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The Study on Distribution Mechanism Reform Through MINISTRY OF AGRICULTURE THE REPUBLIC OF INDONESIA THE STUDY ON DISTRIBUTION MECHANISM REFORM THROUGH DEVELOPMENT OF WHOLESALE MARKET (IMPROVING OF POST-HARVEST HANDLING AND MARKETING FACILITIES) IN INDONESIA (AGRICULTURE) FINAL REPORT MAIN REPORT JANUARY 2012 JAPAN INTERNATIONAL COOPERATION AGENCY SYSTEM SCIENCE CONSULTANTS INC. NIPPON KOEI CO., LTD. RDD JR 12-003 Map of the Study Areas Bird’s Eye View of the New TA in Lampung Province in Lampung Province TA of the New View Eye Bird’s Photographs 1. Lampung Province (1) Existing Wholesale Markets in Bandar Lampung City 1) Taming Market ■Facade of market building ■Wholesale booths ■Debris of cabbage 2) Gintung Market ■Neighboring main street ■Cabbage in wholesale market ■Potato in wholesale market ■Internal condition of retail market ■Garbage collection truck (2) Candidate Sites of TA Construction 1) Penengahan Site ■Neighboring trunk road ■Project site owned by Lampung Province (Ex-truck scale facilities of (view toward B. Lampung) Transportation Agency, Approx. 1.8 ha) ■Project site (private land of approx. 10 ha) ■Houses in the project site 2) Natar Site ■Neighboring access road (view ■Overview of the site (viewed from neighboring trunk road) toward Bandar Lampung City) ■Chicken farm facilities in the site (under ■High-voltage line ■Private junior high school operation) and tower in the site which is facing to access road 3) Gedong Tataan Site ■Neighboring access road (view ■Overview of the site (access road and street trees viewed from toward Bandar Lampung City) the center of the site) 2. East Jawa (1) STA Mantung ■Approach to STA from neighboring trunk road ■Sign board of STA ■Open space (center) and ■Booths along exit route ■Full loaded truck in the booths parking area ■Washing and grading of carrot ■Temporary stock space for ■Administration office cabbage (after lime treatment) (2) Pasar Induk Osowilangun (Private Wholesale Market) ■Overview of internal road and market buildings ■Wooden pallet ■Fruits in cool storage ■Internal condition of wholesale market ■Wholesale market facilities (booths not rented yet) (3) TA Puspa Agro ■Overview of internal road and market buildings ■Roof truss (space frame) ■Internal condition of wholesale market ■Market building with booth partitions and internal truck road 3. North Sumatra (1) TA (STA) Semantang Siantar ■Overview image of the market: Loading space (left side), and other market buildings (2) STA Saribudolok ■Open space for products collection and supporting facilities ■Selecting space with roof (from the left; cold storage, selecting, packing, warehouse and guards house) ■Administration office ■Kiosk ■Internal condition of cold storage ■Unloading work for ■Wednesday market ■Wednesday market “Wednesday market” 4. South Sulawesi (1) STA Malino ■Administration office ■Selecting space ■Internal condition of selecting space ■Warehouse ■Signboard of a STA The Study on Distribution Mechanism Reform through Development of Wholesale Market (Improving of Post-Harvest Handling and Marketing Facilities) in Indonesia (Agriculture) Final Report List of Volume - Main Report - Annex The Study on Distribution Mechanism Reform through Development of Wholesale Market (Improving of Post-Harvest Handling and Marketing Facilities) in Indonesia (Agriculture) Final Report Main Report Contents Map of the Study Areas Bird’s Eye View of the New TA in Lampung Province Photographs Contents List of Table and Figure Abbreviations Summary Part 1 Background Page 1.1 Current Condition and Issues of Agricultural Sector in Indonesia ·············································· 1 1.1.1 Current Condition of Agricultural Sector ······································································· 1 1.1.2 Agriculture Related Policies ··························································································· 2 1.1.3 Consumption Trend of Horticulture Products ································································· 3 1.1.4 Supply and Demand in Domestic and International Markets ········································· 9 1.2 Development of Agricultural Wholesale Market ······································································ 10 1.2.1 Development Project and Course of Agricultural Wholesale Markets ························· 10 1.2.2 Laws and Regulations regarding Agricultural Wholesale Markets ······························· 12 1.2.3 Legal Framework and Procedures regarding Environmental and Social Considerations ··································································································· 13 1.3 Trends in Assistance by Other Donors ······················································································ 22 Part 2 New TA Development in Lampung Province 2.1 Current Condition and Issues in Study Areas ············································································ 23 2.1.1 Current Condition and Issues on TA Development in Lampung Province ··················· 23 (1) Agriculture Related Policies ··························································································· 23 (2) Current Condition and Future Prospects of Inter-Provincial Marketing between Sumatra and Jawa ··········································································· 25 (3) Relevant Agricultural Policies of DKI Jakarta to be Considered ···································· 41 (4) Features and Issues of Agriculture Marketing in Lampung Province ····························· 44 (5) Other Facilities and Systems referred in TA Planning ··················································· 46 2.1.2 Current Conditions in Candidate Sites of New TA in Lampung Province ···················· 53 (1) Current Conditions of Social Infrastructure in three Candidate Sites of New TA ············ 53 (2) Environmental and Social Considerations concerning TA Development ························· 56 2.2 Site Selection for Feasibility Study on New TA Development in Lampung Province ·············· 67 2.2.1 Governmental and Provincial Policies relating to TA Development ···························· 67 2.2.2 Trading Area and Distribution Network ······································································· 68 2.2.3 Needs of Stakeholders for New TA in Lampung Province in the Phase 1 Work ·········· 71 2.2.4 Comparative Analysis on three Candidate Site of New TA in the Phase 1 Work ········· 71 2.2.5 Selection of the Project Site of New TA in the Phase-2 Work ······································ 73 2.2.6 Conclusion on the Site Selection for Feasibility Study on New TA ····························· 74 2.3 Basic Information for Products Distribution and Marketing System relating to New TA in Lampung Province ·········································································· 76 2.3.1 Review on the Distribution Volume of Potential Target Products ································ 76 2.3.2 Conventional Marketing System and Pricing Mechanism of Target Products of New TA ··························································································· 77 2.3.3 Trends in Consumption Area ························································································ 83 2.4 Overall Strategy of New TA Development in Lampung Province ············································ 85 2.4.1 Necessity for Development of New TA Development in Lampung Province ·············· 85 2.4.2 Roles and Functions of the New TA in Lampung Province ·································· 85 2.4.3 Improved Marketing System by New TA in Lampung Province ·································· 86 2.4.4 Target Products and Planned Handling Volume of the New TA in Lampung Province ················································································ 87 2.5 The Project ································································································································ 89 2.5.1 Design Conditions on the New TA ··············································································· 89 2.5.2 Facilities and Equipment Planning ··············································································· 89 (1) Facilities Plan ···················································································································· 89 (2) Equipment Plan ··············································································································· 107 2.5.3 Construction and Procurement Plan ··········································································· 108 2.5.4 Overall Project Cost (incl Financing Plan) ································································· 108 2.5.5 Project Implementation Schedule ··············································································· 110 2.5.6 Project Implementation Committee ············································································ 110 2.5.7 Project Operation and Management Body ·································································· 113 2.5.8 Stage-wise Development Approach ············································································ 114 2.5.9 Necessity of Technical Assistance ·············································································· 116 2.6 Environmental and Social Consideration ················································································ 117 2.7 Project Evaluation ··················································································································· 131 2.7.1 Economic
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