farmers in amed community of salt capacity and growing...

Growing the capacity and community of Salt Farmers in Amed

Needs Assessment

Prepared by PLUS - Platform Usaha Sosial for William and Lily Foundation

October 2018

ContentAbout Amed

● Geographical location● Natural resources● Tourist attraction

About Amed Social Fabrics● Demographic● Livelihood● Religion and culture● Roles in family, economy and society

About Amed Salt● History● Specialty● Challenge● Process● Existing supports● Seasons

The Blueprint● Background● Aspiration● The ecosystem● The market● The production● The Roadmap● Potential Support● Potential Intervention

Part I

About Amed

The name Amed is believed to be derived from Balinese words“A” and “Med” which means ‘Not boring’.

Geographical LocationAmed, one of the subdistrict in Karangasem regency in the easternmost of Bali island, is 98 km (3-hour drive) away from Denpasar and 1-hour boat ride away from the Gili Islands in Lombok.

Ngu R i In n i l Ai rDen r

AmeKar se , Aba

LOMBOK

BALI

Natural ResourcesSituated just 25 km from an active volcano - Mount Agung - Amed’s nutrient-rich soil is suitable for growing crops such as cassava and long beans.

• The black sand makes Amed Beach so remarkably unique from other beaches. The sand’s color is due to the volcanic deposits in the coastal soil. It stays black year-round, a sharp contrast to the gold and white sand that hugs most of Bali’s coastline.

• Meanwhile, the pristine water of Bali sea becomes the main material for one of Amed’s product, Amed Salt.

• The reefs along the coast also attract divers and snorkelers. The water teems with various marine life. An aquatic adventure here will likely reveal tropical fish, sea turtles, coral gardens, and perhaps even the occasional shark.

Tourism IndustrySince 2012, there is an increase in number of tourists visiting Karangasem. Consequently, hospitality businesses such as food and accommodation are growing. Currently we have identified active 135 villas and 120 cafes in Amed.

Source:1 From an article in https://www2.padi.com/blog/2017/11/09/7-best-dive-sites-bali/2 Data in 2017 compared to 5 years ago from https://karangasemkab.bps.go.id/publication/2018/08/16/f1bf896039fff9ab187cf3c5/kabupaten-karang-asem-dalam-angka-2018.html3 Data in Karangasem district, compared to 5 years ago. Data derived from https://bali.bps.go.id/dynamictable/2018/03/07/274/jumlah-hotel-non-bintang-dan-akomodasi-lainnya-di-bali-menurut-kabupaten-kota-dan-kelompok-kamar-2000-2017.html4 Data of 2017 in Karangasem district, compared to 5 years ago. Data derived from https://bali.bps.go.id/statictable/2018/04/13/87/banyaknya-restoran-dan-rumah-makan-dirinci-menurut-kabupaten-kota-di-bali--2012-2017.html5 Data of 2017 derived from https://karangasemkab.bps.go.id/publication/2018/08/16/f1bf896039fff9ab187cf3c5/kabupaten-karang-asem-dalam-angka-2018.html

18% growth in number of

tourists2

64% increase in number of hotel and villas3

31% increase in number

of cafes and restaurants4

4% of all tourists in Bali visited Karangasem

each year 5

Tourism IndustryApproximately 10,000 tourists visit Amed each year1. Typical activities of a tourist visiting Amed include snorkeling, diving and hiking.

Source:1 Data derived from https://bali.bps.go.id/subject/16/pariwisata.html#subjekViewTab3 2 Data derived from https://ojs.unud.ac.id/index.php/pariwisata/article/download/41023/24874/3 Data derived from http://www.xinhuanet.com/english/2018-01/14/c_136895101.htm4 Data derived from https://www.planetware.com/tourist-attractions-/bali-ina-b-b.htm5 Interest retrieved from https://www.tripadvisor.com/Attractions-g608478-Activities-Amed_Abang_Bali.html6 Review retrieved from https://www.tripadvisor.com/Attraction_Review-g608484-d4421988-Reviews-Amed_Beach-Karangasem_Bali.html

- Majority are coming from European countries, specifically France (25.45%)2

- Average age of tourists visiting Amed is 26 - 35 years old2

- Average duration spent in Amed for each tourist is about 1-3 days2

- Most of the tourists usually spend $110/day3

- Nature beauty become the main interest for tourists4

- Tourists are seeking for adventurous activities (kayaking, biking, hiking, snorkeling and diving) when they visit Amed5

“We are staying in Amed for 3 nights and we loved it. Amed is a quite a place where you can relax and just look around. The beach is black sand which is something different but views are beautiful.”

-Danae B. from Australia6

Demographic Spending behaviour Activities and interest

What tourist said about Amed

Part II

About Amed Social fabrics

DemographicAmed salt-farming community is located in Purwakerthi village, Abang district, one of 8 districts under the administration of Karangasem regency.

Population¹ Social Economy

Since there are no universities in the district, people who are interested in pursuing higher education go to universities in other region. Some continue to work there for a few years

before returning to their village.

Religion and rituals play a key role in their life. They are always excited about

upcoming big ceremonies.

They have more than one means of generating income and are all embedded

in their daily routines.

¹All information in this slide refer to statistics in Karangasem regency in the year 2017 and is taken from BPS Statistics of Karangasem Regency Report. Link to report: https://karangasemkab.bps.go.id/publication/2018/08/16/f1bf896039fff9ab187cf3c5/kabupaten-karang-asem-dalam-angka-2018.html

● 396,000 residents● 65% working age (15-64 years old)● 100+ families● Equal ratio of man and woman

● 94% hindu● 3,796 place of worship● 15 tourist attraction● 33 high schools● 12 public health centers● 3 hospitals

● 99% working● 1,623 small and micro businesses● 4 financial institutions● 5% posses higher education degree

(diploma & above)● Agriculture, transportation &

hospitality are the top 3 industries with highest contribution

People who lived outside Amed that we met:● Bu Made Reni (Pak Suanda’s wife) worked and lived in Papua

for two years prior to marrying Pak Suanda.● Mita, (wife of a salt farmer) worked and lived outside Amed

until 2 years ago.● Wayan (Pak Suanda’s son) lives in Denpasar to study at the

moment.● Pak Telaga (a salt farmer)’s son currently works in the cruise,

with the period of 8 months cruising and 2 months returning to Amed.

● Pak Ngetis (an ex-salt farmer)’s son currently works outside Amed as well.

DemographicLooking at Karangasem regency’s population by age, there are fewer people aging 20-44 years old. The missing number might represent people who are studying or working outside of Amed and whom come back after a couple of years. We assume that this gap and exposure to other opportunities in other cities decreases their interest in salt-farming.

Chart data derrived from: https://karangasemkab.bps.go.id/dynamictable/2018/02/14/37/proyeksi-penduduk-kabupaten-karangasem-menurut-golongan-umur-dan-jenis-kelamin-2014-2017.html

Age proportions in Amed Several cases of the youth leaving and coming back to Amed

LivelihoodThe people of Amed live from the nature, they earn a living by working in agriculture and fishery, and tourism.

Villa ownerRestaurant owner

WaitersSecurity

Villa keepersTour guidesReceptionist

Farmer Fisherman

Livestock breederSalt farming

TourismThe main profession of people

in Amed is mostly related to tourism, such as concierge,

waiter, security, housekeeper, guide, receptionist and other hospitality related profession. They view tourism as a stable

income source. Even though the majority are considered as blue collar workers, there are a few

that got the opportunity to become villa owner or working

in a cruise ship.

Agriculture and fishery

While farming and fishery are considered as seasonal

revenue stream, livestock breeding is viewed as a

mid-term investment or asset for Amed’s people.

LivelihoodPeople in Amed used to work as salt farmers, but most of them chose to sell their land and shifted to work in tourism.

Only a few of them continue the salt farming tradition and work as salt farmers, as it is considered a labor intensive work. In addition, the people in Amed view tourism as a bigger and more stable income source.

Currently there are 20 active salt farmers in Amed.

LivelihoodTypically, one household have more than one profession, andall of the duties are interwoven into their daily activities.

Most of the time, it is a combination of agriculture and tourism.

Pak Telaga is a salt farmer, owner of two villas, a small laundry and general store (warung) in Amed.

Religion and CultureAbout 83.5% of Bali's population adheres to Balinese Hinduism, formed as a combination of existing local animistic beliefs and Hindu influences.

Balinese Hinduism is deeply interwoven with art and ritual. It seeks harmony and balance. It also promotes self-control by ritualising, which is a notable feature of religious expression among the people.

Religion and CultureReligion and culture play key roles in their life and it is something they care about.

There are daily rituals, at least one periodical monthly rituals (such as Kajeng Kliwon and Melasti), and big ceremonies (such as Nyepi and Ngaben). Each of the family members have their own role in religious activities and also to preserve the tradition. Women prepare offerings for Gods (canang), the children are involved in playing gamelan music or traditional dance as their tribute to Gods, and some men generally take role as the guardian of the temple.

Regular gamelan practice

Pray in the temple

Daily offering for daily prayers

Roles“We cannot live only for ourselves. A thousand fibers connect us with our fellow men.” - Herman Melville

In this section, we will share about how children, youth, men and women in Amed live in their roles and how they are contributing to their family, economy and society.

Roles of children

Puppet Show A story about Amed through puppet show was performed as the first activities in Pendidikan Anak Usia Dini (PAUD) to catch the attention of the children. It was aimed to not only educate the children about Amed Salt farming process and the story of Amed, it also contained several valuable positive teachings such as the values of friendship, collaboration, respect to nature, respect to older people, and hard work.

Clay Making Gross motor skills were trained in the second activity. A simple set of materials such as sea salt, flour, water, food coloring and oil were brought to PAUD so that the students can create clay on their own. During the activity, we asked them simple questions about their awareness of Amed Salt and to get to know their daily activities and roles in the family.

Roles - ChildrenTo get a snapshot of the children’s role in the society, we conducted two interactive activities in PAUD (Early Childhood Education Program) while observing the interaction between the children.

#1activity

#2activity

Roles - ChildrenThrough interaction and observation, we found that the children are aware about the existence of Amed Salt.

Most of the children are aware about Amed Salt.

Based on the questions asked to the children during puppet show and clay making activity, most of the children understand about the existence of Amed Salt, the use of salt and where the salt come from.

Through observation, we learned that PAUD is lacking in facilities and learning tools. PAUD activities are carried out in a multi-functional building of Banjar Lebah with limited tools to facilitate learning.

Therefore, interactive and active learning are considered novel to them, and was shown by the high level of excitement coming from the students and the parents. One of the parents also asked us to conduct more activities similar to those we conducted in PAUD because his children often get bored of the conservative one-way teaching method using only blackboard and chalk.

Roles of Youth

Roles in familyAs children, they feel grateful towards their parents for raising them. Therefore, their life decisions, such as education and career aspirations, are mostly geared toward the goal of supporting their parents and contributing to their family’s financial.

Roles in economyThe youth workforce in Amed have big potential to be absorbed by tourism industry as many of them are enrolled in tourism high school. They see tourism industry as a promising future, for example, working in a cruise as there have been people succeed in this field. However, they tend not to have high career aspirations and are satisfied with blue-collar jobs in tourism industry such as waitress, security, housekeeper.

Roles in societyMost of the youth we met are actively involved in waste cleaning movement called “Beraye”. Besides, in preparation for big religious festival, many of them also partake in gamelan group practice.

Roles of YouthTo get a snapshot of the youth’s role, we gathered 9 youths and conduct a simple workshop around aspirations, challenges and ideation while observing their interactions.

Roles of Youth - Aspirations and ChallengesThrough the workshop, we learned that the youth in Amed often set their aspiration based on to their circumstances, such as family, tourism and religions.

Working in tourism field is their dream jobThey value jobs related to tourism as promising jobs.

Stay connected to their family and friendThey prefer jobs that allow them to have leisure time.

“Working in a cruise would be nice, doing the dishes, or being a waiter”“I want to be a hotel manager”“I aspire to be chef in bungalow”

Aspirations

“Earning money from a cruise, go back, marry and live here”“Stay close with my family”

Involved in communal and/or religious activitiesEach of them has at least one activities related to social and/or religion

“I want Amed to stay clean, so I join Beraye movement”“I play gamelan in Banjar”

Family plays pivotal role in their life choicesMostly comes from low income family

Education is not their main priorityThey do not put much effort in pursuing higher education or skill advancement.

“I don’t think my parents can afford my future college tuition”“I need to improve my family condition”

“I can’t find any way to financially support my college’s tuition fee”“I want to study English but the fee seems expensive”

Lack of role modelThey have no idea about other alternatives but tourism as they only heard success stories from people working in tourism.

“People who came back from working in a cruise can build 2 villas and run laundry business”

Challenges

“We want to be able to speak English fluently as it will help us in our future. The English lesson that we got in school is not practical enough and we cannot afford to

pay additional course fee outside school. So we just learned it from youtube, or practice by talking to the tourist or guest that we met. Sometimes we feel embarrassed because our friends usually laugh at us when we are trying.”

They see that Amed Salt is becoming more famous than before

Many tourists are interested in Amed Salt

The unique process makes the taste of Amed Salt different from other salt

Amed Salt have the potential to be exported to other countries

Roles of Youth - Optimistic Level towards Amed SaltMost of the youth can see the potential of Amed Salt in the future

20% 80%are pessimistic about the future of Amed

Saltare optimistic about the

future of Amed Salt

They see that not many people are doing salt farming anymore

For them, the process of making Amed Salt needs a lot of hard and physical work

Tourism sector is way more promising than salt farming, they expect that sooner or later the land will turn into hotel or restaurant and cafe

Roles of Youth - IdeationThe youths show a lack of ownership to improve Amed Salt because they do not see the urgency to preserve it – they do not think that Amed Salt farming will be extinct in the future.

Better packaging“Quite small package, blue as tone color, highlighting history of Amed Salt”“To be displayed in bungalow, villa, restaurant, hotel”“Aim for domestic and foreign tourists”

How might we improve Amed Salt How might we support Amed Salt

Farm Tour“Tour guide for tourist who want to see the production of Amed Salt”“Introduce Amed Salt to tourists in villa or restaurant”

Promotion through social mediaMost of Amed youth has at least one account in social media. “Maybe we can help promote Amed Salt.”

Reach out to hotel and restaurant“I can introduce Amed Salt to the hotel where I work as trainee”

Spread brochure about Amed Salt“I can help hand out brochures to introduce people to Amed Salt”

They imagine themselves to be involved in marketing part rather than in production part

Roles of YouthCase Study of Nengah Bali

Nengah Bali is a 26 years old young man who has a deep concern for Amed’s environment. He works in tourism spot and is relatively well-known in Amed’s youth community. He actively gathers his friends to join a movement in Amed called Beraye, a local movement focuses on cleaning waste in the environment.

Nengah Bali sees working in the tourism field as beneficial because it gives him a reasonable income to cover his spending of around Rp 700.000-1.000.000 per month, while still having time to socialize with his friends and family. Right now, he is enjoying life while preparing for a greater responsibility: starting his own family.

Running a volunteer-based community, he said, is fun but can be hard at times. It is hard to gather his friends who have different interest and activities. He uses Facebook page to spread information of communities’ activities – but finds it rather ineffective. He has a high hopes to see Amed clean and will continue the effort to make it so.

Roles of men

Roles of Men

Roles in familyMen are the main breadwinner of the family. Since they usually live together with their parents in one neighborhood, they are responsible for the lives of their parents and their dependents.

Roles in economyIn addition to being salt farmers, they generally do other income generating activities such as livestock breeding, farming, working at construction sites, fishing, being a divemaster or run their own business. The daily activities as a salt farmer depends on the season. During harvesting season (from July to October), they usually focus on salt farming.

Roles in societyAt least once a month, the men and their families go to the temple to pray. Some also partake in playing gamelan during big ceremonies. This often requires them to practice every night leading up to the ceremonies.

Roles of Men Case Study of Pak Wayan Slonog

Pak Wayan Slonog is a husband and a father of two daughters. He really hopes to have a son one day. He lives together with his parents. Salt farming has been his family’s profession for years, so he continues the work.

His contribution to Amed Salt ecosystem do not stop at being a salt farmer. He also becomes the quality controller who collects and checks the quality of all of the salt sold by the salt farmers to MPIG¹. His involvement in MPIG is more of an executor but since he deals directly with salt farmers, sometimes he becomes the think-tank as well.

During non-harvesting season, fishing is his main activity. He also fish sometimes during harvesting season. Pak Slonog owns a very unique boat that he uses to fish and takes tourist to diving and snorkeling spots in Amed monthly.

¹MPIG Garam Amed (Masyarakat Perlindungan Indikasi Geografis or Amed Salt Producer’s Community) is the legal entity formed in 2015 consisting of 5 groups with 7-10 salt farmers each.

Roles of women

Roles of Women

Roles in familyWomen handle most, if not all, the household chores in their house. We interviewed around 7 women in Banjar Lebah who do mostly child-rearing. To run the household, they reported that they had to consult all family expenses with the husbands.

Roles in economyWomen hold at least one occupation: as a salt farmer or sorter in salt production, in tourism site, or running their own businesses, such as restaurant or cellphone center. Generally they apply simple monthly financial budgeting for their families, but they do not have long term plans. They acknowledged that the earnings from one source is usually insufficient so they have to work other job.

Roles in societyThey are involved in religious ritual – prepare offerings for Gods per day with canang and rice, and at least a big offerings once a month.

Roles of Women - OverviewWomen, especially mothers, play a central role in handling household chores, child-rearing and supporting religious activities

Roles in family

Roles in economy

85%holds at least one

occupation

100%child-rearing and household chores

Every morning, women prepare prayer offerings for the shrine in their

residence¹. Several women also contribute to the society by being a

teacher or dance teacher.

100%are involved in religious activities or activities for

society

Although most of the women in Amed work outside their home, it

has been a common consensus that the main role of women is

doing household chores and child-rearing in the family

6 out of 7 Amed women we interviewed hold at least one job. More than 70% even have more than 1 job. The jobs include:

● Teacher● Bungalow staff● Salt sorter● Salt farmer● Stock farmer● Restaurant owner● Shopkeeper

Roles in society

¹In general, each residence has one shrine called Sanggah / Merajan

Roles of Women - Daily RoutineA day in the life of women in Amed

12

6

9 3

4

5

8

7

1

2

11

10

5-7 am- Prepare and cook the meals for family- For salt farmers: Prepare the salt field during the harvesting seasons

7-8 am- Get the children ready and drop them to school

9-11am- Go to work- Prepare offerings- Pray- Take care of the younger children- Forage grasses to feed the livestock

12pm - 4pm- At work- Clean up the house

4-7 pm- Rest- Prepare dinner for family- Dinner with family

8-10 pm- Watch tv- Prepare for tomorrow morning- Go to sleep

Roles of Women - AspirationsThe definition of success for women in Amed is defined by tangible things that can help lead her family and children to a better future

Fulfilling basic physiological needs

Good living for family and their loved ones

“We want to live happily and have no difficulty in buying food and necessities for our family. If we can make the work easier in the future, we would love to do it.”“We want our family to be healthy.”

“We want to be free from any debt because we usually buy things using installment.”Keeping the family’s safety

“We want our children to have a better future by gaining a higher education. They have to go to senior high school because we didn’t even graduate from elementary school.”

Ability to gain something they value

“We want to have tangible assets like car, gold, land, especially motorcycle because it can make our lives easier (our children can go to school by motorcycle and we can travel by it). We also want to have our own business.”

Reaching their best potentials

One of the mothers who teach in PAUD expressed her aspiration about having her own school building to facilitate more children.

We gave each of the seven women Rp 6,000,000 to spend to reflect their actual household spending per month

There are four posts to spend their money:

Post IFood staples, gas, electricity, phone credit and daily necessitiesPost IIClothes, electronic and home appliancesPost IIIReligious celebrations, installmentsPost IVSavings, investment and long term needs

ObjectiveWe want to understand the proportion and priority in their monthly spending based on those categories

Roles of Women - Household spendingWe want to learn the spending behavior of women in Amed through simulation

Roles of Women - Household Monthly SpendingIn terms of household monthly spending, their saving is based on the remaining amount of the monthly budget after consumption

Clothes, electronics and household appliances

Food, staple and daily necessities Savings, investment and long-term needs

213,5718%

1,005,71438%271,428

10%

Religious celebration and installments

1,157,14243%

#1#2

#3 #4

Consumption Saving (*)

• Although the amount that they reported for savings, investment and long-term needs are high, these are simply leftover money after expenses of consumptive matter

• Most of the women work more than one job; households run under dual income as both wife and husband are family breadwinners• All family expenses have to be discussed with the husband as the head of the family before being spent

(*) Notes: The result cannot be perceived as accurate due to social pressure that might happen at the time the data was derived.

Priority and proportion of household spending in Amed

Roles of WomenCase Study of Sri Danti

Sri Danti, a mother of one child, is PAUD teacher and headmaster. She teaches around 60 children together with 2 other teachers. Teaching has been her passion and a means to give back to the community. She always long for the ways to improve the kindergarten and the children.

Despite her deep interest in teaching, she found that the income from teaching is insufficient for their life necessities. To fulfill her family needs, she runs a restaurant in Amed. Her husband also work for their family. Some of the earnings is used as capital to run the business, and she also borrow some money from Lembaga Perkreditan Desa (LPD) or Village Credit Institution.

Women in Amed are generally also a breadwinner in their family. At home, she hold the responsibility to do family household chores, child-rearing, and play role in social activities as well.

Part III

AboutAmed Salt

The History of Amed SaltSalt farming has been the main profession in Amed for many generations. It was lining up the coastline until about 10 years ago.

Historically, Amed Salt was very popular that the king of Karangasem -the kingdom governing Amed back in the 16th century- requested Amed people to pay their retribution in the form of salt.

Speciality of Amed SaltAs their value proposition is pure artisan sea salt, Amed Salt is special because of its production process, its taste and has received geographical indications certification

Natural Process The salt, produced by combining sea water and clay soil using unique and traditional tools is believed to be one of the main aspects that differentiate Amed Salt from the others.

The Taste and LooksAmed Salt tastes umami and it does not have the bitter after-taste as the other salt. Amed Salt has an off-white and sparkling appearance.

Geographical IndicationsIn 2015, the historical value and original method earns Amed Salt a Geographical Indication (GI), an internationally acknowledged certificate which provides legal protection that identify a country, a region or an area in which the product originates. It also certifies that the reputation, quality and characteristics of the related product are largely determined by geographical factors in the region. Beside Amed Salt, as of 2015, there has been only 38 GI certified products in Indonesia, such as Kintamani Bali Coffee, Aceh Gayo and Sumbawa Forest Honey.¹

¹Definition of Geographical Indication: http://www.wipo.int/sme/en/ip_business/collective_marks/geographical_indications.htm

http://www.wipo.int/sme/en/ip_business/collective_marks/geographical_indications.htm

Amed has been more accessible and many people from outside Amed began to see opportunities in tourism. They buy land to build villas and restaurants to host the incoming tourists.

Amed salt-making uses traditional method and tools which relies heavily on weather and is very labor intensive. Salt farming can only happen for four months each year, during the summer.

Many salt-makers sold their land which was previously used as salt fields to restaurants or villas owners.

The price of salt do not reflect the immense effort and risks it takes to produce.

The rise in tourism presented the people of Amed a new opportunity to earn better and more stable income.

In early 2000, there were 200 salt farmers 1. In 2015, the number dropped to 42, and today, only 20 salt farmers are actively working and

preserving this tradition.

The Challenge of Amed Salt FarmersThe challenge faced by Amed Salt farmers lies in the small number of salt farmers remaining.

Weather and Labors Tourism

¹Quoting Pak Suanda in an article here https://www.benarnews.org/indonesian/slide-show/slide-show-garam-amed-07132016150600.html

The Challenge of Amed Salt FarmersIn 2015, the salt farmers community came together and formed a legal entity called MPIG Garam AmedThe establishment of Masyarakat Perlindungan Indikasi Geografis - MPIG Garam Amed is also part of the Geographical Indication (GI) requirement in which the salt farmers are assembled into 5 groups each with a leader, a secretary and a treasury. During the establishment of MPIG Garam Amed, there are 42 members. Today, only 20 members are active.

Salt Farmers MPIG Customers

Local reseller

MPIG Garam Amed is meant to become the main (if not only) channel where customers can purchase Amed Salt. However, in practice, some salt farmers keep a small portion of their harvest to be sold directly to tourists or local businesses.(*)

Sales scheme of Amed Salt

(*) Note: Only those sold by MPIG can use the official Garam Amed and GI logo.Garam Amed GI documentation can be found here: http://e-book.dgip.go.id/indikasi-geografis/filemedia/Buku%20Persyaratan%20Garam%20Amed%20Bali/#p=68

MPIG ChairmanI Nengah Suanda

Vice ChairmanI Nyoman Patra Gunawan

SecretaryI Nengah Ariana

Vice SecretaryNi Wayan Putu

TreasurerI Ketut Telaga

Governing board / Pembina● Head of Agency for Industry and Commerce● Head of Agency for Marine, livestock and fisheries● Head of Agency for Cooperatives and

Small-Medium Enterprises● Head of Agency for Culture and Tourism● Head of Karangasem Regional Development

Planning Board (Bappeda)● Head of Abang Sub District (Camat)● Head of Purwakerthi Village (Kepala Desa)

AdviserRegent (Bupati) of Karangasem

Production Committee

Promotion & Marketing Committee

Quality Control Committee

Law & AdministrationCommittee

MPIG Board Structure

Adviser

Governing Board

● Provide capacity building

● Provide network● Provide grant for

production tools

The Process

Salt farming is a traditional profession in Amed. Due of its reputable taste and quality, during the 18th century, it was requested that the people of Amed bring salt to pay tribute to the King

of Karangasem Regency.

About Amed Salt - Production ProcessThe production process of Amed is well known due to its tradition and natural process that heavily rely on weather, sea water, and soil.

Step 1 - PreparationThe soil, sourced from the land located a few hundred meters from the beach, is cleaned and placed into the designated plot.

Step 2 - PouringEvery morning, the soil is poured with sea water, leveled and let dry for 4 consecutive days.

Step 3 - FiltrationAfter being watered and leveled, the salt enriched soil is transferred into “Tinjungan”, a traditional filtration device. The filtration device is made from layers of different elements such as woven palm leaves, pebbles as well as sand.

Step 4 - StompingSalt farmers will step inside the Tinjungan so that the soil is completely leveled. Then, fresh sea water is poured into Tinjungan to be filtered overnight. The filtered water is collected in a tube container made of hollowed tree trunk. Nowadays, concrete is also used as a substitute.

Step 5 - DryingThe filtered water is transferred into Palungan, coconut log that has been cut in half and hollowed, and let it dry under the sun for 4 days.

Step 6 - HarvestingThe crystal layers of salt that raised to the surface is called Fleur de Sel and is harvested using a strainer. The rest of the salt is then harvested using a shovel made from bamboo sticks.

About Amed Salt - SeasonsSince the production process heavily rely on weather, the harvesting seasons can only be done during the summer, approximately four months from July to October

Harvesting Seasons - July until OctoberDuring harvesting seasons, salt farmers’ activities focus on salt farming production process, including farming, drying, sorting, and packaging. Salt farming and drying are mostly done by men, but it does not rule out the possibility that women salt farmers also do the work. Sorting is done by women, mostly by the family of the salt farmers themselves.

Non-harvesting Seasons - November until JuneDuring non harvesting seasons, salt farmers focus to market their product to retail, hotel, restaurants or sell them to tourists. They also do several works outside salt farming, such as: livestock breeding, fishing, cultivating and selling vegetables or plants such as cassava, corn and long beans, working in construction sites or becoming tourist boat operator.

Part III

The Blueprint of Amed Salt

Background

In the last ten years, tourism in Amed has been growing fast and affecting the salt farming industry. This situation made hundreds of salt farmers convert the way they make a living

into tourism industry

Background

Since 2015, there are lots of support and recognition for salt farming because of its traditional process. Therefore, the remaining 20 salt farmers have good faith to sustain, grow

and live from salt production.

• Technical skills inherited from ancestors○ Patented by

Geographical Indication

• Positioning: Artisan salt○ Unique light taste○ Well-known quality

in the world○ No preservatives

• NGO○ Training

Bookkeeping, Packaging

○ Access to market• Market

○ 4 Hotel○ 2 Restaurants○ 4 Retail

• Support from Governments

• Able to package the product to enter the market (B2C)

• 6 land (6,000m²) remaining

• 20 members of MPIG Amed Salt

• 1600 coconut logs owned by 20 salt farmers

• 7 machineries to raise sea water up to production site

• Existing tools to produce salt

Asset QualitySupportProduct

Blueprint - BackgroundDuring the last three years, salt farmers are supported through these assets, resources and support system that move salt farming forward and towards progress

Challenges Needs

Capital

Human resources

Hygiene

• Shortage of number of land that can be managed• Increase infrastructure capacity and quality (machine to draw sea water,

more coconut logs, firmer fields, warehouse)

• Low sense of belonging from MPIG members to grow their business. It affects the mentality and morale hence the quality of the product

• Insufficient English speaking skill• Young people tend to perceive salt farming as not so promising and labour

intensive

• There were two minor complaints coming from retail and one of the restaurant that says Amed Salt is unhygienic and expensive

• Difficult to educate and diminish unhygienic practices by the farmers, e.g. dirty bucket, use of cement to fix broken coconut logs, stepping on land.

• Land protection from government• Capital for tools and materials

• Establish a cooperatives• Training on system integration• Capacity building on English skill• Education and outreach to people

of Amed, especially youth

• Training on hygiene from production, sorting, packaging

• Implement a Standard Operating Procedures of Production

Local support • Many people in Amed or its surrounding have no idea about the existence of Amed Salt and never consume it

• Education and advocacy for local to support Amed Salt

Organisational and managerial • No specific position and job description inside MPIG Amed• Insufficient bookkeeping structure

• More systematic institution• Training on bookkeeping, tax

Blueprint - BackgroundManaging capital, human resources, and organisation are the major challenges for salt farmers community. They need more support from the government and local people for the sustainability of their production.

● We want to create stronger organisation and more sense of belonging from our current farmers

● We also want to attract young talent to build next generation of salt farmers and educate more local people about Amed Salt.

● We want to increase credibility by improving the quality● We want to explore how to diversify our product● We want to strengthen our current customer base● We want to explore possibility on how to tap into tourism

● We want to raise more fund to build:○ People: sales and marketing, tax and accounting○ Physical assets: office, store, land and production tools○ System: to increase productivity

Grow their capacity

Grow the market

Grow the organisation

Blueprint - Aspiration of Salt FarmersThe salt farmers aspire to grow their capacity and market, in order to grow their organisation

Salt farmers’ aspiration within the next five years

“I can see the opportunity of Amed Salt in tourism. I imagine that next year we can do farm tour trial and have an office or physical store so people can easily

find and buy our salt.”

“We are not confident if we need to speak in English, but we will need that skill if we want to speak with tourist or new customer”

Blueprint - Aspiration of Salt Farmers - Grow the CapacityThe salt farmers identified that they need to improve the system, build up the people’s capacity and add physical assets to help them grow their capacity

People Physical Asset

System

Grow the capacity“To strengthen our organisation, especially after we establish the cooperatives, we may need people that understand how to deal with taxes (and perhaps accounting). Currently we can only do basic accounting.”

“We want to have a physical store and office near the production area. We imagine that we can have more integrated system where we can do production, stocking, and selling in one place. Currently the process is not centralised.”

“By having local store near the production area, we can integrate it with tourism by making it a tourist attraction or spot. We hope Amed Salt can be part of Amed’s tourism as well”

“We imagine we can be more productive by increasing the productivity for our land. For example, currently one of our land only have one machine and one farmer, ideally we can have 2-3 farmers in one land. We can add more “palungan” for each farmer too!

Blueprint - Aspiration of Salt Farmers - Grow the Market - Product QualityThe salt farmers emphasize the importance of product quality, consistent branding and innovation in order to increase their product quality

Increase quality control

One packaging

for all

Product Innovation

Grow the marketProduct Quality

“We notice in the production and sorting process, sometimes the hygiene still need to be improved. We want to improve our quality control, and give better understanding to our farmers”

“Currently we’re still using used carton to pack our salt to our business clients, we want to have our own carton. We also have various type of packaging, which we think it would be great to have one identity that can be used in all occasion”

“We are thinking to explore how we can increase our business size by diversifying our product, for example by making chips with sea salt flavor. Our aim is to increase the profit margin by targeting the end customer while not having direct competition with our retail client.

Blueprint - Aspiration of Salt Farmers - Grow the Market - Product VolumeStrengthening the number of their customer segment, integrating with tourism and refiningAmed Salt as Bali Souvenir are considered vital by the salt farmers to grow their market

Strengthen customer

base

Launch farm tour

Amed Salt as Souvenir

Grow the marketIncrease quantity

“Most of our business clients from Hotel, Restaurant and Cafe, are coming from the network of NGOs that support us from the beginning, we may need to explore more how to increase our customer base”

“We see tourism no longer as a threat but as opportunity. We think Amed Salt can be Amed’s icon, due to its history and cultural value. We are thinking of creating a farm tour and engaging more with Amed’s tourist.”

“We learn that we can have a better pricing and margin by selling to end customer. If we are still far from developing a product that won’t directly compete with our retail clients, maybe we can choose different market segment.”

Blueprint - Aspiration of Salt Farmers - Grow the OrganisationTo grow the organisation, they need to establish cooperative in building the sense of belonging of their farmer community, attract young people for regeneration, and educate local people to get more partnership with local business

Establish cooperative

Attract young people

Educate local people

Grow the organisation

“We want to increase the sense of belonging by establishing a Cooperative. We hope by having a better system and legal entity to divide the profit to our farmers, we can make our internal system more transparent and make the salt farmers feel they are part of the MPIG.

We found that sometimes the quantity of salt bought from our farmers is less than what we paid for, which affects our profitability. We need to makes them understand that the success of MPIG will be their success too.”

“We need more young people to be involved and build the next generation of salt farmers. However, most of them are more interested to work in Villas, Bungalow or Cruise Ship. At the very least, they can help us with English”

“When I went to Bank, the employee who lives nearby Amed have no idea that Amed is well known for its Salt. We need to educate local people about the uniqueness of Amed Salt, and how to integrate it with the local business. Nowadays, the pricing of Salt is considered high by the local people which is totally different if we compare to the past three years.”

The Ecosystem

To foster those growth and aspiration, it is important to build an ecosystem that can help them to thrive.

Blueprint - The Ecosystem - AspirationThe stakeholders are optimistic and open to support Amed salt farmers in growing its business and community. We found there are few alignments in terms of aspiration among the participants.

Salt farmers

Local business

Govt.

Aspire to nurture and grow their community and family“I want to build and nurture the salt farmers community” “I want to build a happy family”“I see Amed Salt will grow and become small business that have office”

Aspire to integrate Amed Salt with local business and tourism“I imagine Amed Salt can grow as Agrotourism in Amed”“I can lend my land to be used for salt production process, so the tourist can see the process in our homestay area”

Aspire to grow Amed Salt through cross-industry collaboration and capacity building“I need to increase collaboration across SME industries”“I need to map the diversity of commodities from various villages”“Our service is to provide managerial capacity building for SMEs”“I want to improve the tourism in AmedParticipants’ aspiration from the workshop

Blueprint - The EcosystemKey stakeholders surrounding Amed salt farmers can be categorized into four groups:the communities, customers, competitors and support organisations

Communities

● Salt farmers● Children● Women● Youth communities in Amed

- trash hero community● Religious community -

gamelan or dance community

Customers

● Retail business● Hotel, Restaurant and Cafe● Local business

Competitors

● Artisanal salt producers in Pemuteran

● Artisanal salt farmers in Kusamba

Support Organisations

Government● Ministry of Marine and

Fisheries● Ministry of Cooperatives and

SMEs ● Ministry of Industry and

Commerce

Non-profit organisations

Bureaucracy

Blueprint - The Ecosystem - ChallengesThe government found internal bureaucracy and insufficient database as a challenge for them to support entrepreneurs

Govt.

“We are constrained by regulation and policy, and there are requirements that make it difficult for us to disburse the fund”

- Badan Perencanaan Pembangunan Daerah

“Many of the databases for micro entrepreneurs are invalid due to differences in indicators used by the government itself.”

- Dinas Koperasi dan UKM Karangasem

“Without sufficient databases, it is hard for us to reach out and select potential micro entrepreneurs to receive our support”

- Dinas Koperasi dan UKM Karangasem

Complicated bureaucracy to disburse support and funding for micro entrepreneurs

Blueprint - The Ecosystem - ChallengesAccess become the main highlight for the salt farmers to grow their business, access to available land, fund, and skills

“The increase in tourism development drives many salt farmers to sell their land”

“We are unable to satisfy the requirement for funding support from government”

“We are not confident to integrate our business to tourism because we do not have any english skills”

Bureaucracy

Limited land, access to fund and english skillsAccessSalt farmers

Blueprint - The Ecosystem - ChallengesThe requirement on salt Iodine content by Ministry of Health makes MPIG unable to obtain a business license

“We are unable to satisfy the requirement for funding support from government”

Prob

lem

foun

dPr

opos

ed

Alte

rnat

ives

by

Gov

t

Amed Salt contain much less Iodine content than those required by the Ministry of Health (MoH)MPIG is unable to satisfy one of the requirements from Ministry of Health, which requires Iodine content of at least 30 mg/kg¹Meanwhile, Amed Salt only contains 2% of iodine²

Without approval from MoH, MPIG is unable to register the Micro and Small Business licenseApproval from Ministry of Health is one of the requirements to apply for Micro and Small Business License (Izin Usaha Mikro dan Kecil - IUMK)

Without business license, MPIG has limited access to external fundingWithout the IUMK, MPIG is not eligible for the Beginner Entrepreneur (Wirausaha Pemula) Funding Program from Ministry of Cooperatives and SMEs³

Product Diversification that will be eligible for PIRT (Food & Home Industry) license. One of the example is by creating a mix of Amed Salt and other ingredients (e.g: salt & rosella powder)

Establish MPIG as a Cooperative to be eligible for other source of funding from the ministry of Cooperatives and SMEs, such as funding for Early Cooperatives (Koperasi Pemula) which does not require PIRT or MoH approval.³

Source:¹ MInistry of Health Decree no. 165 MEN.KES / SKII /1986 regarding Iodized Salt Requirements (Link: http://jdih.pom.go.id/showpdf.php?u=bRJ73InF3DvgOWz671qZJZQWGhubNhw5ULZ83551v%2BA%3D)² Based on MPIG’s statement³ Article on How to get business capital assistance from the government for MSMEs (Link: http://goukm.id/bantuan-modal-usaha-dari-pemerintah/)

http://jdih.pom.go.id/showpdf.php?u=bRJ73InF3DvgOWz671qZJZQWGhubNhw5ULZ83551v%2BA%3D

http://goukm.id/bantuan-modal-usaha-dari-pemerintah/

● Cooking / consumption

● Packaging used as display

● Beauty products

Blueprint - The Ecosystem - IdeasDuring the ideation session held with key stakeholders, the participants show that they are interested to see Amed salt farmers collaborate with other industry in Karangasem or Bali, either through product diversification, product packaging or integration with tourism industry

Ideas Customer Profile Use case

Marketing approach

Resources needed

1. Packaging Collaborating with craft businesses around Karangasem to produce a wicker crafts packaging for the salt 2. Lab research on health benefit of Amed Salt The health benefit from the salt content can be used as promotional material3. Product Diversification4. Salt Spa5. Agritourism 6. Amed Salt as table salt

● Tourist ● Hotel● Spa ● Supermarkets● Organic store ● Modern and traditional

market● Students● Working professionals● General public● Business owners

● Online promotion ● Participating in local

and national exhibitions/ events

Research: Partnership with universities to tap in the internship program (Kuliah Kerja Nyata)

Packaging: Packaging machineries or facilities

Spa: Contacting the available spas in Amed

Agritourism: Designate one of the salt farmers to become a tour guide

Hotel, restaurant and cafe

Blueprint - The Ecosystem - MappingRetail and hospitality businesses, government and salt farmers are the players with high influence and have shown interest in Amed salt farming, therefore, these relationships need to be closely managed

Low I r

Hig I f u c

Youth community

in Amed

Religious committee

Retail business

Salt producers

in other region

Mothers

Government

Non-profit organisations

Salt farmer

Hig I te t

Low I lu

Monitor

Manage closely

Children

Local business

Keep informed

Keep satisfied

Customers

Competitors

Communities

Support organizations

Influence level is determined by looking at the stakeholder’s ability to affect the decision making of MPIG (either as a business, organisation or community)

Interest level is determined by looking at whether the stakeholder’s personal agenda or interest is aligned with MPIG or Amed Salt in general

Blueprint - The Ecosystem - Other Salt ProducersSeveral district in coastal area in Bali have salt farming or salt producing activities

“Bali Artisanal Salt”CV. Bali Artisan SaltPemuteran, Buleleng

Salt producers at Pemuteran buy and process sea salt from salt farmers in Guris, Bali. By using glass house, they are able to produce year round. Besides sea salt, they like to innovate by mixing the salt with other ingredients to produce seasoning, usually based on customer’s demand.

“Natural Maker Salt”Kusamba, Klungkung

Salt farming process in Kusamba is similar with those in Amed, the difference is that they use sea sand instead of soil. They also integrate their production with tourism.

Blueprint - The Ecosystem - Other Salt ProducersProduct diversification of the salt are heavily emphasized in other areas.

Pemuteran Kusamba

● Pyramid salt● Rock salt● Seasoning (salt mixed with other

ingredients)● Coconut based soy sauce● Salt scrub

Customers: Retail businesses, export

● Sea salt● Salt farm tour

Customers: Retail businesses, tourists

Pemuteran, Buleleng

Kusamba, Klungkung

Blueprint - The Ecosystem - Other Salt ProducersThings to learn from salt farming activities in the other areas

We learn from Pemuteran that being open to customer demands and creating customized products

encourage innovation and product value.

We learn from Pemuteran that technology helps to scale production, such as the

utilization of glasshouse to maximize the drying process from rainwater and prolong

the harvesting season.

We learn that integrating with tourism means we have to know what we need to do. Showing tourists a signage

and establish a servicescape are important learnings we got

from Kusamba.

The farm tour in Kusamba felt disingenuous and rigid. We

learn that we have to be genuine and interactive.

The Market

“If people like you, they’ll listen to you, but if they trust you, they’ll do business with you.” —Zig Ziglar

Blueprint - The Market - Byproducts from B2B ClientsThe salt bought from Amed is often repackaged into two market products: Sea Salt and Fleur de Sel. However, 90% value of the sales are still from Sea Salt.

Sea Salt Fleur de Sel

Sea salt is the main product of MPIG Garam Amed. It is made from sunbathed seawater which was filtered with woven palm leaves, pebbles, sand, and most importantly, salt-enriched soil.

They produces 15 tons of sea salt per year.

Fleur de Sel is the premium salt. The difference between Fleur de Sel and sea salt is in the harvesting process, Fleur de Sel is the crystal layers of salt that raised to the surface. It is harvested using a strainer, which leads to soft and cleaner salt.

MPIG Garam Amed aims to produce 500 kg of Fleur de Sel per year.

The Product

The crystal layers of salt that raised to the surface is called Fleur de Sel and is harvested using a strainer while the rest of the water is let dry and harvested using a shovel made from bamboo

sticks.

Blueprint - The Market - Current CustomerTo date, more than 80% sales value of MPIG is coming from B2B Channel. Their customers profile range from hotels, restaurants and cafes, food companies, and tourists in Amed

B2B B2C

Retail

Food company or retail store that will repackage and/or resell the salt

Indonesia

Tourists & Local Outreach in Amed

● Foreign tourists that looking for experience and authentic souvenirs.

● Local people (mostly mother and youth) that sells the salt to tourist

Amed

Prof

ile a

nd

use

case

Scop

e

HotelRestaurant & CafeHotel, Restaurant & Cafe that will buy salt to be used as ingredients for their F&B business

Bali Area

Blueprint - The Market - Ideas of Potential CustomerFrom the workshop there are few interesting customer profile and use-case to explore, healthy food catering, corporate event, reseller, bath salt and fusion table salt

Healthy Catering Corporate Event Reseller Bath Salt Fusion Table Salt

Cust

omer

Pro

file

Healthy catering may need organic ingredients as the value propositions for their customers.

Corporate Events in Bali may need authentic souvenirs from Bali that can promote local empowerment like Amed Salt. The customer include procurement from Multinational Company, Government Bodies, Event Organizers or Agencies.

Small number of MPIG’s current customer are resellers. The resellers are usually mothers living in big cities and usually encourage their friends to buy products together to decrease the shipping cost.

Bath Salt products usually use unrefined sea salt with no additives and no iodine. Amed Salt has low iodine content (2%).

Mixing Amed Salt with few other local ingredients can be one of the options to diversify the product. Some of the ideas include mixing the salt with Garlic or Rosella Flower powder.

Blueprint - The Market - Focus and PriorityAfter looking at the potentials, these market are the ones Amed salt farmers want to focus on. Each market has its own channel and promotion strategy to be implemented

Retail Hotel, Restaurant & Cafe Corporate Event Amed Tourist Bali Tourist

Use

Ca

seCh

anne

lM

arke

t St

rate

gy

B2B B2C

Repackage and resell Cooking ingredients Souvenir for attendants Experiencing and for souvenir

Souvenir

● Direct email● Whatsapp● Instagram

● Direct email● Whatsapp● Instagram

● Corporate● Agency

● Tour agency● Tour guides● AirBnb

experience

Competitive Pricing Competitive Pricing Customized Product Experience Bundling, consignment

● Souvenir shop● Hotel/Restaurant● Tour guide

community● Airport

Blueprint - The Market - Estimate Market SizeThe total estimated market size can reach about 1.9 tonnes with 80.7 billion IDR in value.The restaurant & cafe market have the biggest potential, while market for tourist in Bali can help increase the pricing point

From approximately 9,920 tourists in Amed, we estimated that there will be 30% who will purchase 200gr of salt, due to lack of options for tourist attraction (salt farm tour) or authentic souvenirs from Amed.

There are approximately 5 food companies similar to Javara and East Java Co, and estimated the need of 2 tons of salt per year.

HotelRp7.2 billion28.8 Tonnes

Restaurant & Cafe

Rp44.6 billion1,784 Tonnes

RetailRp500 million

10 Tonnes

Tourist in Amed

Rp119 million0.595 Tonnes

Tourist in BaliRp28 billion144 Tonnes

From 105 four-stars and above hotels in Seminyak, Denpasar, Ubud and Karangasem, there will be approximately 7,900 guests per day, and we estimated that they consume approximately 10 gr of salts per day.

CorporateEvent

Rp281 million1.125 Tonnes

Estimating that there are 100,000 tables from 188 organic restaurants in Bali, there will be approximately 8 guests per day who is estimated to consume about 6gr of salt per meal.

From 14 million tourists in Bali, we estimated that there will be 5% who will purchase 200gr of salt since it needs to compete with many other kind of souvenirs.

From almost 450,000 state-owned enterprises and medium-large enterprises, we estimate that about 0.25% will organize an event in Bali and will use Amed Salt as souvenir for their participants.

B2B B2C

Existing market New market Note: All the calculation above is rough estimation. The details can be seen in the Appendix

Farm Tour: Targeting Amed Tourist

Since Pak Suanda, the leader of Amed salt farmer, was very excited of the idea to integrate Amed Salt with tourism, we created a simulation to validate the market.

Blueprint - The Market - Farm Tour ValidationPrior to the event, we contacted around 100+ hotels, restaurants, and cafes around Amed and Bali to attract visitors and potential B2B clients

Before the D-Day

Invitation and outreach

The local hotel was open and welcomed the ideaFrom our experience via door-to-door outreach, most local hotels that were every open and supportive. Two of them even asked for brochures so they can put it in each of their guest rooms.

Small responses due to lack of network in the industryAs our network is limited, we only received three responses despite the effort, and they couldn’t make it during the D-Day. If we are to do it differently, it might be more effective if we contact various hotel, restaurant or food industry associations that can then introduce us to their members. Furthermore, as were still using PLUS account, we fear it deterred relevant responses. Moving forward, it will be better to use Amed salt farmers account for invitation, thus avoiding confusion and getting better responses.

Door-to-door invitation via poster in around 10+ hotel, homestay and restaurant or cafe in Amed

Email and instagram direct message to 100+ Hotel, Restaurant and Cafe in Amed, Seminyak and Ubud

Invitees Key takeaways

Hotel, restaurant and cafe around:20+ Seminyak30+ Ubud & Uluwatu70+ Amed10+ Canggu

Homestay or hotel around the location of Farm Tour event.

Blueprint - The Market - Farm Tour ValidationThe main objective of the validation is to have a simulation about the journey of the customer before and during their visit to the farm

D-Day

Experience the salt-harvesting

● Experience the processTwo persons from our team played as tour guide, basically showing the guests around, bridging and connecting them with the salt farmers and encouraging the guests to try the harvesting process

● Understand the processThere were printed canvas that showed production process just in case the tour guide is occupied

● Mini photo exhibitionWe showed pictures about the life of Amed salt farmers to give them more context.

Registration

There were two people in registration, mostly inviting people from the street and beach to participate.

Salt Testing

We prepared a tasting table so that the guests can taste the Amed Salt with:

● Bread and unsalted butter

● Local mango● Local guava

Payment and Souvenirs

Previously we planned the payment to be upfront, but since some of them are hesitant to pay upfront, we gave the option for them to pay later. We charged Rp25,000 per person.

After payment, we gave the visitors a package of 100gr of Amed Salt as souvenir, which usually cost about Rp10,000.

Blueprint - The Market - Farm Tour ValidationThere were 12 visitors who were willing to pay Rp 25,000 for the tour. Most of them are European and they come as mature couple, solo traveler and family

Customer profile70% mature couple, 20% solo traveler, 10% family

Canadian solo traveler

Holland couple

Belarus couple(Free)

German couple

Australian family

England solo traveler

Suriname couple

Blueprint - The Market - Farm Tour ValidationCustomers’ perspective: “We love the process and the idea of which we can ask more about the story behind it”

What customers love about the farm tour

They are curious to know the

details of the process

They empathize with the

challenges faced by salt farmers

They find the history

of Amed salt farming

interesting“What is the purpose of tinjungan?”

“How are they able to think of filtering with soil? That’s awesome!”

“What will happen if buildings are built around?”

“We’ll figure out how we can help!”

“The salt farming process here is so unique!”

“How many days does it take from start to the end of the process?”

Key takeaways

A dedicated tour guide may be needed as it would be the DNA of the farm tour:

● Tour guide will answer the need of foreign tourist that need more process explanation

● Tourists also need to take a picture of the production, and if they are asking the farmers during the production process, they cannot take pictures of the process

● Salt farmers can still do their production process without many distractions.

Blueprint - The Market - Farm Tour ValidationCustomers’ perspective: “We love to pay for the tour and/or buy souvenirs after we experience it ourselves”

What customers want more from the farm tour

They feel that there is room for improvement in

the process

They are hesitant to pay upfront

They are not too excited about salt

tasting

“Can we take a look inside first?”

“Every salt taste the same for me”

“We passed by yesterday and someone gave us a bag of salt forcing us to buy it”

Key takeaways

“I eat salt everyday, I’ll try that local fruit”

Tasting corner is not that important in the farm tour since most people cannot tell the difference in taste or be bothered by it, explanation should be prioritized first.

Tourists are happy and willing to pay after they experience the tour. They can even buy some more souvenirs.

“We feel like it will be much better if they use bamboo basket instead of plastic basket.”

Tourists Perspective

Salt Farmers Perspective

Local Business

Perspective

Generally they are excited, especially the core team of MPIG. There are 5 out of 20 women farmers that usually sell their product on the spot and receive daily income by selling directly to the tourist. Therefore it would be an important note to find out how to keep their daily income and merge it with the farm tour.

Various perspectives from tourists, local business and salt farmers

They love the interactive experience and are genuinely curious about the process behind Amed salt farming. They found the process and history interesting and it helps them empathise about the journey in making salt.

Most of the local businesses that we approached are very welcoming and open to sharing about the event to their guests. As options for entertainment or tourist attraction is also limited, salt farm tour can be one of the add-ons.

One of the hotel that came during the event, Hotel Uyah (Uyah means salt in Balinese), are interested to open a new production area in their hotel and ask Amed salt farmers to partner with them since they don’t have the capacity to maintain and build the production.

Blueprint - The Market - Farm Tour ValidationBased on the experience, the idea of farm tour received positive reaction from tourists, local business and salt farmers themselves

Blueprint - The Market - Farm Tour ValidationBased on the impact for business, farm tour is suggested to function as one of the channels to potential B2B market.

Watch out and potential

Farm tour’s impact for the business

Creating a farm tour needs a lot of effort in terms of money and energy. However, compared to the other market potential, the market size is considered small. The market size in volume and value is not much, especially if the farm tour only targets tourists in Amed.

On the flip side, farm tour can also be a potential channel to promote Amed Salt to B2B market. These target market of B2B can make big impact for business.

Key takeaways

Farm tour is suggested to design not only for tourist, but also for potential B2B customers

Looking at the potential, farm tour is best functioned as a channel to potential B2B market while also generating additional income from tourists who experience the tour or buy souvenirs.

The Production

“Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort.” — Paul J. Meyer

DeliveryPackagingSortingCollectionProduction

The production process is carried out daily by the salt farmers. It takes 9 days from preparation to harvest

Every week, the salt farmers will bring their harvest of the week (pre-dried and unsorted salt) to be sold MPIG.

The collected salt will be sorted by hand. This process is done daily.

The sorted salt is then packaged in various packaging (100 g, 500 g, 1 kg, etc). This process is done daily.

The salt is then packed into boxes and shipped using land and air transport. This process is not regular, and is based on the demand from customers.

Blueprint - Production - Business ProcessThe process is community based, done by families involved in the business

Blueprint - Production - Current Resources - LandTo date, MPIG Garam Amed has 6 lands for 20 salt farmers with average 300m2 for each

1 Person 1 Person 2 Persons 3 Persons 5 Persons 7 Persons

From six available lands, some of the land have fewer farmers while each land require one machine to pump up the sea water

1 la h e ma n o pu t wa f t e

Cos r 1 ma n : Rp3,500,000

Dur it t e c e:3-4 ye

Blueprint - Production - Current Resources - ToolsThe initial minimum capital for one farmer to start the production will be about 15 million IDR while their estimate income for one season is about 10 million IDR

Each farmer is working on 300m2 land

Tools:● Sea water

bucket● Scoop - Sibuh● Rake -

Bangkrak● Filter -

Tinjungan● Coconut logs -

Palungan● Pipes

Tin gDur it : 3-4 ye

Ban r

Se w e b t

80 Coc loDur it : 30+ ye

1 Mac fo 1 laDur it : 3-4 ye

Fil d a r taDur it : 30+ ye

Current structure, cost and durability of each tools

The Roadmap

“A good plan is like a road map: it shows the final destination and usually the best way to get there.”

— H. Stanley Judd

http://thinkexist.com/quotation/a_good_plan_is_like_a_road_map-it_shows_the_final/296095.html

http://thinkexist.com/quotation/a_good_plan_is_like_a_road_map-it_shows_the_final/296095.html

http://thinkexist.com/quotes/h._stanley_judd/

Blueprint - The Roadmap - Action PlanIncreasing land capacity and actively reaching out to market will be the main engine for strategy implementation to 2020

2018 2019 2020

20 TonnesFocus on current B2B customers

30 TonnesStart tourism integration

40 TonnesPrototype new product development

Maintain relationship with current B2B customers, especially restaurants and cafe since they have higher market size and can buy in higher price

● Develop structure or checklists for marketing and sales process

● Research list of potential customers and reach out via email or social media

● Start digital presence targeting B2B customers

● Create a better pricing based for each customer segment

Maintain current production capacity● Trial production in new land for next

harvesting seasons

Strengthen internal financial system● Hire 3-months project based accounting

and tax person to establish the system

Start farm tour sites for the harvesting season● Build the office or physical store ● Hire or train youth or young farmers to be

a tour guide

Develop product and capacity● Develop Amed Salt as souvenir product● Create packaging alignment for all

product● Increase the productivity by adding land

and number of coconut log or palungan for each land, from 80 to 100 pieces

Expand B2B customers● Hire one more dedicated sales for B2B● Research and reach out list of potential

events and healthy catering● Get 5 - 10 new B2B customers in addition

to 10 tonnes

Develop product and capacity● Build glass house to extend the

harvesting season beyond summer● Develop and innovate new product

by collaborating with other relevant farming community, for example rosella, etc.

Expand B2C by targeting tourist in Bali as customers

● Research and reachout list of potential souvenirs store

● Strengthen digital presence

Expand B2B customers ● Get 5 - 10 new B2B customers in

addition to 10 tonnes

Amed salt farmers’ action plan from 2018 to 2020

They have limited fund to grow the capacity, but there are some potential funding that they have identified. Some of their proposal pipeline include:

● Ministry of maritime: soft loan● Ministry of Cooperatives and

SMEs: Grant for Early Cooperatives (Koperasi Pemula)

They see several potential partnerships, for examples:

● Hotel Uyah: add land for production in Hotel Uyah

● Indonesian Coffee association: Open new access to B2B customers from their existing customers

They have identified in-kind supports that will help the salt farmers:

● Cultural Village (Desa Adat): Lend the land with discounted rate

● Ministry of Industry and Commerce: Loan of tools and machinery

Blueprint - The Roadmap - Potential SupportsSalt farmers find out that collaboration with relevant stakeholders can help them make their aspiration happen.

Government, retail businesses, hospitality industry and NGO need to be connected to help salt farmers

Potential Intervention

Even though Amed salt farmers has received many supports,there are still room for intervention to accelerate their growth

Production

Marketing/Sales

Organisations

Challenges Aspirations Possible interventions by WLF based on urgency

● Low production capacity in a year;● Lack of hygiene knowledge which

affects the quality of the salt;● Lack of product diversification.

● Lack of marketing skills / resources;● Low margin.

● Complicated business registration procedures;

● Lack of interest from younger generation.

● Increase production capacity by 50% in 2019 and 100% by 2020.

● Expand b2b customers● Salt farming integration with tourism;● Develop Amed Salt as souvenir.

● Establish MPIG as a cooperative;● Involve younger generation in salt

production or marketing process.

● Accounting and tax system support / training

● English language training (possibly by establishing English language Club)

● Branding ideation workshop ● Tourism management / serviscape

workshop● Women and youth empowerment

through community based tourism

● Product ideation workshop● Comparative study program● Additional capital for production land,

tools or machineries

Blueprint - The Roadmap - Potential InterventionPossible intervention based on Salt Farmers challenges & aspirations

Blueprint - The Roadmap - Potential InterventionWe have identified some potential interventions that can support Amed salt farmers in the long run. Project based hiring to establish system, women and youth empowerment and ideation events are the highlight priorities

2018 2019 2020




Potential intervention for Amed salt farmers

Hire 2-3 months project based Accounting & Tax to establish the system after Cooperatives has been registered.

Hire 2-3 months project based Digital & Social Media to tandem with Amed salt farmers.

Establish servicescape management system for Farm TourDesign customer journey, feels and experience during the farm tour.

Branding Ideation workshopRun 1-2 days branding for packaging, logo, catalogue design marathon (similar to hackathon) that can be used for all Amed Salt product.

Product Ideation workshopRun product prototyping marathon to launch the new innovation product

Start regular English Club to increase the confidence and build the relation between salt farmers and the youth.

Women and youth empowerment through community-based tourismBuild a community-based tourism by involving women and youth in the farm tour

Comparative study programVisit modern market and organic store in Bali or Jakarta to spark the ideation process in product development

Indicates high priority

Blueprint - The Roadmap - Potential Intervention - Project Based Accounting ExpertProject based accounting experts can help with knowledge transfer and system refinement, especially after their establishment as a cooperative, they will need better system to share the profit to their members

2018


Hire 2-3 months project based Accounting to establish the system after Cooperatives has been registered

Estimated social investment:Rp 15-30 million

Priority:High

Problem Overview Output

The current accounting system cannot track detailed unique customers and cost

The proper tax and accounting system can help Amed salt farmers to share the profits when they are established as a cooperative.

By hiring dedicated experts in the short term, we hope they can learn by doing and building the system that can be utilised in the long run.

The objective of this hiring is not only to transfer the knowledge, but also to establish customized and relevant system based on their needs. This could be done through one day training/workshop.

● Basic knowledge in accounting

● Customized and relevant accounting system

Blueprint - The Roadmap - Potential Intervention - Project Based Digital & Social MediaDigital & social media experts can help them explore new channels and actively look for new B2B customers without hiring the dedicated sales force in 2018

2018


Hire 2-3 months project based Digital & Social Media to tandem with Amed salt farmers


Priority:High


Salt farmers have no experience in using social media nor selling Amed Salt online

Youth in Amed also lack the knowledge in using online selling platform (e.g tokopedia, bukalapak)

Though youth in Amed are active in social media, they need more skills in taking the pictures and creating the content

The objective of hiring Digital and Social Media expert is to train potential human resource that will be in charge of digital and social media for MPIG.

By getting the skills and knowledge, MPIG will gain more customers and distribute Amed Salt more widely.

● Active social media accounts for MPIG

● Active online marketplace accounts for online transactions

● Basic knowledge in using social media for business and using online marketplace

● Basic online digital marketing skill

● Basic content writing skill for social media

Blueprint - The Roadmap - Potential Intervention - English ClubEnglish Club can be the platform to build the relationship between youth community and salt farmers while at the same time increase their confidence to speak English

2018



The youths aspire to work in tourism industry and they long for a proper English skill advancement to support their career.

Lack of ownership of youth in the salt farming process.

Integrating the need of English skill improvement and salt farming by English Club will hopefully increase the youth’s interest.

English Club as a non-formal platform aims to improve English skill of salt farmers and youth in Amed.

On a regular basis, English Club conducts members meetup taught by native speakers or English teacher to do fun activities: such as movie screening. To carry out the club activities, a freelance English teacher and a pro-bono core team of English Club need to be set up.

● Establishment of English club with its core team to improve English skill

● Increased awareness about Amed Salt on youth

Start regular English Club to increase the confidence and build the relationship between salt farmers and the youth


Priority:High

Blueprint - The Roadmap - Potential Intervention - Servicescape Management SystemServicescape management system can build the capacity of salt farmers to operate a farm tour and design the experience through customer point of view

2019



Currently, tourists’ awareness and interest on Amed Salt is quite high, but they long for qualified tour guide who will explain the process in a good-manner.

Lack of confidence of the salt farmers and youth to introduce the process and specialty of Amed Salt.

To integrate salt farming with tourism through farm tour, the issue that needs to be tackled is improvement on hospitality, management, and people skill. This program will connect salt farmer with youth as the tour guides in an ideation event to design a prototype of customer journey and experience. Following the ideation event, they will conduct a farm tour as prototype and validate with the market.

● Customer journey and experience design

● Action plan of one year farm tour servicescape management system

Establish servicescape management system for farm tourDesign customer journey and experience during the farm tour


Priority:High

Blueprint - The Roadmap - Potential Intervention - Branding Ideation WorkshopConducting a branding ideation workshop involving salt farmers and brand consultant will create not only a brand that truly represents their value, but also a sense of belonging within the community

2019



There were lots of support from previous NGOs in developing packaging for Amed salt farmers. As a result, Amed salt has various branding with various color tone, looks & feels.

The salt farmers aspire to have MPIG branding in their carton packaging (currently they use used carton)

1-2 days ideation event will involve salt farmers, graphic designer and brand consultant to explore references, build color tone, looks & feels

We imagine that the brand value should come from the salt farmers, so they can feel proud and it lifts up their sense of belonging

● Logo● Brand guideline● Packaging in all size

SKUs● Catalogue for B2B

customers

Branding Ideation workshopRun 1-2 days branding workshop for packaging, logo, and catalogue design marathon (similar to hackaton) that can be used for all Amed Salt product


Priority:High

By creating a community-based tourism, youth and women can work full-time for a full year.

Their needs for money and working in the field they love can be fulfilled as well.

Moreover, these involvement can potentially establish a sense of belonging to Amed Salt.

Blueprint - The Roadmap - Potential Intervention - Women and Youth EmpowermentWomen and youth has potentially important roles to support the integration between salt farming and tourism industry, therefore more involvement for them can bring economic empowerment not only in individual level, but also the whole family

2019


Problem Overview

Amed youths are interested in tourism. They are proud of Amed Salt but not interested in becoming salt-famers.

Women and youth need to earn a living. They do not see salt farming as a stable and significant income source.

Output

Involving and defining youth’s and women’s roles in the business process.

For example, by creating a tour package of “A day with salt farmers; family” consists of salt-making process, sorting, and packaging. The youth can be the tour guide while women can do the sorting process in the office or handle the souvenir sales.

Women and youth empowerment through community-based tourismBuild a community-based tourism by involving women and youth in the farm tour


Priority:Mid

Blueprint - The Roadmap - Potential Intervention - Comparative Study ProgramComparative study program aiming to give the salt farmers more exposure to the customer and modern market channel can help them get a better idea on the trend of the products in artisan or organic food industry

2020


Problem

In a couple of days, salt-farmers visit markets or stores in Bali or Jakarta. They can see other salt or natural products in the market and compare or generate ideas to be developed.

Study programs can also be conducted with other salt-farming communities. Salt farmers can learn about the production process and gain more insights.

Overview Output

MPIG Garam Amed is near to the makers but far from the market.

They have little knowledge of what their market want or think about the salt.

They also have little knowledge of other salt-production processes.

Product development ideas in:

● Product diversification

● Product process● Product Packaging

Comparative study programVisit modern market and organic store in Bali or Jakarta to spark the ideation process in product development


Priority:Mid

Blueprint - The Roadmap - Potential Intervention - Product Ideation WorkshopProduct ideation workshop will not only expand the salt farmers’ product portfolio but also help spark ideas and collaboration among farmers community in Bali.

2020



Currently, MPIG has only two kind of products (sea salt and fleur de sel). They need to launch more innovative products in order to be more competitive in the market

The combined products (a mixture of salt and other spices) will enable Amed Salt to apply for certificate from Ministry of Health.

There are a lot of potential collaboration with other farmers community in Bali that will benefit both communities.

This collaboration will not only produce innovative products for MPIG, but also create more sustainable products through more empowerment.

● New variants of salt products

● Partnership with more farmers communities

Product Ideation workshopRun 3-5 days product prototyping marathon to launch the new innovation product


Priority:Low

ClosingThe high enthusiasm from Amed salt farmers combined with the spirit to preserve its culture,

and the right support from relevant parties will be the key towards sustainability.

farmers in amed community of salt capacity and growing...

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