DOWNSTREAM PRODUCT DEVELOPMENT OF COCOA
INDUSTRY: EXPLORING THE ROLE OF GOVERNMENT
AND SMALL AND MEDIUM INDUSTRY IN PARTNERSHIP
FARDA EKA KUSUMAWARDANA
GRADUATE SCHOOL
BOGOR AGRICULTURAL UNIVERSITY BOGOR
DECLARATION
I hereby declare that the thesis entitled Downstream Product Development of Cocoa Industry: Exploring the Role of Government and Small and Medium Industry in Partnership is my work through the guidance of my academic advisors and to the best knowledge. This thesis has been submitted for the award of Master of Science from Bogor Agricultural University and Master of Applied Innovation and Entrepreneurship from The University of Adelaide as a double degree program. This thesis does not contain any pieces of work of other person, except those are acknowledged and refrain herein.
Bogor, July 2015
v
SUMMARY
FARDA EKA KUSUMAWARDANA. Downstream Product Development of Cocoa Industry: Exploring the Role of Government and Small and Medium Industry in Partnership. Supervised by YANDRA ARKEMAN and TITI CANDRA SUNARTI.
Indonesia is the third largest cocoa bean producers in the world. It puts cocoa as a valuable commodity that can contribute in sizeable economy development for the country. As one of the cocoa-producing country, the Indonesian government intend to develop the downstream industries of cocoa. Even though the development of the downstream industry based on the local commodities has been a government agenda, particularly in Indonesia, few studies address the partnership between the government and Small and Medium Industry (SMI) in the development of the industry at SMI level. The challenges present in the partnership between the government and SMI in the development of the downstream cocoa industry. The challenges are related to cooperation, communication, and objectives between stakeholder in the industry including the government and the SMI.
This research examine the role of Government and SMI in partnership to develop the downstream cocoa industry. The research will unite different views of government, academic, and SMI to explore the partnership between the government and the SMI in the development of the industry. The role of government, academic, and SMI is important in the development of economic region, so it will be interesting to identify the common ground of their views’ in the development of downstream cocoa industry at SMI level before taking further action.
This study took place in Bogor, West Java, Indonesia. The sampling procedures used by the researcher was purposive sampling. Purposive sampling is necessary to make sure that the participant is the appropriate person to get their insight for this study. The six participant that represent government, academia, and the industry have been interviewed to explore the current partnership in the development of the downstream cocoa industry. The collected data were transcribed and categorized in terms of research questions and emergent themes. The researcher use Framework method to analyze the data.
Findings show the stakeholders that related to the downstream cocoa industry. The collaboration between the stakeholders lead by the government can affect the partnership in the development of the downstream cocoa industry. The study findings imply the importance of government initiatives, sustainable program, database creation, market creation, research partnership, and entrepreneurial spirit as a factor that must be enhanced to increase the partnership.
The implication of this study can influence the policy makers, organization, and for the theory building. The policy makers can improve their approach to the development of the cocoa industry. The new insight will increase the partnership with the SMI by improving the collaboration with other stakeholders. The stakeholder organization in the downstream cocoa industry hopefully can have another point of view to develop the industry.
academic point of view and the SMI point of view. From this research, the researcher provides the several field that can be used as a basic knowledge to improve the development of the downstream cocoa industry at SMI level.
vii
RINGKASAN
FARDA EKA KUSUMAWARDANA. Pengembangan Produk Hilir Industri Kokoa: Mengeksplorasi Peran Pemerintah dan IKM Dalam Kemitraan. Dibimbing oleh YANDRA ARKEMAN dan TITI CANDRA SUNARTI.
Indonesia adalah produsen biji kakao terbesar ketiga di dunia. Ini menempatkan kakao sebagai komoditas penting yang dapat berkontribusi dalam pembangunan ekonomi yang cukup besar bagi negara. Sebagai salah satu negara penghasil kakao, pemerintah Indonesia berniat untuk mengembangkan industri hilir kakao. Meskipun pengembangan industri hilir berbasis pada komoditas lokal telah menjadi agenda pemerintah, khususnya di Indonesia, sedikit studi yang membahas kemitraan antara pemerintah dan Industri Kecil dan Menengah (IKM) dalam pengembangan industri di tingkat IKM. Terdapat beberapa tantangan dalam kemitraan antara pemerintah dan IKM dalam pengembangan industri hilir kakao. Tantangan tersebut terkait dengan kerjasama, komunikasi, dan tujuan antara pemangku kepentingan dalam industri termasuk pemerintah dan IKM.
Penelitian ini mendeskripsikan peran Pemerintah dan IKM dalam membangun kemitraan untuk mengembangkan industri hilir kakao. Penelitian ini akan menyatukan pandangan yang berbeda dari pemerintah, akademisi, dan IKM untuk mengeksplorasi kemitraan antara pemerintah dan IKM dalam pengembangan industri. Peran pemerintah, akademisi, dan IKM sangat penting dalam pengembangan wilayah ekonomi, sehingga akan menarik untuk mengidentifikasi kesamaan pandangan mereka dalam pengembangan industri hilir kakao di tingkat IKM sebelum mengambil tindakan lebih lanjut.
Penelitian ini berlangsung di Bogor, Jawa Barat, Indonesia. Prosedur pengambilan sampel yang digunakan oleh peneliti adalah purposive sampling. Metode ini dipilih untuk memastikan bahwa peserta yang diwawancara adalah orang yang tepat untuk mendapatkan wawasan untuk penelitian ini. Enam peserta yang mewakili pemerintah, akademisi, dan industri telah diwawancarai untuk mengeksplorasi kemitraan yang ada saat ini, dalam pengembangan industri hilir kakao. Data yang terkumpul ditranskripsi dan dikategorikan sesuai dengan pertanyaan penelitian dan tema. Peneliti menggunakan framework method untuk menganalisis data.
Hasil penelitian menunjukkan beberapa pemangku kepentingan yang terkait dengan industri hilir kakao. Kolaborasi antara para pemangku kepentingan dipimpin oleh pemerintah dapat mempengaruhi kemitraan dalam pengembangan industri hilir kakao. Temuan penelitian menggambarkan pentingnya inisiatif pemerintah, program berkelanjutan, pembuatan database, pembuatan pasar, kemitraan penelitian, dan semangat kewirausahaan sebagai faktor yang harus ditingkatkan untuk meningkatkan kemitraan antara pemerintah dan IKM.
Penelitian ini memberikan informasi dari para pemangku kepentingan yang terkait dengan industri hilir kakao di tingkat IKM. Informasi mengenai perkembangan industri hilir kakao diperoleh dari sudut pandang pemerintah, sudut pandang akademis dan sudut pandang IKM. Dari penelitian ini, peneliti memberikan beberapa bidang yang dapat digunakan sebagai pengetahuan dasar untuk meningkatkan pengembangan industri hilir kakao di tingkat IKM.
ix
Copyright© 2015. Bogor Agricultural University
All Right Reserved
1. No part or all of this thesis maybe excerpted without inclusion and mentioning the sources
a. Excerption only for research and education use, writing for scientific papers, reporting, critical writing, or reviewing of a problem.
b. Excerption does not inflict a financial loss in the proper interest of Bogor Agricultural University.
DOWNSTREAM PRODUCT DEVELOPMENT OF COCOA
INDUSTRY: EXPLORING THE ROLE OF GOVERNMENT
AND SMALL AND MEDIUM INDUSTRY IN PARTNERSHIP
FARDA EKA KUSUMAWARDANA
A Thesis
Submitted to the Graduate School in Partial Fulfillment of the Requirement for Magister of Science
Degree in
Agroindustrial Technology
GRADUATE SCHOOL
xi
Thesis Title : Downstream Product Development Of Cocoa Industry: Exploring the Role of Government and Small and Medium Industry in Partnership
Name : Farda Eka Kusumawardana Registration Number : F351137171
Approved
Advisory Committee
Dr. Ir. Yandra Arkeman, M.Eng Chairman
Dr.Ir. Titi Candra Sunarti, MSi Member
Agreed
Coordinator of Program Agroindustrial Technology
Prof. Dr. Ir. Machfud, MS
Dean of Graduate School
Dr Ir Dahrul Syah, MSc.Agr
xiii
Acknowledgment
First of all, all Praise and gratitude to Allah Subhanahu wa Ta’ala, who the most precious and the most merciful for His blessing from the first until the last step of the research process. This research would have been impossible without the support from many people. I would like to appreciate everything they have given to me. I would like to acknowledge the support of the Ministry Industry of Republic of Indonesia for funding my study.
I would acknowledge my supervisors in Indonesia, Dr. Ir. Yandra Arkeman, M.Eng and Dr.Ir. Titi Candra Sunarti, MSi from Bogor Agricultural University Indonesia, for their support and their insight of my research and my study. I also thank Prof. Dr. Ir. Anas Miftah Fauzi, M.Eng as examiner in my final examination for their constructive comments. I am indebted to my supervisors in the Adelaide, Dr Barry Elsey and Dr Scott Gordon from the Adelaide University, who supports me academically and mentally in thesis writing from the beginning until the last step. I would like also to thank for their insight and his constructive criticism of my thesis.
Finally, I want to express my appreciation to my parents, my little sister, and my little brother who have always prayed and gave me the support to complete my studies. I am also grateful to my wife, Anggraeni, for her endless love, never-failing patience and encouragement. I dedicate this work to my beloved daughters, Sofia Taqiyya Nurfargia and Aznii Azkiya Nurfargia, who always gave me their love.
I hope that this work will bring many benefit to the readers and contribute to the development of knowledge.
Bogor, July 2015
Farda Eka Kusumawardana
Table of Content
List of Tables xvii
List of Figures xvi
List of Appendices xvii
1. INTRODUCTION 1
Background 1
Statement of Problem 1
Research Objectives 2
Research Question 2
Significance to the Field 3
2. LITERATURE REVIEW 4
Definition of Small and Medium Industry (SMI) 4 The Downstream Cocoa Industry in Indonesia 5 The Importance of the Government and SMI Partnership in the Development of
the Downstream Cocoa Industry 7
Public Private Partnership 7
3. METHODS 9
Setting 9
Participant 9
Research Stage 10
Data Analysis 10
4. FINDINGS AND DISCUSSION 12
The Stakeholders in the Development of Downstream Cocoa Industry 12
The Government Role in the Partnership 16
The SMI Role in the Partnership 18
Learning From the Government and SMI Partnership 20
5. CONCLUSION AND RECOMENDATION 24
Conclusion 24
Recommendation 24
REFERENCES 25
APPENDIX 28
xv
List of Tables
Table 1 Participants List Information 9
List of Figures
Figure 1 Cocoa Industrial Tree ... 5
Figure 2 Cocoa Value Chain ... 6
Figure 3 Indonesian Cocoa Beans Market ... 7
Figure 4 The Stakeholders Relationship ... 15
List of Appendices
1 substantial. One of many Indonesian local commodities that have strong resources is cocoa.
Indonesia is the third largest cocoa bean producers in the world (ICCO 2014). It puts cocoa as an important commodity that can contribute in sizeable economy development for the country. As one of the cocoa-producing country, the Indonesian government intend to develop the downstream industries cocoa products, by issuing policy. The policy related to the industry is Ministerial Regulation No. 67/PMK.011/2010 and updated through No.128/PMK.011/2011, which sets out the duty for cocoa beans for export that effective since April 2010. The policies aim to ensure the availability of raw materials to increase the competitiveness of domestic industries.
Small and Medium Enterprises (SMI) play an important role in economic development, both in developing and developed countries. The role of SMI in developing country, such as Indonesia, have been more vital since they contribute to improvement in several area, such as create new employment, export growth, increase the foreign exchange, and poverty reduction. Furthermore, it also leads to the development of rural area, upstream and downstream industry, entrepreneurship development, and increase the value added of agriculture product. Consequently, SMI can play a major role in the development of downstream cocoa industry.
The literatures demonstrate that in the development of downstream cocoa industry, the research focused on improvement on the upstream industry level or the intermediate product of cocoa industry (Hasibuan et al. 2012; Rahmanu 2009). Yet, a study exploring the development of cocoa downstream industry at SMI level need to be review. Moreover, in the development of SMI level, government and SMI should have create a good partnership in order to successfully develop the industry (Ajami & Bear 2013; Hussain et al. 2012; Kusmuljono 2009; Smallbone & Welter 2001).
Unfortunately, the partnership between the government and SMI still become an issues. Thus, this research aims to explore the partnership between the government and SMI in the development of downstream cocoa industry at SMI level.
Statement of Problem
2
cooperation, communication, and objectives between stakeholder in the industry including the government and the SMI (Bulkis 2014; Kurniawati & Lestari 2013). Whereas, learning from others successful SMI development, partnership between government and SMI is important (Doh & Kim 2014; Kang & Park 2012; Li & downstream industry. The specific objectives of this study are as follows:
1. To explore the current state of the partnership between the government and SMI from the perspective of government, academic, and SMI by describing the stakeholder that related to the industry.
2. To describe the factors that can improve the cooperation between the government and the SMI.
Research Question
The research will unite different views of government, academic, and SMI to explore the partnership between the government and the SMI in the development of downstream cocoa industry. The role of government, academic, and SMI is very important in the development of economic region so, it will be interesting to identify the common ground of their views’ in the development of downstream cocoa industry at SMI level before taking further action. Considering the description above, the research question is:
“What can we learn from the government, academic, and SMI point of view regarding the government and SMI partnership in development of the downstream
cocoa industry?”
In order to answer the central question, the researcher will ask the following sub-questions:
1. Who are the stakeholders involve in development of downstream cocoa industry?
3
Significance to the Field
4
2. LITERATURE REVIEW
Definition of Small and Medium Industry (SMI)
The definition of the Industry refers to Law No. 3 In 2014, Industry is all forms of economic activity that process raw materials and / or take advantage of industry resources to produce goods that have added value or higher benefits, including industrial services. Criteria for Small Industries, Industry Medium and large according to these rules:
1. Small Industries determined based on the number of workers and the value of the investment, excluding land and buildings.
2. Medium Industries determined based on the number of workers and / or the value of the investment.
3. Large Industry determined based on the number of workers and / or the value of the investment.
4. The number of workers and the value of the investment for Small Industries, Industry Medium and Large Industrial determined by the Minister
Criteria for Small Industries, Industrial Medium, and Large Industries in Law No. 3 Year 2014 will be regulated in the Regulation of the Minister of Industry (Permenperin). Until now, in May 2015, the draft of Permenperin concerning the classification of Small Industries, Industry Medium and Large Industries is still discussed at an internal level of the Ministry of Industry. Thus, the definition of SMI that will be used is Regulation of the Minister of Industry No. 41 / M-IND / PER / 6/2008 regarding Provisions and Procedures Giving Industrial Business License, Expansion License and Industrial Registered. The regulations contains a provision concerning the amount of the value of the company's investment criteria, namely: "Small Industrial investment value up to Rp. 200,000,000 (two hundred million), excluding land and buildings".
5
The Downstream Cocoa Industry in Indonesia
The scientific name for the cocoa tree is Theobroma cacao. Theobroma is a Greek composite word for “food of gods” (theo =god and bromin/brosis = food), and that is exactly what a chocolate has been known to be for centuries. There are three types of cocoa beans suitable for human consumption. They are the criollo, trinitario, and the forasteros. In Indonesia the cacao trees come from the hybrid bean of criollo and forasteros, called trinitario.
The cocoa pod has a lot of potential to be processed into a high added value derived product. A variety of the cacao products can be seen in the cocoa industrial tree picture at Figure 1.
Figure 1 Cocoa Industrial Tree
6
the end (ICCO 2013). The cocoa value chain that have been presented well in another study (Putri et al. 2015) can be seen in the Figure 2.
Figure 2 Cocoa Value Chain
According to the Ministry of Industry (Perindustrian 2009), the upstream cocoa industry start from the production stage until the marketing stage. The intermediary cocoa industry is the result of processing stage, namely, cocoa paste, cocoa liquor, cocoa butter, and cocoa powder. The rest is the downstream cocoa industry, the industry that use an intermediary cocoa industry product as the raw material.
A study in value chain improvement for Indonesian cocoa industry have conducted (Putri et al. 2015). The study explain that cocoa industry resources and industries related to the cocoa industry has not been optimized to support the development of the cocoa industry. Nevertheless, the Indonesian cocoa industry has less competitive compared to Ivory Coast and Ghana, the largest producer of cocoa beans in the world. The study proposed that the cocoa industry that has added value among entities is still low. It can be said that cocoa industry by sector in Indonesia is underdeveloped. The solution for that condition is increasing the cocoa derivative products in the form of cocoa paste, cocoa butter, cocoa powder, cocoa cake and cocoa liquor at the stage of processing. It can provide not only value added between industrial entities but also increasing the use of cocoa products for domestic production in food and beverage of cocoa products industry such as ice cream industry, chocolate and candy industry, cakes industry, and restaurant services. The study specify that the development of downstream cocoa industry is important. The development of the industry will provide not only value added between industrial entities but also increasing the use of cocoa products for domestic production. However, the study does not discuss the development in the SMI level.
7
As can be seen from the Figure 3, after 2010 the availability of raw materials for domestics market was increased. Those trends triggered the intermediate cocoa industries that produced intermediate product such as cocoa powder to develop.
Figure 3 Indonesian Cocoa Beans Market
The Importance of the Government and SMI Partnership in the Development of the Downstream Cocoa Industry
Ideally, it can be argued that the development of cocoa industry not only focused in the upstream industry but also in the downstream industry. Furthermore, the development of the industry in SMI level is essential due to their contribution in economic development. Previous research (Hasibuan et al. 2012; Rahmanu 2009) has indicated a need to develop the downstream cocoa industry to increase the industry performance. A study in policy formulation of cocoa industry (Widayanto 2013) investigate the important of policy formulation based on supply chain driver performance to support the cocoa industry. The purpose of this study is aiming to create a model of cocoa industry development policy. The study indicate that the partnership between the government and the industry is important in the development of the cocoa industry. This study also describe that not only government but also the industry should improve in order to sustain in the industry. However, the study does not discuss the development in the downstream industry. Furthermore, the corporate policy that the study propose only suitable for big industry level. Thus, there are some field in the development of downstream cocoa industry at SMI level that must be explore.
Public Private Partnership
Public private partnerships (PPP) is cooperation among public institutions and private enterprises which intend to provide public services. PPP according to
0
2006 2007 2008 2009 2010 2011 2012 2013
8
The EU is a kind of collaboration that linking public establishment and business world that intend to provide finance, structure, renewal, management or repairs of an infrastructure or intend to provide a service (Bovis, 2010). Previous study (Husain et al. 2012) were proposed the following definition PPP for SME sector is an approach to addressing SMEs growth problems through the combined efforts of public, private, and development organizations.
PPP can be benefited several ways in developing a well establish SME sector. First, PPPs can unite diverse actors’ knowledge and skills in formulating effective decisions as well as results in developing effective strategies and policies (Lowndes and Sullivan, 2004). Then, PPP can employ different diverse partners’ particular resources and can devise improved problem solving techniques competently than a single partner (Cohen, 2001).
PPP enable the Government concerning the disciplines, incentives, skills and expertise which private sector SMEs have developed in the course of their normal everyday business. PPP also help governments to release the full potential of the people, knowledge and assets in the public sector. PPP enables the Government to deliver its objectives better and to focus on those activities, fundamental to the role of Government, which are best performed by the public sector - procuring services, enforcing standards and protecting the public interest. In developing countries, growth of SMEs can be achieved through public-private partnerships, where the government delivers the minimum standard of quality for products and services, the private sector brings skills and core competencies, while government, donors and businesses jointly bring funding and other resources. Such collaborations will be especially productive in enhancing SMEs growth through partnerships. Through PPP, the advantages of the private sector such as dynamism, access to finance, knowledge of technologies, managerial efficiency and entrepreneurial spirit, are combined with the social responsibility, network of contacts, environmental awareness, local knowledge, and job generation concerns of the public sector (Husain et al. 2012).
9
3. METHODS
Setting
This study took place in Bogor, West Java, Indonesia. The city of Bogor have two institutions and one SMI that can represent the government researcher, academic, and SMI. The institutions are the government research center, an Agricultural University, and two cocoa based SMI in Bogor. Interestingly, Bogor not only close to the market, but also close to several intermediate cocoa industry that produce cocoa paste, cocoa butter, cocoa powder, cocoa cake and cocoa liquor. Those intermediate product is a raw material that can be derived into several product by the SMI.
Participant
The sampling procedures used by the researcher was purposive sampling. Purposive sampling in qualitative study is important to make sure that the participant is appropriate person to get their insight for this study (Bryman 2012). The participants were selected to those, according the researcher, are the expert in the development of cocoa industry. Participants includes two government researcher, two academic from IPB and two SMI.
The participant in the study were also selected because they were from different expertise. The participant from the government researcher were selected because they are work closely to government and SMI. The participant from academic were selected because they related to the development of the cocoa industry. Finally, the two SMI were selected with different background, one SMI is the company that have more than 10 years’ experience, and the other is new start-up company. The participant list described in the Table 1 below.
Table 1 Participants List Information
Participant List Institution Status Participant 1 Research center Researcher Participant 2 Research center Researcher Participant 3 University Lecturer
Participant 4 University Lecturer/Practitioner
Participant 5 SMI Owner
10
Research Stage
The study was conducted in three phases. The explanation of each stage of research described as follow:
a. Identification of the Stakeholder of the Downstream Cocoa Industry
The identification of stakeholder in downstream cocoa industry at SMI level obtained by doing interview with the expert in the downstream cocoa industry. The interview question guidance can be seen at Appendix 1. From this stage, the researcher have the information about the stakeholders. This information is important since it will give the government and the SMI an opportunity to increase the partnership.
b. Identification of government role in the partnership
The identification of government role in the partnership in the development of the downstream cocoa industry at SMI level obtained by doing interview with the expert. The interview question guidance can be seen at Appendix 1. With interpretative analysis the researcher will describe the current condition of the industry and then create suggestions of field that should be enhance to increase the partnership to develop the downstream cocoa industry. From this stage, the researcher have the information about the current government role.
c. Identification of SMI role in the partnership
The identification of SMI role in the partnership in the development of the downstream cocoa industry obtained by doing interview with the expert. The interview question guidance can be seen at Appendix 1. With interpretative analysis the researcher will describe the current condition of the industry and then create suggestions of field that should be enhance to increase the partnership to develop the downstream cocoa industry. From this stage, the researcher have the information about the current SMI role.
d. Learning From the Government and SMI Partnership
Learning from the Government and SMI Partnership in the development of the downstream cocoa industry obtained by doing interview with the expert. The interview question guidance can be seen at Appendix 1. With interpretative analysis the researcher will describe the suggestion to increase the partnership from government, SMI and academic point of view and then create suggestions of field that should be enhance to increase the partnership to develop the downstream cocoa industry. Finally, the researcher make a conclusion and recommendation.
.
Data Analysis
11
12
4. FINDINGS AND DISCUSSION
The Stakeholders in the Development of Downstream Cocoa Industry
The interview was conducted with the government researcher. The stakeholders in development of downstream cocoa industry according to the government researcher views are, the SMI, big industry, cooperatives, government, research centers, universities, associations, and other food industries. Every stake holders have their own role in the downstream cocoa industry at the SMI level.
The SMI. Interviewees reported that the SMI is a stakeholder in the
downstream cocoa industry that process the product for the consumer. Participant 1 said:” SMI … that use a raw materials from the large industry that produces a cocoa paste.” Participant 2 echoed: “The first is government … the second is SMI.”
Big industry. Interviewee reported that the big industry supply the raw
materials such as cocoa powder and cocoa paste for the SMI. Participant 1 explained: “If the SMI purchase a raw materials from the large industry, the SMI are subjected to a minimum order.”
Government. Interviewees reported that the government act as the
facilitator for the SMI. Participant 1 said:” the development of the downstream industry are the expectations of the government…the government must provide facilities to the SMI… the government should promote the SMI.” Participant 2 also said: “The local government should be act as a bridge between the SMI and the institutional investment providers and harmonizing the SMI willingness.” Interestingly, the government that the interviewee said is from several institution, namely, Ministry of Industry, Ministry of Agriculture, Ministry of Trade, and the local government. However, the institution that related to the development of SMI are Ministry of Industry and the local government.
Research centers and Universities. Interviewees reported that the both
13
Associations. Participant 1 said that if the strategy for the development of
downstream cocoa industry want to use a cluster, creating an association would be necessary: “If the purpose of the establishment of the cocoa clusters, the large industry, associations, and the SMI must working together, they cannot doing it individually ”
Cooperatives. SMI cannot buy a raw materials at retail from the big
industry. Participant 1 suggest there must be another institution such cooperatives that can bridge the SMI and Big industry so they can buy the raw materials: “There need to be some sort of cooperatives institutions to bridging the large, medium and small industry. Thus the SMI can get cheaper raw materials from this institutions.”
Other food industries. Interestingly, Participant 1 mentioned the possibility
to collaborate with another commodity industry to make a diversifications product of downstream cocoa industry: “Reflecting on the industry in the Garut, West Java, they cooperate with other food industries that use cocoa as well.”
The interview was conducted with the SMI. The stakeholders in development of downstream cocoa industry according to the SMI are government, association and research center.
Government. Overall, the role of government in development of
downstream cocoa industry at SMI level is need to be enhanced. Participant 5 reported that regarding to development of the product, there is less connection between the government and the SMI:” With the government, it seems we have not been able to solve the problems in chocolate.”
Association. The association has not able to play a role in the development
of the development of downstream cocoa industry if the purpose is to export the product. The problem arise because the Indonesian chocolate composition is different from other countries. The participant 5 reported:“ At that time I was offered to participate in overseas exhibitions. Then the chairman of the association said that Indonesia still inferior in the product taste.”
Research center. In general, SMI have not been able to utilize the results of
14
The interview was conducted with the academic. The stakeholders in development of downstream cocoa industry according to the academic are: the government, research center, industry, community, and another institution. The stakeholder activities should be interlinked to develop the downstream cocoa industry.
Government. The government must educate the consumer to consume the
product that made by the local industry. Participant 3 said that: “To develop the downstream industry, our society needs to be educated, that consume imported goods that are not developing ... nations.” Participant 4 echoed:” Indonesia is quite unique because they have a chocolate tree, but the downstream industry is still in distress. The process by the government to educate people about chocolate downstream products is still lacking, although people can afford to buy chocolate.”
Research center. The research center including university already have a
role as a partner for the government and the SMI. However, there are some factors that should be improve. Participant 3 mentioned that research center is one of stakeholders in the industry. In addition to that, Participant 4 explained more about the current condition:” If there SMI who wish to consult with the research center, research center will immediately provide the cost to be paid by SMI. In fact, consultation is still at an early stage to resolve the problem, and has not reached the production stage. In fact, SMI do not have a large expense.”
Industry. The industry role is in the manufacture of downstream products
from cocoa. Participant 4 explained that:” The first downstream industry is the industry that sells cocoa butter, cocoa liquor and cocoa powder. Furthermore, the next downstream industry is an industry that sells products to consumers, most of them are multi-national companies.”
Community. The community is the most important part in the downstream
cocoa industry since they are who will buy the product. The challenges for the industry is the culture of Indonesian consumer is not placing a downstream cocoa product as their daily consumption. This condition must be addressed by stakeholders to increase the awareness of downstream cocoa industry product consumption. Participant 3 explained: “This product is not such a dishes that everyone consumed every day. This product will become a consumer’s demand when there is an event. The next is the awareness about chocolate. Not everyone knows the advantages of chocolate and it was not promoted well.”
Another Institution. Interesting findings came from the Participant 4
15
overcoming the research collaboration barrier with the research center. Participant 4 explained: “…due to SMI inability accessing the research center because of financial issue, I join some organization/institution that provide some help for the SMI…”
In this study, it is revealed that the government has a major role in the development of downstream cocoa industry. Other than the government, the stakeholders in the development of downstream cocoa industry are the big industry that produce the upstream cocoa industry product, the SMI itself, the research center, cooperatives, a consumer, and another institution as an alternative solution between the SMI and the research center. The relationship between the stakeholders, can be describe on Figure 4.
Figure 4 The Stakeholders Relationship
According to the interview, currently every stakeholders is running independently and not collaborate well. This study also reveal that the SMI association still have less contribution in development of cocoa industry. Whereas, the SMI Association should have a role to facilitate the SMI in communicating with the government. The same condition is happened with the cooperatives, even though their existence is important in order to facilitate the SMI to order the raw material from the large Industry. This study also revealed that there are no institution who have roles as the cooperatives, so the SMI can have an advantages in supplying the raw material. It is contrary to what the government's objective in establishing associations and cooperatives (Sandee et al. 2002). Those institutions role actually an extension of government support for the SMI.
16
government support as a facilitators, the SMI can have a sustainable growth and development (Hussain et al. 2012).
From the SMI perspective, it is important for the government to conduct a research collaboration with the large industry to make a good quality intermediary product of cocoa. The SMI cannot make a good product if it comes from a low quality raw materials. It also should be taken as a consideration that the SMI product only fit for the domestic market due to under quality of the raw materials.
Interestingly, from the academic perspective, this study revealed the existence of “Another Institution” as a bridge between the SMI and the research center. Previous research (Anggraeni 2013; Angkasa et al. 2012; Prayitno 2011) already explained that this institutions come up because the inability of SMI to have access to the research center. In one hand this institutions actually helping the government to assist the SMI. On the other hand, this institution showed that the research center cannot give a good service to the SMI. In accordance to the existence of this institutions, the researcher suggest that this institutions should have make a collaboration with the research center. With this collaboration, both institution can share the service to the SMI. The most important things is the one who get the benefit is the SMI. The SMI will have another option to make a collaboration in order to gain an access for the research to develop the product. Thus, they can play the role in the development of downstream cocoa industry as a producer of the end product.
The Government Role in the Partnership
The interview was conducted with the government researcher. The current role of the government according to government researcher are policy makers and facilitators. Furthermore, from the interviews it revealed that their role cover a further details.
Policy makers. To maintain the sustainability of downstream cocoa
17
Facilitators. Up until now, the government already have several
programmed to assist the SMI. Some of the programs are research for product development, training, and providing the assistance in the form of buying a machine for the SMI. Interestingly, the government cannot arbitrarily removing the assistance for the SMI even though they already give the machine. Participant 2 reported:” The government cannot just leave the SMI and still requires them to cooperate with research centers even though the government has given aid equipment purchasing.”
The interview was conducted with the SMI. The government role in the partnership with the SMI according to the SMI views are training facilitator and participation in exhibition.
Training facilitator. According to the Participant 5, the trainings given by
the government is useful for the SMI. The SMI can give a lot of knowledge that can be used in increasing the company performance. Participant 5 reported:” Training from government is very helpful. The training is conducted by the government was very complete for example there GMP training, packaging, and others. Approximately there are 8 to 12 types.”
Participation in an Exhibition. Participant 6 explained that the participation
in an exhibition for the new enterprise is important to promote the product. Participant 6 reported:” We were invited by the ministry of industry to get a free stand to exhibit.”
The interview was conducted with the academic. The government role in the partnership with the SMI according to the academics are training facilitator, assistances, and an equipment provision.
Training facilitator. Up until now, the SMI have been given several training
by the government, like Participant 3 reported:” So far, the government has provided guidance sanitation, GMP, and registration certification.”
Assistance. The government usually give some assistance through the local
government. Participant 3 reported that:” Typically, governments provide assistance to local governments through the SMI. Then the local government give it to the industrial group / business, unfortunately with a low success rate of result.”
Equipment provision. In Padang, West Sumatra, Participant 4 reported that
18
From the interview we can conclude that the government role already in line in some aspects with the public partner partnership concept for SMI (Husain et al. 2012). The role of facilitator that the government researcher mentioned was echoed by the SMI and the academic. This situations means that actually the government as a source of information, has already released their knowledge for the public sectors. Moreover, the government also have already play their role as a regulator by issuing some policy.
From the SMI perspective, beside given training facilitation in order to develop the SMI, the government also already provide the SMI to create their own market by attending the exhibition. According to the interview, usually the local Indonesian government have more initiative in inviting the SMI to the exhibition. This situation is contrasting the previous research (von Malmborg, 2003) that said, the major barrier for public-private partnership barrier is limited confidence in local authorities in develop the SME. However, from the interview also the researcher can explain that the local government should conduct the equalization in partnership. The current condition reported that almost all the partnership occurred between the SMI that already known by the local authorities. A new SMI will be hard to create partnership with the local government, because in some place, the local government think that a new SMI will hard to develop.
Two point must be addressed according to the interview with the academic. First is even though there is an assistance provide by the government, but the success rate is low. Second, sometimes the equipment provision given by the government is different what the SMI need. For the first point it will be interesting if the researcher can conduct a further research for this problem. As for the second point, the researcher agree with some interviewee that said, it is necessary for the government to have a good plan by conducting a feasibility study, before giving the equipment provision.
The SMI Role in the Partnership
The interview was conducted with the government researcher. The SMI role in the partnership according to the government researcher are the producer and agent of entrepreneur.
Producer. Currently, the SMI have been already to make a contribution in
the development of downstream cocoa industry. The contribution is in product diversification. Participant 2 reported:” SMI is good enough in producing diversified products especially cocoa downstream industry. They took a chocolate bar from a large factory and they make new products with a simple process.”
Agent of entrepreneur. Participant 1 said that there are some SMI who
19
product can be an idea for the new entrepreneur. Participant 1 said:” Reflecting on SMI cocoa in Garut, he has been working with the food industry that use cocoa as well, so he simultaneously transmit his knowledge to provide training so he's products can also be developed. Thus, he can be an agent for prospective new entrepreneurs / who have been in food products so that he could use cocoa as complementary material.’
The interview was conducted with the SMI. The SMI role in the partnership according to the SMI are product development and promoting the local wisdom.
Product development. In the SMI level, the development of downstream
product of cocoa industry should be start from the intermediary product of cocoa industry such as cocoa paste, cocoa butter, and cocoa powder. It is unaffordable for the SMI to produce it from cocoa beans. Participant 5 explained:” Cocoa product is favored by many people, however the handling of cocoa must be using a special treatment. In contrast with the coffee, if the seeds are good, just grinded and brewed. The cocoa should be processed through many stages before it can be consumed by the public. "Participant 6 also said:" If you will open the cocoa business, most importantly of its simplicity, if starting from the upstream you need a lot of capital.”
Promoting the local wisdom. Besides creating the product, the SMI also
inserting the local wisdom in their product, so that they promotes the local culture. The part of the product that they utilize is the packaging. Participant 5 said:” I produce a product with displaying a regional culture in each package. The regional culture which I present is a batik designs on the product packaging.”
The interview was conducted with the academic. The SMI role in the partnership according to the academics are product development, beneficiaries, and follow the law.
Product development. Participant 4 said that the SMI is participating in the
development of downstream cocoa industry: “The SMI actually helped in the development of the cocoa downstream industries …”
Follow the law. Besides being a beneficiaries, the SMI also have registered
20
There is same views from the government, SMI, and academic regarding the SMI role in the partnership. All of them agreed that the role of the SMI is develop the product. This condition is in line with the previous public-private partnership concept (Husain et al. 2012) that explained the SMI should bring their skill and core competencies to enhance the partnership. Moreover, the SMI also realized that they can contribute to promote the local wisdom by creating their packaging which has the local wisdom elements.
Interesting findings come from the government views. The SMI can also help the government to become the agent of entrepreneur by collaborating their business with other SMI or teaching the people to become new entrepreneur. By doing this, the SMI not only helping the government to decreasing the employment, but also can expand their business by making a new entrepreneur as their business partner.
Learning From the Government and SMI Partnership
The interview was conducted with the government researcher. Learning from the government and the SMI current partnership, the government researcher suggest several strategies to increase the partnership. The strategies are:
Sustainable program. Development of downstream product of the cocoa
industry should be planned well by the government. Especially in collaboration between the stake holder. Participant 1 explained:” There are need for more comprehensive training plan, in cooperation with local governments. The plan needs to be budgeted for cocoa downstream industry in the SMI level. The approach taken should not use the approach of the project, but the systems approach to sustainable development of cocoa-based products of small industries. This must be done if the government wants the promotion and increase the consumption of cocoa.”
Entrepreneur spirit. It is important for the SMI to have an entrepreneur
spirit because problem usually arise for the SMI. According to Participant 2:” Because the government already provides facilitation, SMI need to maintain the spirit and want to be taught how to implement good GKM. It is unfortunate if there is no improvement after being trained. The next challenge for SMI is the local government does not want to develop a business from scratch. Therefore, independent promotional activities will be crucial.”
The interview was conducted with the SMI. Learning from the current partnership between the government and the SMI, the SMI suggest there are several things that must be improved, there are:
Information sharing. It is necessary for the SMI to promote their product,
21
SMI to attend the exhibition. Participant 6 reported:” If there is an exhibition, the government is expected to be more open in providing information, so that all SMI have the opportunity to participate.”
Special Event. It turns out that the peak season for the downstream cocoa
product SMI is when there are a special event. The special event that help the SMI are, Valentine’s Day, Ramadhan Event, Christmas, New Year’s event, and events held by the school or campus. Participant 5 reported:” For a particular season, such as Valentine's or campus and school events, it can be the size as the SMI advantage from large industry. The SMI can make a special order to create the desired shape of the chocolate.”
Database. It is important for the government to have the SMI database. With
the SMI database, the government can have the SMI training history. Using that data, the government can share the training facility equally. Participant 5 reported:” The Government should have a database of the SMI in each ministry. The data should be updated continuously so that all the SMI can get the same facilities.”
Research partnership. Interestingly, the participant propose that the
research partnership should be conducted between the research centers with the company that produce the intermediary product. The reason behind the proposal is because, if the raw materials is good, so the SMI can produce the better product. Participant 5 said:” If the government can cooperate with big companies to develop intermediate products of the cacao industry, the results from the development can be used by SMI to manufacture the good final product.”
Persistent. Training given by the government is the right place for the SMI
to increase their knowledge. Because it limitations, sometime the knowledge sharing between the trainer and the SMI is limited. In fact, not many SMI realize that actually the training session is an event when the SMI can make a connection with the trainer. In the future the connection is important if the SMI have a problem. The participant 5 explained:” If I am, I would ask the speaker continuously until I get what I want. But not all SMI have a persistent behavior such as me.”
The interview was conducted with the academic. Learning from the government and the SMI current partnership, the academics suggest the strategies to increase the partnership, as follow:
Pilot project. Currently the development of the downstream cocoa industry
22
developed by the government from the start of the company creation: “Governments must make an example of successful government assisted and its products have been sold in the market. From the beginning has been fostered, given the fund, guided continuously, so that its products can be sold and success in the marketplace. If the SMI successful, others will follow.” Participant 4 echoed: “We often forget that our society likes to imitate. When society saw a good product, it will be imitated.”
Education. To develop the downstream cocoa industry the stakeholders
should educate the consumer about the importance of cocoa product. Participant 4 said that the public education regarding the downstream of cocoa product is still lacking. Participant 3 give a suggestion that using a public figure to promote the downstream cocoa product would be necessary: “To educate the public to consume cocoa downstream products should use artist or public officials. Because there are cultural factors, then what to wear artist or a public official, certainly imitated by the society.”
Research funding assistance. It turns out that not only the SMI who cannot
make a partnership with the research center, but also the local government that try to make a collaboration with the research center. Participant 4 said that:” There are some local governments that have been willing to step in the development of downstream cocoa industry. Unfortunately when asking the research center, the consultation expense was expensive, finally he resigned because he could not pay.” Furthermore, Participant 4 suggest that the government can make a facilitation about this problem.
Entrepreneurial spirit. It is important to government to test the spirit of
entrepreneurship of the SMI before providing some assistance, like purchasing a machinery for the SMI. Participant 3 reported that:” The provision of assistance should be strictly selected. The elections must involve psychologists and sociologists to see the motivation from the SMI. Failure to give assistance mostly due to capital and motivation.”
Market creation. In the development of downstream industry, sometime the
SMI cannot create their own market. Participant 4 reported that:” If already established a market, there are many young entrepreneurs such as students who want to start a business in the downstream cocoa industry. The market creation should be done by the government through the assistance process.”
23
role that we can suggest based on the analysis of the current role that the government and the SMI already done.
Sustainable program. Government program in the development of downstream cocoa industry should be planned well. From the interview, there are a condition where the stake holder should consider that cocoa is not a daily product that the consumer use. Two strategies can be proposed to overcome this situation. First is by doing an education to the consumer using a role model from the public figure. Another strategy is promoting the downstream cocoa product by creating an event.
Database creation. In the development for the SMI based on cocoa downstream industry, creating the SMI database can give some advantages to the government. First, the government can give a facilitation evenly among the SMI, than then the government can monitor the result. Another proposed program for the government is to create a pilot project for development of SMI from the start until they are successfully independent (Mohd Yunos 2002). If the program success, the multiplier effect will be interesting. First, the government can develop a franchise of the successful SMI or there will be follower that imitating the successful company. Thus, the development in the downstream cocoa industry can be sustain.
Market creation. In the development of the downstream cocoa industry, increasing the number of the SMI in the industry is also important. The important of that is can also help the regional economic development by increasing the job opportunities. However this is not easy for the new entrepreneur to enter or creating the market. The government and the SMI can take part in this market creation. For the government, creating a policy in the market creation would be appropriate (Lall & Teubal 1998; Spencer et al. 2005). As for the SMI, they can be an agent in creating the new entrepreneur by sharing their experience.
Entrepreneurial spirit. This spirit can be known by the individual personality character such as risk-taking, persistence, good control, and have a strong motivation (Ang & Hong 2000). It is important for the government to make a test, before giving a facilities to the SMI, especially in giving a machinery. This study revealed that there are a lot of SMI’s owner who failed to develop their company after they have been given some facilities. The government researcher and the academic in this interview agreed that this condition because the SMI does not have an entrepreneurial spirit. By having this spirit usually the people will not easily give up when facing the barrier. The entrepreneurial spirit also important for the established SMI in order to solve the problem in order to growth (Lewis & Churchill 1983).
24
5. CONCLUSION AND RECOMENDATION
Conclusion
In the development of the downstream cocoa industry there are at least six parties involved as the stakeholders. The stakeholders are government, SMI, association, research center, consumer, big industry, cooperatives, and another institution. Based on the analysis, there are four area that should be develop in order to increase the partnership between the government and the SMI: 1) Sustainable Program; 2) Database Creation; 3) Market Creations; 4) Entrepreneurial Spirit; 5) Research Partnership. The study result wishes to become a useful foundation for the future research in the development of the downstream cocoa industry.
Recommendation
25
REFERENCES
ICCO. 2013. Quarterly Bulletin of Cocoa Statistics, Vol. XXXIX, No. 4, Cocoa year 2012/13. International Cocoa Organization London, UK.
ICCO. 2014. International Cocoa Organization (ICCO) Annual Report 2012/2013. Ajami, RA & Bear, MM. 2013. The global enterprise: Entrepreneurship and value
creation. New York(UK): The Haworth Press.
Ang, SH & Hong, DG. 2000. Entrepreneurial spirit among east Asian Chinese. TIBR. 42(3):285-309.doi: 10.1002/1520-6874(200005/06)42:3<285::AID-TIE2>3.0.CO;2-5
Anggraeni, AI. 2013. Optimalisasi Peran Lembaga Intermediasi Dalam Membangun Keunggulan Bersaing Umkm di Era Perdagangan Bebas dan Otonomi Daerah. Proceedings of Seminar Nasional Sustainable Competitive Advantage (SCA)[Internet].[Unknown time and place]. Banyumas(ID): FEB UNSOED;[download 2015 April 8]. Available on: http://jp.feb.unsoed.ac.id/ index.php/sca-1/article/viewFile/130/135.
Angkasa, WI, Hubeis, M & Pandjaitan, NK. 2012. Strategi dan Kelayakan Pengembangan Lembaga Intermediasi untuk Meningkatkan Daya Saing Usaha Kecil dan Menengah di Indonesia. J Man PIKM. 7(2): 95-101.
Bryman, A. 2012. Social research methods. New York(UK): Oxford University Pr. Bovis CH .2010. The state, competition and public services. In: Birkinshaw, P.J., Varney, M. (eds.): The European Union Legal Order after Lisbon. Kluwer, Dordrecht.
Bulkis, S. 2014. Penelitian Prioritas Nasional Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia 2011–2025 (PENPRINAS MP3EI 2011-2025). Makasar(ID): Universitas Hasanuddin
Cohen S (2001). A Strategic Framework for Devolving Responsibility and Functions from Government to the Private Sector. Pub Admin Rev. 61(4): 432-440.
Doh, S & Kim, B. 2014. Government Support for SME innovations in the regional industries: The case of government financial support program in South Korea. Research Policy.43(9):1557-1569.doi:10.1016/j.respol.2014.05.001.
Hasibuan, AM, Nurmalina, R & Wahyudi, A. 2012. Policy Analysis of Cocoa Downstream Industry Development (A System Dynamic Approach). JIP. 21(2): 59-70.
Hussain, I, Farooq, Z & Akhtar, W. 2012. SMEs Development and Failure Avoidance in Developing Countries through Public Private Partnership. Afr J Bus Manag. 6(4):1581.doi:10.5897/AJBM11.2526
Kang, K-N & Park, H. 2012. Influence of government R&D support and inter-firm collaborations on innovation in Korean biotechnology SMEs. Technovation. 32(1):68-78.doi:10.1016/j.technovation.2011.08.004
26
Kurniawati, T & Lestari, EP. 2013. The SME Development Based On Leading Commodities. Proceedings of Seminar Nasional Sustainable Competitive Advantage (SCA) [Internet].[Unknown time and place]. Banyumas(ID): FEB UNSOED;[download 2015 April 8]. Available on: http://jp.feb.unsoed.ac.id/ index.php/sca-1/article/viewFile/171/176.
Kusmuljono, BS. 2009. Public-private partnership policy: System approach to microfinancing. Proceeding of the 53rd Annual Conference of the International Society for the Systems Sciences 2009[Internet]. [July 12-17, 2009 Brisbane, Australia]. Bribane(AU):University of Queensland. page 672-676. [download on 23 March 2015]. Available at: http://journals.isss.org/index.php/ proceedings53rd/article/view/1199
Lakitan, B. 2013. Connecting all the dots: Identifying the “actor level” challenges in establishing effective innovation system in Indonesia. Technol Soc. 35(1): 41-54.
Lall, S & Teubal, M. 1998. “Market-Stimulating” technology policies in developing countries: a framework with examples from East Asia. World Dev. 26(8): 1369-1385.doi:10.1016/S0305-750X(98)00071-0.
Lewis, VL & Churchill, NC. 1983. The five stages of small business growth. On: Storey, DJ.2000. Small Business. New York(US): Routledge
Li, J & Chen, J. 2006. Development of Chinese small and medium-sized enterprises. J Small Bus Manage. 13(2):140-147.doi: http://dx.doi.org.proxy. library.adelaide.edu.au/10.1108/14626000610665854
Martini, L, Tjakraatmadja, JH, Anggoro, Y, Pritasari, A & Hutapea, L. 2012. Triple Helix Collaboration to Develop Economic Corridors as Knowledge Hub in Indonesia. Procedia Soc Behav Sci. 52:130-139. doi: 10.1016/j.sbspro. 2012.09.449
Mohd Yunos, MG. 2002. Building an innovation-based economy: the Malaysian technology business incubator experience. J Change Manag. 3(2):177-188.doi: 10.1080/714042527
Perindustrian, D. 2009. Roadmap Pengembangan Industri Kakao. Direktorat Jenderal Industri Agro dan Kimia. Jakarta (ID): Kementerian Perindustrian. Pippel, G. 2013. The impact of R&D collaboration networks on the performance of
firms: a meta-analysis of the evidence. IJNVO. 12(4):352-373.doi: 10.1504/IJNVO.2013.057282
Prayitno, KB. 2011. Peran Lembaga Intermediasi (LI) Dalam Pengembangan UMKM Inovatif. JSI .1(1).
Putri, AS, Sutopo, W, Prihawantara, S & Matheos, RCD. 2015. Value Chain Improvement for Cocoa Industry in Indonesia by Input-Output Analysis. Proceedings of the International Multiconference of Engineers and Computer Scientists[Internet].[ March 18 - 20, 2015, Hong Kong]. [download at 9 May 2015]. Available at: http://www.iaeng.org.proxy.library.adelaide.edu.au/ publication/IMECS2015/IMECS2015_pp947-952.pdf.
27
Rifin, A. 2014. The Impact of Export Tax Policy on Cocoa Farmers and Supply Chain. Int’l Trade J. 29(1):39-62.doi:10.1080/08853908.2014.941048
Sandee, H, Isdijoso, B & Sulandjari, S. 2002. SME clusters in Indonesia: An analysis of growth dynamics and employment conditions. Jakarta (ID): International Labor Office (ILO).
Smallbone, D & Welter, F. 2001. The role of government in SME development in transition economies. ISBJ.19(4):63-77.doi:10.1177/0266242601194004 Spencer, JW, Murtha, TP & Lenway, SA. 2005. How governments matter to new
industry creation. AMR. 30(2):321-337.doi:10.5465/AMR.2005.16387889 von Malmborg, F. 2003.Conditions for regional public–private partnerships for
sustainable development — Swedish perspectives. Eur. Env. 13:133–149. doi: 10.1002/eet.317
28
APPENDIX
Appendix 1 Interview Question Guidance
1. The Stake Holder in The Industry
a. Who are the stakeholders involve in development of downstream cocoa industry?
2. The partnership between SMEs and Government a. What have the government done in the partnership? b. What have the SMEs done in the partnership?
29
AUTOBIOGRAPHY
Farda Eka Kusumawardana, the author of this thesis, was born in Bogor, on 17th of June 1985. He completed her primary education in 1997 at SDN Polisi IV Bogor. He did his Junior high school at SMPN 1 Bogor in 2000 and completed her senior high school at SMAN 3 Bogor in 2003. He spent her bachelor degree in Gadjahmada University, Yogyakarta with major Computer Science. He got her B.A in 2008. He got married to Anggraeni in April 2011.
He has worked as Public Service Officer at the Ministry of Industry Of Republic Indonesia in Directorate General of Small and Medium Industry. He continued his study to the master’s degree with double-degree program between Department of Agroindustrial Technology of Bogor Agricultural University, Indonesia and Entrepreneurship Commercialization & Innovation Centre of University of Adelaide, Australia. He spent her first year in Bogor and her second year in Adelaide. He got the scholarship from Ministry of Industry of Republic Indonesia.
