Ciwaringin Batik Pre-Feasibility Study

Introduction su-re.co's Indigo Project seeks to outline the initial feasibility of applying the sustainable, value-added business models of su-re.coffee + su-re.coco to the natural dye and batik textile industries within . Currently, su-re.co is working with Ibu Lina Moise, executive director of Yayasan Rumah Energi (YRE) the operating arm of the Indonesia Domestic Biogas Programme (BIRU). After meeting Takeshi at a conference, and subsequently helping facilitate the biogas workshop run by su-re.co earlier this year, Ibu Lina has connected su-re.co with a batik textile production center in West called Ciwaringin Batik, located in Ciwaringin, Cerebon Regency. Ibu Lina has asked su-re.co to help Ciwaringin Batik better monetize its textiles and support sustainable agricultural practice. This pre-feasibility study will identify a potential starting point from which to apply a sustainable "value-added" business model into the Indonesian indigo industry. Conclusions drawn from the pre-feasibility study will help shape recommendations and objectives for a subsequent feasibility report which will look, in-depth, at the opportunities for su-re.co's in Indonesia's indigo landscape at large. Scope

With monetization of Ciwaringin Batik's naturally dyed textiles being a central goal of this pre-feasibility study, su-re.co's scope will focus on three key areas:

1. Ensuring a sustainable supply chain through the transition to purely natural indigo dye production, assessing current energy demands, and determining the best utilization of biogas. The goal of these measures is to make the batik center more environmentally and economically sustainable, the foundations for a story of responsibility that will appeal to the conscious consumer. 2. Assess the demand for naturally dyed batik textiles in and around Bali. This will involve mapping out the vectors by which naturally dyed textiles can be more effectively marketed, determining current market prices as well as the present consumer interest in a value-added indigo product. a. Explore marketing products at "high value" through Jalakbali (Rumih Takama) or a su- re.cloth venture 3. Assess the need for and feasibility of a community-led development project to assist the Ciwaringin Batik producing community in growing its own indigofera on the Perhutani- sanctioned land that Ibu Lina Moise has access to. Similar to su-re.coffee, new indigofera- growing operations could be supplemented with seasoned indigofera farmers in other regions of Java (ex: significant density of farmers in Semaya) In both cases, on-site biogas digesters could be integrated to aid in the dye-producing process, while bio-slurry by-products could be used both to fertilize the land and as a potentially marketed for sale.

Background on Indigo Indigo is a commonly used dye in hand-woven textiles throughout Indonesia. It is the primary if not only dye that produces blue in batik. Batik-producing communities across Indonesia are familiar with

the pigment which they use to produce traditional textiles and garments. Today, indigo batik is produced primarily in Sulawesi, East Nusa Tenggara, and Jawa.

• Synthetic vs. natural dying1 o Chemicals can be added to enhance indigo dye at two points of the process: 1) In extraction of indigo dye from Indigofera plants and 2) in the dying process of the fabric o Synthetic indigo uses inorganic chemicals (e.g. hydrogen sulfate) o Discharge from synthetic dyes pollute waterways and drinking reservoir, creating vulnerable conditions where water treatment is lacking o Natural dye refrains from synthetic chemicals (utilizes fermentation process) . Without synthetic chemicals, the process is safer for the artisan, and the discharge from the extraction and dyeing process returns to the environment without harmful pollutants

Indigofera Tinctoria2 Indigofera Arrecta True Indigo Java Indigo

Superior color and light fastness High yield

Rich color Good resilience

1 Karadag, Recep. (2016). Advantages and importance of natural dyes in the restoration of textile cultural heritage. International Journal of Conservation Science. 7. 357-366. 2 Richardson, D. A. (2016, January 24). Asian Textile Studies - Indigo. Retrieved June 5, 2018, from http://www.asiantextilestudies.com/indigo.html

Cultivation suitability Cultivation suitability

Tropics/subtropics Tropics/subtropics

Full sun exposure Full sun exposure

Preferred altitude: <1000 meters3 Preferred altitude: <2700 m

3 Seidemann J, 2005. World spice plants: Economic usage, botany, taxonomony. Heidelberg, Germany: Springer, 286-287.

Preferred average annual rainfall: 1300 – 1700mm Preferred average annual rainfall: 1700-2200mm

Average stand density = 220 000-250 000 bushes per ha

Average green biomass yields make up 30-35 tons/ha4

Project Motivations

High level motivations

4 Central Asian Countries Initiative for Land Management: http://www.cacilm.org/en/technologies/section/indigo

• Climate change adaptation: diversify the production of high value crops, incentivize Climate Smart Agriculture, renewable energy use and low impact textile production inputs • Identify opportunities to replace dirty energy with biogas through the expansion of BIRU digester program. • Reduce potentially environmentally degrading agricultural practices in Citarum River basin • To conserve the traditional cultural practice of Batik textile-making by increasing demand for naturally-dyed textiles. • Support the livelihoods of vulnerable batik manufacturers in the Ciwaringin region. • Support SMEs

Secondary motivations

• To further build a relationship with Ibu Lina Moise and YRE • To replicate su-re.coffee's sustainable business model in the context of a new crop with high value-added potential • To increase the Ciwaringin Batik's access to local markets and conscious consumers. • Create new markets for goods that reflect social, environmental and economic sustainability

Situation of Interest Current state of indigo Batik textile industry in Cirebon, Java:

On April 20th 2018, YRE representative Paulo Rosario de Ornay conducted an interview with Anjar Indraguna and another associate from PT Pupuk Indonesia (PUPUK), a non-profit promoting small and medium-sized enterprises including the Batik producers within the Ciwaringin region.

Although in today's market artificial chemical dyes are predominantly used, the Ciwaringin craftsmen still use organic dyes to promote green business, and as their primary value proposition.

Presently, Ciwaringin producers are vulnerable to extraneous market forces and are supported by PUPUK and a CSR program funded by PT Indocement Tunggal Prakarsa.

Within their textile production, Ciwaringin farmers rely primarily on indigo dye, however they are unable to grow indigofera themselves due to land and time constraints.

There exists an opportunity to grow indigofera on 3 hectares of Perhutani-sanctioned land, approximately 3 kilometers from the Ciwaringin Batik production center.5 There also exists land for rent in the Cupand Village, which is about 2 kilometers from the Batik center.

Depending on the demand for indigofera, a community-led development project could assist the Ciwaringin Batik producing community in growing its own indigofera and extracting its own dye. Utilization of on-site biogas digesters could aid in the production process, in addition to providing a

5 Perhutani is Indonesia's state-owned forest enterprise, responsible for management of state-owned forests on the islands of Java and Madura.

marketable bio-slurry fertilizer. The result would be a further integration of the producer's business model, greater self-sufficiency and economic security.

Production costs at a glance:

Currently Ciwaringin Batik textile makers do not grow their indigo due to land and time constraints. They currently source indigofera dye from the Universitas Gadjah Mada (UGM) in Yogyakarta

They purchase indigofera powder at a cost of IDR 120,000 – IDR 150,000 per oz

Per each oz of plant

o Price of indigofera powder per oz = IDR 120,000 – IDR 150,000 o Each oz of plant can produce dye for up to 2 pieces of 150x90cm Batik o Craftspeople need 3 oz of indigofera / month to support their livelihoods = total IDR 360,000 – IDR 450,000 per month

Specific Objectives

• Determine the "buy-in" of the currently proposed partners, their reliability and the sustainability of their current production practices • Bring a sustainable indigo supply closer to textile makers by extending to them land access for growing and/or connecting them with local natural indigo dye producers • Assess which available land is most conducive to indigofera cultivation • Assist in the implementation of a "value-added" business model within the batik producing community that better monetizes indigo textile products

Key Questions Agricultural Adaptation:

• What is required of the farmers in terms of adaptation, requirements, purchases? • What are the requirements of the land used to grow indigo? • Which variety of indigo flora is most suitable for this intervention? • What is the climate resilience of indigo flora relative to other crops?

Biogas:

• What will the source of biogas feedstock be? Will indigo farms be a self-sufficient source of feedstock themselves? • What is the buy-in from BIRU/YRE? What is the extent of capital/assistance they may provide? General:

• Should the intervention most focus on the environmental, social, or economic aspects of indigo production? • Is this an opportunity which may be continued by Su-re.co staff? Will this be an intern-driven project?

Market:

• What is the ideal point of entry into the indigo market? (Farmers --> batik textile makers; batik textile makers/growers --> retailers/market) • Should the focus be selling indigo dye, or indigo textiles/batik? • Where does the proposed su.re.cloth/su-re.colors business model fit into the chosen strategy? Supply Chain:

• What kind of indicators should we use to determine if an indigo/batik producer is producing sustainably? • What are the best ways to measure those indicators?

Potential Constraints

• Currently some batik textile makers do not grow their own indigo due to a lack of land and time constraints • Indigo growing and dying is a very culturally entrenched practice, so it may be difficult to train new farmers • The extent to which energy is used in the processing of indigo may be limited. The best application of biogas digesters needs to be determined. • Time constraints with coordinating through several NGOs and levels of partners. Stakeholders Primary beneficiaries

• Indigo farmers • Textile manufacturers • The "Environment"

Additional actors:

• Rumah Energi (YRE) and BIRU • PUPUK (Association for Small Enterprise Improvement)

• Su-re.co • Perhutani • JICA?

Partnerships

Confirmed Partnerships

Organization Contact Desription Yayasan Rumah Lina Moies (Exec Dir) State-owned enterprise working towards the alleviation of Energi (YRE) and [email protected] energy poverty within Indonesia. Currently executing the BIRU initiative in partnership with the Indonesian BIRU Paulo Rosario de Ornay government, promoting the use of bio-gas digesters as a [email protected] local energy source for job creation and improvement of the business sector. PUPUK Anjar Indraguna The Association for Advancement of Small Business. An [email protected] independent non-profit working to strengthen small businesses and empower resilient entrepreneurs within d T: 0812 23136410 Indonesia. Perhutani Regional Division of West A state-owned enterprise in Indonesia that has the duty Java and and authority to organize planning, management, exploitation and forest protection in its working area. [email protected] T: (022) 7802871

Potential

Organization Contact Desription Japan (Connected through Tak) A government agency which coordinates the official International (62-21) 5795-2112 overseas development assistance (ODA) provided by the government of Japan. Cooperation Agency (JICA) Threads of Life Office: +62-361-976581 Threads of Life is a fair trade business that uses culture [email protected] and conservation to alleviate poverty in rural Indonesia. The heirloom-quality textiles and baskets Pullen London we commission are made with local materials and [email protected] natural dyes. With the proceeds from the Threads of Gallery: T: +62-361-972112 Life gallery, we help weavers to form independent T: +62-361-972187 cooperatives and to manage their resources sustainably. Bebali Bebali Foundation: The Bebali Foundation is an Indonesia non-profit works Foundation [email protected] towards sustainable livelihoods for indigenous people across Indonesia and does so through the textile and natural dye arts. It works closely with Threads of Life to help rural communities take advantage of the market access we offer, and its programs help our partner communities develop their independent businesses for growth, environmental sustainability, and cultural integrity.

Where does Su-re.co fit? • Research, data collection, feasibility study and reporting • Partnership identification, facilitation between stakeholders • Management of a sustainable business model implementation o Risk mitigation through development funding • Assistance in bio digester installation • Follow-up reporting and summary • Possibly a retail outlet for produced textiles

Pros/Cons

Strengths Weaknesses • Potential to recreate the su-re.coffee • Extensive coordination among agrobusiness model stakeholders • Commercial use of biogas • Absence of existing indigo farmers • Supports environmental restoration • Unclear when and what final product will • YRE initial assessment report completed manifest • May set a precedent for larger scale Batik • May not be targeting the most vulnerable production transformation to sustainable populations models • Located in : far from Su-re.co, • SME development in Cirebon little experience, existing NGOs • Alignment with YRE activities • A limited justification of "why" when • Alignment with Maja Herren's life-cycle compared to existing projects and analysis of the Ciwaringin Batik partner communities in NTT production process

Recommendations The proposed project would mean collaboration between YRE, su.re.co, and the Ciwaringin batik production community (represented by PUPUK). As an entry point into su.re.co's work with Indigo, this is an important opportunity that already has buy-in from our contacts at YRE and support from additional partners. Su.re.co's role in facilitating the implementation of a sustainable "value added" business model into the Ciwaringin batik community will be supported by evidenced gained through Maja Herren's research and environmental life-cycle analysis of the Ciwaringin batik production. This is a chance to further Su.re.co's relationship with YRE and new collaborators, learn about indigo production/batik textiles, and further prove the efficacy of a "value added" business model. Additionally, there is the possibility to lay the groundwork for a su.re.cloth business venture. Ensuring the sustainable supply chain enables su-re.co to tell a responsible story about where these high-value textile products come from and ideally open Ciwaringin Batik to markets of conscious consumers across Bali and in surrounding islands.

Ciwaringin Batik Production Center:

The key areas of focus in terms of improving the sustainability of the Ciwaringin Batik production center project will be outlined by conclusions drawn from Maja Herren’s life-cycle analysis and reporting.

At present, we have identified four potential areas where su-re.co can help promote a sustainable closed-loop production system.

• Identify the most sustainable/local supplier of indigo dye capable of meeting the demand of the production center • Research and identify alternatives to/the necessity of using hydro-sulfate currently added in the textile production process to optimize the blue color. This is a major step in the process that keeps their product from being 100% organic.6 • On-site installation of biogas digesters at the Ciwaringin Batik to supplement heat application during garment dyeing • Identifying the feasibility of converting the Ciwaringin Bakit community into a farm-to-textile manufacturer, by developing local cultivation and extraction of natural Indigo dye from Indigofera Tinctarum.

However, there are some important considerations to be made regarding the project’s efficacy and alignment with Su-re.co’s objectives. This project will involve extensive coordination between multiple partners at a site location which is a considerable distance from su-re.co headquarters. What’s more, this initiative may not target the most vulnerable community of batik producers when considering producer communities operating across Indonesia, especially within NTT. The majority of producer communities within less-developed and more remote regions of Indonesia face greater economic insecurity and energy poverty relative to those in West Java. This is compounded by the fact that there is an extensive network of NGOs and assistance organizations already operating within Java. Ultimately, working with smaller more remote farmers and textile producers may be more conducive to a su.re.cloth business model as these individuals and communities are less integrated into markets.

We believe that pursuing our current initiative in Ciwaringin is a priority as an introductory module into where su-re.co aligns best with indigo. Important, in tandem, will be researching the feasibility of a longer-term initiative by Su-re.co to support the sustainability of more remote indigo farmers and textiles communities within Indonesia. This approach may be more easily assimilated into a su.re.cloth business model.

6 Ciwaringin, Cirebon Assessment by YRE's Paolo