Needs Assessment Growing the capacity and community of Salt Farmers in Amed Prepared by PLUS - Platform Usaha Sosial for William and Lily Foundation

October 2018 Content

About Amed The Blueprint ● Geographical location ● Background ● Natural resources ● Aspiration ● Tourist attraction ● The ecosystem ● The market About Amed Social Fabrics ● The production ● ● Demographic The Roadmap ● ● Livelihood Potential Support ● ● Religion and culture Potential Intervention ● Roles in family, economy and society

About Amed Salt ● History ● Specialty ● Challenge ● Process ● Existing supports ● Seasons Part I About Amed The name Amed is believed to be derived from Balinese words “A” and “Med” which means ‘Not boring’. Geographical Location Amed, one of the subdistrict in Karangasem regency in the easternmost of Bali island, is 98 km (3-hour drive) away from Denpasar and 1-hour boat ride away from the Gili Islands in Lombok.

Ame Karse, Aba

BALI

Ngu Ri Innil Air Denr

LOMBOK Natural Resources Situated just 25 km from an active volcano - Mount Agung - Amed’s nutrient-rich soil is suitable for growing crops such as cassava and long beans.

• The black sand makes Amed Beach so remarkably unique from other beaches. The sand’s color is due to the volcanic deposits in the coastal soil. It stays black year-round, a sharp contrast to the gold and white sand that hugs most of Bali’s coastline.

• Meanwhile, the pristine water of Bali sea becomes the main material for one of Amed’s product, Amed Salt.

• The reefs along the coast also attract divers and snorkelers. The water teems with various marine life. An aquatic adventure here will likely reveal tropical fish, sea turtles, coral gardens, and perhaps even the occasional shark. Tourism Industry Since 2012, there is an increase in number of tourists visiting Karangasem. Consequently, hospitality businesses such as food and accommodation are growing. Currently we have identified active 135 villas and 120 cafes in Amed.

18% 64% 31% 4% increase in number of all tourists in Bali growth in number of increase in number of cafes and visited Karangasem tourists2 of hotel and villas3 restaurants4 each year 5

Source: 1 From an article in https://www2.padi.com/blog/2017/11/09/7-best-dive-sites-bali/ 2 Data in 2017 compared to 5 years ago from https://karangasemkab.bps.go.id/publication/2018/08/16/f1bf896039fff9ab187cf3c5/kabupaten-karang-asem-dalam-angka-2018.html 3 Data in Karangasem district, compared to 5 years ago. Data derived from https://bali.bps.go.id/dynamictable/2018/03/07/274/jumlah-hotel-non-bintang-dan-akomodasi-lainnya-di-bali-menurut-kabupaten-kota-dan-kelompok-kamar-2000-2017.html 4 Data of 2017 in Karangasem district, compared to 5 years ago. Data derived from https://bali.bps.go.id/statictable/2018/04/13/87/banyaknya-restoran-dan-rumah-makan-dirinci-menurut-kabupaten-kota-di-bali--2012-2017.html 5 Data of 2017 derived from https://karangasemkab.bps.go.id/publication/2018/08/16/f1bf896039fff9ab187cf3c5/kabupaten-karang-asem-dalam-angka-2018.html Tourism Industry Approximately 10,000 tourists visit Amed each year1. Typical activities of a tourist visiting Amed include snorkeling, diving and hiking.

Demographic Spending behaviour Activities and interest

- Majority are coming from European - Average duration spent in Amed for - Nature beauty become the main countries, specifically France each tourist is about 1-3 days2 interest for tourists4 (25.45%)2 - Most of the tourists usually spend - Tourists are seeking for adventurous - Average age of tourists visiting Amed $110/day3 activities (kayaking, biking, hiking, is 26 - 35 years old2 snorkeling and diving) when they visit Amed5

What tourist said about Amed

“We are staying in Amed for 3 nights and we loved it. Amed is a quite a place where you can relax and just look around. The beach is black sand which is something different but views are beautiful.”

-Danae B. from Australia6

Source: 1 Data derived from https://bali.bps.go.id/subject/16/pariwisata.html#subjekViewTab3 2 Data derived from https://ojs.unud.ac.id/index.php/pariwisata/article/download/41023/24874/ 3 Data derived from http://www.xinhuanet.com/english/2018-01/14/c_136895101.htm 4 Data derived from https://www.planetware.com/tourist-attractions-/bali-ina-b-b.htm 5 Interest retrieved from https://www.tripadvisor.com/Attractions-g608478-Activities-Amed_Abang_Bali.html 6 Review retrieved from https://www.tripadvisor.com/Attraction_Review-g608484-d4421988-Reviews-Amed_Beach-Karangasem_Bali.html Part II About Amed Social fabrics Demographic Amed salt-farming community is located in Purwakerthi village, Abang district, one of 8 districts under the administration of Karangasem regency.

Population¹ Social Economy

● 396,000 residents ● 94% hindu ● 99% working ● 65% working age (15-64 years old) ● 3,796 place of worship ● 1,623 small and micro businesses ● 100+ families ● 15 tourist attraction ● 4 financial institutions ● Equal ratio of man and woman ● 33 high schools ● 5% posses higher education degree ● 12 public health centers (diploma & above) ● 3 hospitals ● Agriculture, transportation & hospitality are the top 3 industries with highest contribution

Since there are no universities in the district, people who are interested in pursuing higher Religion and rituals play a key role in their They have more than one means of education go to universities in other region. life. They are always excited about generating income and are all embedded Some continue to work there for a few years upcoming big ceremonies. in their daily routines. before returning to their village.

¹All information in this slide refer to statistics in Karangasem regency in the year 2017 and is taken from BPS Statistics of Karangasem Regency Report. Link to report: https://karangasemkab.bps.go.id/publication/2018/08/16/f1bf896039fff9ab187cf3c5/kabupaten-karang-asem-dalam-angka-2018.html Demographic Looking at Karangasem regency’s population by age, there are fewer people aging 20-44 years old. The missing number might represent people who are studying or working outside of Amed and whom come back after a couple of years. We assume that this gap and exposure to other opportunities in other cities decreases their interest in salt-farming.

Several cases of the youth leaving and coming back to Age proportions in Amed Amed

People who lived outside Amed that we met: ● Bu Made Reni (Pak Suanda’s wife) worked and lived in Papua for two years prior to marrying Pak Suanda. ● Mita, (wife of a salt farmer) worked and lived outside Amed until 2 years ago. ● Wayan (Pak Suanda’s son) lives in Denpasar to study at the moment. ● Pak Telaga (a salt farmer)’s son currently works in the cruise, with the period of 8 months cruising and 2 months returning to Amed. ● Pak Ngetis (an ex-salt farmer)’s son currently works outside Amed as well.

Chart data derrived from: https://karangasemkab.bps.go.id/dynamictable/2018/02/14/37/proyeksi-penduduk-kabupaten-karangasem-menurut-golongan-umur-dan-jenis-kelamin-2014-2017.html Livelihood The people of Amed live from the nature, they earn a living by working in agriculture and fishery, and tourism.

The main profession of people Tourism in Amed is mostly related to Agriculture and tourism, such as concierge, fishery waiter, security, housekeeper, While farming and fishery are Villa owner guide, receptionist and other considered as seasonal Restaurant owner hospitality related profession. revenue stream, livestock Farmer They view tourism as a stable breeding is viewed as a Fisherman Waiters income source. Even though the mid-term investment or asset Livestock breeder Security majority are considered as blue for Amed’s people. Salt farming Villa keepers collar workers, there are a few Tour guides that got the opportunity to Receptionist become villa owner or working in a cruise ship. Livelihood People in Amed used to work as salt farmers, but most of them chose to sell their land and shifted to work in tourism.

Only a few of them continue the salt farming tradition and work as salt farmers, as it is considered a labor intensive work. In addition, the people in Amed view tourism as a bigger and more stable income source.

Currently there are 20 active salt farmers in Amed. Livelihood Typically, one household have more than one profession, and all of the duties are interwoven into their daily activities.

Most of the time, it is a combination of agriculture and tourism.

Pak Telaga is a salt farmer, owner of two villas, a small laundry and general store (warung) in Amed. Religion and Culture About 83.5% of Bali's population adheres to Balinese Hinduism, formed as a combination of existing local animistic beliefs and Hindu influences.

Balinese Hinduism is deeply interwoven with art and ritual. It seeks harmony and balance. It also promotes self-control by ritualising, which is a notable feature of religious expression among the people. Religion and Culture Religion and culture play key roles in their life and it is something they care about.

There are daily rituals, at least one periodical monthly rituals (such as Kajeng Kliwon and Melasti), and big ceremonies (such as Nyepi and Ngaben). Each of the family members have their own role in religious activities and also to preserve the tradition. Women prepare offerings for Regular gamelan Pray in the Daily offering for Gods (canang), the children are involved in playing practice temple daily prayers gamelan music or traditional dance as their tribute to Gods, and some men generally take role as the guardian of the temple. Roles “We cannot live only for ourselves. A thousand fibers connect us with our fellow men.” - Herman Melville

In this section, we will share about how children, youth, men and women in Amed live in their roles and how they are contributing to their family, economy and society. Roles of children Roles - Children To get a snapshot of the children’s role in the society, we conducted two interactive activities in PAUD (Early Childhood Education Program) while observing the interaction between the children.

#1 Puppet Show activity A story about Amed through puppet show was performed as the first activities in Pendidikan Anak Usia Dini (PAUD) to catch the attention of the children. It was aimed to not only educate the children about Amed Salt farming process and the story of Amed, it also contained several valuable positive teachings such as the values of friendship, collaboration, respect to nature, respect to older people, and hard work.

#2 activity Clay Making Gross motor skills were trained in the second activity. A simple set of materials such as sea salt, flour, water, food coloring and oil were brought to PAUD so that the students can create clay on their own. During the activity, we asked them simple questions about their awareness of Amed Salt and to get to know their daily activities and roles in the family. Roles - Children Through interaction and observation, we found that the children are aware about the existence of Amed Salt.

Most of the children are aware about Amed Salt.

Based on the questions asked to the children during puppet show and clay making activity, most of the children understand about the existence of Amed Salt, the use of salt and where the salt come from.

Through observation, we learned that PAUD is lacking in facilities and learning tools. PAUD activities are carried out in a multi-functional building of Banjar Lebah with limited tools to facilitate learning.

Therefore, interactive and active learning are considered novel to them, and was shown by the high level of excitement coming from the students and the parents. One of the parents also asked us to conduct more activities similar to those we conducted in PAUD because his children often get bored of the conservative one-way teaching method using only blackboard and chalk. Roles of Youth Roles of Youth To get a snapshot of the youth’s role, we gathered 9 youths and conduct a simple workshop around aspirations, challenges and ideation while observing their interactions.

Roles in family As children, they feel grateful towards their parents for raising them. Therefore, their life decisions, such as education and career aspirations, are mostly geared toward the goal of supporting their parents and contributing to their family’s financial.

Roles in economy The youth workforce in Amed have big potential to be absorbed by tourism industry as many of them are enrolled in tourism high school. They see tourism industry as a promising future, for example, working in a cruise as there have been people succeed in this field. However, they tend not to have high career aspirations and are satisfied with blue-collar jobs in tourism industry such as waitress, security, housekeeper.

Roles in society Most of the youth we met are actively involved in waste cleaning movement called “Beraye”. Besides, in preparation for big religious festival, many of them also partake in gamelan group practice. Roles of Youth - Aspirations and Challenges Through the workshop, we learned that the youth in Amed often set their aspiration based on to their circumstances, such as family, tourism and religions.

Aspirations Challenges

Working in tourism field is their “Working in a cruise would be Family plays pivotal role in their “I don’t think my parents can dream job nice, doing the dishes, or being a life choices afford my future college They value jobs related to tourism as waiter” Mostly comes from low income family tuition” promising jobs. “I want to be a hotel manager” “I need to improve my family “I aspire to be chef in bungalow” condition”

Stay connected to their family Lack of role model “People who came back from “Earning money from a cruise, They have no idea about other and friend working in a cruise can build 2 go back, marry and live here” alternatives but tourism as they only They prefer jobs that allow them to have villas and run laundry “Stay close with my family” heard success stories from people leisure time. business” working in tourism.

Involved in communal and/or Education is not their main “I can’t find any way to religious activities “I want Amed to stay clean, so I priority financially support my Each of them has at least one activities join Beraye movement” They do not put much effort in pursuing college’s tuition fee” related to social and/or religion “I play gamelan in Banjar” higher education or skill advancement. “I want to study English but the fee seems expensive” “We want to be able to speak English fluently as it will help us in our future. The English lesson that we got in school is not practical enough and we cannot afford to pay additional course fee outside school. So we just learned it from youtube, or practice by talking to the tourist or guest that we met. Sometimes we feel embarrassed because our friends usually laugh at us when we are trying.” Roles of Youth - Optimistic Level towards Amed Salt Most of the youth can see the potential of Amed Salt in the future

They see that not They see that Amed many people are Salt is becoming doing salt farming more famous than anymore before

For them, the process Many tourists are of making Amed Salt % interested in needs a lot of hard 20 Amed Salt and physical work are pessimistic about % the future of Amed The unique process 80are optimistic about the Salt makes the taste of future of Amed Salt different Amed Salt Tourism sector is way from other salt more promising than salt farming, they Amed Salt have expect that sooner or the potential to later the land will turn be exported to into hotel or other countries restaurant and cafe Roles of Youth - Ideation The youths show a lack of ownership to improve Amed Salt because they do not see the urgency to preserve it – they do not think that Amed Salt farming will be extinct in the future.

They imagine themselves to be involved in marketing part rather than in production part

How might we improve Amed Salt How might we support Amed Salt

Better packaging Promotion through social media “Quite small package, blue as tone color, Most of Amed youth has at least one highlighting history of Amed Salt” account in social media. “Maybe we can “To be displayed in bungalow, villa, help promote Amed Salt.” restaurant, hotel” “Aim for domestic and foreign tourists” Reach out to hotel and restaurant Farm Tour “I can introduce Amed Salt to the “Tour guide for tourist who want to see hotel where I work as trainee” the production of Amed Salt” “Introduce Amed Salt to tourists in villa or restaurant” Spread brochure about Amed Salt “I can help hand out brochures to introduce people to Amed Salt” Roles of Youth Case Study of Nengah Bali

Nengah Bali is a 26 years old young man who has a deep concern for Amed’s environment. He works in tourism spot and is relatively well-known in Amed’s youth community. He actively gathers his friends to join a movement in Amed called Beraye, a local movement focuses on cleaning waste in the environment.

Nengah Bali sees working in the tourism field as beneficial because it gives him a reasonable income to cover his spending of around Rp 700.000-1.000.000 per month, while still having time to socialize with his friends and family. Right now, he is enjoying life while preparing for a greater responsibility: starting his own family.

Running a volunteer-based community, he said, is fun but can be hard at times. It is hard to gather his friends who have different interest and activities. He uses Facebook page to spread information of communities’ activities – but finds it rather ineffective. He has a high hopes to see Amed clean and will continue the effort to make it so. Roles of men Roles of Men

Roles in family Men are the main breadwinner of the family. Since they usually live together with their parents in one neighborhood, they are responsible for the lives of their parents and their dependents.

Roles in economy In addition to being salt farmers, they generally do other income generating activities such as livestock breeding, farming, working at construction sites, fishing, being a divemaster or run their own business. The daily activities as a salt farmer depends on the season. During harvesting season (from July to October), they usually focus on salt farming.

Roles in society At least once a month, the men and their families go to the temple to pray. Some also partake in playing gamelan during big ceremonies. This often requires them to practice every night leading up to the ceremonies. Roles of Men Case Study of Pak Wayan Slonog

Pak Wayan Slonog is a husband and a father of two daughters. He really hopes to have a son one day. He lives together with his parents. Salt farming has been his family’s profession for years, so he continues the work.

His contribution to Amed Salt ecosystem do not stop at being a salt farmer. He also becomes the quality controller who collects and checks the quality of all of the salt sold by the salt farmers to MPIG¹. His involvement in MPIG is more of an executor but since he deals directly with salt farmers, sometimes he becomes the think-tank as well.

During non-harvesting season, fishing is his main activity. He also fish sometimes during harvesting season. Pak Slonog owns a very unique boat that he uses to fish and takes tourist to diving and snorkeling spots in Amed monthly.

¹MPIG Garam Amed (Masyarakat Perlindungan Indikasi Geografis or Amed Salt Producer’s Community) is the legal entity formed in 2015 consisting of 5 groups with 7-10 salt farmers each. Roles of women Roles of Women

Roles in family Women handle most, if not all, the household chores in their house. We interviewed around 7 women in Banjar Lebah who do mostly child-rearing. To run the household, they reported that they had to consult all family expenses with the husbands. Roles in economy Women hold at least one occupation: as a salt farmer or sorter in salt production, in tourism site, or running their own businesses, such as restaurant or cellphone center. Generally they apply simple monthly financial budgeting for their families, but they do not have long term plans. They acknowledged that the earnings from one source is usually insufficient so they have to work other job. Roles in society They are involved in religious ritual – prepare offerings for Gods per day with canang and rice, and at least a big offerings once a month. Roles of Women - Overview Women, especially mothers, play a central role in handling household chores, child-rearing and supporting religious activities

Although most of the women in 100% Amed work outside their home, it 6 out of 7 Amed women we child-rearing and has been a common consensus interviewed hold at least one job. household chores that the main role of women is More than 70% even have more doing household chores and than 1 job. The jobs include: ● child-rearing in the family Teacher 85% ● Bungalow staff holds at least one ● Salt sorter occupation ● Salt farmer ● Stock farmer ● Restaurant owner ● Shopkeeper Every morning, women prepare prayer offerings for the shrine in their 100% residence¹. Several women also are involved in religious Roles in family contribute to the society by being a activities or activities for teacher or dance teacher. society Roles in society Roles in economy

¹In general, each residence has one shrine called Sanggah / Merajan Roles of Women - Daily Routine A day in the life of women in Amed

5-7 am 9-11am 4-7 pm - Prepare and cook - Go to work - Rest the meals for family - Prepare offerings 12 - Prepare dinner for family - For salt farmers: - Pray - Dinner with family 11 1 Prepare the salt field - Take care of the during the harvesting younger children 10 2 seasons - Forage grasses to feed the livestock 9 3

7-8 am 12pm - 4pm 8-10 pm 8 4 - Get the children - At work - Watch tv ready and drop - Clean up the house - Prepare for 7 5 them to school tomorrow morning 6 - Go to sleep Roles of Women - Aspirations The definition of success for women in Amed is defined by tangible things that can help lead her family and children to a better future

Reaching their best One of the mothers who teach in PAUD expressed her aspiration about potentials having her own school building to facilitate more children.

“We want to have tangible assets like car, gold, land, especially Ability to gain something motorcycle because it can make our lives easier (our children can go to they value school by motorcycle and we can travel by it). We also want to have our own business.”

Good living for family and their “We want our children to have a better future by gaining a higher loved ones education. They have to go to senior high school because we didn’t even graduate from elementary school.”

“We want to be free from any debt because we usually buy things using Keeping the family’s safety installment.”

“We want to live happily and have no difficulty in buying food and necessities for our family. If we can make the work easier in the future, Fulfilling basic physiological needs we would love to do it.” “We want our family to be healthy.” Roles of Women - Household spending We want to learn the spending behavior of women in Amed through simulation

We gave each of the seven women There are four posts to spend their Objective Rp 6,000,000 to spend to reflect money: We want to understand the their actual household spending per proportion and priority in their month Post I monthly spending based on those Food staples, gas, electricity, phone categories credit and daily necessities Post II Clothes, electronic and home appliances Post III Religious celebrations, installments Post IV Savings, investment and long term needs Roles of Women - Household Monthly Spending In terms of household monthly spending, their saving is based on the remaining amount of the monthly budget after consumption

Priority and proportion of household spending in Amed

#3 #4

#1 #2 1,157,142 1,005,714 43% 38% 271,428 213,571 10% 8%

Consumption Saving (*)

Religious celebration and Savings, investment and Food, staple and daily necessities Clothes, electronics and household appliances installments long-term needs

• Although the amount that they reported for savings, investment and long-term needs are high, these are simply leftover money after expenses of consumptive matter • Most of the women work more than one job; households run under dual income as both wife and husband are family breadwinners • All family expenses have to be discussed with the husband as the head of the family before being spent (*) Notes: The result cannot be perceived as accurate due to social pressure that might happen at the time the data was derived. Roles of Women Case Study of Sri Danti

Sri Danti, a mother of one child, is PAUD teacher and headmaster. She teaches around 60 children together with 2 other teachers. Teaching has been her passion and a means to give back to the community. She always long for the ways to improve the kindergarten and the children.

Despite her deep interest in teaching, she found that the income from teaching is insufficient for their life necessities. To fulfill her family needs, she runs a restaurant in Amed. Her husband also work for their family. Some of the earnings is used as capital to run the business, and she also borrow some money from Lembaga Perkreditan Desa (LPD) or Village Credit Institution.

Women in Amed are generally also a breadwinner in their family. At home, she hold the responsibility to do family household chores, child-rearing, and play role in social activities as well. Part III About Amed Salt The History of Amed Salt Salt farming has been the main profession in Amed for many generations. It was lining up the coastline until about 10 years ago.

Historically, Amed Salt was very popular that the king of Karangasem -the kingdom governing Amed back in the 16th century- requested Amed people to pay their retribution in the form of salt. Speciality of Amed Salt As their value proposition is pure artisan sea salt, Amed Salt is special because of its production process, its taste and has received geographical indications certification

Natural Process The salt, produced by combining sea water and clay soil using unique and traditional tools is believed to be one of the main aspects that differentiate Amed Salt from the others.

The Taste and Looks Amed Salt tastes umami and it does not have the bitter after-taste as the other salt. Amed Salt has an off-white and sparkling appearance.

Geographical Indications In 2015, the historical value and original method earns Amed Salt a Geographical Indication (GI), an internationally acknowledged certificate which provides legal protection that identify a country, a region or an area in which the product originates. It also certifies that the reputation, quality and characteristics of the related product are largely determined by geographical factors in the region. Beside Amed Salt, as of 2015, there has been only 38 GI certified products in Indonesia, such as Kintamani Bali Coffee, Aceh Gayo and Sumbawa Forest Honey.¹

¹Definition of Geographical Indication: http://www.wipo.int/sme/en/ip_business/collective_marks/geographical_indications.htm The Challenge of Amed Salt Farmers The challenge faced by Amed Salt farmers lies in the small number of salt farmers remaining.

Weather and Labors Tourism

Amed salt-making uses traditional method and tools which relies Amed has been more accessible and many people from outside heavily on weather and is very labor intensive. Salt farming can Amed began to see opportunities in tourism. They buy land to only happen for four months each year, during the summer. build villas and restaurants to host the incoming tourists.

The price of salt do not reflect the immense effort and risks it The rise in tourism presented the people of Amed a new takes to produce. opportunity to earn better and more stable income.

Many salt-makers sold their land which was previously used as salt fields to restaurants or villas owners.

In early 2000, there were 200 salt farmers 1. In 2015, the number dropped to 42, and today, only 20 salt farmers are actively working and preserving this tradition.

¹Quoting Pak Suanda in an article here https://www.benarnews.org/indonesian/slide-show/slide-show-garam-amed-07132016150600.html The Challenge of Amed Salt Farmers In 2015, the salt farmers community came together and formed a legal entity called MPIG Garam Amed The establishment of Masyarakat Perlindungan Indikasi Geografis - MPIG Garam Amed is also part of the Geographical Indication (GI) requirement in which the salt farmers are assembled into 5 groups each with a leader, a secretary and a treasury. During the establishment of MPIG Garam Amed, there are 42 members. Today, only 20 members are active.

Sales scheme of Amed Salt

Salt Farmers MPIG Customers

MPIG Garam Amed is meant to become the main (if not only) channel where customers can purchase Amed Local Salt. However, in practice, some salt farmers keep a reseller small portion of their harvest to be sold directly to tourists or local businesses.(*)

(*) Note: Only those sold by MPIG can use the official Garam Amed and GI logo. Garam Amed GI documentation can be found here: http://e-book.dgip.go.id/indikasi-geografis/filemedia/Buku%20Persyaratan%20Garam%20Amed%20Bali/#p=68 MPIG Board Structure

Adviser Adviser Regent (Bupati) of Karangasem ● Provide capacity building ● Provide network Governing board / Pembina Governing Board ● Provide grant for ● Head of Agency for Industry and Commerce production tools ● Head of Agency for Marine, livestock and fisheries ● Head of Agency for Cooperatives and MPIG Chairman Small-Medium Enterprises I Nengah Suanda ● Head of Agency for Culture and Tourism ● Head of Karangasem Regional Development Planning Board (Bappeda) Vice Chairman ● Head of Abang Sub District (Camat) I Nyoman Patra Gunawan ● Head of Purwakerthi Village (Kepala Desa)

Secretary Treasurer I Nengah Ariana I Ketut Telaga

Vice Secretary Ni Wayan Putu

Production Promotion & Marketing Quality Control Law & Administration Committee Committee Committee Committee The Process

Salt farming is a traditional profession in Amed. Due of its reputable taste and quality, during the 18th century, it was requested that the people of Amed bring salt to pay tribute to the King of Karangasem Regency. About Amed Salt - Production Process The production process of Amed is well known due to its tradition and natural process that heavily rely on weather, sea water, and soil.

Step 1 - Preparation Step 2 - Pouring Step 3 - Filtration Step 4 - Stomping Step 5 - Drying Step 6 - Harvesting The crystal layers of salt that The soil, sourced from the land Every morning, the soil is After being watered and Salt farmers will step inside The filtered water is raised to the surface is called located a few hundred meters poured with sea water, leveled, the salt enriched the Tinjungan so that the soil transferred into Palungan, Fleur de Sel and is harvested from the beach, is cleaned and leveled and let dry for 4 soil is transferred into is completely leveled. Then, coconut log that has been using a strainer. The rest of the placed into the designated consecutive days. “Tinjungan”, a traditional fresh sea water is poured cut in half and hollowed, salt is then harvested using a plot. filtration device. The into Tinjungan to be filtered and let it dry under the sun shovel made from bamboo filtration device is made overnight. The filtered water for 4 days. from layers of different is collected in a tube sticks. elements such as woven container made of hollowed palm leaves, pebbles as tree trunk. Nowadays, well as sand. concrete is also used as a substitute. About Amed Salt - Seasons Since the production process heavily rely on weather, the harvesting seasons can only be done during the summer, approximately four months from July to October

Harvesting Seasons - July until October During harvesting seasons, salt farmers’ activities focus on salt farming production process, including farming, drying, sorting, and packaging. Salt farming and drying are mostly done by men, but it does not rule out the possibility that women salt farmers also do the work. Sorting is done by women, mostly by the family of the salt farmers themselves.

Non-harvesting Seasons - November until June During non harvesting seasons, salt farmers focus to market their product to retail, hotel, restaurants or sell them to tourists. They also do several works outside salt farming, such as: livestock breeding, fishing, cultivating and selling vegetables or plants such as cassava, corn and long beans, working in construction sites or becoming tourist boat operator. Part III The Blueprint of Amed Salt Background

In the last ten years, tourism in Amed has been growing fast and affecting the salt farming industry. This situation made hundreds of salt farmers convert the way they make a living into tourism industry Background

Since 2015, there are lots of support and recognition for salt farming because of its traditional process. Therefore, the remaining 20 salt farmers have good faith to sustain, grow and live from salt production. Blueprint - Background During the last three years, salt farmers are supported through these assets, resources and support system that move salt farming forward and towards progress

Asset Product Support Quality • 6 land (6,000m²) • Technical skills remaining inherited from • NGO • Able to package the • 20 members of MPIG ancestors ○ Training product to enter the Amed Salt ○ Patented by Bookkeeping, market (B2C) • 1600 coconut logs Geographical Packaging owned by 20 salt Indication ○ Access to market farmers • Positioning: Artisan salt • Market • 7 machineries to raise ○ Unique light taste ○ 4 Hotel sea water up to ○ Well-known quality ○ 2 Restaurants production site in the world ○ 4 Retail • Existing tools to ○ No preservatives • Support from produce salt Governments Blueprint - Background Managing capital, human resources, and organisation are the major challenges for salt farmers community. They need more support from the government and local people for the sustainability of their production.

Challenges Needs

• Shortage of number of land that can be managed • Land protection from government Capital • Increase infrastructure capacity and quality (machine to draw sea water, • Capital for tools and materials more coconut logs, firmer fields, warehouse)

• Low sense of belonging from MPIG members to grow their business. It • Establish a cooperatives affects the mentality and morale hence the quality of the product • Training on system integration Human resources • Insufficient English speaking skill • Capacity building on English skill • Young people tend to perceive salt farming as not so promising and labour • Education and outreach to people intensive of Amed, especially youth

• No specific position and job description inside MPIG Amed • More systematic institution Organisational and managerial • Insufficient bookkeeping structure • Training on bookkeeping, tax

• Many people in Amed or its surrounding have no idea about the existence of • Education and advocacy for local Local support Amed Salt and never consume it to support Amed Salt

• There were two minor complaints coming from retail and one of the • Training on hygiene from restaurant that says Amed Salt is unhygienic and expensive production, sorting, packaging Hygiene • Difficult to educate and diminish unhygienic practices by the farmers, e.g. • Implement a Standard Operating dirty bucket, use of cement to fix broken coconut logs, stepping on land. Procedures of Production Blueprint - Aspiration of Salt Farmers The salt farmers aspire to grow their capacity and market, in order to grow their organisation

Salt farmers’ aspiration within the next five years

● We want to create stronger organisation and more sense of belonging from our current farmers Grow the organisation ● We also want to attract young talent to build next generation of salt farmers and educate more local people about Amed Salt.

● We want to increase credibility by improving the quality ● We want to explore how to diversify our product Grow the market ● We want to strengthen our current customer base ● We want to explore possibility on how to tap into tourism

● We want to raise more fund to build: Grow their capacity ○ People: sales and marketing, tax and accounting ○ Physical assets: office, store, land and production tools ○ System: to increase productivity “I can see the opportunity of Amed Salt in tourism. I imagine that next year we can do farm tour trial and have an office or physical store so people can easily find and buy our salt.” Blueprint - Aspiration of Salt Farmers - Grow the Capacity The salt farmers identified that they need to improve the system, build up the people’s capacity and add physical assets to help them grow their capacity

“We want to have a physical store “We are not confident if we need to and office near the production area. We imagine that we can have more speak in English, but we will need Physical that skill if we want to speak with People integrated system where we can do tourist or new customer” Asset production, stocking, and selling in one place. Currently the process is not centralised.”

“To strengthen our organisation, especially after we establish the cooperatives, we may need people Grow the capacity “By having local store near the that understand how to deal with production area, we can integrate it taxes (and perhaps accounting). with tourism by making it a tourist Currently we can only do basic attraction or spot. We hope Amed accounting.” Salt can be part of Amed’s tourism as well”

“We imagine we can be more productive System by increasing the productivity for our land. For example, currently one of our land only have one machine and one farmer, ideally we can have 2-3 farmers in one land. We can add more “palungan” for each farmer too! Blueprint - Aspiration of Salt Farmers - Grow the Market - Product Quality The salt farmers emphasize the importance of product quality, consistent branding and innovation in order to increase their product quality

“We notice in the production and “Currently we’re still using used carton sorting process, sometimes the Increase One to pack our salt to our business clients, hygiene still need to be improved. we want to have our own carton. We We want to improve our quality quality packaging also have various type of packaging, control, and give better control for all which we think it would be great to have understanding to our farmers” one identity that can be used in all occasion”

Grow the market Product Quality

“We are thinking to explore how we can increase our business size by diversifying our Product product, for example by making chips with Innovation sea salt flavor. Our aim is to increase the profit margin by targeting the end customer while not having direct competition with our retail client. Blueprint - Aspiration of Salt Farmers - Grow the Market - Product Volume Strengthening the number of their customer segment, integrating with tourism and refining Amed Salt as Bali Souvenir are considered vital by the salt farmers to grow their market

“We see tourism no longer as a threat but as opportunity. We Strengthen think Amed Salt can be Amed’s Launch icon, due to its history and “Most of our business clients customer cultural value. We are thinking from Hotel, Restaurant and farm tour base of creating a farm tour and Cafe, are coming from the engaging more with Amed’s network of NGOs that support tourist.” us from the beginning, we may need to explore more how to Grow the market increase our customer base” Increase quantity

“We learn that we can have a better Amed Salt pricing and margin by selling to end customer. If we are still far from as Souvenir developing a product that won’t directly compete with our retail clients, maybe we can choose different market segment.” Blueprint - Aspiration of Salt Farmers - Grow the Organisation To grow the organisation, they need to establish cooperative in building the sense of belonging of their farmer community, attract young people for regeneration, and educate local people to get more partnership with local business

“We need more young people to be “We want to increase the Attract involved and build the next generation sense of belonging by Establish young of salt farmers. However, most of them establishing a Cooperative. We cooperative are more interested to work in Villas, hope by having a better system people Bungalow or Cruise Ship. At the very and legal entity to divide the least, they can help us with English” profit to our farmers, we can make our internal system more transparent and make the salt farmers feel they are part of the Grow the organisation MPIG.

We found that sometimes the quantity of salt bought from our farmers is less than what “When I went to Bank, the employee who lives we paid for, which affects our nearby Amed have no idea that Amed is well known profitability. We need to for its Salt. We need to educate local people about makes them understand that Educate the uniqueness of Amed Salt, and how to integrate it the success of MPIG will be local people with the local business. Nowadays, the pricing of their success too.” Salt is considered high by the local people which is totally different if we compare to the past three years.” The Ecosystem

To foster those growth and aspiration, it is important to build an ecosystem that can help them to thrive. Blueprint - The Ecosystem - Aspiration The stakeholders are optimistic and open to support Amed salt farmers in growing its business and community. We found there are few alignments in terms of aspiration among the participants.

Aspire to nurture and grow their community and family “I want to build and nurture the salt farmers community” Salt “I want to build a happy family” farmers “I see Amed Salt will grow and become small business that have office”

Aspire to integrate Amed Salt with local business and Local tourism business “I imagine Amed Salt can grow as Agrotourism in Amed” “I can lend my land to be used for salt production process, so the tourist can see the process in our homestay area”

Aspire to grow Amed Salt through cross-industry collaboration and capacity building Govt. “I need to increase collaboration across SME industries” “I need to map the diversity of commodities from various villages” “Our service is to provide managerial capacity building for SMEs” Participants’ aspiration from the workshop “I want to improve the tourism in Amed Blueprint - The Ecosystem Key stakeholders surrounding Amed salt farmers can be categorized into four groups: the communities, customers, competitors and support organisations

Communities Customers Competitors Support Organisations

● Salt farmers ● Retail business ● Artisanal salt producers in Government ● Children ● Hotel, Restaurant and Cafe Pemuteran ● Ministry of Marine and ● Women ● Local business ● Artisanal salt farmers in Fisheries ● Youth communities in Amed Kusamba ● Ministry of Cooperatives and - trash hero community ● Religious community - SMEs gamelan or dance ● Ministry of Industry and community Commerce

Non-profit organisations Blueprint - The Ecosystem - Challenges The government found internal bureaucracy and insufficient database as a challenge for them to support entrepreneurs

Govt. Bureaucracy Complicated bureaucracy to disburse support and funding for micro entrepreneurs

“We are constrained by “Many of the databases “Without sufficient regulation and policy, for micro entrepreneurs databases, it is hard for and there are are invalid due to us to reach out and select requirements that make differences in indicators potential micro it difficult for us to used by the government entrepreneurs to receive disburse the fund” itself.” our support”

- Badan Perencanaan - Dinas Koperasi dan UKM - Dinas Koperasi dan UKM Pembangunan Daerah Karangasem Karangasem Blueprint - The Ecosystem - Challenges Access become the main highlight for the salt farmers to grow their business, access to available land, fund, and skills Bureaucracy

Salt Access farmers Limited land, access to fund and english skills

“We are unable to satisfy “We are not confident to “The increase in tourism the requirement for integrate our business to development drives funding support from tourism because we do many salt farmers to sell government” not have any english their land” skills” Blueprint - The Ecosystem - Challenges The requirement on salt Iodine content by Ministry of Health makes MPIG unable to obtain a business license

Amed Salt contain much Without approval from Without business license, less Iodine content than MoH, MPIG is unable to MPIG has limited access to those required by the register the Micro and external funding Ministry of Health (MoH) Small Business license Without the IUMK, MPIG is not “We are unable to satisfy MPIG is unable to satisfy one of Approval from Ministry of eligible for the Beginner Entrepreneur (Wirausaha the requirement for the requirements from Ministry Health is one of the of Health, which requires Iodine requirements to apply for Pemula) Funding Program from

funding support from Problem found content of at least 30 mg/kg¹ Micro and Small Business Ministry of Cooperatives and government” Meanwhile, Amed Salt only License (Izin Usaha Mikro dan SMEs³ contains 2% of iodine² Kecil - IUMK)

Product Diversification that will be eligible for Establish MPIG as a Cooperative to be eligible PIRT (Food & Home Industry) license. One of the for other source of funding from the ministry of example is by creating a mix of Amed Salt and Cooperatives and SMEs, such as funding for

by Govt other ingredients (e.g: salt & rosella powder) Early Cooperatives (Koperasi Pemula) which Proposed

Alternatives does not require PIRT or MoH approval.³

Source: ¹ MInistry of Health Decree no. 165 MEN.KES / SKII /1986 regarding Iodized Salt Requirements (Link: http://jdih.pom.go.id/showpdf.php?u=bRJ73InF3DvgOWz671qZJZQWGhubNhw5ULZ83551v%2BA%3D) ² Based on MPIG’s statement ³ Article on How to get business capital assistance from the government for MSMEs (Link: http://goukm.id/bantuan-modal-usaha-dari-pemerintah/) Blueprint - The Ecosystem - Ideas During the ideation session held with key stakeholders, the participants show that they are interested to see Amed salt farmers collaborate with other industry in Karangasem or Bali, either through product diversification, product packaging or integration with tourism industry

Ideas Customer Profile Use case Resources needed

1. Packaging ● Tourist ● Cooking / Research: Partnership Collaborating with craft ● Hotel consumption with universities to tap in businesses around ● Spa ● Packaging used as the internship program Karangasem to produce a ● Supermarkets display (Kuliah Kerja Nyata) wicker crafts packaging for the ● Organic store ● Beauty products salt ● Modern and traditional Packaging: Packaging 2. Lab research on health market machineries or facilities benefit of Amed Salt ● Students Marketing approach The health benefit from the ● Working professionals Spa: Contacting the salt content can be used as ● General public ● Online promotion available spas in Amed promotional material ● Business owners ● Participating in local 3. Product Diversification and national Agritourism: Designate 4. Salt Spa exhibitions/ events one of the salt farmers to 5. Agritourism become a tour guide 6. Amed Salt as table salt Blueprint - The Ecosystem - Mapping Retail and hospitality businesses, government and salt farmers are the players with high influence and have shown interest in Amed salt farming, therefore, these relationships need to be closely managed

Hig Ifuc Keep satisfied Manage closely Influence level is determined by Hotel, looking at the stakeholder’s ability to restaurant affect the decision making of MPIG and cafe Retail (either as a business, organisation or Youth business community) community Salt in Amed producers Local Interest level is determined by Government in other Salt looking at whether the stakeholder’s farmer business region personal agenda or interest is aligned with MPIG or Amed Salt in Low Ir Hig Itet general Monitor Keep informed

Support organizations Mothers Religious Competitors committee Non-profit organisations Customers

Children Communities

Low Ilu Blueprint - The Ecosystem - Other Salt Producers Several district in coastal area in Bali have salt farming or salt producing activities

“Bali Artisanal Salt” “Natural Maker Salt” CV. Bali Artisan Salt Kusamba, Klungkung Pemuteran, Buleleng Salt farming process in Kusamba is similar with Salt producers at Pemuteran buy and process those in Amed, the difference is that they use sea sea salt from salt farmers in Guris, Bali. By sand instead of soil. They also integrate their using glass house, they are able to produce production with tourism. year round. Besides sea salt, they like to innovate by mixing the salt with other ingredients to produce seasoning, usually based on customer’s demand. Blueprint - The Ecosystem - Other Salt Producers Product diversification of the salt are heavily emphasized in other areas.

Pemuteran Kusamba

● Pyramid salt ● Sea salt ● Rock salt ● Salt farm tour ● Seasoning (salt mixed with other ingredients) Customers: Retail businesses, tourists ● Coconut based soy sauce ● Salt scrub

Customers: Retail businesses, export Pemuteran, Buleleng Kusamba, Klungkung Blueprint - The Ecosystem - Other Salt Producers Things to learn from salt farming activities in the other areas

We learn from Pemuteran that We learn from Pemuteran that We learn that integrating with The farm tour in Kusamba felt being open to customer technology helps to scale tourism means we have to disingenuous and rigid. We demands and creating production, such as the know what we need to do. learn that we have to be customized products utilization of glasshouse to Showing tourists a signage genuine and interactive. encourage innovation and maximize the drying process and establish a servicescape product value. from rainwater and prolong are important learnings we got the harvesting season. from Kusamba. The Market

“If people like you, they’ll listen to you, but if they trust you, they’ll do business with you.” —Zig Ziglar Blueprint - The Market - Byproducts from B2B Clients The salt bought from Amed is often repackaged into two market products: Sea Salt and Fleur de Sel. However, 90% value of the sales are still from Sea Salt.

Sea Salt Fleur de Sel

Sea salt is the main product of MPIG Garam Amed. It is made from Fleur de Sel is the premium salt. The difference between Fleur de Sel and sunbathed seawater which was filtered with woven palm leaves, sea salt is in the harvesting process, Fleur de Sel is the crystal layers of pebbles, sand, and most importantly, salt-enriched soil. salt that raised to the surface. It is harvested using a strainer, which leads to soft and cleaner salt. They produces 15 tons of sea salt per year. MPIG Garam Amed aims to produce 500 kg of Fleur de Sel per year. The Product

The crystal layers of salt that raised to the surface is called Fleur de Sel and is harvested using a strainer while the rest of the water is let dry and harvested using a shovel made from bamboo sticks. Blueprint - The Market - Current Customer To date, more than 80% sales value of MPIG is coming from B2B Channel. Their customers profile range from hotels, restaurants and cafes, food companies, and tourists in Amed

B2B B2C

Hotel Retail Tourists & Local Outreach in Amed Restaurant & Cafe Hotel, Restaurant & Cafe that will buy Food company or retail store that ● Foreign tourists that looking for salt to be used as ingredients for their will repackage and/or resell the salt experience and authentic souvenirs. use case

Profile and F&B business ● Local people (mostly mother and youth) that sells the salt to tourist

Bali Area Indonesia Amed Scope Blueprint - The Market - Ideas of Potential Customer From the workshop there are few interesting customer profile and use-case to explore, healthy food catering, corporate event, reseller, bath salt and fusion table salt

Healthy Catering Corporate Event Reseller Bath Salt Fusion Table Salt

Healthy catering may Corporate Events in Bali Small number of MPIG’s Bath Salt products Mixing Amed Salt with need organic ingredients may need authentic current customer are usually use unrefined few other local as the value souvenirs from Bali that resellers. The resellers sea salt with no ingredients can be one propositions for their can promote local are usually mothers additives and no iodine. of the options to customers. empowerment like living in big cities and Amed Salt has low diversify the product. Amed Salt. The usually encourage their iodine content (2%). Some of the ideas customer include friends to buy products include mixing the salt procurement from together to decrease the with Garlic or Rosella Multinational Company, shipping cost. Flower powder. Government Bodies, Event Organizers or Agencies. Customer Profile Blueprint - The Market - Focus and Priority After looking at the potentials, these market are the ones Amed salt farmers want to focus on. Each market has its own channel and promotion strategy to be implemented

B2B B2C

Hotel, Restaurant & Retail Corporate Event Amed Tourist Bali Tourist Cafe

Repackage and resell Cooking ingredients Souvenir for attendants Experiencing and for Souvenir Use

Case souvenir

● Direct email ● Direct email ● Corporate ● Tour agency ● Souvenir shop ● Whatsapp ● Whatsapp ● Agency ● Tour guides ● Hotel/Restaurant ● Instagram ● Instagram ● AirBnb ● Tour guide

Channel experience community ● Airport

Competitive Pricing Competitive Pricing Customized Product Experience Bundling, consignment Market Strategy Blueprint - The Market - Estimate Market Size The total estimated market size can reach about 1.9 tonnes with 80.7 billion IDR in value. The restaurant & cafe market have the biggest potential, while market for tourist in Bali can help increase the pricing point

B2B B2C

Restaurant & Corporate Tourist in Hotel Retail Tourist in Bali Cafe Event Amed Rp7.2 billion Rp500 million Rp28 billion Rp44.6 billion Rp281 million Rp119 million 28.8 Tonnes 10 Tonnes 144 Tonnes 1,784 Tonnes 1.125 Tonnes 0.595 Tonnes

From 105 four-stars and above Estimating that there are There are approximately From almost 450,000 From approximately From 14 million tourists hotels in Seminyak, Denpasar, 100,000 tables from 188 5 food companies similar state-owned enterprises 9,920 tourists in Amed, in Bali, we estimated that Ubud and Karangasem, there organic restaurants in to Javara and East Java and medium-large we estimated that there there will be 5% who will will be approximately 7,900 Bali, there will be Co, and estimated the enterprises, we estimate will be 30% who will purchase 200gr of salt guests per day, and we approximately 8 guests need of 2 tons of salt per that about 0.25% will purchase 200gr of salt, since it needs to estimated that they consume per day who is estimated year. organize an event in Bali due to lack of options for compete with many approximately 10 gr of salts per to consume about 6gr of and will use Amed Salt as tourist attraction (salt other kind of souvenirs. day. salt per meal. souvenir for their farm tour) or authentic participants. souvenirs from Amed.

Existing market New market Note: All the calculation above is rough estimation. The details can be seen in the Appendix Farm Tour: Targeting Amed Tourist

Since Pak Suanda, the leader of Amed salt farmer, was very excited of the idea to integrate Amed Salt with tourism, we created a simulation to validate the market.

Blueprint - The Market - Farm Tour Validation Prior to the event, we contacted around 100+ hotels, restaurants, and cafes around Amed and Bali to attract visitors and potential B2B clients

Before the D-Day

Invitation and outreach Invitees Key takeaways

Email and instagram direct Hotel, restaurant and cafe Small responses due to lack of network in the industry message to 100+ Hotel, around: As our network is limited, we only received three responses despite the effort, and Restaurant and Cafe in 20+ Seminyak they couldn’t make it during the D-Day. If we are to do it differently, it might be Amed, Seminyak and Ubud 30+ Ubud & Uluwatu more effective if we contact various hotel, restaurant or food industry associations 70+ Amed that can then introduce us to their members. Furthermore, as were still using PLUS 10+ Canggu account, we fear it deterred relevant responses. Moving forward, it will be better to use Amed salt farmers account for invitation, thus avoiding confusion and getting better responses.

Door-to-door invitation via Homestay or hotel around poster in around 10+ hotel, the location of Farm Tour The local hotel was open and welcomed the idea homestay and restaurant or event. From our experience via door-to-door outreach, most local hotels that were every cafe in Amed open and supportive. Two of them even asked for brochures so they can put it in each of their guest rooms. Blueprint - The Market - Farm Tour Validation The main objective of the validation is to have a simulation about the journey of the customer before and during their visit to the farm

D-Day

Registration Experience the salt-harvesting Salt Testing Payment and Souvenirs

● Experience the process We prepared a tasting table Previously we planned the There were two Two persons from our team played so that the guests can taste payment to be upfront, but people in as tour guide, basically showing the the Amed Salt with: since some of them are registration, mostly guests around, bridging and ● Bread and unsalted hesitant to pay upfront, we inviting people connecting them with the salt butter gave the option for them to from the street and farmers and encouraging the guests ● Local mango pay later. We charged beach to to try the harvesting process ● Local guava Rp25,000 per person. participate. ● Understand the process There were printed canvas that After payment, we gave the showed production process just in visitors a package of 100gr of case the tour guide is occupied Amed Salt as souvenir, which ● Mini photo exhibition usually cost about Rp10,000. We showed pictures about the life of Amed salt farmers to give them more context. Blueprint - The Market - Farm Tour Validation There were 12 visitors who were willing to pay Rp 25,000 for the tour. Most of them are European and they come as mature couple, solo traveler and family

Suriname Canadian couple solo traveler England solo traveler

Customer profile Holland 70% mature couple, 20% couple solo traveler, 10% family

Australian family

Belarus German couple couple (Free)

Blueprint - The Market - Farm Tour Validation Customers’ perspective: “We love the process and the idea of which we can ask more about the story behind it”

What customers love about the farm tour Key takeaways

“How many days does it “The salt farming A dedicated tour guide may be needed take from start to the end process here is so as it would be the DNA of the farm tour: of the process?” They are unique!” curious to They find ● Tour guide will answer the need of know the the history foreign tourist that need more details of the of Amed salt “How are they able process explanation process ● “What is the purpose of farming to think of filtering Tourists also need to take a tinjungan?” interesting with soil? That’s picture of the production, and if awesome!” they are asking the farmers during They empathize the production process, they with the cannot take pictures of the challenges faced process by salt farmers “We’ll figure out how we “What will happen if buildings ● Salt farmers can still do their can help!” are built around?” production process without many distractions. Blueprint - The Market - Farm Tour Validation Customers’ perspective: “We love to pay for the tour and/or buy souvenirs after we experience it ourselves”

What customers want more from the farm tour Key takeaways

Tasting corner is not that important in “We passed by yesterday “Every salt taste the the farm tour since most people cannot and someone gave us a same for me” tell the difference in taste or be bothered bag of salt forcing us to They feel that there is room for by it, explanation should be prioritized buy it” They are not improvement in first. too excited the process about salt Tourists are happy and willing to pay tasting “I eat salt everyday, I’ll try that local fruit” after they experience the tour. They can even buy some more souvenirs. “We feel like it will be much better if they use They are hesitant bamboo basket instead to pay upfront of plastic basket.” “Can we take a look inside first?” Blueprint - The Market - Farm Tour Validation Based on the experience, the idea of farm tour received positive reaction from tourists, local business and salt farmers themselves

Various perspectives from tourists, local business and salt farmers

They love the interactive experience and Most of the local businesses that we are genuinely curious about the process approached are very welcoming and open behind Amed salt farming. They found the to sharing about the event to their guests. Local process and history interesting and it Tourists As options for entertainment or tourist Business helps them empathise about the journey Perspective attraction is also limited, salt farm tour can in making salt. Perspective be one of the add-ons.

One of the hotel that came during the event, Hotel Uyah (Uyah means salt in Salt Farmers Balinese), are interested to open a new Generally they are excited, especially the Perspective core team of MPIG. There are 5 out of 20 production area in their hotel and ask women farmers that usually sell their Amed salt farmers to partner with them product on the spot and receive daily since they don’t have the capacity to income by selling directly to the tourist. maintain and build the production. Therefore it would be an important note to find out how to keep their daily income and merge it with the farm tour. Blueprint - The Market - Farm Tour Validation Based on the impact for business, farm tour is suggested to function as one of the channels to potential B2B market.

Watch out and potential Key takeaways

Farm tour’s impact for the business Farm tour is suggested to design not only for tourist, but also for potential B2B customers Creating a farm tour needs a lot of effort in terms of money and energy. However, compared to the other market potential, the Looking at the potential, farm tour is best functioned as a channel to market size is considered small. The market size in volume and value potential B2B market while also generating additional income from is not much, especially if the farm tour only targets tourists in Amed. tourists who experience the tour or buy souvenirs.

On the flip side, farm tour can also be a potential channel to promote Amed Salt to B2B market. These target market of B2B can make big impact for business. The Production

“Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort.” — Paul J. Meyer

Blueprint - Production - Business Process The process is community based, done by families involved in the business

Production Collection Sorting Packaging Delivery

The production process is Every week, the salt The collected salt will be The sorted salt is then The salt is then packed carried out daily by the farmers will bring their sorted by hand. This packaged in various into boxes and shipped salt farmers. It takes 9 harvest of the week process is done daily. packaging (100 g, 500 g, 1 using land and air days from preparation to (pre-dried and unsorted kg, etc). This process is transport. This process is harvest salt) to be sold MPIG. done daily. not regular, and is based on the demand from customers. Blueprint - Production - Current Resources - Land To date, MPIG Garam Amed has 6 lands for 20 salt farmers with average 300m2 for each

From six available lands, some of the land have fewer farmers while each land require one machine to pump up the sea water

1 Person 1 Person 2 Persons 3 Persons 5 Persons 7 Persons

1 la h e Cos r 1 Durit man o man: te ce: pu t Rp3,500,000 3-4 ye wa f te Blueprint - Production - Current Resources - Tools The initial minimum capital for one farmer to start the production will be about 15 million IDR while their estimate income for one season is about 10 million IDR

Current structure, cost and durability of each tools

Banr Fild ar ta 1 Mac fo 1 la Durit: 30+ ye Durit: 3-4 ye Each farmer is Ting working on 300m2 Durit: 3-4 ye land

Tools: ● Sea water bucket Se we bt ● Scoop - Sibuh ● Rake - Bangkrak ● Filter - Tinjungan ● Coconut logs - Palungan ● Pipes 80 Coc lo Durit: 30+ ye The Roadmap

“A good plan is like a road map: it shows the final destination and usually the best way to get there.” — H. Stanley Judd Blueprint - The Roadmap - Action Plan Increasing land capacity and actively reaching out to market will be the main engine for strategy implementation to 2020

Amed salt farmers’ action plan from 2018 to 2020

2018 2019 2020

20 Tonnes 30 Tonnes 40 Tonnes Focus on current B2B customers Start tourism integration Prototype new product development

Maintain relationship with current B2B Start farm tour sites for the harvesting season Develop product and capacity customers, especially restaurants and cafe ● Build the office or physical store ● Build glass house to extend the since they have higher market size and can buy ● Hire or train youth or young farmers to be harvesting season beyond summer in higher price a tour guide ● Develop and innovate new product ● Develop structure or checklists for by collaborating with other relevant marketing and sales process Develop product and capacity farming community, for example ● Research list of potential customers and ● Develop Amed Salt as souvenir product rosella, etc. reach out via email or social media ● Create packaging alignment for all ● Start digital presence targeting B2B product Expand B2C by targeting tourist in Bali as customers ● Increase the productivity by adding land customers ● Create a better pricing based for each and number of coconut log or palungan ● Research and reachout list of customer segment for each land, from 80 to 100 pieces potential souvenirs store ● Strengthen digital presence Maintain current production capacity Expand B2B customers ● Trial production in new land for next ● Hire one more dedicated sales for B2B Expand B2B customers harvesting seasons ● Research and reach out list of potential ● Get 5 - 10 new B2B customers in events and healthy catering addition to 10 tonnes Strengthen internal financial system ● Get 5 - 10 new B2B customers in addition ● Hire 3-months project based accounting to 10 tonnes and tax person to establish the system Blueprint - The Roadmap - Potential Supports Salt farmers find out that collaboration with relevant stakeholders can help them make their aspiration happen.

Government, retail businesses, hospitality industry and NGO need to be connected to help salt farmers

They have limited fund to grow the They see several potential They have identified in-kind supports capacity, but there are some partnerships, for examples: that will help the salt farmers: potential funding that they have identified. Some of their proposal pipeline include: ● Hotel Uyah: add land for ● Cultural Village (Desa Adat): Lend ● Ministry of maritime: soft loan production in Hotel Uyah the land with discounted rate ● Ministry of Cooperatives and ● Indonesian Coffee association: ● Ministry of Industry and SMEs: Grant for Early Open new access to B2B Commerce: Loan of tools and Cooperatives (Koperasi Pemula) customers from their existing machinery customers Potential Intervention

Even though Amed salt farmers has received many supports, there are still room for intervention to accelerate their growth Blueprint - The Roadmap - Potential Intervention Possible intervention based on Salt Farmers challenges & aspirations

Possible interventions by WLF Challenges Aspirations based on urgency

● Complicated business ● Establish MPIG as a cooperative; ● Accounting and tax system support / registration procedures; ● Involve younger generation in salt training Organisations ● Lack of interest from younger production or marketing process. ● English language training (possibly by generation. establishing English language Club)

● Lack of marketing skills / resources;● Expand b2b customers ● Branding ideation workshop ● Low margin. ● Salt farming integration with tourism; ● Tourism management / serviscape ● Develop Amed Salt as souvenir. workshop Marketing/Sales ● Women and youth empowerment through community based tourism

● Low production capacity in a year; ● Increase production capacity by 50% ● Product ideation workshop ● Lack of hygiene knowledge which in 2019 and 100% by 2020. ● Comparative study program Production affects the quality of the salt; ● Additional capital for production land, ● Lack of product diversification. tools or machineries Blueprint - The Roadmap - Potential Intervention We have identified some potential interventions that can support Amed salt farmers in the long run. Project based hiring to establish system, women and youth empowerment and ideation events are the highlight priorities

Potential intervention for Amed salt farmers

2018 2019 2020

20 Tonnes 30 Tonnes 40 Tonnes Focus on current B2B customers Start tourism integration Prototype new product development

Hire 2-3 months project based Accounting & Establish servicescape management system Product Ideation workshop Tax to establish the system after Cooperatives for Farm Tour Run product prototyping marathon to launch has been registered. Design customer journey, feels and experience the new innovation product during the farm tour.

Hire 2-3 months project based Digital & Social Branding Ideation workshop Media to tandem with Amed salt farmers. Run 1-2 days branding for packaging, logo, catalogue design marathon (similar to hackathon) that can be used for all Amed Salt Comparative study program product. Visit modern market and organic store in Bali or Jakarta to spark the ideation process in product Start regular English Club to increase the Women and youth empowerment through development confidence and build the relation between salt community-based tourism farmers and the youth. Build a community-based tourism by involving women and youth in the farm tour

Indicates high priority Blueprint - The Roadmap - Potential Intervention - Project Based Accounting Expert Project based accounting experts can help with knowledge transfer and system refinement, especially after their establishment as a cooperative, they will need better system to share the profit to their members

2018

20 Tonnes Problem Overview Output Focus on current B2B customers

Hire 2-3 months project based The current accounting By hiring dedicated experts ● Basic knowledge in Accounting to establish the system after system cannot track in the short term, we hope accounting Cooperatives has been registered detailed unique customers they can learn by doing and ● Customized and and cost building the system that can relevant accounting Estimated social investment: be utilised in the long run. system Rp 15-30 million The proper tax and accounting system can help The objective of this hiring is Priority: Amed salt farmers to share not only to transfer the High the profits when they are knowledge, but also to established as a establish customized and cooperative. relevant system based on their needs. This could be done through one day training/workshop. Blueprint - The Roadmap - Potential Intervention - Project Based Digital & Social Media Digital & social media experts can help them explore new channels and actively look for new B2B customers without hiring the dedicated sales force in 2018

2018

20 Tonnes Problem Overview Output Focus on current B2B customers

Hire 2-3 months project based Digital & Salt farmers have no The objective of hiring ● Active social media Social Media to tandem with Amed salt experience in using social Digital and Social Media accounts for MPIG farmers media nor selling Amed Salt expert is to train potential ● Active online online human resource that will be marketplace Estimated social investment: in charge of digital and accounts for online Rp 10-25 million Youth in Amed also lack the social media for MPIG. transactions knowledge in using online ● Basic knowledge in Priority: selling platform (e.g By getting the skills and using social media for High tokopedia, bukalapak) knowledge, MPIG will gain business and using more customers and online marketplace Though youth in Amed are distribute Amed Salt more ● Basic online digital active in social media, they widely. marketing skill need more skills in taking ● Basic content writing the pictures and creating skill for social media the content Blueprint - The Roadmap - Potential Intervention - English Club English Club can be the platform to build the relationship between youth community and salt farmers while at the same time increase their confidence to speak English

2018

20 Tonnes Problem Overview Output Focus on current B2B customers

Start regular English Club to increase The youths aspire to work in English Club as a non-formal ● Establishment of the confidence and build the tourism industry and they platform aims to improve English club with its relationship between salt farmers and long for a proper English English skill of salt farmers core team to improve the youth skill advancement to and youth in Amed. English skill support their career. ● Increased awareness Estimated social investment: On a regular basis, English about Amed Salt on Rp 75-100 million Lack of ownership of youth Club conducts members youth in the salt farming process. meetup taught by native Priority: speakers or English teacher to High Integrating the need of do fun activities: such as English skill improvement movie screening. To carry out and salt farming by English the club activities, a freelance Club will hopefully increase English teacher and a the youth’s interest. pro-bono core team of English Club need to be set up. Blueprint - The Roadmap - Potential Intervention - Servicescape Management System Servicescape management system can build the capacity of salt farmers to operate a farm tour and design the experience through customer point of view

2019

30 Tonnes Problem Overview Output Start tourism integration

Establish servicescape management Currently, tourists’ To integrate salt farming with ● Customer journey system for farm tour awareness and interest on tourism through farm tour, and experience Design customer journey and experience Amed Salt is quite high, but the issue that needs to be design during the farm tour they long for qualified tour tackled is improvement on ● Action plan of one guide who will explain the hospitality, management, and year farm tour Estimated social investment: process in a good-manner. people skill. This program will servicescape Rp 150-200 million connect salt farmer with management system Lack of confidence of the youth as the tour guides in an Priority: salt farmers and youth to ideation event to design a High introduce the process and prototype of customer specialty of Amed Salt. journey and experience. Following the ideation event, they will conduct a farm tour as prototype and validate with the market. Blueprint - The Roadmap - Potential Intervention - Branding Ideation Workshop Conducting a branding ideation workshop involving salt farmers and brand consultant will create not only a brand that truly represents their value, but also a sense of belonging within the community

2019

30 Tonnes Problem Overview Output Start tourism integration

Branding Ideation workshop There were lots of support 1-2 days ideation event will ● Logo Run 1-2 days branding workshop for from previous NGOs in involve salt farmers, graphic ● Brand guideline packaging, logo, and catalogue design developing packaging for designer and brand ● Packaging in all size marathon (similar to hackaton) that can Amed salt farmers. As a consultant to explore SKUs be used for all Amed Salt product result, Amed salt has various references, build color tone, ● Catalogue for B2B branding with various color looks & feels customers Estimated social investment: tone, looks & feels. Rp 100-150 million We imagine that the brand The salt farmers aspire to value should come from the Priority: have MPIG branding in their salt farmers, so they can feel High carton packaging (currently proud and it lifts up their they use used carton) sense of belonging Blueprint - The Roadmap - Potential Intervention - Women and Youth Empowerment Women and youth has potentially important roles to support the integration between salt farming and tourism industry, therefore more involvement for them can bring economic empowerment not only in individual level, but also the whole family

2019

30 Tonnes Problem Overview Output Start tourism integration

Women and youth empowerment Amed youths are interested By creating a Involving and defining through community-based tourism in tourism. They are proud community-based tourism, youth’s and women’s roles Build a community-based tourism by of Amed Salt but not youth and women can work in the business process. involving women and youth in the farm interested in becoming full-time for a full year. tour salt-famers. For example, by creating a Their needs for money and tour package of “A day with Estimated social investment: Women and youth need to working in the field they salt farmers; family” consists Rp 150-200 million earn a living. They do not love can be fulfilled as well. of salt-making process, see salt farming as a stable sorting, and packaging. The Priority: and significant income Moreover, these youth can be the tour guide Mid source. involvement can potentially while women can do the establish a sense of sorting process in the office belonging to Amed Salt. or handle the souvenir sales. Blueprint - The Roadmap - Potential Intervention - Comparative Study Program Comparative study program aiming to give the salt farmers more exposure to the customer and modern market channel can help them get a better idea on the trend of the products in artisan or organic food industry

2020

40 Tonnes Problem Overview Output Prototype new product development

Comparative study program MPIG Garam Amed is near to In a couple of days, Product development ideas Visit modern market and organic store in the makers but far from the salt-farmers visit markets or in: Bali or Jakarta to spark the ideation market. stores in Bali or Jakarta. ● Product process in product development They can see other salt or diversification They have little knowledge natural products in the ● Product process Estimated social investment: of what their market want or market and compare or ● Product Packaging Rp 50-75 million think about the salt. generate ideas to be developed. Priority: They also have little Mid knowledge of other Study programs can also be salt-production processes. conducted with other salt-farming communities. Salt farmers can learn about the production process and gain more insights. Blueprint - The Roadmap - Potential Intervention - Product Ideation Workshop Product ideation workshop will not only expand the salt farmers’ product portfolio but also help spark ideas and collaboration among farmers community in Bali.

2020

40 Tonnes Problem Overview Output Prototype new product development

Product Ideation workshop Currently, MPIG has only There are a lot of potential ● New variants of salt Run 3-5 days product prototyping two kind of products (sea collaboration with other products marathon to launch the new innovation salt and fleur de sel). They farmers community in Bali ● Partnership with product need to launch more that will benefit both more farmers innovative products in order communities. communities Estimated social investment: to be more competitive in Rp 150-200 million the market This collaboration will not only produce innovative Priority: The combined products (a products for MPIG, but also Low mixture of salt and other create more sustainable spices) will enable Amed products through more Salt to apply for certificate empowerment. from Ministry of Health. Closing The high enthusiasm from Amed salt farmers combined with the spirit to preserve its culture, and the right support from relevant parties will be the key towards sustainability.