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Feasibility Study of Bamboo Plantation Forest in Community Forest in Bali :

Marketing Analysis and Development Approach

Conference Paper · April 2016

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 FEASIBLITY STUDY OF BAMBOO PLANTATION FOREST IN
COMMUNITY FOREST IN BALI : MARKETING ANALYSIS AND
DEVELOPMENT APPROACH

Husnul Khotimah, Dhany Yuniati, Irma Yeni

Forestry and Environmental Research Development and Inovation Agency
Ministry of Environment and Forestry
Jalan Gunung Batu No. 5 Bogor
Email: iyus.husnulkhotimah@gmail.com

ABSTRACT
The market and manufacturing of bamboo are growing rapidly in Bali. In other side, there is limited supply of
bamboo raw material. Therefore, it is necessary to build a bamboo plantation forest. The purpose of this study
is to assess the feasibility of bamboo plantation forest in community forest in Bali. Data analysis were
performed using an adapted method of Marketing Analysis and Development (MA&D) approach, an
approach designed specifically for assessing the feasibility of sustainable NTFP-based enterprises. The study
shows that: (1) the market opportunity of bamboo is still big, the bamboo demand from Bali reached 34.8
million stems per year and only can be met by 11 million stems per year; Financial assessment showed that
bamboo plantation is potentially profitable, is projected to have a healthy cash flow and is viable over the
longer term; (2) Environmentally bamboo has good potential regeneration and can help to improve the
physical structure of the soil and being catchment area; (3) Bamboo has a privilege place in Balinese society
and culture; Bamboo handicraft industry is developed well in Bali; (4) Institutional/legal assessment showed
that bamboo plantation forest is in line with legal regulations and local rules; and (5) Technically community
already has a habit of maintaining bamboo, but intensive cultivation techniques have not been mastered.
Based on these analyses we can conclude that the feasibility of bamboo plantation forest in community forest
in Bali is feasible with some minor shortcomings.

Keywords: feasibility study, bamboo plantation forest, marketing analysis and development method.

INTRODUCTION Bangli is one of the regencies in Bali

Bamboo is the emerging resource as the
green resource. Bamboo is a group of non-
timber forest products (NTFPs), which
potentially can substitute the use of wood.
The success of bamboo substituting wood for
wood industry can be seen from some
products such as particleboard, bamboo
plywood, bamboo veneer, laminated veneer
lumber, paper, textile, etc. (Sutiyono, 2013).
Bamboo price is relatively cheaper than other
building materials. Utilization of bamboo in
Bali is dominant for handicraft like
lampshades, paper, baskets, the table hood,
and supplies of worship of Hindus
ceremonies. Bamboo processing industry is
being the livelihoods of most of Balinese
community.
Province which set the bamboo and
processing industry as the main commodity
since 2008. Bamboo-based products which
are well developed in this region are bamboo
woven and non-woven handicrafts,
laminated bamboo, furniture, bamboo shoots,
and bamboo fiber processing (Government of
Bangli Regency, 2014).
Demand of bamboo raw material in Bali
is increasing in line with the increase of the
number of industries, population growth and
economic development. Source of bamboo
raw material today is from bamboo clumps in
community forest and natural bamboo
clumps in forests which have been existed
since a long time ago. Bamboo from
community and natural bamboo reported are
diminishing as these standing have been
replaced with the type of timber or
agriculture which are considered more and conservation activities to income
advantageous economically (Sutiyono, 2013). generating opportunities.
In other side, cultivated bamboo clumps The tree and forest products have big
are still limited and less people are interested differences from agricultural products (See
to invest in bamboo cultivation because of Table 1.).
lack of technical information about bamboo
cultivation and its economic benefit. The
bamboo clumps can grow without any Table 1. The differences between tree and
treatment; the communities only harvest the forest products from agricultural products
stems and leave the clumps. This condition is Trees and forest
Agricultural products
not favorable because it can damage the products
existing clumps. When the clumps damaged, Grow in the wild Are sown or planted
it would threaten the sustainability of the Come from complex Come from less diverse
ecosystem and fragile ecosystems
clumps and lower the level of productivity.
The rights and The rights and
Therefore bamboo as prospective commodity
ownership of land users ownership of land users
needs to be developed through the are often at issue are not usually at issue
development of bamboo cultivation. Obtained from common Obtained from private
Bangli becomes the center of bamboo lands implying group lands allowing
source in Bali with bamboo forest area decisions individual decisions
reached 6.420,11 ha outside forest area and Open access Controlled access
150 ha in the forest area with production of 3 Managed by the Managed by the
million stems per year (BPDAS Unda Anyar, Ministry of Forest, Ministry of Agriculture,
2013). There are 13 species of bamboo namely which regulates the which provides services
tali, ampel, jajang, kuning, petung hitam, protection of the forest to farmers to increase
production
buluh tamblang, santong, gading, tutul dan
Grow often over Regular production
tabah. This condition indicates that the Bangli relative short periods in cycles
Regency has the potential and development a specific season
opportunities to meet the needs of bamboo Grow in forest far from Closer to markets and
raw material through intensive bamboo markets and good transportation means
cultivation in bamboo plantation forest in roads
community forest. Collected in small Produced in larger
Based on the potential and prospects of quantities by large volumes by individual
the development of bamboo plantation forest, number of collectors farmers
the government of Bangli Regency, Forest Little support for More support for
marketing marketing
Research and Development Ministry of
More limitations due to Few limitations due to
Forestry and International Tropical Timber
quotas quotas
Organization join collaboration in the Frequent illegal trading No illegal trading
development of bamboo plantation forest Entrepreneurs of tree Entrepreneurs of
project in community forest. This project and forest products agricultural products
requires preliminary information how the cannot use land as can use lands as
current condition and whether the bamboo collateral for loans, collateral for loans,
plantation forest project is feasible. Therefore financing and other financing and other
it needs to conduct the feasibility study of services due to lack of services
bamboo plantation forest in community tenure rights
Source: Lecup (2011)
forest in Bali.
The feasibility study of this research uses
These differences affect the marketing of
an adapted method of Marketing Analysis
tree and forest products on regulation over
and Development approach by Lecup (2011).
harvesting and benefit-sharing mechanisms
This method is designed for tree and forest
have to be agreed by the community,
product-based enterprises which linked the
information is scattered and informal
participatory natural resources management
therefore more difficult to obtain, enterprises
are small-scale, transportation costs are high,
and more effort to create links to business
services providers is required. The MA&D
approach is considered appropriate with this
case.
The purpose of this study is to assess the
feasibility of bamboo plantation forest in
community forest in Bali using an adapted
method of Marketing Analysis and
Development Approach.
RESEARCH METHODS
THE CASE STUDY
The case study assessed in this study is
the development of bamboo plantation forest
in district of Kintamani, Bangli Regency, Bali
conducted by farmer groups in Banjar
Bubungkelambu. The project is collaboration
work between ITTO PD 600/11 Rev.1, Forest
Research and Development Agency
(FORDA) Ministry of Forestry, and the
Government of Bangli Regency in “The
model of capacity building for efficient and
sustainable utilization of Bamboo resource in
Indonesia”. One of project activities is to
developed bamboo plantation forest in
community forest. The development of
bamboo plantation forest consists of two
activities. First, bamboo clump revitalization
of the existing bamboo clumps of farmers.
Most of the existing bamboo clumps of
community are not maintained well, stressed
clumps, low productivity, and difficult to
harvesting. Secondly, the bamboo plantations
in community forest start from the seedlings
to harvesting with apply the intensive
bamboo cultivation guidelines.
Both activities are executed inside forest
area and outside forest area (private bamboo
garden of the farmers). Kintamani District is
chosen because it has the potential bamboo
clumps covering an area of 4.231,71 ha. This
condition is more extensive than 3 other
districts in Bangli Regency, as well as having
the potential for degraded land about 70,84%
of the total area. The availability of critical
land in Kintamani area is expected to be
potential for the development of bamboo
plantation forest.
DATA COLLECTION
The data collection is done through
method of direct interview, focus group
discussion, and field observation. The study
conducted in Kintamani District, Bangli
Regency, Bali Province in November 2014.
The primary data are collected from the
respondents of bamboo farmers who are
members of farmer groups in Banjar
Bubungkelambu, Desa Batur Tengah,
Kintamani District, Bangli Regency.
Determination of the respondents using one
of non-probablity sampling methods, this is
purposive sampling method. While the
secondary data are collected from related
institutions such as ITTO, BPDAS Uda Anyar
Provinsi Bali, Dinas Kehutanan dan
Perkebunan Kabupaen Bangli and
Government of Bangli Regency.
DATA ANALYSIS: AN ADAPTED
METHOD FROM MARKETING
ANALYSIS AND DEVELOPMENT
The feasibility approach used in this
study is an adaptation of Marketing Analysis
and Development (MA&D) which is
developed by Isabelle Lecup, a FAO
Consultant and expert in small natural
resources-based enterprises. The MA&D is a
framework for planning tree and forest
product-based enterprises (Lecup, 2011). This
is especially suitable to assess the feasibility
of enterprises based on natural resource
products that need to be protected or
conserved. MA&D links participatory natural
resources management and conservation
activities to income generating opportunities.
The methodology takes into
consideration emphasis on environmental
sustainability. Sustainability refers to
processes that increase economic benefits and
improve livelihoods, without causing
negative social or environmental impacts.
Also implied is that enterprises will have the
capacity, when processes are sustainable, to
react to changing market. It considers social,
technological, legal, commercial aspects, and
providing a wide scope for understanding
relevant market system and thus avoiding
business failure (Lecup, 2011).
 The MA&D consist of preliminary
planning phase and four phases, namely: (1)
assessing the existing situation, (2) carrying
out surveys in order to select products and
identify enterprise ideas, (3) preparing an
Enterprise Developing Plan, and (4)
supporting the start-up phase of enterprises.
The phases are done sequentially, as the
previous phase output will be the analysis for
the next phase. The explanation bellow is
accordance to Lecup (2011). See the
framework of MA&D in Appendix 1.
Phase 0: Preliminary planning phase
This phase is the time for conducting
any background research and planning
activities that should be conducted before
any support is given to tree and forest
product-based enterprise development.
Phase 1: Assessing the existing situation
Phase 1 is exploratory and aims to
investigate an existing situation. The
objective of phase 1 is to discover the
products that are best suited to the economic
situations while ensuring that the resources
are used sustainably.
Steps in Phase 1 are:
1) Identifies the potential entrepreneurs
2) Assess their capacities to become
entrepreneurs
3) List local resources and products
4) Identify main constraints in the market
system
5) Shortlist potential products for their
enterprises
6) Recognize the benefits of group work
In order to ensure viable enterprises and
reduces risks, enterprise ideas have to take
into account of Five Areas of Enterprise
Development, they are: (1) market/finance,
(2) resource management/environmental, (3)
social/cultural, (4) institutional/legal, and (5)
technological factors.
The outputs of Phase 1 are: (1) a group
of potential entrepreneurs willing to explore
the development of enterprises, (2) a short list
of potential resources and products to be
evaluated in Phase 2, (3) the group of
potential entrepreneurs has acquired an
understanding of the five areas of enterprise
development that comprise the basis for
further analysis.
Phase 2 : Carrying out surveys in order to
select products and identify enterprise ideas
Phase 2 gathers information needed to
assess the viability of short-listed products
and decide upon the most sustainable and
appropriate types of enterprises. Products
short-listed during Phase 1 are subjected to
in-depth feasibility studies in order to
identify potential markets and to evaluate
scale, trends and constraints related to access.
Steps in Phase 2 are:
1) Collect data on five areas of enterprise
development: (1) market/finance, (2)
resource management/environmental,
(3) social/cultural, (4)
institutional/legal, and (5) technological
factors.
2) Select the most promising products. See
the criteria and the indicators in
Appendix 2.
3) Reflect on the most appropriate for of
enterprises.
The outputs of Phase 2 are: (1) final
selection of the most promising products, (2)
collection of required data for Enterprise
Development Plan (EDP) design, (3) Potential
entrepreneurs are aware of the most
appropriate form of enterprises, and (4)
interest group are formed around the selected
products.
The Phase 1 and Phase 2 are considered
into the feasibility study process, which is
adapted by this study. The result of the Phase
1 and Phase 2 is the decision of whether a
business idea is feasible or not to run.
The next Phase 3, is preparing an
Enterprise Development Plan (used to be
business plan). The Analysis of the feasibility
study provides a lot of important information
to prepare the Enterprise Development Plan.
These are the short explanation about the
next phases of Marketing Analysis and
Development approach.
Phase 3: Preparing an Enterprise
Development Plan
Enterprise Development Plan (EDP) is
used instead of business plan because an
EDP takes into consideration ecological,
 social, and institutional aspects in addition
to economic, financial, and technological
considerations which are usually focused on
a business plan. The purpose of Phase 3 is to
formulate an EDP that integrates all the
strategies and services needed for the
success of the new enterprises. The
Enterprise Development Plan (used to be
sustainable business plan based on Lecup et
al. (1999)) consists of: (1) production and
manufacturing plan, (2) marketing plan, (3)
organizational plan, (4) financial plan.
. processing. While the Bangli District and
Phase 4: Supporting the start-up phase of
enterprises
In Phase 4, entrepreneurs are guided through
the process of mobilizing financial resources
and receive training according to the needs
expressed in their EDP. During a pilot phase,
entrepreneurs can test their capacities for
establishing links with business service
providers, and for refining operational and
organizational mechanisms. Finally,
entrepreneurs are trained to strengthen their
abilities in marketing and natural resources.
RESULTS AND DISCUSSIONS
PHASE 1: Assessing the Existing Situation
Bamboo Development in Bangli Regency,
Bali
Bangli Regency has four districts; they
are Bangli, Susut, Tembuku, and Kintamani.
Different topography of each district has
formed the type of industry. Kintamani
District with severe topography has potential
of bamboo clumps about 4.081,71 ha in
outside forest area and 150 ha in forest area
(BPDAS UNDA ANYAR, 2013). In this region
the bamboo processing industry is not
developed well because the community is
dominated by farmers with lack skill in
bamboo weaving and other bamboo
Susut District becomes the center of bamboo
woven and bamboo handicrafts. Bangli
District has 26 business units and Susut
District has 15 business units of bamboo
woven and bamboo handicrafts (Dinas
Perindustrian dan Perdagangan Kabupaten
Bangli). Based on this condition, Bangli
Regency is a region with the integrity of
bamboo cluster management from upstream
to downstream.
Bamboo resources and bamboo industry
in Bangli Regency have been particular
concern of central and local government
through NTFPs management policy. In order
to increase the competitive advantage value
and to accelerate the development of bamboo
industry, then the Bangli Regency
Government formed POKJA (Working
Group/WG) of Bamboo through SK Bupati
Bangli No. 522.22/57/2011.

Table 2. Bamboo resource in Bangli Regency

Outside Forest Area Inside Forest Area
N Vol Prod/ Number
District Area Number Value of Area Type of
o Type of bamboo year of
(ha) of clumps Prod/year (Rp) (ha) bamboo
(Stem) clumps
1 Bangli 1.308,2 Bambu tali, petung, 294,345 4.415.175 22.075. 875.000 - - -
jajang, tamblang,
jajang, tutul buluh,
hitam
2 Susut 316,55 Bambu tali, petung 73.875 1.046.940 5.234.700.000
3 Tembuku 713,65 Bambu tali, petung, 159.355 2.390.325 11.951.625.000
tamblang, jajang,
ampel, hitam
4 Kintamani 4.081,71 Bambu tali, petung, 906.281 13.594.208 67.971.037.500 150 Petung, 2.917
hitam, tamblang, ampel,
kuning, swat hitam, tali,
jajang,
tamblang
Total 8.758,51 1.960.036 29.287. 56 146.436.281.250 150 2.917
Source: BPDAS Unda Anyar Bali, 2013
 In WG it has been established five areas Kintamani, Bangli Regency. Forest
of work consists of institutional WG, management is done by community of Banjar
cultivation WG, production WG, industry and Bubungkelambu, who are members of the
trade WG, capital WG, and information and cooperative of Wira Usaha and farmer groups
communication WG. Each WG is chaired by of Hidup Rukun, Wira Usaha, and Munduk
the relevant department in charge of the field Tunggiran. Number of member groups is 75
work. Until now the work plans have been people. The farmer groups work together to
prepared but its implementation is still build Banjar Bubungkelambu as an agro-
hampered by the low APBN and APBD. bamboo tourism village.
Therefore the facilitation activities by POKJA The land area is managed by three farmer
are limited in inventory of farmer and groups until 2014, who managed an area of
industry needs and motivate and mobilize the 120 ha. The area is managed with planting
community forest plantation. various types of bamboo, such as petung, tali,
jajang, ampel, black petung combined with
Potential Resources and Products coffee and citrus crops. The types of bamboo
Agricultural activity is a part of culture of tali and petung have higher economic value
Bangli society, since agriculture is the main and high market demand. Thus farmers in
livelihood of community. Agricultural Kintamani prefer maintaining petung and tali.
products which are cultivated are citrus fruits
and coffee as well as cattle and pigs. While Phase 2 : In-depth Feasibility Study:
forest products are bamboo, sengon (Albizia), Screening the Five Areas of Enterprise
and teak. The numbers of households cultivate Development
bamboo, sengon, and teak according to
A. Market and Financial Feasibility
districts in Bangli Regency can be seen in Demand of bamboo generally comes from
Table 3. construction, laminated bamboo, furniture,
Table 3 shows the number of families in etc., for bamboo petung and bamboo woven,
Bangli Regency most cultivate sengon then building frame construction, stakes, and
bamboo and teak. sengon, and teak are material supplies for Hindus rituals such as
perennials that have been grown as the penjor, ogoh-ogoh, tower and so forth for
economic value source and an effort to bamboo tali. Especially in Bangli, the greatest
rehabilitate critical land in Bangli Regency. demand is bamboo tali for raw materials of
While Bamboo clumps have been planted long woven handicraft, while bamboo petung used
ago by the ancestors. for floating cage construction, outrigger boat,
and laminated bamboo industry. Demand
Table. The number of households cultivates
from other areas came from Denpasar and
forest products in Bangli Regency
other cities in Bali for construction materials.
Households
District Demand for bamboo petung more in the form
Bamboo Sengon Teak of unprocessed stems.
Susut 39.929 21.667 92.996 There is no exact number of bamboo
Bangli 131.093 47.350 1.854 demand in Bangli Regency or Bali because
data collection was never carried out.
Tembuku 25.035 64.014 7.839
However, some of the approaches made to
Kintamani 85.305 340.592 22.459 estimate the bamboo demand in Bali, both
Total 281.362 473.623 125.148 petung and tali and a few other types of
Source : BPS Bangli Regency, 2013 bamboo. The method for estimating the
number was made by Arinasa and Peneng
(2013). See the calculation in Appendix 3. The
Potential Entrepreneur Group result is that the bamboo demand from Bali is
Bamboo cultivation business unit about 34.804.682 stems/year. Total demand is
analyzed in this study is located in district of actually believed to be greater than this
number because several other demand such as
bamboo for construction, laminated bamboo,
and bamboo handicraft are not calculated.
The number of bamboo supply is also not
recorded in the Department of Industry and
Trade of Bali. But the approach to estimate
will be made of the land area of bamboo
plantation and forecast production per ha. IPB
(1993) in Arinasa and Peneng (2013) revealed
that the land area of bamboo in Bali is about
12.681,77 ha. This land area can produce
bamboo stems about 11.412.900 stems/year. If
the demand about 34,8 million stems/year
while the supply about 11,4 million
stems/year, then there is lack of demand
about 23,4 million stems/year (See Appendix
4).
The selling price of bamboo has a rising
trend over time because the value of bamboo
has been increasing in community. Several
years ago bamboo is not used for commercial
products and is considered very cheap. When
the utilization increases for bamboo industries
such as laminated bamboo, construction and
handicraft, then the bamboo price also rises. In
addition there is a scarcity of bamboo supply
when the rate of bamboo production cannot
keep pace with the growth of bamboo
industry. Bamboo price increases significantly,
for example petung in 2013 was RP. 60.000-
70.000 per stem then in the end of 2014 the
price has reached Rp. 120.000 per stem.
The criteria of bamboo demand are vary
according to its purpose. For laminated
bamboo, it needs perfect form and preferably
with shorter nodes that will create beautiful
pattern when united as laminated bamboo.
Bamboo petung is suitable for this. While for
bamboo woven the criteria are elastic and easy
to be woven, strong, and have longer nodes.
Bamboo tali is appropriate for this. Most of
demands ask for bamboo in whole form, but
some are bamboo split with higher selling
price.
Access to market information is open, but
the market information is not transmitted well
from upstream to downstream because no
information system manages it. Bamboo
farmers are informed about demand and its
price from the traders who came to bid and
buy their bamboo in the forest. But they do not
know how much the whole demand in the
market, where the demands come from and
how much the price in the market. The
position of bamboo farmer in the market is
passive for waiting the trader/consumer. If
there is no trader came to buy bamboo, they
will not harvest the bamboo and no trade in
the market.
Access to credit for bamboo cultivation is
very difficult to get because bamboo is not
included in the list of commercial crops that
can be financed by bank. The cultivation of
bamboo might be feasible but it is not
considered as bankable. As credit for
agricultural commodities, bamboo cultivation
is considered to have high risk and have not
commercial value. Therefore it needs
alternative credit for funding sources.
Financial aspect related to production
cost and its benefits. Assessment about this is
done in the community forest with multi-
cropping (agroforestry) with other type of
crops, but the assessment in this study is
limited on the bamboo plantation activity.
Some assumption used in calculating the
financial aspect of bamboo petung and
bamboo tali cultivation in the flat land area
and sloping land area.
The assumptions used in this study are:
1. Spacing for flat land is 4x5 m, with effective
planting area at 50% = 250 clumps/ha
2. Spacing for sloping land is 2x3 m, with
effective planting area at 10% = 167
clumps/ha
3. Value of working person-day (HOK) = Rp.
100.000/day
4. Cost for land preparing = 30 HOK/ha
5. Cost for making the planting hole = Rp
3.000/hole
6. Cost for stakes and its installation = Rp.
2000/hole
7. Bamboo seedlings Petung @ Rp. 35.000 &
tali @ Rp. 15.000
8. Cost for planting and fertilizing = Rp.
1.500/hole
9. Cost for ferlitizers at planting time = Rp.
11.500/hole
10. Cost for weeding, 3 months = 5 HOK/ha
11. Cost for fertilization, 6 months = 2
HOK/ha and Rp. 6.500/hole
12. Cost for weeding, 18 months 2 HOK/ha
13. Cost for clump cleaning once a year = 2
HOK/ha
14. Discount rate analysis at 12%, assumption Bangli Regency is located on the volcanic
of bank loans in 2014 cone and the slopes of Mount Batur. Bangli is
15. Productive Period of clumps 25 year a catchment area/recharge area for the
16. Harvest begin at 5th year with 5-7 groundwater system in this region. The
stems/clump/year at price Rp. 25.000- condition put Bangli in an important position
35.000/stem for bamboo petung and Rp. in the context of water resources. Bangli
3.000-20.000/stems for bamboo tali in line hydrological viability has decisive role of
with the size. water availability in Gianyar, Buleleng, and
Karangasem.
Table 4.The result of profitability study of Ecologically bamboo clumps have ability
bamboo petung to preserve environmental balance because
Investment Value Per Ha the root system can prevent erosion and
criteria manage the water system and can grow on
spacing 2x3 m Spacing 4x5 m marginal land. Bamboo fibrous roots are so
Net Present Rp. Rp.
useful for the protection of soil from potential
Value (NPV) 159.174.669 265.194.460
erosion. Thus the water storage capacity can
Benefit Cost 8,90 11,79
Ratio (BCR) be preserved, reduced runoff, and infiltration
Internal rate of 53,12% 58,08% and soil water storage increased. These
Return (IRR) conditions are useful to overcome the water
Break Even Point 5th year 5th year crisis in Bali. Bamboo clumps produce a lot of
litter which are useful in improving soil
From the analysis of the projected net hydrological properties (Bharati et. at., 2002).
present values of both bamboo petung and Spatial distribution and density of
bamboo tali are positive. According to the bamboo in Bangli Regency, as stated in Table
NPV criteria that projected enterprise with 2 has a good potential to be developed both
positive NPV should be accepted. In addition, inside forest area and outside forest area.
the BCR and IRR are also higher than the Bamboo has no problems with regenerative
criteria and the BEP of this project is at 5 th potential and domestication possibilities
year. because it has a wide range of suitability
place to grow (See Appendix 5) , even in
Table 5.The result of profitability study of critical area some types of bamboo can grow
bamboo tali well (Sutiyono, 2013). Bamboo also do not
Investment Value Per Ha
have negative impact in harvesting on
criteria survival species, even though bamboo can be
spacing 2x3 m Spacing 4x5 m combined with other plants in agroforestry
Net Present Rp. 77.763.340 Rp.
system (Hairiah et al., 2015).
Value (NPV) 122.067.525
Based on environmental feasibility, it can
Benefit Cost 5,5 7.04
Ratio (BCR) be concluded that bamboo plantation forest in
Internal rate of 45,52% 50,49% community forest is feasible environmentally.
Return (IRR)
Break Even Point 5th year 5th year C. Social and Cultural Feasibility
Bamboo forest management in Bangli
The analysis of the financial feasibility of
Regency, Bali is managed by the society,
bamboo plantation forest in community forest
which really influenced by Balinese local
both for bamboo petung and bamboo tali
wisdoms. Balinese local wisdoms placed
revealed that, based on the assumptions that
bamboo in a precious place. Bamboo for
were made, the project is potentially Balinese, which majority 95% is Hindus, is one
profitable, projected to have a healthy cash
of the three plants which always used in
flow and is viable over the longer term. Balinese rituals and ceremonies beside banana
(Musa paradisiaca) and coconut (Cocosnucifera)
B. Resource Management and
(Eisman, 1992).
Environmental Feasibility
 Bamboo is symbolizes of welfare and knowledge of how to maintain bamboo
safety. Therefore, bamboo always there in properly with bamboo cultivation, but their
rituals and ceremonies of Balinese culture. The ethics to the environment is very potential to
tools made from bamboo start from simplest support the concept and techniques of
offering tools is semat and katikan, which its bamboo cultivation in bamboo plantation
simply sewing together, then temporary forest form. These social and cultural of
temple construction (sanggah), penjor, the Balinese strongly support the efforts of
complex instrumental rituals such as sokasi, bamboo plantation forest in community forest
pancak, tempek,the flute from bamboo (sunari), and increasing community participation.
gamelan bamboo and as a central part of the Therefore based on social and cultural
most sophisticated cremation ceremony criteria, bamboo plantation forest is feasible.
(ngaben) (Sumantera, 1996). They hope for
welfare and safety by offering bamboo in their D. Institutional and Legal Feasibility
rituals.The need of bamboo for ritual and
The beneficiaries of the bamboo
ceremonies are about 34 million stems of
plantation forest in community forest and its
bamboo per year. These needs are not fulfilled
benefits are:
by local supply but also from other region in
1) Bamboo farmers: It can increase their skill
Bali.
and knowledge of proper bamboo
In Bangli Regency, bamboo clumps have
cultivation, increase the farming income,
been grown within and around the village
repair their damaged clumps.
areas where the clumps belong and managed
2) Bamboo-based processing industries:
by local people alongside tree and food crops
They get the availability of raw material
in the yard or forest hills. Some of them belong
with good quality, large quantity, and
to and managed by the indigenous village
continuous supply.
(Desa Adat). The management also based on
3) Community around bamboo plantation
the customary law and the local wisdom.
forest: They get the tangible and
Furthermore, bamboo has the important
intangible benefits from bamboo
role in the rural economic development in Bali.
plantation forest, such as better air,
The utilization of bamboo by Balinese is vast.
availability of ground water, prevention
Bamboo used for agriculture, architecture,
of erosion, as well as stimulating of
furniture, food, and handicrafts. The most
economics activities surround forest area.
commonly used are bamboo tali
4) Government of Bangli Regency and Bali
(Gigantocloaapus) and bamboo petung
Province: It can support to achieve the
(Dendrocalamusasper). These species are
goal of bamboo industry development in
dominant among the seventeen species found
Bangli Regency and lift the bamboo of
in the forest and private properties (Arinasa,
Bali as the national center of bamboo
2010). Bambu tali is mostly processed into
development.
handicrafts and souvenirs, offering tools, and
5) Government of Indonesia: It can support
export market. One stem of bamboo about Rp.
the national bamboo development in
50.000, when it becomes weaving bamboo craft
Indonesia.
is priced at RP. 150.000 in three days process
6) Global community: Bamboo has good
by women in their home. While bamboo
influence to environment, such as to store
petung is mostly used for construction and
carbon stock, to produce fresh air,
furniture, they sell about RP. 35.000 per stem
catchment area for ground water, and
(Yeni et.al, 2015). Most of Balinese in Bangli
better environment for global community.
Regency depend their life on bamboo, both
cultivation and processing bamboo products
Institutional bamboo plantation forest in
The local wisdoms of Balinese in maintain
community forest in Bangli Regency is well
the harmony between human and the
established. It is indicated by the
environment formed their attitude in
establishment of three farmer groups already
practices how to manage bamboo forest
in Banjar Bubungkelambu. The members of
properly. Although society have very limited
these farmer groups have a good passion of
bamboo, a great curiosity about bamboo
cultivation and its development, and active
participation in group activities. The
leadership figure of farmer groups greatly
affects the spirit and the performance of
farmer groups. In Banjar Bubungkelambu, the
customary head also as the leader of farmer
group of Hidup Rukun, I Wayan Conto
transmitting the passion of bamboo to the
members and encouraging them to actively
participate in group activities. Thus the
willingness to participate in this project is
good.
The MA&D approach give attention on
importance of strategic alliances. The bamboo
plantation forest cannot be undertaken by a
single actor since the flow of goods and
information between actors is critical to the
process. If one of the parties within an
alliance is weak, the whole enterprise may be
affected or even collapse (Lecup et.al., 1999).
The bamboo plantation forest needs a
strategic alliance with:
1) The consumer in supply chain to absorb
the bamboo forest products as raw
material of their manufacturing. The
potential schemes with this alliance are
partnership, trade contract, and core-
partners alliance.
2) Forest Research and Development
Agency and ITTO as the center of science
and bamboo development agency to get
update information and technology about
bamboo cultivation and industry.
Bamboo plantation forest has good
potential to be developed both inside forest
area and outside forest area in Bali. There is
no problem to utilize outside area because
private land. While the legal policy related to
utilization in the forest area is PP No. 105 year
2015. The possible schemes of community
access inside forest area are village forest,
community forest, and partnership scheme.
The legal regulation about village forest is
Permenhut No. P.89/Menhut-II/2014 and
about community forest is Permenhut No.
P.88/Menhut-II/2014. These regulations
allow for planting and harvesting bamboo in
the forest area. The procedure for granting
permits for collection of non-timber forest
products in production forest regulated by
Permenhut No. P.46/Menhut-II/2009. The
obstacle that still exists is the regulation in
protected forest area. Bamboo is excluding
commodity which are allowed to be
harvested/collected in protected forest area
through Permenhut No. P.47/Menhut-
II/2013 about the procedure for forest
utilization in protected forest and production
forest.
The bamboo plantation forest is also
synchronous with local policy of Bangli
Regency Government, especially with
Working Group of Development of Bamboo
Industry in Bangli Regency. This project and
the WG can make a good synergy in
developing bamboo potential. While in
customary law, there is the „Awig-Awig Adat’
which also regulate how to manage bamboo
clumps based on local wisdoms of Balinese
culture. Some of rules are: selective cutting
system in harvesting and limited day for
harvesting based on „wariga’ (Yeni et al.,
2015). These rules are in line with the
sustainable bamboo silviculture which will be
introduced to the participant of bamboo
plantation forest.
Based on institutional and legal feasibility
analysis, the bamboo plantation forest in
community forest is feasible with
shortcoming related to regulation of protected
forest.
E. Technical Feasibility
The community of Bangli Regency is
mostly farmers as shown in the previous
explanation about the potential resource in
Bangli Regency. They have co-existed with
bamboo for a long time and got a lot of
benefits from it. But the farmers treat the
bamboo clumps as wild plants that can grow
without any treatments. Their techniques are
the habits that have been passed down from
their ancestors. Their knowledge about
bamboo intensive cultivation and sustainable
harvesting is limited. In line with the
development of science, the knowledge of
bamboo cultivation techniques which can
produce high productivity and sustainable
harvesting are developed. The main
knowledge of bamboo cultivation is about: (1)
preparation and planting techniques, (2)
maintaining bamboo clumps, and (3)
harvesting bamboo clumps management
(Sutiyono, 2013). Their lack of knowledge in
good cultivation and harvesting can be
addressed by means of bamboo cultivation
techniques training by this project.
The physical infrastructure in Bangli
Regency is in good condition (Abdullah et.
al., 2015). Good condition of economic
infrastructure such as road is useful for
transportation and distribution of bamboo
raw materials from Bangli as the largest
supplier (upstream) to areas of bamboo
processing center throughout Bali
(downstream). Economic infrastructure
assessed by the study of Abdullah et al (2015)
are: telecommunication and information
infrastructures, road and transportation
infrastructure, finance infrastructure, market
infrastructure, and electrical energy
infrastructure. The summary of this research
is: (1) A total of 92,5% of 716 villages in Bali
received a strong signal, (2) The road density
130,28%, it indicated that almost entire area of
Bali already has access to road infrastructure,
(3) There are 97,77% villages in Bali have
already got electrical access, (4) A number of
346 villages (48.32%) in the 57 districs already
have a market with building (permanent or
semi-permanent), and (5) The availability of
banking services already exist in every district
in Bali, however, the concentration of banking
services is still in south of Bali, Denpasar and
Badung particularly.
Based on technical feasibility, the bamboo
plantation forest in community forest is
feasible with shortcomings in legal rule in
protected forest and the lack of knowledge of
community about the intensive bamboo
cultivation and sustainable harvesting
system.
CONCLUSIONS AND
RECOMMENDATIONS
Based on the framework set out in this
feasibility study which is assessed in five
aspects, it can be conclude that the proposed
bamboo plantation forest in community forest
in Bangli Regency, Bali is feasible with minor
shortcomings in access to market information
and credit, the lack of intensive bamboo
cultivation knowledge, the passive position of
bamboo farmers in marketing their product,
and the restriction for harvesting bamboo in
protected forest area. The positive result of the
feasibility analysis is depend on the
assumptions used in this study and on
conditions relatively stable within the
entrepreneurs group‟s operating environment.
If the assumptions are different substantially
from the current used of this study, it could
give different result.
The recommendation of this study is that
the shortcomings found from this study
should be addressed before or in line with the
implementation of the project. For example the
training or class for the farmer groups about
the intensive bamboo cultivation and
empower the market position of farmer
groups to active in marketing activities. While
the restriction for harvesting bamboo in
protected forest area becomes homework for
the policy makers to be reviewed further with
the expertise of bamboo cultivation.
ACKNOWLEDGMENT
The authors would like to thank all the parties
that have contributed to complete this paper.
In particular the authors would like to deliver
sncere gratitude to all respondents and key
informants at the research site at Banjar
Bubungkelambu, Bangli Regency, Bali. Special
gratitude should also go to Forest Research
and Development Agency, Ministry of
Environment and Forestry, International
Tropical Timber Organization (ITTO) Project
pd 600/11 Rev.1 and Government of Bangli
Regency, Bali.
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Karki. 1999. Methods for assessing the
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APPENDIXES

Appendix 1. The framework of Marketing Analysis and Development Approach

One of the core

principles of MA&D
is sustainability. To
support the
development of
sustainable
enterprises 5 areas
of business
development are
„screened‟ during
the MA&D process
– meaning: data
from these areas is
collected and
analyzes. The five
areas include :
market/economy,
natural resources
management/envir
onment,
social/cultural,
institutional/legal,
and
technology/product
research/product
development.
Appendix 2. Criteria for eliminating a product/selecting the most promising product

Aspect Criterion Indicator for eliminating

Market Supply/quantity Tree or forest products supply is inadequate and cannot be
(Market/Economy in expanded (e.g., legal restriction to access for the resource,
Five Areas of Enterprise overexploitation)
Development) Level of demand Demand is low or the product cannot be improved to market
demand standards (e.g., too complex, time consuming or costly)
Quality requirements Tree or forest products quality cannot satisfy the customer
within the site context (e.g., lack of education, skills, training
opportunities, access to packaging materials) or the required
improvements are too consuming and/or expensive
Production Cost Production costs are higher than comparable goods produced
elsewhere (e.g., because of remote locations, high transport
costs, lack of low cost source of energy, high labour costs) and
costs cannot be reduced significantly without threat to quantity
of quality
Accessibility to credit No easily accessible source of credit to tree or forest products
producers
Market information Poor availability of price information because of physical
access isolation, monopoly by other market actors
Ecology/Environment Spatial distribution The products is rare or scarce (e.g., due to biological cycle,
(Natural Resource and density overexploitation, changes in ecosystem)
Management/Environm Impact of harvesting Ecological impact of harvesting are unknown or are too
ent in Five Areas of on survival of species expensive or time consuming to assess. Domestication may be
Enterprise Development) an option
Lack of domestication Domestication is not possible, too time consuming, costly or
possibilities complicated
Regeneration The regenerative potential of product is very low or uncertain
potential
Technology/Science Human Lack of knowledge and expertise for extraction, processing,
(Technology/Product resources/expertise marketing and development and improvement is too time
research/development consuming and expensive relative to expected benefits
in in Five Areas of Physical The physical infrastructure (road, rivers) restricts transport of
Enterprise Development) infrastructure tree or forest products and so potential for marketing
Communication Lack of basic communication network to successfully respond to
network buyers‟ demand. Poor information system to link producers to
buyers, transporters, technical assistance (i.e., other direct and
indirects actors)
Social/Institutional Policy/access Legal restriction on collection or cultivation
Setting (Social/Cultural constraint
and Institutional/Legal Support by local rules Poor legal support from the local authorities and relevant
in Five Areas of technical offices for enforcement of agreed communal
Enterprise Development) management rules to prevent outsiders from stealing products
Willingness to Unwillingness to develop the marketing of the product. The
participate entrepreneurs should have the „initiative‟ and show willingness
to act as an „economically responsible actor‟ not just as a
beneficiary
Financial Net Present Value NPV is negative (NPV<0)
(Market/Economy in (NPV)
Five Areas of Enterprise Net B/C Net B/C is less than 1 (Net B/C < 1)
Development) Internal Rate Return IRR is less than discount rate (IRR<DR)
(IRR)
Payback period (PP) PP is too long or longer than project period
Source : Lecup et.al (1999) and Ames (1999)
Appendix 3. The estimation of bamboo demand in Bali

No. Utilization Quantity of demand (stems)

1 Temple ceremony (Piodalan) 1.778.400
2 Penjor Galungan 1.333.800
3 Ceremony in 6 big temples 3.000
4 Ceremony di Pura Pengempon 1.778.400
5 Ceremony di Pura Dadia 2.000.700
6 Ceremony yadnya (otonan, potong gigi, dan 10.003.500
perkawinan)
7 Ceremony in Subak 32.532
8 Farming 259.350
9 Livestock 11.115.000
10 Home industry 6.500.000
Total 34.804.682

Supply and Demand of Bamboo in Bali and Bangli Regency

Variable Bali Bangli
Demand 34.804.682 stems 6.850.609 stems
Supply:
- Land area 12.681,77 ha 6.089,80 ha
- Bamboo production 11.412.900 stems 5.480.487 stems
Deficit 23.391.782 stems 1.370.122 stems
Land need 26.019,78 ha 1.522,45 ha
- Potential land 13.589,80 ha
- Critical Land 31.702,20 ha
Potential Production 40.760.308,94 stems
Sumber: Arinasa&Peneng (2013) dan Dinas Pertanian, Perkebunan dan Kehutanan Kabupaten Bangli (2013)
Asumsi : produktivitas 899,945 batang/ha (Arinasa&Peneng, 2013)
 Range of suitability place to grow for Bamboo
Kriteria Criteria
Condition in Bangli
Kesesuaian Petung Tali
Land Dry land Dry land Dry land
Climate Type Type A and B Type A, B, C Type B dan C
Elevation 10-1.000 m AMSL 10-1.700 m AMSL 200-2.512 m AMSL
Spacing 8x8m 8x6m 2x3 m dan 4x5 m
Seedling Stem cutting, Stem cutting, rhizome, Rhyzome
rhizome, tissue tissue culture
culture
*Criteria from Sutiyono, 2014 & condition in Bangli based on profil of Bangli Regency

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