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3-6 Oct 2007 Hadi K Purwadaria 1 DEVELOPMENT OF SMEs IN AGRIBUSINESS AND AGROINDUSTRY Full of challenges : Tenants start relatively small compared to the areas of general business and manufacturing. Price of raw materials is fluctuating, and quality is inconsistent. Sensitive to the subsidy reduction of fuel cost. Payback period might take a long time for products requiring raw materials that need to be cultivated previous to processing . Require more effort to convince the financial institution for a credit approval.

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Page 1: 1.30. hadi k_purwadaria_2

3-6 Oct 2007 Hadi K Purwadaria 1

DEVELOPMENT OF SMEs IN AGRIBUSINESS AND AGROINDUSTRY

Full of challenges : Tenants start relatively small compared to the areas of

general business and manufacturing. Price of raw materials is fluctuating, and quality is

inconsistent. Sensitive to the subsidy reduction of fuel cost. Payback period might take a long time for products

requiring raw materials that need to be cultivated previous to processing .

Require more effort to convince the financial institution for a credit approval.

Page 2: 1.30. hadi k_purwadaria_2

3-6 Oct 2007 Hadi K Purwadaria 2

DEVELOPMENT OF SMEs IN AGRIBUSINESS AND AGROINDUSTRY

Seeking for unique solutions and lesson learns: Selective recruitment is a must. Intensive incubation with close consultancies. Diversification of products. Selecting specific market target for a specific product. Careful considerations in choosing the appropriate

technology. It is worthwhile to adopt the hi-tech, like biotechnology, when possible.

Page 3: 1.30. hadi k_purwadaria_2

3-6 Oct 2007 Hadi K Purwadaria 3

DEVELOPMENT OF SMEs IN AGRIBUSINESS AND AGROINDUSTRY

Seeking for unique solutions and lesson learns:

Design of attractive packaging with a reasonable cost. A life time relationship with the tenants, looking for new

programs for graduated tenants. University graduate does not mean a guaranteed

successful entrepreneurs, but a guaranteed easier communicative and cooperative person.

Page 4: 1.30. hadi k_purwadaria_2

3-6 Oct 2007 Hadi K Purwadaria 4

Incubator for Agribusiness and Agroindustry - IPB

profile in brief

Agribusiness & agroindustry incubator Founded 1994, operation 1995, currently under

R & D Centre for Entrepreneurship (ReDCE) Handle both inwall and outwall tenants Limited spaces for 3-5 inwall tenants So far has recruited 11 inwalls and 15 outwalls 55 % successful rate

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3-6 Oct 2007 Hadi K Purwadaria 5

INCREASING SKILL IN TECHNOLOGY,MANAGEMENT,

AND ENTREPRE-NEURSHIP

FACILITATIONOF TRANSFER

TEKNOLOGY ANDBUSINESS

EXPERIENCES

NETWORKING

CREATING SELF SUPPORTING AND STRONG ENTREPRENEURS

OBJECTIVES

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3-6 Oct 2007 Hadi K Purwadaria 6

MISSIONS

IAA-IPBPARTNERSHIP

AND DAY TO DAYCONSULTATION

SELF SUPPORTING ANDSTRONGSMEs

NEWEs

SMEs

Page 7: 1.30. hadi k_purwadaria_2

3-6 Oct 2007 Hadi K Purwadaria 7

RECRUITMENTOF NEW TENANTS

RECRUITMENTOF NEW TENANTS

CONSULTATION: GENE-RAL & SPE-

SIFICS

CONSULTATION: GENE-RAL & SPE-

SIFICS

ACCESSTO MARKET& FINANCIAL

RES.

ACCESSTO MARKET& FINANCIAL

RES.

NETWORKINGDEVELOP.

NETWORKINGDEVELOP.

ACTIVITIESOF IAA-IPB

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3-6 Oct 2007 Hadi K Purwadaria 8

EXAMPLES OF INCUBATOR TENANTS IN AGRIBUSINESSES &

AGROINDUSTRIES

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3-6 Oct 2007 Hadi K Purwadaria 9

In the beginning . . . After incubation

Jelly, nata de coco & aloevera industries,tenant from IPB incubator

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3-6 Oct 2007 Hadi K Purwadaria 10

More equipment after ten years

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3-6 Oct 2007 Hadi K Purwadaria 11

Tenant from ITB incubator

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3-6 Oct 2007 Hadi K Purwadaria 12

Fruit chips with vacuum frying,tenant from Unsoed incubator

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3-6 Oct 2007 Hadi K Purwadaria 13

Bottling of natural honey -tenant from IPB incubator

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3-6 Oct 2007 Hadi K Purwadaria 14

No heat and sugar added

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3-6 Oct 2007 Hadi K Purwadaria 15

Supplement food made from GanodermaTenant from IPB incubator

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3-6 Oct 2007 Hadi K Purwadaria 16

Rice noodle instant with dried mushroom, tenant from IPB incubator

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3-6 Oct 2007 Hadi K Purwadaria 17

Fresh vegetables supply in Modified atmosphere packaging (MAP)tenant from IPB incubator