NSLIC/NSELRED GORONTALO CHAMPIONS Association of Gorontalo Processed Coconut Oil (OKGo) Iradat Bagi (59) is one of the coconut oil processors and the chairman of NSLIC/NSELRED-supported Association of Gorontalo Processed Coconut Oil (Asosiasi Olahan Kelapa Gorontalo/OKGo). Started his business in 2017, Iradat used to process about 100-150 coconuts for the weekly oil production. The coconut oil was packaged in 600 ml bottles before shipping to market. In April and May 2018, Iradat’s production increased due to his participation on the Local Non-Cash Food Aid program implemented by the Provincial Government of Gorontalo who ordered local coconut oil in large quantities.
BUSINESS CHALLENGE The Provincial Government of Gorontalo’s policy which demanded coconut oil from local SMEs to be one of the mandatory items for the Local Non-Cash Food Aid (Bantuan Pangan Non-Tunai Daerah/BPNTD) program granted fresh air for the coconut oil processing SMEs in Gorontalo, including Iradat Bagi. To fulfill the demand, Iradat was requested to supply 3,000 litres of coconut oil within three months. Through BPNTD program, the provincial government of Gorontalo distributed monthly non-cash subsidiary in the form of groceries (rice, sugar, eggs, coconut oil and fish) worth IDR 100,000 to 35,000 low income families. According to the Provincial Development Planning Agency (Bappeda) of Gorontalo, this program has reduced Gorontalo’s poverty rate from 17.14% to 16.18% by 2018. However, when the BPNTD policy changed and the coconut oil produced by local SMEs was no longer a mandatory item to be distributed to the program’s beneficiaries, Iradat’s production decreased and returned to normal. The efforts to expand the market for his coconut oil still face many obstacles, including quality of products and business license.
Iradat Bagi represented the OKGo association to promote their Coconut oil during NSLIC/NSELRED and Bappeda of Gorontalo province’s joint event at SMESCO Jakarta in December 2018.
NSLIC/NSELRED INTERVENTION
LICENSING
At the end of 2018, NSLIC/NSELRED strengthened the capacity of local businesses, especially coconut oil processors in Gorontalo, including Iradat. The project also encouraged the standardization of coconut oil processing quality. Through this program, the small and medium coconut oil industries in Gorontalo received the capacity building to improve their coconut oil quality standards in order to have a better and healthier product quality, and able to compete in the market.
Through the various capacity building undertaken by NSLIC/NSELRED, Iradat Bagi began to improve his product quality to meet the requirement for market expansion. Besides, Iradat also secured the permits that must be fulfilled by food processing SMEs. Now, he had obtained a Small and Medium Business License (IUKM), Home-Industry Food Certification (PIRT) and the Halal label. Moreover, now Iradat’s products also have nutrient content information issued by the Agro-based Industry Calibration and Analytical Laboratories (ABICAL), Bogor.
PRODUCT DEVELOPMENT
INSTITUTIONAL STRENGTHENING
In addition to producing coconut oil, Iradat also produces Virgin Coconut Oil (VCO) although the production capacity is still relatively insignificant and based on orders only. His products are now distributed in all cities/districts in Gorontalo Province. To keep up with the market demand, Iradat together with five of his workers now have to process about 250-300 coconuts every two days.
Through the Gorontalo Processed Coconut Oil Association (OKGo), supported by NSLIC/NSELRED, Iradat Bagi as the OKGo Chairperson together with some other members have provided training or transferred their knowledge on standardized coconut oil processing to the SMEs and community groups. The training series was held in cooperation with the with government agencies (Ministry of Industry; Gorontalo Provincial Office of Cooperatives, SMEs, Industry and Trade; and Pohuwato) District Office of Industry, Trade, Cooperative and SMEs, a well as a non-government organization (Burung Indonesia).
Iradat’s coconut oil products have not only contributed to enhancing the local economy. In fact, thanks to his SME products, Soginti Village, Paguat Subdistrict, Pohuwato District (Iradat’s village), was awarded the 'Village Innovation 2019' by the Ministry of Industry of the Republic of Indonesia.
In addition, the Iradat SME was designated by the Bank Indonesia of Gorontalo province as the centre of coconut oil SMEs in Pohuwato district (https://diskominfost.pohuwatokab.go.id/berita/2019/07/30/--------ikm-iradts-pohuwato-dijadikan-program--umkmolahan-kelapa-oleh-bank-indonesia).