Business analysis is done for every one fleet.

Adding fleet is expected to yield optimum result for community’s economy and

welfare. Fishery economy development plan and investment feasibility includes


(Table 14).

Table 14 Investment for Trawl Fishery Development (per unit)

No Description Numbe

r of

unit

Sort of

unit

Price per

unit

(Rp/unit)

Total cost

(Rp)

Economi

cal age

(year)

Residua

l value

(Rp)

Residual value

per year (Rp)

1 Fishing fleet 1 unit 7.000.000 7.000.000 10 700.000 630.000

2 Motorized

machine of 26

PK

1 unit 4.000.000 4.000.000 3 400.000 1.200.000

3 Other tools

(box, bucket,

etc)

1 unit 3.000.000 3.000.000 2 300.000 1.350.000

4 Fishing fleet 1 set 2.000.000 2.000.000 2 200.000 900.000

Total 16.000.000 1.600.0

00

4.080.000

Total investment cost needed to prepare feet and trawl per unit is Rp. 16.000.000,-

for starters. This cost excludes operational and maintaining cost, as written at

followed table.

Operational cost taken from field with assumptions of 264 trips per year, so total

operational cost per boat unit is Rp 270.070.000,- per year. Operational cost per trip

mostly spent for crews. Besides, fishermen should serve maintaining cost, mainly for

boat, fishing tools, and machines. Maintaining cost per fleet as showed in the table is

IDR 2 millions. This cost must be paid for one boat unit in one year.


feasibility level for fishery capture economy development with trawl as fishing tools


policy in Ogotua.

24

Table 15 Business development of trawl fishing tool in Ogotua


unit

Sort of

unit

Price per unit

(Rp/unit)

Total (Rp)

A Receiption

- Kembung 9620 kg 4.000 38.480.000

- Tongkol 25350 kg 10.000 253.500.000


B Cost

B.1 Fixed cost

residual 1 tahun 4.080.000 4.080.000

boat treatment 1 tahun 2.000.000 2.000.000

machine treatment 1 tahun 1.500.000 1.500.000

rod 1 tahun 1.500.000 1.500.000


B.2 Variable cost

Mixed gasoline 3960 liter 20.000 79.200.000

ice 2640 bungkus 2.000 5.280.000

Supplies for sailing 264 hari 150.000 39.600.000

Crew profit sharing 50 % 291.980.000 145.990.000



C Profit 12.830.000

D R/C 1,05


F BEP harga (Rp) 121.003.122

PP (Payback Period)

1,25

Total receipt from capture yield is Rp.291.980.000,- from seeling kembung and

tongkol fish, as much as 34,9 tons per year. Biggest variable cost is for crews (50%) from income, Rp.145.990.000 per year from total receiption. Reception to cost ratio

(R/C) is 1,05 which means reception obtained is 1.05 times from 1 total cost spent.

Break event point happens when capture yield is 14.492 kg or when reception is

Rp.121.003.122 per year. Overall, trawl tools business in Ogotua, has given profits

and is feasible to be developed to be community’s occupation (Table 16).

25

Table 16. Cashflow analysis of trawl fishing tool in Ogotua

No Uraian Tahun

0 1 2 3 4 5

A Inflow

Fish capture

selling

291.980.000 291.980.000 291.980.000 291.980.000 291.980.000


Total Inflow 0 291.980.000 291.980.000 291.980.000 291.980.000 296.730.000

B

B.1 Outflow

Investment and

Replacement

7.000.000


Motorized

machine of 3 PK

3.000.000

Other tools (box,

bucket, etc)

2.000.000 2.000.000 2.000.000

Total Investment

Cost

16.000.000 0 2.000.000 0 2.000.000 0

B.2 Fixed cost

residual 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000

boat treatment 1.500.000 1.500.000 1.500.000 1.500.000 1.500.000

machine

treatment

1.500.000 1.500.000 1.500.000 1.500.000 1.500.000

Total Fixed Cost 5.000.000 5.000.000 5.000.000 5.000.000 5.000.000

B.3 Biaya Variabel

Mixed gasoline 79.200.000 79.200.000 79.200.000 79.200.000 79.200.000

ice 5.280.000 5.280.000 5.280.000 5.280.000 5.280.000

Supplies for

sailing

39.600.000 39.600.000 39.600.000 39.600.000 39.600.000

Total Variable

Cost

145.990.000 145.990.000 145.990.000 145.990.000 145.990.000

Total Outflow 270.070.000 270.070.000 270.070.000 270.070.000 270.070.000

Net Benefit 16.000.000 275.070.000 277.070.000 275.070.000 277.070.000 275.070.000

C Discount Rate -16.000.000 16.910.000 14.910.000 16.910.000 14.910.000 21.660.000

Discount Factor 13,00%

D Present Value 1 0,884955752 0,783146683 0,693050162 0,613318728 0,542759936

E NPV -16.000.000 14.964.602 11.676.717 11.719.478 9.144.582 11.756.180

F IRR 43.261.560

G Net B/C 99,36%

H Inflow 3,70



years old in the future is Rp 43.261.560. Net B/C score is 3.70 which means in every


26

is 5 years old and interest rate 13%. IRR number 99.36% means that business could

give return or profit 99.36% per year from all investment during 5 years old business.






5.1.3. Capturing Fish Using “Bubu” Investment cost components of fishery resources development consisted of fleet,






(Table 17).

Table 17 Fishery development investment per fishing tool unit in Ogotua


r of

unit

Sort of

unit

Price per

unit

(Rp/unit)

Total price

(Rp)

Economical

age (years)

Balance

(Rp)

Residual

price per

year (Rp)


2 Motorized

machine of 2

PK

1 unit 4.000.000 4.000.000 5 400.000 720.000

3 “Bubu” 1 unit 3.000.000 3.000.000 3 300.000 900.000

4 Fishing fleet 1 set 2.000.000 2.000.000 3 200.000 600.000

Total

17.000.000

1.700.000 2.940.000



followed table.



mostly spent for fuel. Besides, fishermen should serve maintaining cost, mainly for


IDR 2.5 millions. This cost must be paid for one boat unit in one year.


feasibility level for fishery capture economy development with “bubu” as fishing tools


policy in Ogotua.

27

Table 18 Business development of fishing using “bubu” in Ogotua


unit


unit

(Rp/unit)

Total (Rp)

A Reception

- Batu Fish 4600 kg 20.000 92.000.000


B Cost

B.1 Fixed cost

residual 1 tahun 2.940.000 2.940.000



rod 7.440.000

B.2 Total Fixed Cost

Variable cost 3000 liter 20.000 60.000.000

Mixed gasoline 2000 bungkus 1.000 2.000.000

ice 200 hari 50.000 10.000.000

Supplies for sailing 72.000.000


C Total Cost 12.560.000

D Profit 1,16

E R/C 1.711

F BEP unit (kg) 34.224.000

G BEP price (Rp) 1,35

Total receipt from capture yield is Rp.92.000.000,- from selling batu fish, as much as

4,6 tons per year. Biggest variable cost is for fuel, Rp. 60.000.000 per year from total

receiption. Reception to cost ratio (R/C) is 1,16 which means reception obtained is

1.16 times from 1 total cost spent. Break event point happens when capture yield is

1711 kg or when reception is Rp. 34.224.000 per year. Overall, “bubu” tools business

in Ogotua, has given profits and is feasible to be developed to be community’s

occupation (Table 19).

28

Table 19 Cashflow analysis of “bubu” fishing tool in Ogotua

No Description Year

0 1 2 3 4 5

A Inflow

Fish capture

selling

92.000.000 92.000.000 92.000.000 92.000.000 92.000.000


Total Inflow 0 92.000.000 92.000.000 92.000.000 92.000.000 97.300.000

B

B.1 Outflow

Investment and

Replacement

8.000.000


Motorized

machine of 3 PK

3.000.000

Other tools (box,

bucket, etc)

2.000.000 2.000.000 2.000.000

Total Investment

Cost

17.000.000 0 2.000.000 0 2.000.000 0

B.2 Fixed cost

residual 2.500.000 2.500.000 2.500.000 2.500.000 2.500.000

boat treatment 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000

machine treatment 4.500.000 4.500.000 4.500.000 4.500.000 4.500.000

B.3 Total Fixed Cost

Biaya Variabel 60.000.000 60.000.000 60.000.000 60.000.000 60.000.000

Mixed gasoline 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000

ice 10.000.000 10.000.000 10.000.000 10.000.000 10.000.000

Supplies for sailing 72.000.000 72.000.000 72.000.000 72.000.000 72.000.000

Total Variable Cost 17.000.000 76.500.000 78.500.000 76.500.000 78.500.000 76.500.000

C

Total Outflow

-

17.000.000

15.500.000 13.500.000 15.500.000 13.500.000 20.800.000

Net Benefit 13,00%

D Discount Rate 1 0,884955752 0,783146683 0,693050162 0,613318728 0,542759936

E

Discount Factor

-

17.000.000

13.716.814 10.572.480 10.742.278 8.279.803 11.289.407

F Present Value 37.600.781

G NPV 84,35%

H IRR 3,21




Rp. 1,- that spends would yields income 3.21 times from the outcome as long as the

business is 5 years old and interest rate 13%. IRR number 84.35% means that

business could give return or profit 84.35% per year from all investment during 5

years old business.

29






5.1.4. Capturing Fish Using “Sero” Investment cost components of fishery resources development consisted of fleet,






(Table 20).

Table 20. Fishery development investment for “sero” fishing tool (per unit) in Ogotua


r of

unit

Sort of

unit

Price per

unit

(Rp/unit)

Total price

(Rp)

Economic

al age

(years)

Balance

(Rp)

Residual price

per year (Rp)

1 Fleet boat 1 unit 8.000.000 8.000.000 10 800.000 720.000

2 Motorized boat

2 PK

1 unit 4.000.000 4.000.000 3 400.000 1.200.000

3 Net 1 unit 3.000.000 3.000.000 3 300.000 900.000

4 Net house and

pocket

1 unit 3.000.000 3.000.000 3 300.000 900.000

5 Other tools 1 set 2.000.000 2.000.000 3 200.000 600.000

Total 20.000.000 2.000.000 4.320.000

Total investment cost needed to prepare feet and “sero” per unit is Rp. 20.000.000,-


followed table.





IDR 2 millions. This cost must be paid for one boat unit in one year.


feasibility level for fishery capture economy development with “sero” as fishing tools


policy in Ogotua.

30

Table 21 Business development of fishing using “sero” in Ogotua


unit


unit

(Rp/unit)

Total (Rp)

A Reception

- Batu Fish 3600 kg 20.000 72.000.000


B Cost

B.1 Fixed cost

residual 1 tahun 4.320.000 4.320.000



rod 1 tahun 1.500.000 1.500.000


B.2 Variable cost


ice 900 bungkus 1.000 900.000




C Profit 16.780.000

D R/C 1,30


F BEP price (Rp) 25.710.345

G Reception 1,19


3.6 tons per year. Biggest variable cost is for fuel, Rp. 36.000.000 per year from total

receiption. Reception to cost ratio (R/C) is 1.3 which means reception obtained is 1.3

times from 1 total cost spent. Break event point happens when capture yield is 1286

kg or when reception is Rp. 25.710.345 per year. Overall, “sero” tools business in

Ogotua, has given profits and is feasible to be developed to be community’s

occupation (Table 22).

31

Table 22 Cashflow analysis of “sero” fishing tool in Ogotua

No Description Year

0 1 2 3 4 5

A Inflow

Selling captured

fish

72.000.000 72.000.000 72.000.000 72.000.000 72.000.000


Total Inflow 0 72.000.000 72.000.000 72.000.000 72.000.000 77.600.000

B Outflow

B.1 Investment dan

Replacement

Fleet boat 8.000.000

Motorized boat 2

PK

4.000.000

Net 3.000.000

Net house and

pocket

3.000.000

Other tools 2.000.000 2.000.000 2.000.000

Total Investment

Cost

20.000.000 0 2.000.000 0 2.000.000 0

B.2 Fixed cost

Boat maintaining 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000

Machine

maintaining

1.500.000 1.500.000 1.500.000 1.500.000 1.500.000

“Sero” maintaining 1.500.000 1.500.000 1.500.000 1.500.000 1.500.000

Total Fixed Cost 5.000.000 5.000.000 5.000.000 5.000.000 5.000.000

B.3 Variable Cost

Mixed gasoline 36.000.000 36.000.000 36.000.000 36.000.000 36.000.000

Ice 900.000 900.000 900.000 900.000 900.000

Supply for saililng 9.000.000 9.000.000 9.000.000 9.000.000 9.000.000

Total Variable Cost 45.900.000 45.900.000 45.900.000 45.900.000 45.900.000

Total Outflow 20.000.000 50.900.000 52.900.000 50.900.000 52.900.000 50.900.000

C Net Benefit -20.000.000 21.100.000 19.100.000 21.100.000 19.100.000 26.700.000



E Present Value -20.000.000 18.672.566 14.958.102 14.623.358 11.714.388 14.491.690

F NPV 54.460.104

G IRR 99,95%

H Net B/C 3,72







years old business.

32






33

5.2. Malala Village

5.2.1. Fishing Using “Bagan Perahu” Tools Investment cost components of fishery resources development consisted of fleet,






(Table 23).

Table 23 Fishery development investment for “began perahu” fishing tool (per unit) in Ogotua


r of

unit

Sort of

unit

Price per unit

(Rp/unit)

Total price

(Rp)

Economic

al age

(years)

Balance

(Rp)

Residual

price per

year (Rp)

1 “Bagan

perahu” and

other fishing

tools

1 unit 250.000.000 250.000.000 5 25.000.000 45.000.000

2 Other tools 1 set 5.000.000 5.000.000 2 500.000 2.250.000

Total 255.000.000 25.500.000 47.250.000

Total investment cost needed to prepare feet and “bagan” per unit is Rp.

255.000.000,- for starters. This cost excludes operational and maintaining cost, as

written at followed table. Operational cost taken from field with assumptions of 288

trips per year, so total operational cost per boat unit is Rp 440.640.000,- per year.

Operational cost per trip mostly spent for supply. Besides, fishermen should serve

maintaining cost, mainly for boat, fishing tools, and machines. Maintaining cost per

fleet as showed in the table is IDR 5 millions and 10 millions for machine. This cost

must be paid for one boat unit in one year.


feasibility level for fishery capture economy development with “bagan” as fishing

tools (Table 24). This analysis is needed in preparing summary of fishery

development policy in Malala.

34

Table 24. Business development of fishing using “bagan” in Malala


unit

Sort of unit Price per unit

(Rp/unit)

Total (Rp)

A Reception

- Teri Fish 4170 tremos 100.000 417.000.000

- Layang Fish 1149 tremos 30.000 34.470.000

- Tembang Fish 3212 tremos 150.000 481.800.000


B Cost

B.1 Fixed Cost

Residual 1 year 47.250.000 47.250.000

Boat maintenance 1 Year 5.000.000 5.000.000

Machine maintenance 1 Year 10.000.000 10.000.000

“bagan” 1 year 12.000.000 12.000.000


B.2 Variable cost

Mixed gasoline 8640 litre 13.000 112.320.000

Ice 20160 Package 2.000 40.320.000

Sailing supply 288 day 1.000.000 288.000.000



Profit sharing 50 % 209.190.000

C Nett profit 209.190.000

D R/C 1,81


F BEP price (Rp) 140.663.982

PP (Payback Periode)

1,22

Total receipt from capture yield is Rp. .933.270.000,- from selling teri, layang, and

tembang fish, as much as 8.5 tons per year. Biggest variable cost is for crews, with

profit sharing 50% (Rp. 209.000.000 per year) from total receiption. Reception to cost

ratio (R/C) is 1.81 times which means reception obtained is 1.81 times from 1 total

cost spent. Break event point happens when capture yield is 1286 kg or when

reception is Rp. 140.663.982 per year. Overall, “bagan” tools business in Malala, has

given profits and is feasible to be developed to be community’s occupation (Table 25).

35

Table 25 Cashflow analysis for “bagan” fishing tool in Malala

No Description Year

0 1 2 3 4 5

A Inflow

Selling captured fish 933.270.000 933.270.000 933.270.000 933.270.000 933.270.000


Total Inflow 0 933.270.000 933.270.000 933.270.000 933.270.000 958.770.000

B Outflow

B.1 Investment dan

Replacement

Fleet boat 250.000.000

Motorized boat 2 PK 5.000.000

Net 255.000.000 0 0 0 0 0

B.2 Net house and pocket

Other tools 5.000.000 5.000.000 5.000.000 5.000.000 5.000.000

Total Investment Cost 10.000.000 10.000.000 10.000.000 10.000.000 10.000.000

Fixed cost 12.000.000 12.000.000 12.000.000 12.000.000 12.000.000

Boat maintaining 27.000.000 27.000.000 27.000.000 27.000.000 27.000.000

B.3 Machine maintaining

“Sero” maintaining 112.320.000 112.320.000 112.320.000 112.320.000 112.320.000

Total Fixed Cost 40.320.000 40.320.000 40.320.000 40.320.000 40.320.000

Variable Cost 288.000.000 288.000.000 288.000.000 288.000.000 288.000.000

Mixed gasoline 440.640.000 440.640.000 440.640.000 440.640.000 440.640.000

Ice 209.190.000 209.190.000 209.190.000 209.190.000 209.190.000

Supply for saililng 255.000.000 676.830.000 676.830.000 676.830.000 676.830.000 676.830.000

C Total Variable Cost -255.000.000 256.440.000 256.440.000 256.440.000 256.440.000 281.940.000

Total Outflow 13,00%

D Net Benefit 1 0,884955752 0,783146683 0,693050162 0,613318728 0,542759936

E Discount Rate -255.000.000 226.938.053 200.830.135 177.725.784 157.279.455 153.025.736

F Discount Factor 660.799.163

G Present Value 97,55%

H NPV 3,59

36

According to analysis result at the table above, it could be seen NPV score is Rp.






years old business.






5.2.2. Teri and Rucah Fish Processing Investment needed for teri fish processing is Rp.17.000.000,00 for every 42,5 kg

production per day with residual price per year Rp. 3.240.000. biggest investment

component is fixing production house, 58% from total investment (Table 26).

Table 26. Teri and Rucah Processing investment in Malala


r of

unit

Sort of

unit

Price per

unit

(Rp/unit)

Total price

(Rp)

Economi

cal age

(years)

Balance

(Rp)

Residual

price per

year (Rp)

1 Business permit 1 package 3.000.000 3.000.000 5 300.000 540.000

2 Fixing

production

house

1 unit 10.000.000 10.000.000 10 1.000.000 900.000

3 Drying tools

(“waring”,

bamboo, etc.)

1 package 2.000.000 2.000.000 2 200.000 900.000

4 Other tools

(bucket, basket,

kinfe, etc.)

1 package 2.000.000 2.000.000 2 200.000 900.000

Total 17.000.000 1.700.000 3.240.000

Receiption of dry teri fish per cycle is 11,2 tons with selling price Rp. 20.000 per kg,

so total reception per year is Rp. 224.400.000. The cost consists of fixed cost and variable cost, where fixed cost is residual cost and cost for house and production tools

maintenance. Total variable cost consists of raw material, transportation, and salary,

Rp. 209.220.000 per year. Biggest variable cost is for buying raw material (teri fish),

Rp. 99.000.000 per production year. Total raw material is 13 tons with price Rp.

7500,-. Net profit received in one year is Rp. 9.940.000. Receipt to cost ratio (R/ C) is

1.05 which means that reception gained is 1.05 times compared to 1 total cost spent.

Break event point happens when salt teri fish yielded is 2873 kg or when reception is

Rp.77.460.870 (Table 27).

37

Table 27. Teri fish processing business analysis in Malala


unit


unit

(Rp/unit)

Total (Rp)

A Receiption

- Teri Fish 11220 kg 20.000 224.400.000


B Cost

B.1 Fixed Cost

Residual 1 Year 3.240.000 3.240.000

Maintaining production house

and else

1 year 2.000.000 2.000.000


B.2 Variable Cost

Teri fish purchase 13200 kg 7.500 99.000.000

Salt purchase 1320 kg 10.000 13.200.000

Human resource cost 792 HOK 35.000 27.720.000

Transportation cost 264 trip 50.000 13.200.000

Packaging cost 11220 kg 5.000 56.100.000



C Profit 9.940.000

D R/C 1,05




1,71

Business analysis result showed IRR value per year is 68%, higher than discount rate

of KUR interest (13%, still higher than interest rate of KUR loan). NPV accepted during

investment age is Rp. 27.486.869 which means that this teri fish business gives profit

(bigger than zero) and net B/C 2.62, which means from every Rp. 1,- spent for

business investment yields 2.62 times benefit from that investment. Overall, this teri

fish processing business in Malala gives profit and feasible to be developed to be

community’s occupation (Table 28).

38

Table 28 Cashflow analysis of teri and rucah processing in Malala

No Description Year

0 1 2 3 4 5

A Inflow

Selling captured

fish

224.400.000 224.400.000 224.400.000 224.400.000 224.400.000


Total Inflow 0 224.400.000 224.400.000 224.400.000 224.400.000 226.100.000

B Outflow

B.1 Investment and

Replacement

Business permit 3.000.000

Fixing production

house

10.000.000

Drying tools

(“waring”, bamboo,

etc.)

2.000.000

Other tools

(bucket, basket,

kinfe, etc.)

2.000.000 2.000.000 2.000.000

Total Investment

Cost

17.000.000 0 2.000.000 0 2.000.000 0

B.2 Fixed cost

Maintaining house

production and

other tools

2.000.000 2.000.000 2.000.000 2.000.000 2.000.000

Total Fixed Cost 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000

B.3 Variable Cost

Teri fish purchase 99.000.000 99.000.000 99.000.000 99.000.000 99.000.000

Salt purchase 13.200.000 13.200.000 13.200.000 13.200.000 13.200.000

Human resource

cost

27.720.000 27.720.000 27.720.000 27.720.000 27.720.000

Transportation

cost

13.200.000 13.200.000 13.200.000 13.200.000 13.200.000

Packaging cost 56.100.000 56.100.000 56.100.000 56.100.000 56.100.000

Total Variable Cost 209.220.000 209.220.000 209.220.000 209.220.000 209.220.000

Total Outflow 17.000.000 211.220.000 213.220.000 211.220.000 213.220.000 211.220.000

C Net Benefit -17.000.000 13.180.000 11.180.000 13.180.000 11.180.000 14.880.000



E Present Value -17.000.000 11.663.717 8.755.580 9.134.401 6.856.903 8.076.268

F NPV 27.486.869

39

No Description Year

0 1 2 3 4 5

G IRR 68,49%

H Net B/C 2,62

5.2.3. Ratu Ampat Ecotourism Investment needed for ecotourism creation is Rp. 90.000.000,00 for every 1800

visitors per year with residual price per year Rp. 15.840.000. biggest investment cost

is for making toilet and shower area, tourism information center, and water well

(Table 29).

Table 29. Ecotourism investment in Malala


r of unit

Sort of

unit

Price per

unit

(Rp/unit)

Total price

(Rp)

Economic

al age

(years)

Balance

(Rp)

Residual

price per

year (Rp)

1 Investment kind 1 unit 2.000.000 2.000.000 15 200.000 120.000

2 Security post 5 unit 200.000 1.000.000 15 100.000 60.000

3 Trash can 2 unit 3.000.000 6.000.000 5 600.000 1.080.000

4 Toilet and

shower

5 unit 10.000.000 50.000.000 5 5,000.000 9.000.000

5 Hut 1

package

1.000.000 1.000.000 5 100.000 180.000

6 Cleaning tools 1 unit 5.000.000 5.000.000 5 500.000 900.000

7 Well/

freshwater

shelter and

installation

1

package

10.000.000 10.000.000 5 1.000.000 1.800.000

8 Suppproted

infrastructure

for tourism

information

center

1 package 15.000.000 15.000.000 5 1.500.000 2.700.000

Total 90.000.000 1.700.000 15.840.000

Reception from visitor ticket per year from 1.800 visitors with ticket price Rp. 10.000

per person, makes total receiption Rp. 180.000.000. The cost consists of fixed cost and

variable cost, where fixed cost is residual cost and cost for infrastructure maintenance

and staff salary. Total variable cost consists of electricity bill and ticket, Rp. 8.700.000

per year. Biggest variable cost is for printing entrance ticket, Rp. 7.500.000 per one

production year, and electricity per month is predicted at Rp. 100.000. Net profit per

year is Rp. 131.460.000, or Rp. 10.955.000 per month. Receipt to cost ratio (R/ C) is

3.71 which means that reception gained is 1.05 times compared to 1 total cost spent.

40

Break event point happens when there are 12,354 visitors or when reception is Rp.

123.540.870 (Table 30).

Table 30. Ecotourism business analysis in Malala

No Description Number

of unit

Sort of unit Price per unit

(Rp/unit)

Total (Rp)

A Receiption

- Daily visitors per week 12.000 visitors 10.000 224.400.000

- Holiday visitors 6.000 visitors 10.000


B Cost

B.1 Fixed cost

Fishing tool residual 1 year 15.840.000 15.840.000

Supervisor salary 12 OB 1.000.000 12.000.000

Cleaning service salary 12 OB 500.000 12.000.000

Toilet/ shower maintenance 1 Year 150.000 1.800.000

Hut maintenance 1 Year 150.000 1.800.000

Security post maintenance 1 Year 100.000 1.200.000

Well/ freshwater shelter maintenance and

installation

1 Year 250.000 3.000.000

Suppproted infrastructure for tourism

information center maintenance

1 Year 1.000.000 12.000.000

Selfie spot 1 Year 1.000.000 12.000.000


B.2 Variable Cost

electricity 12 Month 100.000 1.200.000

Entrance ticket 15000 Copy 500 7.500.000



C Profit 10.955.000

D R/C 3,71


F BEP price (Rp) 123.540.000


0,97







years old business. Overall, ecotourism business in Malala, Tolitoli gives profit and

feasible to be developed as community’s occupation (Table 31).

41

Table 31. Cashflow analysis of ecotourism business in Malala

No Description Year

0 1 2 3 4 5

A Inflow

Daily visitors

per week

-

120.000.000

120.000.000

120.000.000

120.000.000

120.000.000

Holiday visitors - 60.000.000 60.000.000 60.000.000 60.000.000 60.000.000

Total Inflow -

180.000.000

180.000.000

180.000.000

180.000.000

180.000.000

B Outflow

B.1 Investment and

Replacement

Security post 2.000.000

Trash can 1.000.000

Toilet and

shower

6.000.000 6.000.000

Hut 50.000.000 50.000.000

Cleaning tools 1.000.000 1.000.000

Well/

freshwater

shelter and

installation

5.000.000 5.000.000

Suppproted

infrastructure

for tourism

information

center

10.000.000 10.000.000

Selfie spot 15.000.000 15.000.000

Total

Investment

75.000.000 - - - - 72.000.000

B.2 Fixed cost

Fishing tool

residual

15.840.000 15.840.000 15.840.000 15.840.000 15.840.000 15.840.000

Supervisor

salary

12.000.000 12.000.000 12.000.000 12.000.000 12.000.000 12.000.000

Cleaning

service salary

12.000.000 12.000.000 12.000.000 12.000.000 12.000.000 12.000.000

Toilet/ shower

maintenance

1.800.000 1.800.000 1.800.000 1.800.000 1.800.000 1.800.000

Hut

maintenance

1.800.000 1.800.000 1.800.000 1.800.000 1.800.000 1.800.000

Security post

maintenance

1.200.000 1.200.000 1.200.000 1.200.000 1.200.000 1.200.000

Well/

freshwater

shelter

maintenance

and installation

3.000.000 3.000.000 3.000.000 3.000.000 3.000.000 3.000.000

Suppproted

infrastructure

for tourism

information

12.000.000 12.000.000 12.000.000 12.000.000 12.000.000 12.000.000

42

No Description Year

0 1 2 3 4 5

center

maintenance

Total fixed cost 39.840.000 39.840.000 39.840.000 39.840.000 39.840.000 39.840.000

B.3 Variable Cost

electricity 1.200.000 1.200.000 1.200.000 1.200.000 1.200.000 1.200.000

Entrance ticket 7.500.000 7.500.000 7.500.000 7.500.000 7.500.000 7.500.000

Total variable

cost

8.700.000 8.700.000 8.700.000 8.700.000 8.700.000 8.700.000

Total Outflow 123.540.000 48.540.000 48.540.000 48.540.000 48.540.000 120.540.000

C Net Benefit -

123.540.000

131.460.000

131.460.000

131.460.000

131.460.000

59.460.000


D Discount

Faktor

1,0 0,943 0,890 0,840 0,792 0,747

E Present Value -

123.540.000

124.018.868

116.998.932

110.376.351

104.128.633

44.431.971

F NPV 376.414.755

G IRR 101,42%

H Net B/C 4,05

Analysis at this stage concluded that the ecotourism business development gives

profit looking from its NPV, IRR, and Net B/C so it would be feasible to be developed.

This condition must give profits for tourism management within the area.

Nevertheless, there should be considerations toward the sustainability of the nature

resources itself, so the utilization of ecosystem and environment does not interrupt

the sustainability or preservation of nature resource.

43

5.3. Santigi VIllage

5.3.1. Seaweed Cultivation

Seaweed cultivation in Santigi, Tolitoli Regency is conducted using long line method.

Area per unit is 25 m x 25 m = 625 m2. According to interview result and seaweed

cultivation data, there is a specification technique for one planting season of seaweed

cultivation (Table 32).

Table 32 Specification technique for one planting season of seaweed cultivation in Santigi

No Description Unit* Score of Unit

1 Length of main rope multifilament polyethylene (PE)

6 mm size

meter 25

2 Length of main ris rope 4 mm size meter 25

3 Area per unit m2 625

4 Distance between main ris rope meter 0.25

5 Total main ris rope unit 100

6 Length of main PE rope no.6 meter 50

7 Length of main ris rope PE no.4 meter 2500

8 Basket unit 1

9 “Para-para” unit 1

10 Distance between seaweed seeds meter 0.25

11 Total group of seaweed seeds per main rope unit 100

12 Total group of seaweed seeds per unit area unit 10000

13 “raffia” rope kg 12.5

14 Weight of seaweed seeds per group gram 100

15 Total weight of seaweed seeds per unit area kg 1000

16 Seaweed cultivation maintenance duration hari 45

17 Weight of harvesting wet seaweed per group gram 800

18 Total wet seaweed harvested per unit area kg 800

19 Wet seaweed price Rp/kg 2000

20 Percentage of dry seaweed % 12

21 Total dry seaweed per unit area kg 500

22 Dry seaweed price Rp/kg 10000

23 Cultivation period 6 months hari 180

24 Total period of harvest cycle siklus 6

Information:*)Specification technique per unit area (25 m x 25 m = 625 m2)

Investment needed for seaweed cultivation with longline method is Rp. 5.025.00,00

for seaweed area of 625 m2 with residual price per year Rp. 958.500,-. Biggest

investment component is for buying rope, 74% from total investment (Table 33).

44

Table 33 Seaweed cultivation with off base pegs system in Santigi


of unit

Sort

of

unit

Price per

unit

(Rp/unit)

Total

price

(Rp)

Economical

age (years)

Balance

(Rp)

Residual

price per year

(Rp)

1 Ropes 50 roll 75.000 3.750.000 5 375.000 675.000

2 “rafia” rope 3 roll 25.000 75.000 1 7.500 67.500

3 Drying place 1 unit 1.000.000 1.000.000 5 100.000 180.000

4 Basket 4 unit 50.000 200.000 5 20.000 36.000

Total 5.025.000 502.500 958.500

Reception of dry seaweed per cycle is 500 kg with selling price Rp. 10.000, so total

reception Rp. 5.000.000 per cycle. The cost consists of fixed cost and variable cost,

where fixed cost is residual cost and cost for maintenance production tools. Total

variable cost consists of seaweed cost, boat rent and salary, Rp. 2.960.000 per cycle.

Biggest variable cost is for salary Rp. 1.730.000 consists for salary from setting rope

and drying seaweed. Seaweed seeds is 1000 kg with seed price Rp. 1000,- so total

seeds per cycle is Rp. 1.000.000. Receipt to cost ratio (R/ C) is 1.38 which means that

reception gained is 1.38 times compared to 1 total cost spent. Break event point

happens when there are 132 kg of dry seaweed or when reception is Rp. 1.617.034

(Table 34).

Table 34 Seaweed cultivation with longline method per cycle in Santigi


of unit

Sort of

unit

Price per

unit

(Rp/unit)

Total (Rp)

A Receiption

- dry seaweed 500 kg 10.000 5.000.000


B Cost

B.1 Fixed cost

Residual 1 siklus 958.500 159.750

Maintenance 1 siklus 500.000 500.000

Total Fixed Cost 659.750

B.2 Variable Cost

Seaweed seeds 1000 kg 1.000 1.000.000

Planting salary 300 HOK 3.000 900.000

Setting ropes salary 300 HOK 2.500 750.000

Harvesting salary 2 HOK 40.000 80.000

Drying seaweed 6 HOK 25.000 150.000

Renting boat 4 kali 20.000 80.000



C Profit 1.380.250

45


of unit

Sort of

unit

Price per

unit

(Rp/unit)

Total (Rp)

D R/C 1,38

E BEP unit (kg) 162


G PP (Payback Periode) Per Cycle 4

PP (Payback Periode) in month 8

Total reception from seaweed cultivation is Rp. 5.000.000 from selling 500kg of dry

seaweed times 6 cycles per year. IRR per year is 69%, higher than discount rate of

KUR interest (13%, still higher than interest rate of KUR loan). NPV accepted during

investment age is Rp. 15.704.715which means that this teri fish business gives profit

(bigger than zero) and net B/C 2.62, which means from every Rp. 1,- spent for

business investment yields 2.56 times benefit from that investment. Overall, this teri

fish processing business in Malala gives profit and feasible to be developed to be


Table 35 Cashflow analysis of seaweed cultivation in Santigi

No Description Year

0 1 2 3 4 5

A Inflow

Fish capture sell 30.000.000 30.000.000 30.000.000 30.000.000 30.000.000

nilai sisa 502.500

Total Inflow 0 30.000.000 30.000.000 30.000.000 30.000.000 30.502.500

B Outflow

B.1 Investment dan

Replacement

Ropes 3.750.000

“rafia” rope 75.000

Drying place 1.000.000

Basket 200.000

Total 5.025.000 5.025.000 5.025.000

Total

Investment Cost

10.050.000 0 5.025.000 0 5.025.000 0

B.2 Fixed cost

Maintenance 3.000.000 3.000.000 3.000.000 3.000.000 3.000.000

Total Fixed Cost 3.000.000 3.000.000 3.000.000 3.000.000 3.000.000

B.3 Variable Cost

Seaweed seeds 1.000.000 1.000.000 1.000.000 1.000.000 1.000.000

Planting salary 900.000 900.000 900.000 900.000 900.000

Setting ropes

salary

750.000 750.000 750.000 750.000 750.000

Harvesting

salary

80.000 80.000 80.000 80.000 80.000

46

No Description Year

0 1 2 3 4 5

Drying seaweed 150.000 150.000 150.000 150.000 150.000

Renting boat 80.000 80.000 80.000 80.000 80.000

Total Variable

Cost

17.760.000 17.760.000 17.760.000 17.760.000 17.760.000

Total Outflow 10.050.000 20.760.000 25.785.000 20.760.000 25.785.000 20.760.000

C Net Benefit -

10.050.000

9.240.000 4.215.000 9.240.000 4.215.000 9.742.500


D Discount Factor 1 0,884955752 0,78314668

3

0,693050162 0,613318728 0,542759936

E Present Value -

10.050.000

8.176.991 3.300.963 6.403.783 2.585.138 5.287.839

F NPV 15.704.715 15.704.715

G IRR 69,27%

H Net B/C 2,56







years old business.

Analysis at this stage concluded that the seaweed cultivation business development

gives profit looking from its NPV, IRR, and Net B/C so it would be feasible to be

developed. This condition must give profits for tourism management within the area.

Nevertheless, there should be considerations toward the surrounding resources, so

the utilization of ecosystem and environment does not interrupt the sustainability or

preservation of surrounding marine area.

5.3.2. Capturing Fish Using Rod Investment cost components of fishery resources development consisted of fleet,






(Table 36).

47

Table 36 Investment for Rod Fishery Development (per unit)

No Uraian Jumlah

unit

Satuan

unit

Harga

satuan

(Rp/unit)

Total biaya

(Rp)

Bmur

ekonomis

(tahun)

Nilai sisa

(Rp)

Biaya

penyusuta

n per

tahun (Rp)


2 Motorized

machine of 7 PK

1 unit 2.700.000 2.700.000 2 270.000 1.215.000

3 Other tools

(box, bucket,

etc)

1 set 1.000.000 1.000.000 2 100.000 450.000

Total 8.700.000 870.000 2.115.000

Total investment cost needed to prepare feet and rod per unit is Rp. 8.700.000,- for

starters. This cost excludes operational and maintaining cost, as written at followed

table (Table 36). Operational cost taken from field with assumptions of 240 trips per

year, so total operational cost per boat unit is Rp 26.400.000,- per year. Operational

cost per trip mostly spent for crews. Besides, fishermen should serve maintaining

cost, mainly for boat, fishing tools, and machines. Maintaining cost per fleet as showed

in the table is IDR 1.5 millions. This cost must be paid for one boat unit in one year.




policy in Santigi.

48

Table 37 Business development of rod fishing tool in Santigi


unit


unit

(Rp/unit)

Total (Rp)

A Receiption

- Batu Fish 5120 kg 7.500 38.400.000


B Cost

B.1 Fixed cost

residual 1 tahun 2.115.000 2.115.000



rod 1 tahun 2.742.857 2.742.857


B.2 Variable cost


ice 1200 bungkus 1.000 1.200.000


Crew profit sharing 26.400.000



D R/C 1,12



G PP (Payback Periode) 2,10

Total receipt from capture yield is Rp. 38.400.000,- from selling batu fish, as much as 5120 kg per year. Biggest variable cost is for fuel from income, Rp. 18.000.000 per

year from total receiption. Reception to cost ratio (R/C) is 1,12 which means

reception obtained is 1.12 times from 1 total cost spent. Break event point happens

when capture yield is 3.353 kg or when reception is Rp. 25.145.143 per year. Overall,

trawl tools business in Santigi, has given profits and is feasible to be developed to be


49

Table 38 Cashflow analysis of rod fishing tool in Santigi

No Description Year

0 1 2 3 4 5

A Inflow

Fish capture

selling

38.400.000 38.400.000 38.400.000 38.400.000 38.400.000


Total Inflow 0 38.400.000 38.400.000 38.400.000 38.400.000 41.520.000

B Outflow

B.1 Investment dan

Replacement


Motorized

machine of 7 PK

2.700.000

Other tools (box,

bucket, etc)

1.000.000 1.000.000 1.000.000

Total Investment

Cost

8.700.000 0 1.000.000 0 1.000.000 0

B.2 Fixed cost

residual 1.500.000 1.500.000 1.500.000 1.500.000 1.500.000

boat treatment 1.500.000 1.500.000 1.500.000 1.500.000 1.500.000

machine

treatment

2.742.857 2.742.857 2.742.857 2.742.857 2.742.857

Total Fixed Cost 5.742.857 5.742.857 5.742.857 5.742.857 5.742.857

B.3 Biaya Variabel

Mixed gasoline 18.000.000 18.000.000 18.000.000 18.000.000 18.000.000

ice 1.200.000 1.200.000 1.200.000 1.200.000 1.200.000

Supplies for

sailing

7.200.000 7.200.000 7.200.000 7.200.000 7.200.000

Total Variable

Cost

26.400.000 26.400.000 26.400.000 26.400.000 26.400.000

Total Outflow 8.700.000 32.142.857 33.142.857 32.142.857 33.142.857 32.142.857

C Net Benefit -8.700.000 6.257.143 5.257.143 6.257.143 5.257.143 9.377.143



E Present Value -8.700.000 5.537.295 4.117.114 4.336.514 3.224.304 5.089.537

F NPV 13.604.76

4

G IRR 64,05%

H Net B/C 2,56







50






5.3.3. Capturing Fish Using Trawl Investment cost components of fishery resources development consisted of fleet,






(Table 39).

Table 39 Investment for Trawl Fishery Development (per unit) in Santigi


r of

unit

Sort of

unit

Price per

unit

(Rp/unit)

Total cost

(Rp)

Economic

al age

(year)

Residual

value (Rp)

Residual

value per

year (Rp)


2 Motorized

machine of

15 PK

1 unit 4.000.000 4.000.000 5 400.000 720.000

3 Gardant 1 unit 2.000.000 2.000.000 5 200.000 360.000

4 Trawl net 1 unit 3.000.000 3.000.000 5 300.000 540.000

5 Other tools

(box, bucket,

etc)

1 set 2.000.000 2.000.000 5 200.000 360.000

Total 17.000.000 1.700.000 2.751.429



followed table (Table 39).


operational cost per boat unit is Rp 69.3 00.000,- per year. Operational cost per trip


boat, fishing tools, and machines. Maintaining cost per fleet as showed in the table is IDR 2.4 millions. This cost must be paid for one boat unit in one year.




policy in Santigi.

51

Table 40 Business development of trawl fishing tool in Santigi No Description Number of

unit


unit

(Rp/unit)

Total (Rp)

A Receiption

- Batu Fish 12192 kg 7.500 91.440.000


B Cost

B.1 Fixed cost

residual 1 tahun 2.751.429 2.751.429



net 1 tahun 1.000.000 1.000.000


B.2 Variable cost


ice 1800 bungkus 1.000 1.800.000


Crew profit sharing 69.300.000



D R/C 1,17




1,25


12 tons per year. Biggest variable cost is for fuel from income, Rp. 40.500.000 per year

from total receiption. Reception to cost ratio (R/C) is 1,05 which means reception

obtained is 1.05 times from 1 total cost spent. Break event point happens when

capture yield is 4.709 kg or when reception is Rp. 35.318.095 per year. Overall, trawl

tools business in Santigi, has given profits and is feasible to be developed to be


52

Table 41 Cashflow analysis of trawl fishing tool in Santigi

No Uraian Tahun

0 1 2 3 4 5

A Inflow

Fish capture

selling

91.440.000 91.440.000 91.440.000 91.440.000 91.440.000


Total Inflow 0 91.440.000 91.440.000 91.440.000 91.440.000 94.682.857

B Outflow

B.1 Investasi dan

Replacement


Motorized

machine of 15

PK

4.000.000

Gardant 2.000.000

Trawl net 3.000.000

Other tools

(box, bucket,

etc)

2.000.000 2.000.000 2.000.000

Total

Investment

Cost

17.000.000 0 2.000.000 0 2.000.000 0

B.2 Fixed cost

boat treatment 2.400.000 2.400.000 2.400.000 2.400.000 2.400.000

machine

treatment

2.400.000 2.400.000 2.400.000 2.400.000 2.400.000

rod 1.000.000 1.000.000 1.000.000 1.000.000 1.000.000

Total Fixed

Cost

5.800.000 5.800.000 5.800.000 5.800.000 5.800.000

B.3 Variable Cost

Mixed gasoline 40.500.000 40.500.000 40.500.000 40.500.000 40.500.000

ice 1.800.000 1.800.000 1.800.000 1.800.000 1.800.000

Supplies for

sailing

27.000.000 27.000.000 27.000.000 27.000.000 27.000.000

Total Variable

Cost

69.300.000 69.300.000 69.300.000 69.300.000 69.300.000

Total Outflow 17.000.000 75.100.000 77.100.000 75.100.000 77.100.000 75.100.000

C Net Benefit -17.000.000 16.340.000 14.340.000 16.340.000 14.340.000 19.582.857


D Discount

Factor

1 0,884955752 0,783146683 0,693050162 0,613318728 0,542759936

E Present Value -17.000.000 14.460.177 11.230.323 11.324.440 8.794.991 10.628.790

F NPV 39.438.721

G IRR 89,09%

H Net B/C 3,32

53












54

Chapter 6. Priority and Development Form

6.1. Development Priority Development priority is determined by main local economy activity that exists and potential to be developed. The exisiting conditions are scored

based on indeks system for every economy activity in each village (Table 42).

Table 42 Criteria score for every scoring aspect for making priority decision

No Aspect Criteria Ogotua Malala Santigi

Rod Trawl “Bub

u”

“Sero

”

“Bagan

”

Fish draining Ecotou

rism

Seaweed

cultivation

Rod Trawl

1 Production Convenience to buy

raw material or

production tools

5 3 3 3 1 3 3 3 3 1

2 Convenience to

produce

5 3 3 3 3 5 5 5 5 3

3 Production continuity 5 3 3 3 3 3 5 3 3 3

1 Human

resource

Employment 1 3 1 1 3 3 5 1 1 3

2 Employee availability 3 3 3 3 5 5 5 3 3 3

3 Woman involvement

within the business

1 1 1 1 1 5 5 3 1 1

1 Technology Technology availability 3 3 3 3 3 3 5 5 3 3

55


Rod Trawl “Bub

u”

“Sero

”

“Bagan

”


rism

Seaweed

cultivation

Rod Trawl

2 Convenience of

technology application

5 5 5 5 1 3 3 5 3 3

3 Availability of human

resource that

understand technology

1 1 1 1 3 3 5 5 3 3

1 Marketing Area coverage 1 1 1 1 3 3 5 1 5 5

2 Convenience in

marketing

3 3 3 3 3 3 3 5 3 3

3 Market price 3 3 3 3 3 3 5 3 3 3

1 Social Conflict aspect 3 3 3 3 5 5 5 3 3 3

2 Community

participation

1 1 1 1 5 5 5 3 1 1

3 Social capital in

business

3 3 3 3 3 5 5 5 5 5

1 Environme

nt

Water pollution 5 5 5 5 5 5 5 5 5 5

2 Environment’s beauty 3 3 3 3 3 3 5 3 3 3

3 Colored air 5 5 5 5 5 5 5 5 5 5

56


Rod Trawl “Bub

u”

“Sero

”

“Bagan

”


rism

Seaweed

cultivation

Rod Trawl

4 Smelly air 5 5 5 5 5 3 5 5 5 5

5 Hotter air 5 5 5 5 5 5 5 5 5 5

6 Physically felt when

close by the event

5 5 5 5 5 5 5 5 5 5

1 Conservatio

n


seagrass ecosystem

5 5 5 5 3 5 5 3 5 5

2 Production area that is

dugong habitat

3 3 3 3 3 5 5 5 5 5

3 Friendly for coastal

ecosystem

5 3 3 3 3 5 5 3 5 3

57

Table 43 Weighting score from feasibility aspect and criteria of local economy development in Ogotua

Aspect W Criteria Hj dj wj

Production 0.13 Convenience to buy raw


0.7500 0.2500 0.0421

Convenience to produce 0.7500 0.2500 0.0421

Production continuity 0.7500 0.2500 0.0421

Human resource 0.24 Employment 0.0003 0.9997 0.1682

Employee availability 0.7925 0.2075 0.0349

Woman involvement within

the business

0.7925 0.2075 0.0349

Technology 0.10 Technology availability 0.7925 0.2075 0.0349

Convenience of technology

application

0.7925 0.2075 0.0349

Availability of human


technology

0.7925 0.2075 0.0349

Marketing 0.10 Area coverage 0.7925 0.2075 0.0349

Convenience in marketing 0.7925 0.2075 0.0349

Market price 0.7925 0.2075 0.0349

Social 0.10 Conflict aspect 0.7925 0.2075 0.0349

Community participation 0.7925 0.2075 0.0349

Social capital in business 0.7925 0.2075 0.0349

Environment 0.21 Water pollution 0.7925 0.2075 0.0349

Environment’s beauty 0.7925 0.2075 0.0349

Colored air 0.7925 0.2075 0.0349

Smelly air 0.7925 0.2075 0.0349

Hotter air 0.7925 0.2075 0.0349

Physically felt when close by

the event

0.7925 0.2075 0.0349

Conservation 0.11 Production area within

seagrass ecosystem

0.7925 0.2075 0.0349

Production area that is

dugong habitat

0.7925 0.2075 0.0349

58

Friendly for coastal

ecosystem

0.7500 0.2500 0.0421

Table 44 Weighting score from feasibility aspect and criteria of local economy development in Malala




0.6310 0.3690 0.2144






the business

0.6310 0.3690 0.2144



application

0.6310 0.3690 0.2144



technology

0.9464 0.0536 0.0312



Market price 0.9464 0.0536 0.0312






Colored air 1.0000 0.0000 0.0000

Smelly air 0.9602 0.0398 0.0231

Hotter air 1.0000 0.0000 0.0000


the event

1.0000 0.0000 0.0000

59


seagrass ecosystem

0.9602 0.0398 0.0231


dugong habitat

0.9602 0.0398 0.0231


ecosystem

0.9602 0.0398 0.0231

Table 45 Weighting score from feasibility aspect and criteria of local economy development in Santigi




0.6310 0.3690 0.0903






the business

0.0004 0.9996 0.2447



application

0.9464 0.0536 0.0131



technology

0.9464 0.0536 0.0131



Market price 1.0000 0.0000 0.0000






Colored air 1.0000 0.0000 0.0000

60

Smelly air 1.0000 0.0000 0.0000

Hotter air 1.0000 0.0000 0.0000


the event

1.0000 0.0000 0.0000


seagrass ecosystem

0.9602 0.0398 0.0097


dugong habitat

1.0000 0.0000 0.0000


ecosystem

0.9464 0.0536 0.0131

Table 46 Development priority of local economy activity in Ogotua

Aspect Criteria Rod Trawl “Bubu” “Sero”

Production Convenience to

buy raw

material or

production

tools

0.0421 0.0210 0.0210 0.0210

Convenience to

produce

0.0421 0.0210 0.0210 0.0210

Production

continuity

0.0421 0.0210 0.0210 0.0210

Total 0.1262 0.0631 0.0631 0.0631

Human resource Employment 0.0000 0.0841 0.0000 0.0000

Employee

availability

0.0175 0.0175 0.0175 0.0175

Woman

involvement

within the

business

0.0000 0.0000 0.0000 0.0000

Total 0.0175 0.1016 0.0175 0.0175

Technology Technology

availability

0.0175 0.0175 0.0175 0.0175

61


Convenience of

technology

application

0.0349 0.0349 0.0349 0.0349

Availability of

human

resource that

understand

technology

0.0000 0.0000 0.0000 0.0000

Total 0.0524 0.0524 0.0524 0.0524

Marketing Area coverage 0.0000 0.0000 0.0000 0.0000

Convenience in

marketing

0.0175 0.0175 0.0175 0.0175

Market price 0.0175 0.0175 0.0175 0.0175

Total 0.0349 0.0349 0.0349 0.0349

Social Conflict aspect 0.0175 0.0175 0.0175 0.0175

Community

participation

0.0000 0.0000 0.0000 0.0000

Social capital in

business

0.0175 0.0175 0.0175 0.0175

Total 0.0349 0.0349 0.0349 0.0349

Environment Water

pollution

0.0349 0.0349 0.0349 0.0349

Environment’s

beauty

0.0175 0.0175 0.0175 0.0175

Colored air 0.0349 0.0349 0.0349 0.0349

Smelly air 0.0349 0.0349 0.0349 0.0349

Hotter air 0.0349 0.0349 0.0349 0.0349

Physically felt

when close by

the event

0.0349 0.0349 0.0349 0.0349

Total 0.1921 0.1921 0.1921 0.1921

Conservation Production

area within 0.0349 0.0349 0.0349 0.0349

62


seagrass

ecosystem


dugong habitat

0.0175 0.0175 0.0175 0.0175

Friendly for

coastal

ecosystem

0.0421 0.0210 0.0210 0.0210

Total 0.0945 0.0734 0.0734 0.0734

Total 0.552413 0.552383 0.468274 0.468274

Rank 1 2 3 4

63

Table 47 Development priority of local economy activity in Malala

Aspect Criteria “Bagan” Drying fish Ecotourism

Production Convenience to buy

raw material or

production tools

0.0000 0.1072 0.1072

Convenience to

produce

0.0116 0.0231 0.0231

Production

continuity

0.0156 0.0156 0.0312

Total 0.0271 0.1459 0.1615

Human resource Employment 0.0156 0.0156 0.0312

Employee

availability

0.0000 0.0000 0.0000

Woman involvement

within the business

0.0000 0.2144 0.2144

Total 0.0156 0.2300 0.2456

Technology Technology

availability

0.0156 0.0156 0.0312

Convenience of

technology

application

0.0000 0.1072 0.1072


resource that

understand

technology

0.0156 0.0156 0.0312

Total 0.0312 0.1384 0.1695

Marketing Area coverage 0.0156 0.0156 0.0312

Convenience in

marketing

0.0000 0.0000 0.0000

Market price 0.0156 0.0156 0.0312

Total 0.0312 0.0312 0.0623

Social Conflict aspect 0.0000 0.0000 0.0000

Community

participation

0.0000 0.0000 0.0000

64

Aspect Criteria “Bagan” Drying fish Ecotourism

Social capital in

business

0.0116 0.0231 0.0231

Total 0.0116 0.0231 0.0231

Environment Water pollution 0.0000 0.0000 0.0000

Environment’s

beauty

0.0156 0.0156 0.0312

Colored air 0.0000 0.0000 0.0000

Smelly air 0.0231 0.0116 0.0231

Hotter air 0.0000 0.0000 0.0000

Physically felt when

close by the event

0.0000 0.0000 0.0000

Total 0.0387 0.0271 0.0543

Conservation Production area

within seagrass

ecosystem

0.0116 0.0231 0.0231

Production area that

is dugong habitat

0.0116 0.0231 0.0231


ecosystem

0.0116 0.0231 0.0231

Total 0.0347 0.0693 0.0693

Total 0.1899 0.6650 0.7856

Peringkat 3 2 1

Table 48 Development priority of local economy activity in Santigi

Aspect Criteria Seaweed

cultivation

Rod Trawl

Production Convenience to buy raw


0.0452 0.0452 0.0000



65

Total 0.0549 0.0549 0.0049

Human

resource

Employment 0.0000 0.0000 0.1224



the business

0.1224 0.0000 0.0000

Total 0.1224 0.0000 0.1224

Technology Technology availability 0.0131 0.0066 0.0066


application

0.0131 0.0066 0.0066

Availability of human resource

that understand technology

0.0131 0.0066 0.0066

Total 0.0394 0.0197 0.0197

Marketing Area coverage 0.0000 0.0904 0.0904


Market price 0.0000 0.0000 0.0000

Total 0.0131 0.0969 0.0969

Social Conflict aspect 0.0000 0.0000 0.0000



Total 0.1224 0.0000 0.0000

Environmen

t

Water pollution 0.0000 0.0000 0.0000


Colored air 0.0000 0.0000 0.0000

Smelly air 0.0000 0.0000 0.0000

Hotter air 0.0000 0.0000 0.0000


the event

0.0000 0.0000 0.0000

Total 0.0000 0.0000 0.0000

Conservatio

n


seagrass ecosystem

0.0049 0.0097 0.0097

66

Production area that is dugong

habitat

0.0000 0.0000 0.0000

Friendly for coastal ecosystem 0.0066 0.0131 0.0066

Total 0.0114 0.0229 0.0163

Total 0.3636 0.1944 0.2601

Rank 1 3 2

67

According to analysis result, it could be concluded that, local economy activity that is

prioritized to be developed and touched by incentive are Rod in Ogotua, Ecotourism

and Fish Processing in Malala, and Seaweed in Santigi. For incentive aspect, the touch

given would be different in every economy activity, depends on existing score and

needs (Table 49). In location context, development priority is recommending Malala,

then Ogotua, and Santigi lastly (Fig 1). The main consideration is business feasibility,

organization readiness, program continuity, including the village will to self-help.

Table 49 Development aspects priority based on chosen local economy activity in every village

Incentive

aspect priority

Rod-Ogotua Ecotourism-

Malala

Feed

Processing-

Malala

Seaweed-

Santigi

1 Environment

Human

resource

Human

resource

Human

resource

2 Production Technology Production Social

3 Conservation Production Technology Production

4 Technology Conservation Conservation Technology

5 Marketing Marketing Marketing Marketing

6 Social Environment Environment Conservation

7

Human

resource Social Social Environment

68

Fig 1 Priority of village as incentive receiver according to feasibility criteria: Malala has become first priority, followed by Ogotua as the second and Santigi as the third

Translation

Pukat : Trawl

Pancing : Rod

Budidaya Rumput Laut: Seaweed Cultivation

Ekowisata : Ecotourism

Pengeringan Ikan : Drying fish

69

6.2. Development Form Incentive is prioritized for local business and start up with first ranking from MCDM analysis result, and if the fund is still feasible, then it could

develop second priority. The direction of the activity is written on Table 38.

Table 50 Direction of activity forms of local economy development

Village Local Economy

Development

Activity/ technology

direction

Continuous needs Activity form direction Expert/ assistance

needs

Time

allocation

Cost allocation

(Rp)

Ogotua Making

“rumpon batu”

1. Community’s fishing location

2. Fishing tourism (mina-tourism)

1. Analyze location suitability

2. Construction design

1. Making “rumpon batu” 2. Training for

organization strengthening

3. Strengthen organization

1. “Rumpon” capture fishes

2. Organization

2 months 125,000,000

Malala Marine

ecotourism

development

1. Beach and island recreation

2. Taking a boat 3. Sport tourism 4. Swimming 5. Particular

interest tourism (diving and snorkeling)

1. Site concept-design

2. Supporting facility construction design

3. Building supporting facility

4. Promotion concept

5. Increasing tourism managers

1. Arranging technical guide for ecotourism development

2. Training to increase tourism managers capacity

3. Making tourism media promotion

4. Training for strengthening organization

5. Comparative study

1. Tourism 2. Organization

3 months 100,000,000

70

Village Local Economy

Development

Activity/ technology

direction

Continuous needs Activity form direction Expert/ assistance

needs

Time

allocation

Cost allocation

(Rp)

Fish processing 1. Dry fish processing

2. Crispy fish processing

3. Fish crackers processing

4. Fish “terasi” processing

1. Increase community’s capacity of fish processing

2. Efficient technology analysis

1. Support facility and infrastructure for fish processing that’s going to be applied

2. Fish processing training

3. Marketing making 4. Listing brands and

group’s business permit

5. Training for organization strengthening

1. Fish processing 2. Develop business

and trading 3. Organization

3 months 150,000,000

Santigi Seaweed 1. Seaweed cultivation

2. Seaweed processing for food and cosmetics

1. Study about the suitability of location and seaweed cultivation technique

2. Market and marketing analysis

1. Seaweed cultivation technique training

2. Seaweed products processing training

3. Support facility and infrastructure for seaweed cultivation that’s going to be applied

4. Training for organization strengthening

5. Strengthen organization

1. Seaweed cultivation

2. Organization

2 months 125000000

71

Chapter 7. Incentive Mechanism

Incentive is a way to motivate in material form, that is given as an attractant or a

booster deliberately given to the individuals so within themselves there would be

huge spirit to increase their work productivity (Gorda, 2004). But, on community

development and empowerment context, it’s a little different. Incentive is given to

strengthen business or existing community activity to be more evolve, individually, in

groups, or within organization.

In Toli-toli, incentive form could be financial help, physical facilities and

infrastructure, and knowledge. The receiver target is priority local community

economy business, according to feasibility study. Incentive is given according to

recommendation from program executor that is designed together with site manager

and group community. Incentive that is agreed upon then would be given through

community group that is known by head of village, district, and sectoral police that is

given through news of receipt and handover. This thing is important is involvement

aspect from multi-party, monitoring and sustainable incentive and program. Community group that accepts incentive is a group that is formed within program, so

it must be controlled and monitored (Fig 2).

Fig 2 Mechanism of giving incentive

Feasibility study result

PEL recommendation

Community group

Implementation

head of village, district,

and sectoral police Incentive

News of receipt

72

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Singaraja.

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Riyanto B. 2010. Dasar-Dasar Pembelanjaan Perusahaan Edisi 4. BPFE. Yogyakarta.

Shannon CE. 1948. A Mathematical Theory of Communication. The Bell System

Technical Journal 27:379-423, 623-656.

Tibrani dan Sofyani T. 2010. Pengorganisasian dan Analisis Usaha Perikanan

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