618 Proceeding of the 2nd International Seminar on Animal Industry | Jakarta, 5-6 July 2012
Potency of Wool Handicrafts Production in Indonesia
Mohamad Yamin1 & Sri Mulatsih2
1 Faculty of Animal Science, Bogor Agricultural University, e-mail: mohamadyamin@yahoo.com
2 Faculty of Economic and Management, Bogor Agricultural University, e-mail:mulatsupardi@yahoo.co.id
Abstract
Wool from local sheep have not been utilized and become a waste when the farmers shear the wool for sanitation purposes. The wool of local crossbred sheep can be still processed for a handwoven handicrafts. Study of the wool processing in Indonesia are still very limited, it was therefore this study was conducted to investigate the potency of the product itself and the economic potency of this product. This was a case study in a wool processing small industry in Indramayu, West java. Wool materials used were from local crossbred sheep. Wool product potency evaluated were types, capacity and favorability of the product through primary and secondary data from observation, questioners and references. Economic potency was analyzed with descriptive and financial analysis. Descriptive analysis was used to describe value chain and labor absorption. Financial analysis used indicator of NPV (net present value), IRR (internal rate of return) and PBP (payback period. The results show that the wool processing products were mostly wool woven wall hangings (size of 60 x 120 cm2) which were only produced at 4 % of its production potency. The consumers liked the products as they were beautiful as natural fiber product and had high value of arts. The wool handicraft production also had good economic potency in terms of its NPV, IRR and PBP. In addition of financial profit, the small industry also provided jobs to community. It is concluded that this wool handicraft small industry can be recommended to develop as a profitable small business in Indonesia.
Keywords: economy, hand woven handicrafts, potency, product
Introducton
between dual purpose sheep (meat and wool type, such as Dorset, Texel or Merno) and natve local sheep that had FD more than 40 mµ and produced only 0,4 kg/year of greasy wool (Parakkas et al., 1994; Syamyono et al., 2003). There had been small ndustry n Indramayu, West Java, that processed ths type of crossbred sheep wool and had been qute successful to run ts busness untl natonal crss occurred n 1999, the small busness was collapsed. At present, natonal economy has been progressvely acheved. It s therefore, ths current work was conducted to study present potency of paper dscussed work was conducted to research that had been conducted as a case study n the wool processng small ndustry was reported based on present condtons, to show ts great potency to develop as a proftable busness. Ths objectves of ths study were to study product and economc potency of wool processng small ndustry n Indonesa.
Materals and Methods
Product Potency of Wool Handicraft
To study ths wool product potency, a case study n wool small ndustry n Indramayu was conducted. Some parameters of ths potency were:
a. Type of wool products: Questoners were used and drect observaton were con-ducted n ths study. Respondents of the questoners were the owner of the small ndustry and some experenced employees n the ndustry for techncal matters of the products.
b. Percentage of products capacty: was the capacty of wool products made n the ndustry was compared to avalablty of raw materals based on secondary data of sheep populaton.
c. Product Favorablty: Ten female academc staff at faculty of Anmal Scence IPB became the respondents for the favorablty and marketablty of the products.
Economic Potency of Wool Handicraft
Data on Economy potency were analyzed wth descrptve and fnancal analyss. Descrptve analyss were used to descrbe value chan and labor absorpton. Fnancal analyss used ndcator of NPV (net present value), IRR (nternal rate of return) and PBP (payback perod).
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620 Proceeding of the 2nd International Seminar on Animal Industry | Jakarta, 5-6 July 2012
Results and Dscusson
Products Potency of Wool Handicraft
Type and characteristic of wool products. The results of ths case study show that the wool product produced were woven handcrafts whch could be ncluded wall hangngs, prayer mats, lounge cover, bags, hand phone cover, place mats, lamp cover and carpets. It was reported that among the products, wall hangngs were domnantly produced. Others were made based on specal order from certan consumers. The wall hangngs were made n the sze of 60x120 cm2, wth dfferent
desgn such as contemporary, ethnc, natural pctures dependng on locaton of wall hangngs would be placed. The product can be placed n a lvng room, dnng room, bedroom or lobby nsde houses, offces or hotels. Ths type of product s an art work, t s therefore that besde qualty of materals, desgn s very mportant to consder before makng the products. One example of wall hangngs s shown n Fgure 1.
Fgure 1. Wool handcraft product as a wall hangng wth an ethnc desgn.
Percentage of products capacity. At present populaton of local crossbred sheep producng meat as well as coarse wool (Mernos x Texel x local sheep) were concentrated n West Java n Banjarnegara and Wonosobo. In Banjarnegara tself the local sheep populaton was around 107.272 heads and t was predcted that there were 20.000 heads of local crossbred sheep ncludng 10.000 heads of adult sheep producng around 30 tones of coarse wool (Yamn et al., 2009). The wool could be processed to make for 18.000 peces of wall hangng (60x120 cm2) per year. Ths
621
Proceeding of the 2nd International Seminar on Animal Industry | Jakarta, 5-6 July 2012
by ncreasng wool producton and qualty as well as preparng professonal craft men and busnessmen n ths area.
Product Favorability. The results show that the product of wool handcraft were mostly wall hangngs are bascally art materals, therefore desgn of the product should be nterestng, beautful and touchful as well as t must have characters. The results of ths case study showed that 80 percents of the respondents lked the products very much. Man reason of the answer was that the materals were from natural fbers of Indonesan local sheep coarse wool whch were amazng thngs to see an unexpected product of wool n Indonesa.
Economic Potency of Wool Handicraft
Economc potency of wool handcraft was llustrated from market pontency, fnancal feasblty and labor absorbton of wool handcraft ndustry.
Market potency. Hand made wool handcraft was an art product, therefore ts prce was relatvely expensve. The prce of ths product vared, dependng on desgn of handcraft (motf), raw materals used, level of dffcultes and perod/length n makng the handcraft.
The average of the prce for the wall hangng at craftmen sze 60 x 120 cm2,
was Rp 220,000,-/pece. The products were sold by the craftmen around 48.89% to souvenr shop, 22.22% to nter-regonal mddlemen trader, and 28.89% sold drectly to consumers vstng the craftmen workshop. At retaler (souvenr shop), the sellng prce of those product vared dependng on desgn. Mnmum sellng prce was Rp 280,000,-. The more nterestng of ts looks, the sellng prce would be more expen-sve (Fgure 2).
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622 Proceeding of the 2nd International Seminar on Animal Industry | Jakarta, 5-6 July 2012 The market destnatons of the product were outsde Indramayu such as Ja-karta, Bandung and other cty shoppng centers n West Java Provnce. Souvenr shops were located n other toursm ctes outsde West Java (e.g. Jogjakarta, Bal) were also a potental market for the products. Besde domestc market, nternatonal markets were also potensal for ths product market.
Financial feasibility and labor employment. Gttnger (1986) stated that fnancal analyss s an analyss to compare cost and beneft obtaned to determne whether a project s proftable for perod of the project. Handwoven craft ndustry need captal nvesment for buldng, non-machne spnner and equpments. Fnancal feasblty analyss need to be calculated to know wether the nvestment was economcally feasble or not. Invesment and varable cost of handwoven craft ndustry (n the case of Indramayu wth the assumpton of producton capacty of 60 peces per month) were calculated.
Investment needed for producng 60 peces of wall hangngs per month was Rp 89.82 mllon wth operatonal cost of Rp 217 404,-/pece. Total producton cost per pece was Rp 258 494, and sellng prce was Rp 280 000, then net proft wll be Rp 21 505,-. Ths net proft could be hgher f the sellng prce s hgher by sellng to better promoton, more exclusve target and better desgn.
Based on those techncal coeffcent and prces, t obtaned fnancal feasblty ndcators, as shown n Table 1. Internal rate of return (IRR) was 36%, meanng that handwoven craft ndustry fnancally feasble because the IRR was greater or the sama wth dscount level (Kadarah et al., 1999). At nterest rate of 15%, nvesment of handwoven craft ndustry obtaned net present value (NPV) of Rp 107 654 046,- wth the total captal nvesment of Rp 116 511 900,-. Ths ndcates that the busness s feasble because ts NPV was larger than 0 (Kadarah et al., 1999).
In addton of fnancal proft, handwoven craft ndustry also provded job to spnnng and woven labors for 5 and 3 mandays per pece, respectvely for the two actvtes. At producton capacty of 60 peces per month, handwoven craft ndustry employed 25 female labor of spnner and 15 women of weaver, wth 20 workng days / month, respectvely each. Labor wage of weaver (Rp 25.000/mandays) was hgher than spnner (Rp 15.000/mandays), because t needs specal sklls for weavng.
Table 1. Indcators of fnancal feasblty of handwoven craft ndustry
Indcator Unt Value
IRR % 36
Conclusons
Development of Wool Handcrafts Producton n Indonesa had great potency, ether the product tself or ts economc potency. The product was an art work usng natural wool fbre from local sheep, was beautful and nterestng. Economc potency was also good. Wool processng products were mostly wool woven wall hangngs, the small ndustry only used 4% of ts producton potency. The consumers lked the products as they were beautful as natural fber product and had hgh value of arts. The wool handcraft producton also had good economc potency n terms of ts NPV and IRR. It s concluded that ths wool handcraft small ndustry s recommended to develop to become a proftable small busness n communty.
Acknowledgments
We would lke to thank to LPPM-IPB for fundng ths research. Great appre-catons to Mrs. Tn as the manager n wool handcraft small ndustry, Indramayu, for her support n ths study.
References
Gttnger, J.P. 1986. Analsa Ekonom Proyek–Proyek Pertanan. UI-Press. Jakarta. Kadarah, Karlna, L., dan Gray, C. 1999. Pengantar Evaluas Proyek. FE-UI.
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