URBAN VALUE CHAIN
DEVELOPMENT:
TOFU
AND TEMPE
Value Initiative
Program
(VIP)
SECTOR IN GREATER JAKARTA
Background
Background
Sector
Tofu and Tempe (Soy bean based product)
Focus Area
Greater Jakarta (Jakarta, Bekasi, Depok, Tangerang and
Bogor)
Enterprise
Tofu and Tempe Producers including Renter Producers;
“Lopper/middlemen and Wet Market vendors; and Street
vendors
Goal
Increase income, improve working conditions, and diminish
environmental impact of production for 40,000 enterprises in
Greater Jakarta. Provision of safe food to 7.2 million
consumers in Greater Jakarta
Purpose
Increase efficiency and product quality for 4,500 entrepreneurs
Potential Market
Implementation
Partners
America Soybean Association, Forum Tempe, Cleaner
Production Centre, Research Agency, Business Service
Providers, Bank/MFI, Local Government, Metal Workshop
Association, Vendor Association, MoE, Bank Indonesia
Indonesia Map
Map
Indonesia
Project Target Areas
Project phase expansion plan across greater Jakarta
Why Urban?
•In 2007, the total population of Indonesia was
232.9 Million people; approximately 40% of the
population categorized as poor people
•The National Survey conducted in 2002
revealed that 34.64% of total poor people living
in urban area
•50% of the total population live in urban areas;
and 40% of urban residents are employed in
the informal sector.
Why Tofu/Tempe?
•Tofu/tempe a staple food for approximately 40
million poor people
•Most tempe/tofu producers and vendors live in
urban areas and are informal workers.
•The tempe/tofu industry and vendors offers
employment opportunities for individuals with
limited formal education. It also offers an
additional source of income for their extended
families (remittances).
Enterprises in the sector
Tofu Producers
Owner
Asset/
Provision
ProductCapacity
Renter
Tempe Producers
Owner
Renter
Factory, raw
material,
housing for
workers
Rent space
and all
equipment
from owners
Factory, raw
material,
housing for
workers
Rent space
and all
equipment
from owners
Fresh tofu,
60-500 kg
soybean /day
Fresh tofu,
5-30 kg
Soybean
/day
Fresh tempe;
40-150 kg
Soybean
/day
Fresh tempe;
10-70 kg
Soybean
/day
$ 100/day
$ 8-9/day
$ 17/day
$ 8-9/day
Avg : 6
workers; @ $
4/day
No workers
Avg : 2
workers; @ $
2/day
No workers
Income
Worker
Continued Enterprises…
Lopper (middlemen) /
Wet market vendors
Cart Vendors
Cart Owner
Motorbike, kiosk.
Owns cart.
Rents cart and
other equipment
from owner
Only sell fresh tofu/tempe and
take margin
Cooked tofu/
tempe
Cooked tofu &
tempe
USD $ 8-10/day
USD
14-15/day
USD
3-4/day
No workers
No workers
No workers
Asset/
Provision
ProductCapacity
Income
Worker
Vendor
Analyzing the Sector: Value Chain Map
Input
Supply
Informal and
Formal
Marketing
Processing
Food
Preparation
& Snack
Food Vendor
Consumption
10%
Mini-Mart
10%
Medium sized
producers
Soybean
Agents
Producer
Group
Renter
producers
Association of soybean, tofu/tempe producers,
and vendors; cooperative
Food stalls
Hospital
Catering
Wholesaler/
Agents
Renter
producers
“Out
door
eaters”
Wet Market /
Cart Vendors
School
20%
Small
producers
Formal
Market
Soybean
wholesalers
Large/lead
producers
10%
80%
Take
home
consumers
20%
50%
Food and hygiene inspection Body (BPOM)
Ministry of Environment, Ministry of Trade and Industry, Governments, Banks/ MFI,
Research Institute
Consumer
associations
Food & snack
street vendor
Consumption
Inefficient production
Long term availability of
traditional fuel
Input supply
Input supply
Use of formaldehyde
in tofu
Processing
Processing
Informal &
formal
marketing
Used cooking oil & other
toxic additives effect
human health
Limited shelf life
Lack of access to finance
Bad environmental effect due to liquid
waste of tofu production
Constraints
Value Chain Analysis
Consumed by large
poor people
Opportunity
Only use 100% of fresh cooking oil
will lead to increase sales
informal markets is the
biggest market
Cleaner production
can reduce cost
Liquid waste can be
used for biogas
Re-used oil stove for cart
vendor will attract consumer
Analyzing the sector: Constraints and Interventions
Constraint
Underlying
Causes
Service
Market
Supply
Assessment
Demand
Assessment
Intervention
Activity
Inefficient
production
(tofu)
Producers don’t
know :
-How To do it
-Where to get
info
-Provide
information
-Training to
apply cleaner
production
MOE and BSM
provide the loan
for producers
who will apply
cleaner
production
Many producers
interest on how
to reduce cost
energy and
increase time
efficiency
Improve
Production
-Renovate 1 tofu
factory as model
-Conduct TOT in
cooperate w/ MOE
- Linkages financial
institution and
producers
Unhygienic
process
production
(tempe)
-Lack capital to
invest in new
hygiene
equipment
-Don’t know
where to get
the equipment
-Financial
product
-Provide
information on
appropriate
hygiene
equipment
- Many local
workshops are
available to be
equipment
suppliers
-Lack info on
production
process of
tempe
Most producers
aware: low
quality of
equipment
(used drum)
Improve
Production
-Renovate 1 tempe
factory as model
- Linkages between
equipment supplier
and producers
-Linkages financial
institution and
producers
Health issue :
use used
cooking oil
(street vendor)
-Lack of
awareness
-Use used
cooking oil can
keep low cost
production
-Don’t know the
alternative tech
-Provide the
alternative tech
(used cooking
oil stove)
-Promote used
cooking oil
stove
- 2 local
workshop are
interested to
develop and
market used
cooking oil
stove
Introduce
the used
cooking oil
stove
-Develop the design
of used cooking oil
stove in cooperation
with consultant
-Technical assistant
by the consultant
support from VIP
-Linkages S-D
Analyzing the sector: Constraints and Interventions
Constraint
Underlying
Causes
Service
Market
Supply
Assessment
Demand
Assessment
Intervention
Activity
Low productivity
-Factory
facilities are too
old (20-30
years)
- Producers do
not know where
they can get
information
-Information on
cleaner
production (CP)
-Information on
financial
product
-CP and finance
program of
MoE for tofu
- Micro finance
done by the
state banks
for tempe
producers is
available
-Metal
workshops are
able to provide
better
equipment for
tempe
production
-Producers are
looking proven
technology
-Most
producers
aware that
better qualities,
longer shelf life
can increase
sales
-Producers are
willing to
renovate
factories as
long as there
are any
financial
support
Improve
production
- Renovate 1 factory
each for tempe and
tofu
-Organize IP experts
with MoE
-Organize GHP
training for tempe
equipment supplier
-Assist MoE and
equipment supplier
in producing
marketing tools
-Organize business
meeting between
equipment suppliers
and producers
Environmental
pollution and
threat of
closure by local
government
-Producers do
not know where
they can get
information on
how to handle
the liquid waste
- Information on
CP related to
biogas
-CP and finance
program of
MoE
- 1 Biogas
supplier for tofu
- Producers are
willing to handle
their liquid
waste
Improve
production
- Biogas is included
in tofu
demonstration
factory
-Biogas supplier will
be invited to join
TOT for IP expert
Analyzing the sector: Constraints and Interventions
Constraint
Underlying
Causes
Service
Market
Supply
Assessment
Demand
Assessment
Intervention
Activity
Consumers
eating unsafe
food
-Consumers
have no choice
and this is the
best food they
get with their
money
-Producers do
not know where
they can get
information on
good hygiene
practice
- Information on
good hygiene
practice
- Forum Tempe
funded by
America
Soybean
Association
interest the
hygiene issues
of tempe and
tofu
-The hygiene
equipment
gives benefit
such as longer
shelf life, better
quality, etc
Improve
production
-Hygiene practice
will be inserted in IP
expert training
- GHP training for
equipment supplier
No difference
between
healthy and non
healthy product
-Producers and
vendor do not
understand
about the
importance of
branding and
marketing
-Information on
better quality
product
-No supplies of
branding and
marketing
-MoE can give
certification for
CP
-Cooperative
may have an
interest in using
logo as safe
food product
-Producers and
vendor are
looking way to
promote their
better quality
product
-Sales is the
most important
factor
-Producers do
not mind to put
sticker in their
product
Branding
and
marketing
- Product registration
- Designing the label
and packaging
-Promote the labeled
product to
consumers
Strategy & Interventions
• Improve production process
– Improve production in tofu
– Improve production in tempe
– Improve the stoves for street vendors
• Promotion of cleaner healthy products
– Branding and marketing
Intervention Outreach
Intervention
Plan
Uptake
Pilot
Project
support
Final
beneficiaries
Improve
production tofu
400
8000
20000
Improve
production
tempe
450
4500
15000
Improve Street
vendors
600
600
5000
Improve
branding and
marketing
102*
2040*
20000*
Total
1450
13,100
40,000
Contract deliverable with SEEP reach 40,000 beneficiaries at goal level while
4,500 beneficiaries at purpose level
Note : * not counted due to the double counting with other interventions
Intervention Plans
Improve Production in Tofu
Background
• What?
– Producers improve their facilities so that there is an
increase in efficiency, hygienic production and improved
environment in terms of reducing pollution and smoke
• Why?
– Reduce cost and improve the environment
– More hygienic and healthy products available in the market
• Problem?
– Producers are unaware of the options for improving
production and addressing environmental issues
– Weak linkages with equipment supplies and technical
assistance
Improve Production in Tofu
What Service?
 Pilot stage
• Information on cleaner production (CP) and good
hygiene practice (GHP) provided with equipment as an
embedded service to producers
• Information on CP and GHP provided by
consultants to producers
 Uptake
• Training by MOE for new IP experts
• Information on successful pilot project to banks and
the bank works with the IP experts developed by
MoE.
Improve Production in Tofu
• How?
– Establish a pre-pilot
• Demonstration tofu factory that provides a working
example to other producers and IP experts
Project will facilitate:
– Pilot: 3 models
– Uptake : 2 models
Improve Production in Tofu
Causal Chain for Intervention : Improve Production for Tofu - Pilot
Producers more secure
Community experience less
odor
Indicator: Environmental
condition of 400 tofu enterprises
in the Greater Jakarta area
improve within the project period
Workers experience improve
working condition
Indicator: Working condition for
4,000 tofu enterprises and
employees in the Greater
Jakarta area improve within the
project period
Tofu enterprises increased income
Indicator: Increased 15% of income for 8,000
tofu enterprises in the Greater Jakarta area
within the project period as a result of applying
CP and GHP.
IMPACT
Tofu enterprises increase profit
Indicator: Profits of tofu enterprises who applied
CP and GHP in the Greater Jakarta targeting
the informal market increase 15% within the
project period
Tofu enterprises increase sales
Indicator: Sales of tofu in informal market
increases 15% for tofu enterprises who applied
CP and/or GHP in the Greater Jakarta area
within the project period
Tofu producers provide information on
better product quality of tofu to vendors
Indicator: 8,000 vendors provide information
on better product quality of tofu to their
customers
Tofu producers improve product quality
Indicator: Renters and vendors’ comments
on better product quality of tofu
OUTCOMES
Tofu producers reduce cost
Indicator: Production cost reduces 15% for
tofu producers who applied CP in the Greater
Jakarta area within the project period
Tofu producers improve productivity and hygiene and produce less pollution
Tofu enterprises applied Cleaner Production and GHP and use new equipment
Indicator: 1000 tofu enterprise applied Cleaner Production and GHP in their enterprise within the project period
Tofu producers purchase IP Package/new equipments from IP Experts
Indicators: 400 tofu producers purchase IP package/new equipments within the project period
Tofu enterprises are aware of the CP, GHP, and access to finance for producers in terms of improving their
productivity and quality of tofu
Indicator: 1000 tofu enterprises are aware of the CP, GHP, and access to finance for producers within the project period
Equipment suppliers provide information
on CP and GHP to tofu enterprises
Indicator: 5 business service i.e equipment
supplier related to CP and GHP developed,
introduced, and rolled out within the project
period
Lead producers provide information
on CP and GHP to tofu enterprises
Indicator: 12 business service i.e lead
producers related to CP and GHP
developed, introduced, and rolled out
within the project period
PILOT
BUSINESS
MODEL
Financial institutions provide
information on CP and GHP and
financial support to tofu enterprises
3 financial services related to CP and GHP
developed, introduced, and rolled out
MoE and NADFC conduct the pilot training to IP Experts in CP and GHP with supports from VIP
Indicator: Participants’ comments/interest to enter tofu sector after attending CP and GHP training
VIP troubleshoots
implementation by building
a tofu factory model in
Jakarta. While for Bekasi,
the factory model is built
through MOE program.
Indicator: Tofu enterprise’s
satisfaction towards the IP
Package/new equipments
in pilot
1. VIP talks to National Agency for
Drug and Food Control (NADFC) on IP
Expert training.
2. VIP have a deal with NADFC, which
will have the following:
- VIP helps NADFC to produce training
materials on Good Health Practice
(GHP), if necessary.
- NADFC will conduct the GHP pilot
training with support from VIP
Indicator: NADFC’s comments/interest
to participate in this program
1. VIP talks to Ministry of Environment (MoE) on IP Expert training.
2. VIP have a deal with MoE, which will have the following:
- VIP helps MoE to identify the participants which will be the IP
Experts that consist of equipment supplier, lead producers, and
financial institution.
- VIP helps MoE to produce training materials, if necessary.
- MoE will conduct the Cleaner Production (CP) pilot training with
support from VIP
- VIP will help MoE to help the trainees in providing the services (IP
Package) to the producers, if necessary. This support package must
be developed.
Indicator: MoE’s comments/interest to participate in this program
INTERVENTION
ACTIVITIES
Improve Production in Tofu
Causal Chain for Intervention : Improve Production for Tofu - Uptake
Many producers more secure
Many community experience
less odor
Indicator: Environmental condition
of 1,000 tofu enterprises in the
Greater Jakarta area improve
within the project period
Many Workers experience improve
working condition
Indicator: Working condition for
10,000 tofu enterprises and
employees in the Greater Jakarta
area improve within the project period
Many tofu enterprises increased income
Indicator: Increased 15% of income for 20,000
tofu enterprises in the Greater Jakarta area within
the project period as a result of applying CP and
GHP.
Many tofu enterprises increase profit
Indicator: Profits of tofu enterprises who applied
CP and GHP in the Greater Jakarta targeting the
informal market increase 15% within the project
period
IMPACT
Many tofu enterprises increase sales
Indicator: Sales of tofu in informal market
increases 15% for tofu enterprises who applied
CP and/or GHP in the Greater Jakarta area within
the project period
Many tofu producers provide
information on better product
quality of tofu to many vendors
Indicator: 20,000 vendors provide
information on better product quality
of tofu to their customers
Many tofu producers improve
product quality
Indicator: Renters and vendors’
comments on better product quality of
tofu
OUTCOMES
Many tofu producers reduce cost
Indicator: Production cost reduces
15% for tofu producers who applied
CP in the Greater Jakarta area
within the project period
Tofu sector increases market position/ competitiveness regarding productivity, hygiene and environmental
friendliness
Many tofu enterprises applied Cleaner Production and GHP and use new equipment
Indicator: 10,000 tofu enterprise applied Cleaner Production and GHP in their enterprise within the project period
Many tofu producers purchase IP Package/new equipments from IP Experts
Indicators: 1,000 tofu producers purchase IP package/new equipments within the project period
UPTAKE
BUSINESS
MODEL
Many Tofu enterprises are aware of the CP, GHP, and access to finance for producers in terms of improving their
productivity and quality of tofu
Indicator: 4000 tofu enterprises are aware of the CP, GHP, and access to finance for producers within the project period
More IP Expert provide information on CP and GHP to tofu
enterprises
Indicator: 40 business service related to CP and GHP developed,
introduced, and rolled out within the project period
More Financial institutions provide information on CP and
GHP and financial support to tofu enterprises
Indicator: 10 financial services related to CP and GHP developed,
introduced, and rolled out
MoE conduct IP Experts trainings on their own
Indicator: a. MoE conduct 2 IP Experts trainings on their own
b. Participants’ comments/interest to enter tofu sector
after attending CP and GHP training
Bank provide access to finance to many financial institutions
Indicator: Financial institutions’ comments/interest to enter tofu
sector
VIP will have a deal with MOE which will have the following:
1. VIP will raise awareness about the IP expert training
2. VIP will provide database on the potential IP experts in some
areas.
3. MoE will then prepare a training plan for the next coming years
(depends on MoE but at least 2 years).
4. MoE will conduct trainings on their own during the uptake stage.
VIP will just help in the document preparation and marketing to the
producers.
5. VIP helps MoE to produce marketing documents – brochure/
prospectus MoE will display the marketing documents/prospectus.
1. VIP will develop a business analysis on tofu
which will be delivered to the Bank.
2. VIP identifies which Bank that would be
interested to provide access to finance to financial
institutions
3. VIP will talk and give the business analysis
result to Bank and then have a deal with Bank i.e.
Bank will provide access to finance to at least 10
financial institutions. VIP will just help the Bank to
provide detail information to selected FI.
INTERVENTION
ACTIVITIES

Improve Production in Tofu
Business Models - Pilot
#3 Business Model
#1 Business Model
(5)Equipment
Information
supplier
(100)Tofu
Producers
(3) Financial
Institution
IDR
IDR
Fee
Fee
IDR
#2Business Model
Independent
consultant
Information &
consultancy
(12) Lead
producer
IDR through
commission in
sales
Equipment
supplier
Information &
consultancy
(240) Tofu
Producers
Equipment
supplier
(60) Tofu
Producers
Improve Production in Tofu
#1 Business Model – Market Uptake
IP
Experts
Ministry of
Environment
Training
IP
Experts
IP
Experts
2 time
conduct training
40 IP’s Expert
Producers
Vendors
Producers
Vendors
Producers
800 Producers
Vendors
16000 vendors
Improve Production in Tofu
#2 Business Model – Market Uptake
Financial
Institution
Bank
Access
to
finance
Financial
Institution
Producers
Vendors
Producers
Vendors
Info
Financial
Institution
Producers
10 financial institution
200 producers
Vendors
4000 Vendors
Improve Production in Tempe
Background
• What?
– Producers improve their facilities and technology so that
there is increased efficiency and improved hygiene during
the production process
• Why?
– Improved efficiency will enable greater quantities to be
produced in less time and the working environment will be
improved
– More hygienic and healthy products available in the market
• Problem?
– Producers are unaware of the options related to new
technology and good health production standards
Improve Production in Tempe
What Service?
 Pilot stage
• Information on equipment as an embedded service to
producers
• Information on access to financing options from
financial institutions
 Uptake
• Metal Workshop Association provides information on
equipment and design to workshops who then provide
equipment to producers
• Access to financing from Banks and other financial
institutions
Improve Production in Tempe
• How?
– Establish a pre-pilot
• Build a demonstration tempe factory that provides a
working example to other producers and IP experts
Project will facilitate:
– Pilot: 2 models
– Uptake : 2 models
Improve Production in Tempe
Causal Chain for Intervention : Improve Production for Tempe - Pilot
Workers experience improve working condition
Indicator: Working condition for 450 employees in the
Greater Jakarta area improve within the project period
Tempe enterprises increased income
Indicator: Increased 15% of income for 4,500 tempe
enterprises in the Greater Jakarta area within the project
period as a result of producers using new equipments and
applying GHP.
Tempe enterprises increase profit
Indicator: Profits of tempe enterprises who use new
equipments and apply GHP in the Greater Jakarta targeting
the informal market increase 15% within the project period
IMPACT
Tempe enterprises increase sales
Indicator: Sales of tempe in informal market increases 15%
for tempe enterprises who use new equipments and apply
GHP in the Greater Jakarta area within the project period
Tempe producers provide information on better product
quality of tempe to vendors
Indicator: 4,500 vendors provide information on better
product quality of tempe to their customers
Tempe producers improve product quality
Indicator: Renters and vendors’ comments on better product
quality of tempe
OUTCOMES
Tempe producers improve productivity and hygiene and produce less pollution
Tempe enterprises use new equipment and apply GHP
Indicator: 900 tempe enterprises use new equipments and apply GHP in their enterprise within the
project period
Tempe producers purchase new equipments and/or receive financial support (If needed)
from metal workshop or MFI
Indicators: 450 tempe producers purchase new equipments within the project period
Tempe enterprises are aware of the new equipments, GHP, and financial product on tempe
Indicator: 1500 tempe enterprises are aware of the new equipments, GHP, and financial product
within the project period
Metal workshops provide information on tempe
new equipments and GHP to tempe producers
Indicator: 10 business service i.e. metal workshops
related to equipments and GHP on tempe developed,
introduced, and rolled out within the project period
VIP
troubleshoots
implementation
by renovating a
tempe factory
including
changing its
equipments as a
model in Jakarta
Indicator:
Tempe
enterprises’
satisfaction
towards new
equipments in
pilot.
PILOT
BUSINESS
MODEL
MFIs provide information on tempe equipments,
GHP, and financial support to tempe producers
Indicator: 5 financial services related to equipments and
GHP on tempe developed, introduced, and rolled out
within the project period
1. VIP identifies metal workshops that will be interested to enter/access
tempe sector
2. VIP have a deal with GHP supplier such as Forum tempe, NADFC, etc.
which will have the following:
- VIP helps GHP supplier to produce materials on GHP, if necessary.
- GHP supplier will be a key note speaker on the GHP workshop event
3. VIP talks to metal workshop and have deal, which will have the following:
- VIP will help metal workshops to identify producers who want to purchase
equipment
- VIP will organize a workshop event on GHP for metal workshops
- VIP will facilitate a business meeting between metal workshops and
producers
- VIP will helps metal workshops to produce some marketing documents
such as brochure, leaflet, etc.
- Metal workshops should provide information on new equipments to
minimally 20 producers.
Indicator: Metal workshops’ comments/interest to enter tempe sector
1. VIP identifies MFIs who will be
interested to enter/access tempe
sector
2. VIP will develop a business
analysis on tempe which will be
delivered to the MFI
3. VIP will talk with MFIs and have
deal which will have the following:
- VIP will help MFIs in preparing
and making financial product for
tempe producers
- MFIs should provide information
on new equipments and financial
support to minimally 20 producers
Indicator: MFIs’ comments/interest
to enter tempe sector
INTERVENTION
ACTIVITIES
Improve Production in Tempe
Causal Chain for Intervention : Improve Production for Tempe - Uptake
Many workers experience improve working condition
Indicator: Working condition for 3,000 employees in the
Greater Jakarta area improve within the project period
Many tempe enterprises increased income
Indicator: Increased 15% of income for 15,000 tempe
enterprises in the Greater Jakarta area within the project period
as a result of using new equipments and applying GHP.
Many tempe enterprises increase profit
Indicator: Profits of tempe enterprises who use new equipments
and apply GHP in the Greater Jakarta targeting the informal
market increase 15% within the project period
IMPACT
Many tempe enterprises increase sales
Indicator: Sales of tempe in informal market increases 15% for
tempe enterprises who use new equipments and apply GHP in
the Greater Jakarta area within the project period
Many tempe producers provide access to good quality
product of tempe to many vendors
Indicator: 15,000 vendors provide access to good quality
product of tempe to their customers
Many tempe producers improve product quality
Indicator: Renters and vendors’ comments on better product
quality of tempe
Tempe sector increases market position/competitiveness regarding productivity, hygiene
and environmental friendliness
OUTCOMES
Tempe enterprises use new equipment and applied GHP
Indicator: 3,000 tempe enterprises use new equipments and applied GHP in their enterprise within
the project period
Tempe producers purchase new equipments and receive financial support (If needed) from
metal workshop or MFI
Indicators: 1,500 tempe producers purchase IP package/new equipments within the project period
Tempe enterprises are aware of the new equipments, GHP, and financial product on tempe
Indicator: 3,000 tempe enterprises are aware of the new equipments, GHP, and financial product
within the project period
Metal workshops provide information on tempe new
equipments and GHP to tempe producers
Indicator: 25 business service i.e. metal workshops related
to equipments and GHP on tempe developed, introduced,
and rolled out within the project period
More MFIs provide information on tempe equipments, GHP,
and financial support to tempe producers
Indicator: 20 financial services related to equipments and GHP
developed, introduced, and rolled out within the project period
Metal workshops association provide information on
equipment designs to many metal workshops
Indicator: Metal workshop’s comments/interest to enter tofu
sector
Bank provide access to finance to many MFIs
Indicator: Financial institutions’ comments/interest to enter tempe
sector
1. VIP talks to metal workshop association and have deal, which will have the
following:
- VIP will provide information about tempe business analysis.
- VIP will provide database on the potential tempe producers as target
customers.
- VIP will provide information on the appropriate design of tempe equipment
referred to the pilot tempe factory in Jakarta .
- VIP will help the association to produce marketing documents – brochure/
prospectus
- Metal workshop association will deliver information on design to its member
minimally 25 workshops so that each workshops can deliver the information to
minimally 20 producers.
1. VIP identifies which Bank that would be
interested to provide access to finance to MFIs
2. VIP will talk and give the Bank the business
analysis on tempe and have deal which will
have the following:
- Bank will provide access to finance to at least
20 MFIs
- VIP will just help the Bank to provide detail
information to selected MFIs
Indicator: Banks’ comments/interest to enter
tempe sector
UPTAKE
BUSINESS
MODEL
INTERVENTION
ACTIVITIES
Improve Production in Tempe
Business Models - Pilot
#1 Business Model
Equipment
Information
Equipment
supplier
IDR
(10)
Tempe
Producers
(200)
Info on good
quality product
Renters/
Vendors
(2000)
#2 Business Model
Access to
finance
MFI
Interest
(5)
info on good
Tempe quality product Renters/
Producers
(250)
Vendors
(2500)
Improve Production in Tempe
Business Model - Uptake
#1 Business Model- Uptake
Workshop
Metal
Workshop
Association
(MWA)
Info on
design
Workshop
Workshop
(1)
(25)
Renters/
Vendors
Producers
Equipment
Information
Producers
Producers
(500)
Access to
good quality
product
Renters/
Vendors
Renters/
Vendors
(5000)
Improve Production in Tempe
#2 Business Model- Uptake
Financial
Institution
Bank
(1)
Access to
finance
Producers
Financial Information
Institution
Producers
Financial
Institution
Producers
(20)
(500)
Vendors
Access to
good quality
product
Vendors
Vendors
(5000)
Improve Production for street vendor
Background
• What?
– Producers want to improve their productivity through
reducing fuel costs. Per day, a street vendor has available
3 liters of used cooking oil. This used cooking oil has
potential to be used for fuel rather then used again for
cooking the following day
• Why?
– By using old cooking oil as a fuel instead of for cooking will
have an impact on the quality of the product as it will be
more hygienic and vendors will be able to reduce the food
hazard risk
• Problem?
– Information gap: where can street producers can get
information on the options for alternative stoves
Improve Production for street vendor
What Service?
 Pilot stage
• Information on availability of stoves that
burn used cooking oil
 Uptake
• Information and linkages to suppliers of cooking stove
that burns used cooking oil
Improve Production for street vendor
• How?
– Project will facilitate the establishment of a pre-pilot that
will:
• Develop the basic design of a stove that burns used
cooking oil and is appropriate for street vendors
Project will facilitate:
– Pilot: 2 models
– Uptake: 2 models
Improve Production for street vendor
Causal Chain for Intervention 3 : Improve Production for Street Vendors - Pilot
Increased income of street vendors
Indicator : Enterprise income of 600 street vendors who use re-used
cooking oil stove increases 15% within the project period
Street vendors increase profit
Indicator: Profits of 600 street vendors who use re-used cooking oil
stove in the Greater Jakarta increase 15% within the project period
Consumers reduce risk of
poison and disease
IMPACT
Street vendors increase sales
Indicator: Sales of 600 street vendors who use re-used cooking oil
stove increases 15% in the Greater Jakarta area within the project
period
Street vendors reduce production cost
Indicator: Fuel expenditures of street vendors who use
re-used cooking oil stove decrease by 20%
Street vendors improve product quality
Indicator: consumer’s comments on product quality
Street vendors improve hygiene and production efficiency
OUTCOMES
Street vendors use the re-used cooking oil stove in their cart
Indicator: - 600 cart vendors replace their cooking oil daily
Street vendors purchase re-used cooking oil stove from stove
suppliers or lead vendor
Indicator: 600 street vendors in the Greater Jakarta purchase re-used
cooking oil stove after the stove is available in the market within the project
period
PILOT
BUSINESS
MODEL
Street vendors are aware of the re-used cooking oil stove technology
Indicator : 1000 street vendors in the Greater Jakarta are aware of the reused cooking oil stove within the project period
Stove supplier provide information on this new
technology of re-used cooking oil stove to street
vendors
Indicator: 5 stove suppliers related to energy efficiency of the
street vendors developed, introduced and rolled out
Lead vendor provide information on re-used cooking
oil stove to street vendors
Indicator : 5 lead vendors related to production process
improvement introduced, developed and rolled out
Stove supplier successfully developed feasible re-used cooking oil stove and lead vendor is willing to
use it in his carts as pilot
Indicator: 1 new technology for reducing health hazard i.e. re-used cooking oil stove introduced
Preliminary
activity: VIP in
cooperate with
stove researcher
develop proper
preliminary
design of re-used
cooking oil stove
Indicator:
- Lead vendors’
comments on the
stove design
1. VIP identifies stove supplier that would be interested to
modify the preliminary design of re-used cooking oil stove in
order to commercialize
2. VIP talks with stove supplier and have a deal which will
have the following:
- VIP will contribute in a process of modifying the preliminary
design of stove.
- Stove supplier modifies the preliminary design of stove into
a sufficient re-used cooking oil stove
- VIP will help stove supplier identifying the street vendors/
lead vendors who want to purchase the stove
- VIP will conduct business meeting between stove suppliers
and street vendors/lead vendors
- VIP will help stove suppliers to produce some marketing
documents such as brochure, leaflet, etc.
Indicators:
- Stove suppliers’ comments/interest to commercialize the reused cooking oil stove
1. VIP identifies lead vendor who might be
interested to use and sell the re-used cooking oil
stove
2. VIP talks with lead vendor and have a deal:
- VIP will contribute three re-used cooking oil
stove to be installed in lead vendor’s carts as pilot
- Lead vendor use the re-used cooking oil stoves
(funded by VIP) in his cart vendors
- Lead vendor will market the stove to other cart
vendors VIP will help link lead vendor to the stove
supplier
- If needed, VIP will help lead vendor to link with
re-used cooking oil suppliers
- Lead vendors’ comments/interest to adopt and
market the re-used cooking oil stove
- Lead vendors’ satisfaction towards the re-used
cooking oil stove installed in his carts as pilot
INTERVENTION
ACTIVITIES
Improve Production for street vendor
Causal Chain for Intervention 3 :
Improve Production for Cart Vendors - Uptake
Increased income of many street vendors
Indicator : Enterprise income of 5,000 street vendors who use reused cooking oil stove increases 15% within the project period
Many street vendors increase profit
Indicator: Profits of street vendors who use re-used cooking oil
stove in the Greater Jakarta increase 15% within the project period
Many consumers reduce risk of
poison and disease
IMPACT
Many street vendors increase sales
Indicator: Sales of street vendors who use re-used cooking oil stove
increases 15% in the Greater Jakarta area within the project period
Many street vendors improve product quality
Indicator: consumer’s comments on product quality
Many street vendors reduce production cost
Indicator: Fuel expenditures of street vendors who use
re-used cooking oil stove decrease by 20%
OUTCOMES
Many street vendors improve hygiene and production efficiency
Many street vendors use the re-used cooking oil stove in their cart
Many street vendors purchase re-used cooking oil stove from stove
suppliers or Vendors Association
Indicator: 5,000 street vendors in the Greater Jakarta purchase re-used cooking
oil stove within the project period
Many street vendors are aware of the re-used cooking oil stove technology
Indicator : 10,000 street vendors in the Greater Jakarta are aware of the re-used
cooking oil stove within the project period
UPTAKE
BUSINESS
MODEL
More stove suppliers provide information on this new technology of reused cooking oil stove to street vendors
Indicator: 50 stove suppliers related to energy efficiency of the street vendors
developed, introduced and rolled out
Metal Workshop Associations provide information on re-used cooking oil
stove designs to its members
Indicator: Metal workshop’s (member of the association) comments/interest to
enter the sector
1. VIP will develop business analysis on re-used cooking oil stove to be delivered
to the Metal Workshop Association
2. VIP will talk with existing Metal Workshop Association and have a deal which
will have the following:
- VIP will provide database on the potential street vendors in some areas.
- Metal workshop will provide information to its members on re-used cooking oil
stove design
- VIP will help stove suppliers to produce some marketing documents such as
brochure, leaflet, etc.
Indicator: Metal Workshops Association comments/interest to enter the sector
INTERVENTION
ACTIVITIES
Improve Production for street vendor
#1 Business Model – pilot
Stove
supplier
info on
stove
Street vendor
IDR
(5)
(500)
#2 Business Model – pilot
Lead street
vendors
(5)
info on
stove
Street vendor
(100)
Improve Production for street vendor
#1 Business Model – uptake
Stove
supplier
Metal
Workshop Info on stove
Association
design
(MWA)
(1)
Stove
supplier
Street
vendors
Info on stove
Street
vendors
Stove
supplier
Street
vendors
(50)
(5000)
Improve Branding and Marketing
Background
What?
– Producers want to differentiate between healthy and nonhealthy tempe and tofu product through labeling and
certification. Producers and vendors should know how to
market their improved products to their consumers
Why?
– Labeling and certification may lead to increased sales.
Problem?
– Information gap: where can producers get information
about product registration, labeling regulation and
certification
– Where can producers access marketing and promotion
tools
Improve Branding and Marketing
How?
Project will facilitate:- Pilot: 2 Models, - Uptake: 1 Model
What Service?
Pilot:
Producers provide information on product quality to vendors
Primary cooperatives provide information on branding and marketing to
producers
Uptake
Secondary cooperative provide labeling services to primary cooperatives
and other producers
Improve Branding and Marketing
Causal Chain for Intervention 4 : Improve Branding and Marketing - Pilot
Tofu/tempe enterprise increase income
Indicator: Enterprise income for 2,040 tofu/tempe enterprises who brand
their product and able to improve their marketing increases 15% within the
project period
Tofu/tempe enterprise increase profit
Indicator: Profits of tempe and tofu for the local market increases 15% as a
result of the enterprises branded their product and improve their marketing
Consumers reduce risk of poison and
disease
Tofu/tempe enterprise increase sales
Indicator: Sales of tempe and tofu for the local market increases 15% as a
result of the enterprises branded their product and improve their marketing
Consumers are eating healthy tofu/tempe
product
IMPACT
Consumers tends to purchase branded tofu and tempe products having better quality
Consumers are aware of the branded tofu and tempe product having better quality
Indicator: 4,000 consumers are aware of the branded tofu and tempe products having better
quality
OUTCOMES
Vendors provide information on branded tofu and tempe product having better quality
to consumers
Indicator: Consumers comments on product quality
Vendors are aware of the branded tofu and tempe product having better quality
Indicator: 2,040 vendors are aware of the branded tofu and tempe products having better
quality
Producers provide information on branded tofu/tempe product having better product
quality to vendors
Indicator: Vendors’ comments on product quality
Producers brand their product using cooperative label
and improve their marketing
Indicator: 100 producers brand their product using
cooperative label and improve their marketing
Producers are aware of the benefit of branding using
cooperative label and improving their marketing
Indicator: 200 producers are aware of the benefit of branding
using cooperative label and to improve their marketing
PILOT
BUSINESS
MODEL
Primary Cooperative provide information on branding
using cooperative label and marketing to producers
Indicator: Producers’ comments on information given from PC
Producers brand their product using their own label
Indicator: Two producers brand their product using their
own label
VIP talk to Primary Cooperative (PC) and have deal which will
have the following:
1. VIP will help PC on making Standard Operational
Procedures (SOP) of CP and GHP for tofu and tempe
enterprise.
2. PC will put their logo in tempe/tofu products owned by
producers who have applied CP and GHP for free as a pilot
model.
3. PC will provide information on branding, labeling and
certification to producers as cooperative members.
Indicator : Primary Cooperative’s interest to provide branding
and labeling to producers
VIP talk to the producers who apply CP and GHP to
encourage them to brand their products. Then VIP will
have a deal which will have the following:
1. Producers will go to the government agency to
process their product registration.
2. VIP will help the producers to design and produce the
label
3. VIP will help promote the new label to the customers
i.e. vendors and consumers
Indicator: 100 producers and vendors aware of the
benefit of branding their product
INTERVENTION
ACTIVITIES
Improve Branding and Marketing
Causal Chain for Intervention 4 : Improve Branding and Marketing - Uptake
Many tofu/tempe enterprise increase income
Indicator: Enterprise income for 20,000 tofu/tempe enterprises
who brand their product and able to improve their marketing
increases 15% within the project period
Many tofu/tempe enterprise increase profit
Indicator: Profits of tempe and tofu for the local market
increases 15% as a result of the enterprises branded their
product and improve their marketing
Many consumers reduce risk of poison and disease
Many ofu/tempe enterprise increase sales
Indicator: Sales of tempe and tofu for the local market
increases 15% as a result of the enterprises branded their
product and improve their marketing
Many consumers are eating healthy tofu/tempe
product
IMPACT
Many consumers tends to purchase branded tofu and tempe products
OUTCOMES
Many consumers are aware of the branded tofu and tempe product that have
better quality
Indicator: 200,000 consumers are aware of the branded tofu and tempe products
Many producers provide information on better product quality to consumers
Indicator: 1,000 producers are aware of the benefit of branding and improving their
marketing
Many producers provide information on better product quality of tofu/tempe
to vendors
Indicator: 20,000 vendors provide information on better product quality of tofu/
tempe to their customers
Producers brand their product using cooperative label and improve their
marketing
Indicator: 1000 producers brand their product using cooperative label and improve
their marketing
Producers are aware of the benefit of branding using cooperative label and
improving their marketing
Indicator: Producers’ interest to brand their products and to improve their marketing
UPTAKE
BUSINESS
MODEL
Many Primary Cooperative provide information on branding using cooperative
label and marketing to producers
Indicator: 10 Primary Cooperatives provide information on branding and marketing
as embedded service.
Secondary Cooperative provide “one label”
Indicator: Secondary Cooperative’s comments/interest to brand/label the tofu/tempe
product
1. VIP talks with the Secondary Cooperative about branding/labeling since the
beginning of the intervention (pilot) so that they are aware of the plan/model
2. VIP will have a deal which will have the following:
- VIP will help SC to develop a mechanism/system of “one label”
- Secondary Cooperative will have a single brand
- VIP will help Secondary Cooperative to produce some marketing documents such
as brochure, leaflet, etc.
INTERVENTION
ACTIVITIES
Improve Branding and Marketing
Business Model - Pilot
#1 Business Model
Info on better
product quality
Vendors
Producers
(2)
(40)
#2 Business Model
Primary
Cooperative
(1)
Info on
branding and
marketing
Producers
(100)
Info on better
product quality
Vendors
(2000)
Improve Branding and Marketing
Business Model - Uptake
#1 Business Model
Primary
Cooperative
Secondary
Cooperative
(1)
Labeling
Producers
Info on branding
Primary and marketing
Vendors
Info on better
product quality
Cooperative
Producers
Vendors
Primary
Cooperative
Producers
Vendors
(10)
(1000)
(20000)
Some Key Learning Areas
•
•
•
•
•
•
•
•
How a project engages with social networks
Women’s role in production
How to convince the Government to provide better
services from small and micro businesses?
What are the impacts of the sector on rural/urban
linkages?
How does branding work for consumer awareness in
products that matter for the poor?
How will financing work for small informal producers
(tempe)?
How can we make a difference when there are other
programs that have not been effective – what did we do
differently?
How can we work with large associations?
Potential Challenges
1)
2)
3)
4)
Certification for the products (tofu and tempe) may not work?
Given the dispersed nature of the industry and the lack of
clear industry leaders communications problems may hinder
moving from pilot to uptake
How does the sector engage the relevant government
agencies to support and facilitate the market uptake of
specific interventions related to improving the environment
and accessing financing.
Knowledge and awareness increases brought about by the
project may not be transferred to other workers due to the
migratory nature of the workers
Terima Kasih! – Thank You