BUILDING A BUSINESS CASE
FOR CONSERVATION
Cacao value chain analysis in Sintang
West Kalimantan

Implemented by:

TABLE OF CONTENTS
1.

Executive Summary.…................. 03

2.

About this report…………………..… 05

3.

Background…................................. 13

4.

Economic sustainability……….…. 14

5.

Availability of resources…………. 19

6.

Environmental
sustainability………….……….………… 22

7.

Post-harvest
processing…………………….………… 25

8.

Challenges andrecommendations.......................

9.

Conclusion………............................ 41

10. Methodology………........................
11.

40

43

References………........................... 44

12. About partners…..........................

45

13. About Kopernik…………….………… 46
2

Cacao beans after going through the fermentation process

EXECUTIVE SUMMARY
Kopernik, supported by Ford Foundation and Climate and Land Use Alliance (CLUA), aims tobuild business cases for environmental conservation. To achieve this, Kopernik partners with
Lingkar Temu Kabupaten Lestari (LTKL) and Credit Union (CU) Keling Kumang to map andanalyize the cacao value chain in Sintang, West Kalimantan. This report discusses the potential
development of cacao as a sustainable commodity to support Sintang’s economy whilst
ensuring lands continue to be protected.
Currently, oil palm and rubber are the top commodities in Sintang. However, the fluctuation of commodity prices that
tend to decline have impacted the income of smallholder farmers. In addition, the monoculture nature of oil palm
plants have negatively impacted on soil quality and the surrounding environment. To address this, the government ofSintang (with the support of relevant stakeholders) aims to introduce cacao as an alternative commodity to be
developed in Sintang.

Cacao fruit harvest

Cacao has high endurance and can grow side by side with other plants, which can potentially help farmers improvetheir income. The limited technology, knowledge and skills of farmers toward good production and processing,unfortunately, have negatively affect the productivity and sales, thus not profitable.
The inability of farmers to see any economic benefits from cacao plantation makes it prone to being converted into
palm plantation, or being sold to outsiders. Therefore, increasing farmers’ capacity will increase the productivity andquality of harvests, which eventually can be sold at a price point that benefit the farmers.
The study was conducted for three months in Sintang which involved cacao farmers, middlemen, cacao experts, andseveral cacao bean processing business owners. The information presented in this report is the result of ourobservation in the field that will hopefully be able to provide a better understanding of the potentials to develop cacao
as a sustainable commodity in Sintang.

Cacao beans at the dryer facility
3

EXECUTIVE SUMMARY
To develop a business case through conservation, Kopernik conducts the study following these steps: identification ofland ownership, initial assessment and collaboration, research & experimentation, and replication
PHASE IIDENTIFICATION OF LANDRIGHTS GRANTEDASSESSMENT &PARTNERSHIP• Identify land and communities atrisk of being unproductive or
converted into palm plantation• Identify commodities that areenvironmentally sustainable andeconomically viable.
• Build partnerships with the local
government and community.

NEXT STEPS

4PHASE IIRESEARCH & TESTINGSCALE UP/REPLICATION• Map and analyze the commodity
value chain starting fromproduction to consumption.
• Design and test simple
technology to improve process.
• Proof of concept• Scale up simple technology by
local community organizations
with the support from local
government

Based on the success of activities in Sintang, Kopernik sees this as an
initial step in supporting the development of business for conservation
at the local level. Therefore, Kopernik aims to continue developing
business cases in other regional areas to ensure lands continue to beprotected.

LOCATION:•••

Sanggau
Sintang
Siak

TIMEFRAME:• Jan 2020 – Des 2021

ABOUT THIS REPORTThe discussion on cacao will concentrate on four aspects: economic sustainability, availability of resources, environmental
sustainability, and post-harvest processing

ECONOMICSUSTAINABILITYAVAILABILITY OF
RESOURCESENVIRONMENTALSUSTAINABILITY

Cacao commodity economic
sustainability refers to the potential
yield of cacao beans to meetmarket share.

The availability of resourcesrefers to the capacity of farmers
and stakeholders who can
support the sustainability of cacao
plantation activities in Sintang.

Environmental sustainability refers toefforts to harmonize infrastructureand economic development of thecommunity with nature conservation.
In addition to its commercial value,cacao can grow side by side withother forest plants (agroforestry), sothat the preservation of nature ismaintained.

With efforts to strengthen market
access and the need for plantationequipment, farmers are expected
to be able to increase their income
from cacao plantations and meet
future national cacao demand.

5

Supporting factors such as
infrastructure, access to capitalloans, access to markets, training,
and assistance will influence thesuccessful development of cacao
agribusiness in Sintang.

This agroforestry system will not
reduce production output, so it ishighly recommended because it ismore beneficial for the environment.

POST-HARVESTPROCESSING

Postharvest processing refers to
the experiment of drying cacao
beans using a solar dryer. It aims
to improve the quality of driedbeans in order to meet the quality
standards of cacao beans in themarket. This experiment was
conducted with farmers and Keling
Kumang CU in Penyangka,
Sintang. Dried beans are tested bymeasuring the moisture content
and cut test.

ABOUT THIS REPORT
Farmers' challenges in growing cacao can be grouped into external and internal challenges that directly affectcacao productivity.
EXTERNAL

Limited financial
CAPITAL prevents
farmers from buying
supporting facilities suchas fertilizer, which has an
impact on cacao
productivity

6

Poor INFRASTRUCTURE
from/to cacao plantations
results in long travel time
for cacao transportation
which is at risk ofdamaging wet beans

INTERNAL

MARKET ACCESS andinformation on minimum
prices compel farmers to sellcacao beans at low prices.
Often prices are determinedby intermediaries based on
subjective assessments of thequality of farmers' cacao beans

SKILLS and knowledge of
farmers, especially in postharvest seed processing arestill minimal, so it is common
for farmers to choose not toharvest and sell cacao beans
if there are no buyers

MOTIVATION of the farmers
tends to decrease due toexternal challenges, resulting
in low productivity and minimal
quality of cacao bean,
impacting farmers income

ABOUT THIS REPORTThe following mapping of the cacao value chain in Sintang aims to understand the farmers' readiness to run a cacao
plantation. Most farmers are still in transition from rubber and oil palm plantation, therefore cacao farming is not yet
maximized
MARKET PARTICIPANTS IN THE CACAO VALUECHAIN

PRODUCER

PRE-HARVEST• Land preparation• Nursery• Cropmaintenance

HARVEST• Harvestingcacao fruit

POSTHARVEST• Drying cacao
beans

Farmer7

SELLINGPROCESSING• Collection of seeds
from the region• Purchase of cacao
beansIntermediaries

Wholesalers

CHOCOLATEPRODUCT• Processing cacao
beans into final
products• Purchase of
chocolate
products andderivatives

Chocolate productprocessing

Consumer

OCCUR IN SINTANG

OCCUR OUTSIDE SINTANG

The pre-harvest, harvest and post-harvest activities carried out by farmers
are still very simple. Besides still having to take care of other staple crops
such as rubber and palm oil, farmers have not seen cacao as analternative commodity to help their income due to various external andinternal constraints.

Due to the unavailability of markets in Sintang, farmers had to bring andsell their dried seeds to intermediaries in the Sekadau, Entikong andBeduai areas at low prices. These intermediaries will then sell farmers'
cacao beans to a larger market.

ABOUT THIS REPORT
Cacao value chain – market participants
The cacao market in Indonesia is generally divided into artisan chocolate markets (Sorga Chocolate, Krakakoa), large producers (Mars, Cargill),and producers of chocolate blended products. Each of these market types has different quality requirements, depending on the type of product.
To produce chocolate mix products, for example, premium quality cacao beans are not needed. Cacao beans from Kalimantan are generally
sold to intermediaries at low prices, which are ultimately sold to large traders to make chocolate mix products.
Selling prices in the cacao value chain (per kg)
PRODUCER
PRE-HARVESTHARVEST

MARKET PARTICIPANTS IN THE CACAO VALUE CHAIN
POSTHARVEST

FarmerSelling prices

Rp 16.000* Cacao price data based on https://www.icco.org/ per October 2019** The price of artisan chocolate bars with processing, IDR. 50,000 / stick 50g

8

SELLING

Middleman

Wholesaler

Rp 18.000

Rp 23.100*

PROCESSINGCHOCOLATEPRODUCT

Chocolate productprocessing

Consumer

Rp 200.000 – Rp 1.000.000**

Middlemen buy dried cacao beans from farmers at a price of IDR
16.000/kg (Indonesian cacao beans are generally bought at 48.5%of the world market price of IDR 33,000). This price is obtained
because the seeds are generally not fermented and well dried.

ABOUT THIS REPORT
Action steps – farmer capacity development
The capacity building of farmers aims to improve the technical skills of farmers in farming. Interventions can be in the form of workshops, intensive
training, and direct assistance. The following concept of capacity building for farmers starts from evaluating the level of knowledge of farmers todetermine appropriate interventions in channeling knowledge and skills so that farmers can optimally implement good practices.
The concept of capacity building for farmers
Assessment

Intervention

ResultLimited knowledge

Transfer of knowledge and skills

Optimization of practices in the field• Agriculture facilitators from both thegovernment and the private sector firstevaluate the level of knowledge of farmers
in technical and management aspects
related to cacao.

9• Based on the evaluation results, thefacilitator determines the form of intervention
to be distributed to farmers. Interventions
can be in the form of intensive assistance ortraining with adjusted materials dependingon the farmers' needs.

• Farmers can optimize the results of theintervention through field practice. The new
method is expected to increase crop
productivity and the quality of cacao beans
as a commodity in Sintang. Advanced
farmers are expected to be able to teachother colleagues to get similar results.

ABOUT THIS REPORT
Action steps – use of solar dryers
In order to improve the quality of seeds, experiments carried out using solar dryers have succeeded in drying the seeds according to market
standards. Therefore, farmers are advised to use this dryer with the following methods:
FERMENTATIONFRUIT SHELLS+• Cacao fruit is split to collect thebeans, followed by the sorting toseparate good beans and theinsects infested or bad ones.

10+• In a wooden box, the cacao
beans are fermented for five days.
During the fermentation process,there will be a severe shrinkage
of 19%.

DRIED SEEDS ARE
READY TO SELLSOLAR DRYING
PROCESSFERMENTATIONPROCESS=• After completing the fermentation
process, the cacao beans are
dried in a solar dryer for 5-7 days
to reduce the moisture content.

• Cacaobeans
areready to be marketed.

ABOUT THIS REPORT
Action steps – support from local government and farmer activists in developing partnerships
The development of cacao plantations in Sintang requires cooperation from related parties such as the government in terms of mapping anddata collection, the private sector in strengthening market access, and farmer experts in mentoring. Coordination between all parties is needed
to enhance the program and develop partnerships with stakeholders outside the Sintang region.
The concept of developing partnerships is supported by the government andfarmer experts to strengthen the cacao farmer's businessBusiness development andimplementation

Approach to partners

•
•
•

11

Identify business connections that canconnect farmers with potential partners.
Study the needs and interests of potential
partners.
Connect with potential partners througheffective communication.

•••

Identify business risks.
Develop business concepts that benefit bothparties.
Implement business concepts following
agreed plans.

Business supervision••

Conduct periodic visits to exchange
information.
Identify challenges in doing business withpartners, and help to find solutions

12

The farmer explains the condition of his cacao crops.

BACKGROUND
Sintang regency profile
ASPECTDESCRIPTION

Regional
Conditions• District Area 21.635 km² with the dominance of
hilly areas by 63%

Climatic
Conditions• Tropical (high humidity and rainfall)• Rainfall intensity is 249.08 mm / month• Rainy days 17 days / month

Demographic
Characteristics• Total population of 398,663 inhabitants• Population density of 27 people / km²

Economic
Conditions• The agriculture, forestry and fisheries sectors
are the largest contributors to district revenues(25,97%)• The contribution of the agricultural sector has
continued to decline from 2010 while theconstruction sector has continued to increase,which shows the ongoing development of
infrastructure in Sintang

The environmental and demographic profile of Sintang Regency supports thedevelopment of cacao plantations, especially in terms of the many hilly areasand climate conditions.

13

CACAO AS AN ALTERNATIVE COMMODITY
The decline in rubber and palm oil prices at the farm level in recent years
has reduced Sintang farmers' welfare. Therefore, in 2017, the Sintang
District Government has added coffee and cacao as superior commodities
as an alternative for farmers.

FORM OF SUPPORT TO FARMERS IN SINTANG
So far, the Sintang Plantation Service has provided agricultural counselingto farmers. The government is also targeting the expansion of plantation
areas through the provision of seeds and fertilizer to farmer groups.

FORM OF SUPPORT TO NATURAL SUSTAINABILITY
In an effort to support the preservation of nature and biodiversity, theRegency Government no longer gives permission to open oil palm
plantations. The government supports the development of cocoa because
it is more environmentally friendly and supports the people's economy.

CURRENT PRODUCTIVITY
At present the cacao plantations in Sintang are still not popular and are
not optimally managed. Cacao is planted among rubber trees, where
the treatment is likened to rubber trees. This causes the productivity of
cacao to be low, at 66 kg/ha, compared to the national average
production of 803 kg/ha.

ECONOMICSUSTAINABILITYAVAILABILITY OF
RESOURCESENVIRONMENTALSUSTAINABILITY

POST-HARVESTPROCESSINGECONOMIC SUSTAINABILITY
Background – Indonesia is the third largest producer of cacao beans in theworld in 2017 with a total production of 659,776 tons of cacao beans. Even so,
Indonesia still needs to import 270,200 tons of cacao beans to meet domestic
needs. This shows the potential for the development of the country's cacao
beans production. West Kalimantan as one of the regions with suitableregional profiles for cacao cultivation, began to look at these opportunities.

The results of interviews with farmers showed that farmers have not optimallyprocessed and sold cacao. It is considered not profitable because of theabsence of the market.

The Government of Sintang Regency and Keling Kumang Group, in this case
PT. BAM, started to revive the cacao plantations which had been abandoned by
farmers due to lack of motivation and knowledge. With efforts to strengthen
access to inputs and markets, farmers are expected to be able to benefit from
cacao plantations and contribute to meeting national cacao needs in the future.

“I sold my cacao to Beduai (6 hours from Sintang), taken
while visiting relatives there. I brought 20 kg in a cartonand sold IDR. 20,000 a kilo, not bad for the bus fare”(Farmer Y, Sintang)

RESPONDENT STATEMENT“ I have never sold cacao from my garden. I once tried toharvest and dry, only got 5 kg and there were no buyers,
I finally threw it out because it was moldy” (Farmer L,
Sintang)“The price of cacao is good, but there are no goods. Thereused to be farmers who sold up to 300 kg, but since last year
no one else has sold cacao to my shop”(Middleman A, Sekadau)

Test of moisture content of the cacao beans being dried.

15

ECONOMIC SUSTAINABILITY
Cacao has potential to support the farmers economy up to IDR 30.000.000/hectare, however, this potential can only beachieved with optimal productivity and good quality, as well as market access
Below are three different scenarios that are often experienced by farmers, namely:• Scenario A – low productivity, low seed quality, and generally harvests are bought by intermediaries.
• Scenario B – high productivity, harvests are bought by intermediaries because of limited market access.
• Scenario C – high productivity with high quality seeds and have access to large buyers or processing plants.
COMPONENTSCENARIO ASCENARIO B

SCENARIO C

The area of the garden is 1 ha with, 1,000 productive cacao trees• Low productivity• Non-premium quality• Consistent market (middleman)• High productivity• Non-premium quality• Consistent market (middleman)• High productivity• Premium quality• Consistent market (factories and big
buyers)

Initialinvestment *• Purchase of equipment IDR 1,000,000• Purchase of seeds IDR 10,000,000• Purchase of equipment IDR 1,000,000• Purchase of seeds IDR 10,000,000• Purchase of equipment IDR 1,000,000• Making fermentation boxes and dryers IDR
5,000,000

Maintenancecosts**• IDR 3,290,000• IDR 6,720,000• IDR 6,880,000

Condition

Estimated sales ofdried beans•

IDR 6,400,000 (1,000 trees x 0,4 kg x IDR

16,000)• IDR 6,400,000 (1.000 trees x 0,4 kg x IDR
16,000)• IDR 33,000,000(1,000 trees x 1 kg x IDR 33,000)

It is hoped that more farmers can switch toscenario C where prices are much better* Initial investment based on interviews with PT BAM** The calculation of costs is based on the publication of a financial analysis of the diversification of smallholder cacao and goat farming at the farm level, 201416

ECONOMIC SUSTAINABILITY
Scheme of cacao development with the inclusion of KKG as a private party in the value chain
KKG is one of the cooperatives in West Kalimantan that supports the development of cacao plantations to improve the economy of farmers. PT
BAM, which was established by KKG, provides cacao seeds, and also buys cacao beans (wet and dry) directly from farmers and distributes themto processing plants. With PT BAM in the value chain, farmers can sell their crops more easily in Sintang. The existence of PT BAM leads to theachievement of Scenario C by providing access to seeds, maintaining product quality by conducting post-harvest processing, and connecting
farmers to the market.
The role of PT. BAM as a private party in the cacao value chain in Sintang

PRE-HARVEST• Providing superiorcacao seeds forfarmers

HARVEST• Assist farmers inaccordance with good
plantation practices

POSTHARVEST• Establish cacao bean
drying centers

OCCUR IN SINTANG
Farmers' activities from the pre-harvest to harvest stage are directed tofollow the GAP (Good Agricultural Practices). After cacao is harvested,
farmers can sell wet beans to the KKG for further processing or selfprocessing by following established standards.

17

SELLINGPROCESSINGCHOCOLATEPRODUCT• Join the Cacao Sustainability Partnershipnetwork to expand connections with potential
buyersOCCUR OUTSIDE SINTANG
KKG will sell cacao beans from farmers to processing factories orthe chocolate industry, the majority of which are outside
Kalimantan.

ECONOMIC SUSTAINABILITY
To increase cacao productivity in Sintang, there are three main factors that need to be considered by the government,
private sector, and farmers: access to inputs, infrastructure, and market access.
STAKE
HOLDERSCURRENT CONDITION
Input
Access• Provided assistance of IDR 125,000,000 in

Infrastructure•

Road infrastructure to cacao
plantations in Sintang and surrounding
areas is still inadequate. This condition
takes a long time to bring cacao so thatit risks damaging wet cacao beans.

•

Cacao was developed in the Entikong andAmbalau areas through a government
program but was not equipped with clear
market information.

•

KKG is building a cacao
processing center in Sintang
for fermentation and drying
beans.

•PT BAM will buy wet cacao beans fromfarmers for further processing and selling to
the domestic market.

•

The condition of road infrastructurein Sintang that is still developing
causes farmers can only sell tointermediaries located close to theplantation.

•

Farmers have no knowledge of the cacao
market other than through intermediaries.
The selling price is determined by the
middleman depending on the subjective
assessment of the quality of the cacao
beans.

the form of seeds and fertilizer for farmergroups.

Government• PT BAM sells superior cacao seedlings
Private Party

ready for planting and Keling Kumang
Credit Union provides financial loans thatmake it easy for members.

• Farmers plant cacao from seeds that were

Farmer

RECOMMENDATIONS

18

Market Accesspreviously provided through government
programs and seeds found from thesurrounding environment.
• Application of fertilizers and pesticides isdone together with rubber plants (1-2 times /year) due to lack of knowledge about good
agriculture.

Provision of plantation inputs that can beeasily accessed by farmers, intensive training
and assistance

Improvement of infrastructure accessthrough the construction of roads fromfarmers' plantation areas to urban areas

Development of direct collaboration withchocolate processing plants.

ECONOMICSUSTAINABILITYAVAILABILITY OF
RESOURCESENVIRONMENTALSUSTAINABILITY

POST-HARVESTPROCESSING

AVAILABILITY OF RESOURCES
Background - The majority of farmers now grow rubber as their main
livelihood. The practice of growing cacao is usually following the treatment
given for rubber. In addition, many farmers plan to plant cacao between theirrubber plantations. This practice is not recommended because cacao andrubber have almost the same type of disease that allows rapid spread in one
agricultural land.

The results of interviews with cacao farmers showed that farmers who had
already planted cacao in general did not yet know how to plant and the right way
to maintain cacao. On the other hand, farmers are interested in growing cacao
after knowing the final product. They also look eager to learn and practice it intheir garden. Some farmers have the opportunity to learn about cacao in thePhilippines with KKG, and will help their fellow farmers when planting begins.

Before starting to plant cacao, farmers must have knowledge about goodpractices to avoid the spread of pests and diseases and maximize
productivity. In this case, collaboration is needed from the government andother stakeholders to strengthen the capacity of farmers.

RESPONDENT STATEMENT“I first planted cacao from government seedlings two years
ago, taking it from around the unattended village in Melawi. I
thought until 5 years later, people would still consume
chocolate, but when I planted I didn't know how to treat it”(Farmer J, Sintang)“When I went to the Monggo chocolate factory in Lampung,I found out that it was the result of a tree that I had at home.
So far I do not know how to process it”(Farmer E, Sintang)

Farmers do the top grafting to get strong trees that bear a lot of fruit.

20

I get information traditionally. Breeding by tugal, such as
planting cuttings by transferring it to the soil and then willgrow on its own. Following people first because there is no
education about cacao planting.”(Farmer S, Sintang)

AVAILABILITY OF RESOURCES
To increase the capacity of human resources, especially farmers, it is necessary to increase access to information as well as training andassistance -particularly in the early stages of planting activities.
CURRENT CONDITIONSTAKEHOLDERS
Access to information

Training and assistance•

Representatives from the Agriculture and Plantation Service weresent to Jember to learn about cacao at the Coffee and Cacao
Research Center.

•

The government assigns Field Agricultural Instructors(PPL) to assist farmers based on work area, but there
is no specialization based on commodities,
especially cacao.

•

PT BAM sent its representatives and several farmers to attend
training in the Philippines on cacao cultivation and processing.

•

PT. BAM and KKG hold workshops on cacao tomotivate farmers.
PT. BAM provides assistance to farmers who want tostart planting cacao.
KKG has a Self Help Group sub-unit whose
job is to assist farmers.

Government•

Private parties••
Farmers

RECOMMENDATIONS
21•

Sources of knowledge about agriculture practices reported
by farmers are from self-taught learning, hereditary practices,and examples from other farmers.
Farmers do not yet know post-harvest processing techniques suchas good fermentation and drying, so far they rarely harvest andsell cacao beans to the market.
.
Provision of information •sourcesthat can be easily and freely
accessed by farmers about how to plant and process cacao
properly.

•

Farmers have never received training and assistance
before planting cacao, but they are quite open and
expect assistance to produce maximum yields later.

Providing initial training and assistance for farmers who arejust starting to plant cacao.

ECONOMICSUSTAINABILITYAVAILABILITY OF
RESOURCESENVIRONMENTALSUSTAINABILITY

POST-HARVESTPROCESSING

AVAILABILITY OF RESOURCES
Background - As the initiator of the District Collaborative Forum to Achieve
Sustainable Development in Indonesia consortium, Sintang Regency seeks
to harmonize community infrastructure and economic development with
ENVIRONMENTAL SUSTAINABILITY, one of which is by including cacao as
a superior commodity in Sintang RPJMD 2016-2021.
In addition to functioning as a commercial commodity, cacao can growharmoniously in a protected forest buffer zone that borders the forest areawith areas of community activity to protect the forest from damage.
Besides that, cacao can also grow under the shade of other trees thereby
increasing carbon storage capacity and supporting the preservation of
biodiversity in the plantation environment.

Discussions with relevant stakeholders (Plantation Office and PT BAM) indicatethat the development of cacao plantations in Sintang will be directed tosustainable plantations and minimize the use of synthetic chemicals.
RESPONDENT STATEMENT“PT BAM's representatives and several prospective accompanying
farmers participated in training at Ralve Gourmet Inc., Philippines on
agriculture practices and sustainable cacao processing. This planting
practice is directed towards organic farming by minimizing the use offertilizers and pesticides and other synthetic materials in land
preparation, planting, and maintenance. The results of this training will
be distributed to cacao farmers through assistance when starting a newplanting.” (Manger of PT BAM)

“ One of the things I learned in the Philippines was to deal with pests
including wrapping fruit so that it would not be hit by pod borer andspraying trees with chili water to ward off squirrels” (Farmer T, Sintang)“We recommend intercropping with other wood or fruit plants with thecorrect layout for other sources of livelihood.” (Sintang Plantation
Service Representative)

Cacao tree in the middle of a rubber plantation, Tempunak, Sintang.

23

ENVIRONMENTAL SUSTAINABILITY
The development of cacao plantations in Sintang becomes an alternative environmentally friendly commodity, especially
if viewed from the aspect of carbon stocks, biodiversity, and sustainable agriculture.
PLANTATION SCHEME

CURRENT CONDITION
Commodity carbon
reserves

The dominance of oilpalm and rubber
plantations

Development of
cacao plantations

RECOMMENDATIONS

24

Biodiversity

Sustainable agriculture•

Carbon stocks in oil palm
reached 45.3 tC / ha, and213.6 tC / ha in rubbercommodities.

•

Oil palm plantations threaten biodiversity,
so that permits for the opening of new oilpalm lands are no longer issued by the
Regional Government.

•

Cacao plantations in Sintang are still not
optimally managed, and their care isequated with rubber so productivity is
low.

•

Carbon stocks in cacao
plants is 65 tC / ha higher
than oil palm plants.

•

•

•

In agroforestry plantations,
total carbon biomass reserves
have increased 5 times
compared to monoculture
plantations.

The ability of cacao trees to grow isaffected by the presence of protectiveplants such as gamal, tengkawang, andfruit trees (mango, durian, banana) that areintercropped planted.
This agroforestry plantation system is very
beneficial for the environment without
reducing yields.

In order to produce sufficient yields
and reach a wider market, cacao
plantations should be developed
sustainably and minimize the useof pesticides.

Cacao can be an alternative oil palm
plantation•

Application of intercropping cacao cultivation.

Provision of training and assistance in
integrated pest management and organic
farming systems for farmers.

ECONOMICSUSTAINABILITYAVAILABILITY OF
RESOURCESENVIRONMENTALSUSTAINABILITY

POST-HARVESTPROCESSING

POST-HARVEST PROCESSING
Introduction of cacao in Sintang

The Keling Kumang Group Chocolate Processing Center (KKG)

Cacao planting has begun in Sintang through a government program in
Serawai. Unfortunately, the cacao plantations are now largely neglected
due to lack of market access, and farmers' lack of knowledge about
postharvest practices. In addition to Sintang, several neighboring
regencies such as Sekadau and Kapuas Hulu have also developed cacao,
although the practice of postharvest processing is still limited to direct sun
drying without fermentation. Inadequate road conditions also prevent
farmers from traveling long distances between cacao plantations to sellers
in markets or downtown.

In 2017, Indonesia imported 270,200 tons of cacao beans from several
countries such as Ivory Coast, Malaysia and Ghana. Based on these figures,
the KKG sees the potential for cacao to be developed in Sintang in order tomeet national cacao needs. This year, the GFC has begun expanding cacao
plantations and selling cacao beans owned by farmers to local buyers. To
gain market confidence, KKG helps farmers produce premium quality driedbeans. Therefore, the KKG built a cacao bean processing center so that the
cacao will go through a fermentation and drying process. This scheme will
greatly assist farmers in improving and maintaining the quality of seeds tobe sold.

Location of cacao plantation activities
Kapuas Hulu
Sekadau

The location of cacao farmers
and the local market of driedcacao beans in Sintang Regency
and surrounding areas.

Serawai
Keling Kumang's cacao bean processing center in Selebak

26

POST-HARVEST PROCESSING
Based on the results of interviews and observations of dry beans, the post-harvest process carried out by farmers
in Sintang is still limited and produces cacao beans with less-than-optimal quality.
Postharvest
process

CURRENT
CONDITION
Seed extraction••

Farmers

RECOMMENDATIONS

27

Cacao fruit is chopped lengthwisethen wet beans are removed.
Inadvertent seed extraction cancause the seeds to split andcannot be included in thefermentation process.

Fermentation•••

Selection of good beans at the beginningof the process will maximize the final
results of the dried cacao beans so thatthey can get the optimal price.

Farmers usually do not ferment the seeds
because they require a long processingtime.
One of the farmers tried to ferment in aplastic box because the amount of harvest
was only small.
Fermentation is carried out in a 1.5 L plastic
box for 4 days. This process causes the air
in the box to become hot and humid whichallows the growth of mold.

The fermentation process will create a
distinctive taste of cacao. For this reason, thisprocess should use a wooden box.

Drying••Farmers dry the cacao for 4 days indirect sunlight. Cacao beans are
removed during the day and spreadover sacks, then put into the room.
Open drying facilitates insect attackon cacao beans.

Drying using a solar dryer can protect
seeds from insects, and does not requirelarge amounts of energy to dry and store
seeds.

POST-HARVEST PROCESSINGGood post-harvest processing practices are still very minimal among Sintang farmers. Through this study, we introduce
the Kopernik Solar Dryer and how to work with farmers to improve the quality of dried beans.
PROBLEMS• The practice of drying seeds in Sintang is
still very simple - drying is carried out for
only 3 to 5 days, so the seeds don't dry to
the maximum. Sometimes the seeds thatare not dried are sold in a wet state at alow price.
• Lack of knowledge of farmers inmaintaining seed quality through drying
methods.

28

SOLUTION• Kopernik introduces solar dryer to improve
the quality of dried beans. In addition to
maximizing the drying process, this solar
dryer also functions as a storage area forseeds to protect them from rain, insects andmold.

EXPERIMENTATION• Kopernik and KKG assisted farmers arebuilding solar dryer and fermentation
boxes.
• Fermented seeds dried using Kopernik
solar dryer are then compared to seeds
dried by the simple method.

POST-HARVEST PROCESSING
Since 2016, Kopernik has been trying to improve the efficiency of the drying process by developing solar dryer prototypes forcommodities such as cashews, copra and chocolate in Bali and East Nusa Tenggara. The advantages of this dryer box include
the possibility of drying during the rainy season, reducing operational costs and reducing manual labor done by farmers.

•
•
•

2016

29

COPRA
Adonara, NTT
Capacity of 1.000 kg
US$2,580•••

CACAO (PHASE 1)
Tabanan, Bali
Capacity of 500 kg
US$1,350

•
•
•

2017

CASHEW NUT
Ile Padung, NTT
Capacity of 300 kg
US$704CACAO (PHASE 2)• Tabanan, Bali
• Capacity of 500 kg• US$1,350

2018

POST-HARVEST PROCESSING
In this study, Kopernik and KKG assisted farmers developing the latest prototype with the advantages of capturing solar
energy and retaining heat longer in the room, and maintaining air circulation and humidity.
INNOVATIVE FEATURES

1

30

The layer of gravel is one of theheat-resisting mechanisms.

2

Automatic humidity
regulation system and air
circulation

3

The drying mat is made ofa plastic net and does not
require frequent reversing.

POST-HARVEST PROCESSING
Postharvest processes include seed extraction, fermentation, and drying in accordance with good practices.
CACAO BEAN EXTRACTION
•
•
•

31

After harvesting, cacao fruit is split laterally
to take wet beans.
Good quality wet seeds are characterized
by the absence of insects and theformation of sprouts in them.
The sorting process is carried out at thisstage by separating the ugly seeds andplacental stems.

FERMENTATION••

Wet cacao beans are then fermented in atiered fermentation box so that the aroma
and flavor of chocolate is well formed.
Fermentation is carried out for 5 days: 2
days at the top level, 2 days at the lower
level and 1 day at the final level. During
the fermentation process there was aweight reduction of 19%.

DRYING••

Cacao beans drying aims to reduce themoisture content of the seeds so they canbe stored and further processed.
The drying time in a Kopernik solar dryer
ranges from 4-7 days, depending on
weather conditions and the filling capacityof the solar dryer.

POST-HARVEST PROCESSING
The drying process is carried out in a Kopernik Solar Dryer which can be made independently by farmers using local
materials.

Penampang membujur kotak pengering

ExhaustWoodenshelf

Air vent

Kopernik Solar Dryer
Capacity: 120 kg wet cacao beans
Manufacturing costs : IDR 8,500,000*
Energy source: Solar heating and automatic humidity
regulation with electricity.
* Manufacturing costs may vary32

Box material• Hollow steel• Iron plate• Polycarbonate• Gravels• Wooden shelves and nets

Automatic humidity regulation system• Exhaust fan• Digital hygrostat• Ventilation holes

POST-HARVEST PROCESSING
2x2 meter Kopernik Solar Dryer is built and placed on a foundation containing gravel as a heat barrier. The function of thefoundation is to keep water from entering the solar dryer during heavy rainfall

1

Foundation construction

2

Filling gravel in the foundation
as a heat barrier

3

Placement of the solar dryer
frame on the foundation

6

Making ventilation holes

5

Exhaust installation andautomatic adjustment system

4Electrical network connection

33

POST-HARVEST PROCESSING
Postharvest processing processes such as fermentation and drying remove most of the water content and reduce weight,
but improve the quality of cacao beans for further processing.
Weight (kg)

100

-76%

23,5

Cacao fruit

34

Wet caco beans

-19%

19,1

Fermented cacao beans

-48%

10

Dry cacao beans

POST-HARVEST PROCESSING
To find out the quality of dry beans, Kopernik compares three types of processes: 1) Kopernik Solar Dryers2) conventional drying houses, and 3) open drying. This study shows that beans processed with Kopernik Solar Dryer donot suffer damage from the open environment so that the quality is better than openly dried cacao beans
Qualitystandard

Evaluation
methodParameter

Number ofseeds

Manualcalculation

Seed count

Cocoa SNILab analysis

Cut test to see
the condition ofseeds

Koperniksolar dryer

Conventional
dryer house

Open drying

Seeds
Grade

86 (A)

90 (A)

Water content

6,72

7,86

6,32

Moldy

0%

0%

12%

Purplish

0%

0%

2%

Insect0%0%1%Germinate

0%

1%

1%

Cacao from Kopernik’s solar dryer meets SNI quality
standards.

35

116 (C)Grouping based on seedsize

Maximum moisture
content received

The presence of abnormal
seeds permitted

Number ofseeds /100g

AA

< 85

A

86 - 100B

101 - 110C

111 - 120

7,5%
Seed
condition

Max.

Moldy

4%

Purplish3%

Insectinfestation

1%

Germinate

2%

POST-HARVEST PROCESSING
The drying process with Kopernik Solar Dryer takes place faster than conventional dryers. In addition, the use of a solar
dryer is able to reduce the work hours spent to dry cacao.
Parameter

Kopernik Solar Dryer

Conventional dryer house

Open drying

Duration of drying

4 days6 days6 daysRainy season drying

Yes

Yes

No

• Remove and add cacao beans at the
beginning and end of drying• Adjust Exhaust• Remove and add the cacao beans at
the beginning and end of drying• Flip cacao beans

30 minutes/day

1 hour/day

Daily activities
Required working
hours

36

• Remove the cacao beans• Spread cacao beans• Flip cacao beans• Add cacao beans
3 hours/day

POST-HARVEST PROCESSING
The target market for chocolate products for the processing industry in indonesia is quite diverse with varying prices. With theconsistency of quality and amount of production, farmers can determine the type of market they want to target according totheir respective capacities. For example, small scale premium chocolate producers have an engine capacity of 5 kg, so the
supply of cacao beans must not be less than the capacity of the machine.
TargetManufacturer of premium chocolate

Manufacturer of commercial
chocolate

Location

Lampung

Bali

Batu

Makassar

Types of products

Chocolate bars,
Chocolate drinks, Cacao
Nibs

Chocolate bars

Chocolate bars, Praline

Chocolate wafers, bean
nougat

The purchase price of cacao
beans per kg

IDR 60,000

IDR 12,000 – IDR 15,000 (wetseeds)IDR 45,000

IDR 33,000

Product selling price (100 gr)

IDR 60,000 – IDR 90,000

IDR 90,000 – IDR 120,000

IDR 30,000

IDR 30,000@krakakoa
37@sorgachocolate@mesujichoco@mars

POST-HARVEST PROCESSING
In addition to the processing industry, the targeted market is consumers who like to consume chocolate products for healthsuch as roasted cacao, where the beans only go through a roasting process.

Roasting dry cacao beans.

• The results of interviews with coffee and chocolate entrepreneurs in Bali
stated that the large market potential in the Bali area, due to the increasing
number of shops selling organic food products including roasted cacao beans.
• Neatly and attractive packaged roasted cacao beans can be sold at a price
IDR 20,000/100 gr.

38

Product example:
Cau Cacao Roasted 100 gr
Price: IDR 45,000
Sales method: Online throughe-commerce (Tokopedia)

The farmers are splitting cacao pod to collect the beans
39
39

KOPERNIK.INFOCHALLENGES AND RECOMMENDATIONS
AspectMapping and
Identification

Challenges• There is no clear data yet on the number of cacao farmers in
Sintang, so it is still difficult to determine the type of support
that can be given to farmers.

• The limitations of road infrastructure make long distances thatare risky for wet beans, and make farmers' market reach very
limited.

Recommendations• Mapping cacao farmers using the Keling Kumang cooperative
network spread across West Kalimantan.
• Checking the cacao planting program report from thegovernment and community organizations.
• Providing an efficient cacao bean pick-up schedule and routesystem.

Infrastructure• The stage of developing cacao in Sintang District is still very
early so there are not many markets to accept the cacao
beans produced.

• Using appropriate drying techniques for dry beans production• Sending dried bean samples to prospective buyers as one of thefirst steps to expand access to the market.

MarketProcessing

40• The post-harvest processing of farmers is still not optimal.
• Fermentation and drying are not in accordance with therecommended process so that the quality of the cacao beans
produced does not meet the criteria for premium beans.

• Training and use of tools for postharvest processing such as
fermentation boxes and solar dryers.

CONCLUSION
Improved post-harvest processing - the fermentation process using a fermentation box and a solar dryer shows theabsence of moldy, purplish, insect-infected, and germinating seeds. This illustrates an increase in quality compared to
the results of drying in the conventional manner.
Post-harvest processing
Cacao bean extraction

Fermentation

DryingDry cacao beans

ACTION STEPS:

•
•
•

41

Kopernik solar dryer can be used as an alternative to the drying process to maintain the quality of seeds in the rainy season.
Further testing with more seeds in the rainy season is recommended to determine operational standards that can be used tomaintain consistency in seed quality.
To determine market acceptance and the price to be obtained, it is necessary to test the sales of dried beans resulting from thedrying process in this study.
Estimated production capacity is also needed to convince potential buyers of a consistent supply of cacao.

CONCLUSION
Strengthening the cacao value chain - the development of cacao plantations in Sintang shows great potential given theunmet market needs for quality beans. Therefore, it is necessary to strengthen the capacity of each related party to
produce high-quality plantations with good quality.
PRE-HARVESTHARVEST

Farmers:• Strengthening capacity for good andsustainable agriculture practices.

POSTHARVESTSELLINGPROCESSINGCHOCOLATEPRODUCT

Farmers and PT
BAM

PT BAM

Chocolate
products factory

Consumer• Good post-harvest
processing with
sufficient
fermentation anddrying.

• Market explorationand strengthening
confidence in cacao
bean buyers.

GOVERNMENT SUPPORT
•
•
•
•

42

Increase access to inputs by providing seeds and fertilizers.
Data collection and mapping of cacao farmers in Sintang District.
Infrastructure improvements.
Provision of facilities in the licensing process and coordination with relevant government
agencies for business actors.

METHODOLOGYACTIVITY

Cocoa value chain
research

METHOD OF COLLECTING DATA
Primary data
Interview:•
Farmers: 8 cocoa farmers and potential cocoa farmers in
Sintang as well•
PT BAM and KKG•
Middleman•
Cocoa experts•
Cocoa processing industry: Sorga Chocolate, Krakakoa,
Mesuji Chocolate, Kahiyang Coffee

METHOD OF
ANALYSISRESEARCH LIMITATION

Qualitative Analysis

Cacao value chain research• The number of cacao farmers in
Sintang is very limited and has notbeen identified, and there is nomarket in the area so that the
middleman data is taken from
Sekadau District.

Group discussion:•
Group discussions were held with representatives of the
Sintang Regency government (the Office of One Stop
Integrated Investment Services, the Forest Service, and theAgriculture and Food Crops Office)Secondary data
Study of literature and statistical data

Improved postharvest
processing

Primary data
Experiment:•
Construction of Kopernik solary dryer, fermentation boxes,and drying of cocoa beans in Penyangka, Sintang
Secondary data
Study of literature and statistical data

43

Quantitative Analysis

Improved post-harvest processing• The number of initial wet beansobtained is less than the minimum
standard for fermentation (40 kg) so it
is viewed the fermentation process is
not optimal.
• The number of seeds does not meetthe maximum capacity of Kopernik's
solar dryer so the drying performance
when the solar dryer is full is
unknown.
• This experiment was carried out inthe summer and there was no rain,
the drying process can varydepending on local weather
conditions.

REFERENCES
Abou Rajab Y, Leuschner C, Barus H, Tjoa A, Hertel D. (2016). Cacao cultivation under diverse shade tree cover allows high carbon storage and sequestration
without yield losses, PLOS ONE 11 (2). Diakses dari https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0149949
Augustine Ntiamoah, George Afrane. (2008). Environmental impacts of cacao production and processing in Ghana: Life cycle assessment approach. Journal of Cleaner
Production. Diakses dari https://www.sciencedirect.com/science/article/pii/S0959652607002429
Badan Pusat Statistik. (2017). Statistik Kakao Indonesia 2017. Diakses dari https://www.bps.go.id/publication/2018/12/25/d748594cf57dc0a3f6be10d0/statistik-kakao-indonesia2017.html
Deus et,al. (2018). Influence of drying methods on cacao (Theobroma cacao L.): antioxidant activity and presence of ochratoxin A. Journal of Food Science and Technology 38(1). Diakses dari http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-20612018000500278
Deutsche Gesellschaft für Internationale Zusammenarbeit .(2016). Pengelolaan kebun kakao secara berkelanjutan: Sebuah pengantar sistem agroforestri tersuksesi ang
dinamis. Diakses dari https://www.forclime.org/documents/Books/Pengelolaan%20Kebun%20Kakao%20Berkelanjutan_Lowres.pdf
Fitzherbert, E. B., Struebig, M. J., Morel, A., Danielsen, F., Brühl, C. A., Donald, P.F., Phalan, B. (2008). How Will Oil Palm Expansion Affect Biodiversity?. Trends in Ecology &Evolution, 23 (10). Diakses dari https://www.cell.com/trends/ecology-evolution/fulltext/S0169-5347(08)00252-8
Jim Gockowski, Denis Sonwa .(2010). Cacao intensification scenarios and their predicted impact on CO2 emissions, biodiversity conservation, and rural livelihoods in the
Guinea rain forest of West Africa. Environmental Management. Diakses dari https://www.ncbi.nlm.nih.gov/pubmed/21191791
Konsager et,al. (2013). The carbon sequestration potential of tree crop plantations. Mitigation and Adaptation of Global Change. Diakses dari
https://link.springer.com/article/10.1007/s11027-012-9417-z
Nirwana, N., Sabahannur. (2017). Kajian pengaruh berat biji kakao perkotak dan waktu pengadukan terhadap keberhasilan proses fermentasi . Jurnal Pendidikan
MIPA. Diakses dari http://jurnal.untan.ac.id/index.php/PMP/article/view/21172
Pemerintah Kabupaten Sintang (2017). Rencana Pembangunan Jangka Menengah Daerah Kabupaten Sintang 2017
Pusat Data dan Sistem Informasi Pertanian Sekretariat Jendral Kementrian Pertanian (2017). Outlook Kakao 2017. Diakses dari http://epublikasi.setjen.pertanian.go.id/arsipoutlook/75-outlook-perkebunan/548-outlook-kakao-2017
44

ABOUT OUR PARTNERS
To find what works, Kopernik colaborates with local partners to ensure the success of project activities.

Koperasi Keling Kumang is a cooperative
based in West Kalimantan that provides
responsible and sustainable financial
services to reduce poverty and improveliving standards of the community.

45

Lingkar Temu Kabupaten Lestari (LTKL)
is a forum consist of and managed by anumber of Regency Government
representatives. Through this forum, it isexpected that regional development canbalance the economic, social andenvironmental aspects through thecollaboration of stakeholders, with thesupport of LTKL members.

The Government of Sintang Regency
is an autonomous region in the province ofWest Kalimantan. The government has avision to create smart and prosperous
communities by 2021 through theimplementation of good governance andimpactful activities to develop the capacityof communities.

ABOUT KOPERNIK
Kopernik conducts experiments to find the best solution to reduce poverty. We prioritize working towards achieving
Sustainable Development Goals (SDG) targets with remote communities.

OUR VISIONOUR MISSIONOUR WORK

Looking for the best solution in efforts to
reduce poverty in remote areas.

A world where disadvantaged people
living in remote areas can realize their fullpotential and enjoy a dignified life freefrom poverty.

Through rapid prototyping andexperimentation, we work directly with
communities in remote areas, and ourpartners from the development, public andprivate sectors to reduce poverty

46