CURRENT BUSINESS MODEL OF

JATROPHA PLANTATION IN INDONESIA

SURFACTANT AND BIOENERGY RESEARCH CENTER

INSTITUT PERTANIAN BOGOR

Kampus IPB Baranangsiang

Jl. Raya Pajajaran, Bogor – Indonesia

E-mail : info@srdc-ipb.com

Telp : 0251- 330970; Fax : 0251 - 330977

Endang Warsiki

To be presented on International Jatropha Conference, Bogor, 24th – 26th June 2008

Nucleus - Plasm

Mother Trees for

seeds production

Corporation

Nursery for

Seedlings

Community

Nucleus

plantation

Research Center

Local

Government

Coord

inatio

n

& fa

cilita

tion

Technic

al

Assis

tance

Plasm

plantation

Technical

assistance

Technical

assistance

Control

Seedlin

g s

upply

Contract FarmingC

oord

inatio

n

& fa

cilita

tion

Mother Trees for

seed production

for seedling

Corporation

Nursery for

Seedling

Community

Farmers Plantation

Research Center

Local

Government

Technical

assistance

Technic

al

Assis

tance

Seed p

roduction

Seedling

supply

Control

Technical assistance

Contract Farming

CASE One

Farmer Group

Investor

Village Training Center

First Year :Seedling and Fertilizer

Initial cost (Loan) for Land Clearing (Rp 1.100.000/Ha) and Planting (Rp 500. 000)

Seed

Guiding and Assisting

Seed

Government

District Income

Facility and Control

Farmer GroupFarmer

Group

Contract

Contract Farming

• Free seedling

• Fertilizer (option)

• Loan for land clearing IDR 1.100.000/Ha (USD

119/Ha)

planting : IDR 500.000/ha (USD 54)

• Loan Repayment (1st Year 20% , 2nd Year 30%,

3rd Year 50%)

• Seed price : IDR 1,500 (USD 0.19)

First Year

Village X

Nursery B

Nursery A

Farmer Group

Farmer Group

Farmer Group

Company

Seedling

Contract Farming

Village Y

Farmer Group

Farmer Group

Farmer Group

Seedling

• Every farmer group has nursery

• Direct planting

• Reserve

Contract Farming

Contract Farming

CASE Two

HPJPI

Coperative

Police

Socialite

Local Government

Seedling, Fertilizer,Counseling

Owner

Worker

ControlINVESTOR

Socialite

Local Income

Seed

5% of Revenue

60 % of Revenue

35 % of Revenue

20%

40%

Control

Contract Farming

Seed

• COPERATIVE : POLRI

LOCAL GOVERNMENT

MOSLEM LEADER

• FARMER : OWNER

WORKER

Contract Farming

Contract Farming

CASE Three

Contract Farming

Contract Farming

Foreign InvestorMain Company, responsible on seedling, fertilizer, planting cost and irrigation. Plant and seed will be owned by Company and the Company has authority to monitor and evaluate the Program

Local Government Give license and control the Program

Six Agencies involved :

Contract Farming

Local CompanyOptional

Coperatives Mediator and responsible for giving assistance and guiding to the farmer as well as reporting to investor. Coperatives will get share profit from the company.

Forest Community Planting Jatropha on Land owned by Forest Department under Cooperatives control

Forestry Agency Giving license to Forest Community. Get share profit from Forest Community

Contract Farming

CASE Four

Contract Farming

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

LOCAL COMPANY

GROUP GROUP

FOREIGN INVESTOR

CapitalOil

Seed SeedSeedling

& Assistance

Seedling

& Assistance

Contract Farming

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

LOCAL COMPANY

GROUP GROUP

FOREIGN INVESTOR

CapitalOil

SeedSeed

Forestry

Agency

License

Transmigration

Agency

License

incomeincome

Seedling

& Assistance

Contract Farming

CASE Five

Contract Farming

FarmerFarmer

FarmerFarmer

Research

Center

Local

Company

FOREIGN

BUYER

Broker

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

FarmerFarmer

Local

Government

Broker

Seedling &

Assistance

Income

Project

Seed Seed

Seed

Income

Income

Income

Contract Farming

THANK You