International Journal of Real Estate Studies, Volume 11 Number 1 2017

THE SUSTAINABILITY OF IN COASTAL SUBURB OF PADANG, INDONESIA

Abdullah Munzir1 & Indra Khaidir2

1Department of Aquaculture, Bung Hatta University, 2Department of Civil Engineering, Bung Hatta University, Email:[email protected], [email protected]

Abstract

The research objective is aimed at the sustainability analysis of catfish aquaculture business that is run by small fish farmers in coastal suburb of Padang. Value Chain Approach (VCA) and Strength, Weakness, Opportunity, and Threat (SWOT) Analysis are applied and used as the base of descriptive qualitative analysis. It is found that the supply of production input especially fish food plays the most important role on the sustainability of aquaculture development. The intervention of government policy to push the aquaculture development in Padang coastal suburb is also important on one side but it could cause dependency of fish farmer on government support on other side. The contribution of parties in value chain are not yet optimum. Therefore, efforts should be focused on the optimizing the role of actors including institutions on the value chain according to market-based solutions which would sustain catfish aquaculture system in coastal suburban of Padang.

Keyword: Catfish Aquaculture, Value Chain Approach, Sustainability

1.0 INTRODUCTION experienced by capture but also has notable potential for new livelihood Padang is the capital of West Sumatra Province opportunities, providing mechanism for lower located precisely facing Indian Ocean. priced fish, enhanced nutritional security and According to BPS Provinsi Sumatera Barat employment for poor communities (Jagger and (2014), 92% of total 6,913 fishermen in Padang Pender, 2001). Catfish cultivation has been are categorized as full fishermen; around 42% of significantly developed in Indonesia after 2005. them work traditionally. Nazmar (2013) District Boyolali in Central Java is well known described that off- and non-fishing as the centre of catfish aquaculture. Village activities are potential to develop as an Tegalrejo in this region which is called as alternative income generation in this region. It Catfish Village produced more than 12 tonnage relates to their actual situation i.e. lack capacity of catfish per day. In Padang, catfish cultivation of , high competition on the developed after 2010. Catfish market has also utilization of fishing ground, and the depletion developed in many regions in West or out of tendency of fisheries resources in their main West Sumatera Province. Catfish aquaculture is fishing ground nearby coastline. considered by coastal community as an Oluwasola and Ige (2015) described that alternative choice for shifting activities from although the intensity of urban growth can pose fishing to . Its uncomplicated a major challenge to the development and technology, low cost investment for starting up, growth of large scale farming, fish production is and government support are important reasons an enterprise that requires small area of land and for small fish farmer running catfish farming which can make use of the several stream partially or totally. However, some fish farmers channels for the sustainability of the urban could maintain their business only in several environment. Fish farming is not just uniquely placed to reverse the decline in supplies Critical Success Factors for Development of Solid Waste Incinerator production cycles. The catfish aquaculture has are chosen by applying snowball approach. not significantly developed yet as it is expected. Value chain mapping was conducted based on Theoretically, a sustainable farming is the the data and information from respondent. Value freedom to access and combine on- and off-farm chain and SWOT analysis in the frame of production factors and practices that are qualitative approach were applied. compliant to natural laws that lead to increased production of crops and livestock products sufficient for local and export markets (C.O.A., 3.0 LITERATURE REVIEW 2011). It is predicted that by 2025 the Indonesian total population will be around 273 million people. 2.0 OBJECTIVE AND METHODOLOGY Food and income security will be a raising issue for this largest archipelagic state in the world Catfish aquaculture is expected becoming an with around 17,500 islands and 95,181 km alternative income generation of coastal coastline. Bahri and Tiesnamurti (2012) suburban community in Padang especially for mentioned that the government should prepare a fishermen households. For a sustainable practice strategy of medium and long-term livestock of this fish cultivation needs analyses on development in sustainable manner by constraint probability faced by fish farmers who leveraging the availability of local resources. are sceptical to carry out the catfish aquaculture. Promoting aquaculture is considered as a This raised several questions regarding whole suitable strategy for poverty alleviation in rural activities and interrelation patterns amongst coastal area. Because, development actors along the value chain of catfish program by stressing on the industrialization of aquaculture practices in Padang coastal suburb. capture fisheries in fact, does not always What are strength, weakness, opportunity, and contribute positive impact on household threat of catfish aquaculture development? What economy of small fishermen (Nazmar, 2013). In strategy to recommend? The study objectives line with this matter, Oladimeji et al. (2014) areanalyzing the sustainability and finding described that fishermen need education to relevant policy intervention and upgrading understand work diversification, adopt strategyof small catfish aquaculture in rural technology which is able to improve the life coastal of Padang. quality of rural household, maintain fisheries Coastal rural area of Pasie Nan Tigo in Sub resources, and avoid environment pollution. district Koto Tangah of Padang Suburb is chosen According to Manikmas (2012), farmers are as research location purposively. Because, the rational in decision making process with respect catfish aquaculture system was firstly introduced to any introduced agriculture technology. They to fishermen in this area. Besides, the practice of may consider the economic sacrifices in term of catfish aquaculture of coastal community is additional cost and potential benefit or concentrated also in this region. The chairman of additional income before they accept and adopt fish farmers in the research area was chosen as the introduced technology. Munzir (2001), main informant. Element of catfish farming Munzir and Heidhues (2002), and Munzir (2009) stakeholder namely catfish fish farmer, fish food described that rural aquaculture plays significant supplier, fish product processor and trader, role for food and income security in rural social government fishery officer, and other relevant economic development. Oluwasola and Ige parties of private and public sector were (2015) mentioned that the development of fish interviewed based on information from farming in Nigeria was driven by socio- informants. The criteria of fish farmers which economic objectives including nutrition are selected as respondent is the continuity of improvement of rural community, generation of production at least three years. Meanwhile, the additional family income, creation of criteria of other respondents out of fish farmers employment, and diversification of income is their participation on catfish aquaculture in activities. accordance with their own role. The respondents

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Critical Success Factors for Development of Solid Waste Incinerator

VCA and SWOT are analytical instruments for analyzing interrelation various activities and Table 1: The value of production of catfish farmer institutions concerning of production system, in Pasie Nan Tigo Padang Suburb in sector, business, and their development strategy November 2015 which is important for the aspect of Product/ Price/ Quant Value sustainability. VCA is applied by the World Activity Size Unit Unit, ity Rp** Bank (2011) in agribusiness and agriculture in (cm) Rp* Sub-Saharan Africa, in the context of quality 2-3 Ind. 220 50 11 management (Popescu and Dascalu, 2011), and Producing 3-4 Ind. 250 100 25 in in India (Krishnana and juvenile 4-5 Ind. 420 150 63 Narayanakumarb, 2010). German International 5-7 Ind. 350 200 70 Producing Fresh Cooperation (GIZ) has applied VCA and SWOT consumption Kg 34 11,000 374 fish as analytical instruments for Regional Economic size Fish Smoked Development Program in various home Kg 1.6 70,000 112 industries, tourism, agribusiness, and other processing fish commodity development in Indonesia including Total 655 Note: the value chain study of white pepper in West 1. Ind. = individual. Kalimantan (GIZ, 2012). 2. * = Figure x 1,000.- 3. ** = Figure x 1,000,000.-

4.0 RESULTS AND DISCUSSIONS From the value of production (in Rp) in Table 1, it is calculated that 57% of the production Introduction of catfish aquaculture to Padang value came from catfish production for Suburb Pasie Nan Tigo was conducted in mid consumption purpose. Most of catfish farmers 1990s. Coastal rural household in this area run prefer to produce fish production for this this catfish farming as side activity for additional consumption purpose than fish seed. According nutrition source. Later, more households tried to to farmers, producing fish seed is riskier than gain income from catfish aquaculture. In January producing catfish in bigger size because of 2008, the catfish farmers established a group higher mortality potential of juvenile. Although which is conditional for having access to it is considered risky, few farmers gained good government’s program support such as training profit from seed production which contributes and micro credit facilitation. 26% of total production value beside other contribution i.e. 17% from . So far, 4.1 Profile of Catfish Production demand of the production is not good. Potential buyers cover restaurants and household All fish farmers in Pasie Nan Tigo were consumers in Padang, Pariaman, and accounted 63. However, some of them consider Bukittinggi. These cities are known as tourism aquaculture is just as a side business and do not destinations in West Sumatra. conduct fish culture activity regularly. For them, aquaculture is a side business only. This does 4.2 Pond Ownership and Farm Income not fit the criteria of research respondent of 50 fish farmers, that is then determined as Most of farmers found that having and operating population. Ninety percent of them produce more units of pond enable them to manage catfish for consumption purpose, 10% produce productivity, reduce mortality risk, and gain catfish seed. One of fish farmer’s household also better farm income. But, they could not yet worked on fish processing to produce smoked determine the relation between number of pond fish. Production and its value of catfish farmer unit and amount of farm income or fix optimal activity including fish processing in research ownership of pond unit for the best farm income. area are presented in Table 1. This would be influenced by pond size, stocking density, feeding intensity, water quality management, etc. Distribution of pond unit

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Critical Success Factors for Development of Solid Waste Incinerator ownership amongst catfish farmers varies small built around their house. Beside significantly (Table 2). conventional fish pond, some farmers manage cement pond and special ponds made of thick Table 2: Distribution of Pond Unit Ownership and plastic material so called “kolam terpal”. Monthly Farm Income Technically, managing catfish aquaculture is relative easy to learn and practice. Especially for No. Pond Amount of Monthly Farm farmers who specialize their fish culture to Unit Farmer Income (Rp) * produce fish for consumption size, not for seed ∑ % production purpose. 1 1 - 5 36 72 1.0 - 2.5

2 6 - 10 12 24 2.5 - 4.5 3 11-15 01 2 4.5 - 6.0 Land &fish 4 16-20 0 0 1.0 culture media 5 > 20 01 2 8.0 - 10.0 selection Media preparation Note:

1. Source: Office of Lead Farmer in Pasie Nan Tigo

in 2015 Cultivation: Hatchery, seed Providing 2. * Figure x 1,000,000.- size (cm): 2-3; adult fish Managing ● Seed growth 3-4; 4-5; 5-7; stock ● Feeding nursery sorting ● Bought Seventy-two percent of catfish farmers have ● Water quality ● Cultivation 1-5 units of catfish pond, 24% of them have 6- 10 units, one household (2%) has 15 units, and Intensive Producing adult one other household (2%) has 47 units of pond. cultivation stock for breeding Average size of a catfish pond is between 2.0-

2.5 m x 3.5-4.0 m. Managing 2 units of catfish Production for Producing fish pond in a productive manner enables fish farmer consumption purpose seed household in Pasie Nan Tigo earn money in (market demand) average of Rp. 1,800,000 monthly. According to Handling Handling most of fish farmers, catfish aquaculture in (oxygenizing, (oxygenizing), Padang Suburb is a promising activity to packing), processing packing, improve their household income. (smoked fish), transportation transportation

4.3 Value Chain of Catfish Aquaculture Smoked fish

Value chain mapping on a certain business system is commonly carried out by field observation, interview, and Focus Group MARKETING Discussion. The value chain map of same business could be different from time to time or different area due to the difference of business Figure 1: Partial Value Chain Model of Technical actors, stakeholder element, and access to the Activities of Catfish Aquaculture in Coastal Padang business system. Suburb For simplification purpose, two value chain models of catfish aquaculture in Padang Coastal As an intensive cultivation, catfish Suburb are depicted i.e.: Partial Model (Figure aquaculture needs commercial fish pellet. Some 1) and Integrated Model (Figure 2). Partial farmers have financial constraint for providing Model depicted interrelation of actors in the pellet mainly when its price increasing. There is technical activities of catfish aquaculture. an idea to establish a cooperative to support the Results of field observation indicated that small fish farmers in supplying input factors and famers do not have difficulty on providing land product marketing. Efforts for this objective and cultivation media. Small fish farmers could were organized by some farmers but it is not yet start running up a catfish aquaculture from a successfully attained due to the lack of

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Critical Success Factors for Development of Solid Waste Incinerator understanding of the small fish farmers on the heavy rain and high tide occur simultaneously. important role of self-organized cooperative.An This issue rose after flood disaster occurring in effective extension program is considerably Padang City on March 22nd, 2016. So far, there necessary. Indeed, instituionally there is a good still no site arrangement regarding choosing opportunity to solve the problem due to the better location for building pond in Pasie Nan existence of institution dealing with such issues Tigo coastal area. From pond engineering point in Padang namely public extension and private of view and the sustainability of catfish extension instituion. Initiative to put both in an aquaculture production system, this matter has to effective collaboration should be pushed. be taken in to account mainly by related Amongs households running fish culture, institution supporting the future sustainable there is a fish farmer household who is development of catfish aquaculture in Padang interested in fish processing and produces coastal suburb. KKP and University could play smoked fish. The smoked fish productions as important role to cope the problem. well as other aquaculture production are mostly Field observation pointed that some small fish absorbed by local marketsin Padang and farmers are not able to maintain their fish neighbor areas such as Padang Pariaman District cultivation sustainably. The constraint is the and Pariaman City. increasing price of commercial fish food. The For a simplification purpose, an Integrated profitability of fish farming running by small Model of the catfish aqucultre value chain in farmers is sensitive to price increasing of fish Padang Suburb is depicted below. food. Sometimes, the price of fish seed is also increasing but, the fish farmers handle matter by reducing density of cultivated fish. Labour for Hatchery, According to commercial fish food trader, the Land pond fish seed price fluctuation is difficult to avoid. The provider trader preparation reasons are relating to the transport cost of fish pellet from Java Island and the shortage of fish

food in certain condition. Constraints on the fish Catfish Input supplier/fish farmers food trader food supply as well as its high price in term of low purchasing power of small fish farmer tend Marine & to be common problem for Organization Ministary aquaculture development. Oluwasola and Ige of Catfish (KKP) (2015) explained that fish feed constituted Farmers 79.18% of the total operating cost in catfish production in Oyo State, Nigeria. He concluded that there is the need to access fish farmers to substantially cheaper feed inputs to ensure the Private Public University Extension Extension use of adequate quantity and quality of feed in (Bakorluh) catfish production. Fish food availability in a relative low price is not probably a problem of catfish aquaculture. Figure 2: Integrated Value Chain Model of Catfish This could be a common constraint for Aquaculture in Padang Coastal Suburb sustainable development of aquaculture in West Sumatra Province and other region in Sumatra Land and labour for pond preparation in Pasie Island as well. It is possible to find an alternative Nan Tigo are available. The catfish farmers’ fish food to fulfil local demand. Effort to find concern is about finding suitable sites having solution should be considered by involving both good water quality especially if they start public and private sectors under a win-win cultivating fish from the smallest size of 2-3 cm solution. Field observation and interview carried that is sensitive to water quality changing. out with farmers and policy maker in public Besides, fish farmers worry about possibility sector it is expected that there should be an loosing because of flood which could happen if alternative solution discussed between fish food

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Critical Success Factors for Development of Solid Waste Incinerator supplier and farmers. On the other hand, it is Lack of knowledge in entrepreneurship, also expected that the farmer organization could household economic management, and farm also play a role in fish food supply and trading financial management are considered as in cooperative institution manner that put the constrains for their catfish farming development. optimum profit of fish farmers as priority. So far, the extension program focused more on Several institutions supported the technical aspect of catfish production system. development of catfish aquaculture. Government Efforts through cooperation of actors in value has conducted regular training and extension chain should be carried out to enable fish programs. It is a kind of regular project farmers not only diversifying their product implemented annually or periodically. It is not orientation but also understanding and managing seldom that government also provided seed to their household and farm economy properly. deliver to fish farmers under government financial support. This budget was channelled to 4.4 SWOT Analysis a selected fish farmers and government hatchery institution. Supporting fish farmers in this way is Analysis of strength, weakness, opportunity, appreciated as well as expected by fish farmers. threat, and development strategy based on the However, field observation showed that fish combination of each SWOT elements is farmers are not so eager to increase profit by presented in Table 3. increasing productivity or diversify production by producing fish seeds that has good demand in Table 3: SWOT Analysis and Upgrading Strategy on Padang and other neighbour region such as Sustainable Catfish Aquaculture Development Pasie Dharmasraya, Bukit Tinggi and Payakumbuh. In Nan Tigo PadangSuburb a long term, for sustainable development of Internal Strength (S) Weakness (W) catfish aquaculture, the catfish farmers should be Factor more engaged and integrated in market system ●High demand ●Fluctuation of that would drive their catfish aquaculture ●Simple production technology ●Entrepreneurship development. Lesson learnt from floating net ●Land availability knowledge cage aquaculture development at Lake Maninjau ●Stakeholder ● Financial at the beginning phase of its technology External support management factor ●Pond engineering adoption showed that private sector namely Opportunity (O) S-O Strategy W-O Strategy main actors in the value chain played more ●Potential market ●Market mapping ●Conducting of ASEAN and updating entrepreneurship important and significant role than government Economic demand data training, financial, extension program. Further, there was no Community ●Building and fish farm significant role of farmers’ formal education ●Better market Networking management access to Riau between fish ●Improvement on level in the production system (Munzir, 2002). Province farmers and market access of The infrastructure improvement of ●University’s potential buyer input and output transportation from West Sumatera to Riau interest in the ●Increasing ●Integrating study on applied communication network between Province has increased market access to this technology and network with relevant private region. Potential tourist destinations between university and public sector both provinces in which culinary business Threat (T) S-T Strategy W-T Strategy ●Price fluctuation ●Managing fish ●Developing developed well also prospective demand for of fish food food stock and alternative fish catfish production, since the menu of “pecellele” ●Environment supply via system food degradation of cooperative ●Conducting made of catfish is very popular. However, fish ●Fish disease ●Conducting training and farmers have not yet paid attention to take training on cooperation due advantage from this opportunity. water quality and to pond fish health engineering with Observation on the technical aspect in management university production system showed that fish farmers have good enough skill in catfish cultivation. Unfortunately, their catfish aquaculture business Adopting catfish aquaculture is important for is not developed as it should be, although they community in Padang coastal rural suburb as have already practiced catfish farming yearly. alternative and additional income as well besides

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Critical Success Factors for Development of Solid Waste Incinerator fishing. But, maintaining and developing their farmer’s organization and improvement on aquaculture business sustainably are next very extension program. important steps in term of food and income The unavailability of commercial fish food in security. Conceptually, the paradigm of low price according to purchasing power of sustainable development covers ecological, small fish farmers, lack of competences in economic, and social aspect. There are several entrepreneurship, household economy, farm and institutions and parties that can cooperate to financial management, and pond engineering are create and increase added value of activities in considered as bottle neck for sustainable the value chain of catfish aquaculture to fulfil development of catfish aquaculture.These have the need of its sustainable development. to be taken into account for the future The sustainable development of catfish development of catfish aquaculture in this aquaculture run by small fish farmer is region. pragmatically accepted by stakeholder as a Optimizing the benefit gained by fish farmers practice of livestock production system that can from interrelation and interaction of actors and improve household economy of fish farmer, stakeholder elements in value chain is a creating social mobility and community substantial strategy to ensure the sustainable empowerment, and maintaining ecosystem development of the catfish aquaculture. integrity as well as the carrying capacity of Upgrading strategies could be recommended environment. Optimizing the cooperation of by developing alternative policies and programs actors and institution in the value chain would refering to the result of SWOT Analysis. These enable the catfish aquaculture of small fish are formulated inStrength-Opportunity (S-O), farmers developing sustainably. This is Strength-Threath (S-T), Weaknes-Opportunity strengthened by study carried out by Supriana et (W-O), and Weakness-Threath (W-T) Strategy. al. (2014) on the sustainability activities relating Some policy recommendations that can be to utilization of and tuna like resources in concluded from SWOT Analysis are building Indonesia. It is stated that tuna and tuna like and developing entrepreneurshipattitude and fisheries depend on value chain system formed knowledge of fish farmer including financial and by stakeholders ranging from product fishing, fish farm management, improvement on market processing/diversification, distribution, and access of input and output,and cooperative marketing. Interaction pattern of fishermen, system management. retailers, collectors, and exporters affected significantly by pricing and the level of role played by stakeholders REFERENCES

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