Nov 10, 2000 ... Organization Chart of a Government-owned Estates Group (PTP). 4. ..... provide
for a low cost health delivery system (Puskesmas) including ...
Public Disclosure Authorized
Document of
The World Bank FOR OFFICIAL
FIL c
"SE ONLY
Public Disclosure Authorized
Report No. 1950a-IND
INDONESIA
NUCLEUS ESTATE AND SMALLEOLDERSII
PROJECT
Public Disclosure Authorized
Public Disclosure Authorized
STAFF APPRAISAL REPORT
June 15, 1978
Transmigration and Land Settlement Unit Regional Projects Department East Asia and Pacific Regional Office
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
CURR4NCY EQUIVALENTS
Currency
Unit
US$1 Rp I Rp 1,000,000
-
Rupiah
=
Rp 415 US$0.002 US$2,410
= =
(Rp)
WEIGHTS AND MEASURES
1 kilogram (kg) I metric ton 1 hectare (ha)
=
1,000 grams (gm) = 2.205 pounds
=
1,000 kg = 2,205 pounds
= 0.98 long ton
= 10,000 square meters (sq m) = 2.47 acres
GLOSSARY OF INDONESIAN TERMS
Adat Alangalang Bupati Department Kesehatan Desa Dokabu Dukuh Gotong-royong Hak Pakai
- Body of traditional law - A coarse grass, establishing itself after the slash and burn cycle - District Chief Executive - Department of Health - Village
-
Hak Milik
District Health Officer Hamlet of 25-30 houses Community self-help project Individual's right of use or exploitation of assigned land - Right to full ownership of land
Kabupaten Kecamatan
- District - Subdistrict
Marga
- Community grouping under Adat Law
Mushalla
-
Puskesmas
- Community Health Center, subdistrict level
Small prayer
house
GOVERNMENT OF INDONESIA FISCAL YEAR
April
1 -
March
31
FOR OFFICIAL USE ONLY
ABBREVIATIONS
APBD APBN AARD BAKOSURTANAL BAL BAPPEDA BAPPENAS BIMAS
BRI BUUD CCL
CP CRIA DGA DGE DGFC DGH DIP DPD DPUP DRC FAO GOI INPRES IPEDA
JMO KUD MOA MOASS MOLT MOTC MPW Mil. MSL PELITA I PELITA II
PMU PNP PT PTP
- Anggaran Pendapatan dan Belanja Daerah - Regional Budget for Revenues and Expenditures - Anggaran Pendapatan dan Belanja Negara - State budget for Revenue and Expenditure - Agency for (Agricultural) Research and Development - National Coordinating Agency of Survey and Mapping - Basic Agrarian Law - Provincial Development Planning Agency - Badan Perancana Pembangunan National, National Development Planning Agency - Bimbingan Massal Swa Sembada Bahan Makanan, "Mass Guidance Program for Self-Sufficiency in Foodstuffs" - a farm inputcredit package program - Bank Rakyat Indonesia - People's Bank of Indonesia - Badan Usaha Unit Desa - Forerunner of KUD as Village Unit Cooperative - Criticial Consumption Level - Cooperative Program - Central Research Institute for Agriculture - Directorate General of Agrarian Affairs - Directorate General of Estates - Directorate General for Food Crops - Directorate General of Highways - Daftar Isian Projek - Project Budget Document - Dinas Perkebunan Daerah - Provincial Estate Crops Services - Provincial Public Work Services - Dry Rubber Content - Food and Agriculture Organization - Government of Indonesia - Instruksi Presiden - "Presidential Instruction" - a special program - Iuran Pembangunan Daerah - Land Tax - Joint Marketing Office - Koperasi Unit Desa - Village Unit Cooperative - Ministry of Agriculture - Minister of Agriculture Supporting Staff - Ministry of Labor and Transmigration - Ministry of Trade and Cooperatives - Ministry of Public Works and Power - Million - Minimum Subsistence Level - First Five-Year Development Plan (1969/70 - 1973/74) - Second Five-Year Development Plan (1974/75 - 1979/80) - Project Management Unit - Perusahaan Negara Perkebunan, State-Owned Estate Enterprise - Perseroan Terbatas - State-Owned Corportation Operating Under the Commercial Code with Limited Liability - Perseroan Terbatas Perkebunan, State-Owned Estate Enterprise with Limited Liability
This document has a restricteddistribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without WorldBank authorization.
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS II PROJECT STAFF APPRAISAL REPORT
TABLE OF CONTENTS Page No. 1.
. . . . . . . . . . . . . . THE SECTOR AND SUBSECTOR . . . . . . . . . . . . . . . . . . . . . . . . Background and Rural Sector . . . . . . . . . . . . . The Agricultural
.
The Subsector . . . . . 2.
. . . . . . . .
PURPOSE, PRIORITY AND FORMULATION OF PROJECT Project
.
. . . . . . . . . . . . . . . . . .
Objectives
3
.
. .. . . . . . . . . . . .
.
. . . . . Project Formulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Project Area Design
3
Standards
.
. . . . . . . . . . . .
and Financing
.
.
.
.
.
.
7
8 10 12 16
.
.
7
16 . . . . .
Arrangements
.
.
.
24
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .
27 27 31 32 33 33
.36 .. ORGANIZATION AND MANAGEMENT . . . . . . . . . . . Borrowing/Executing Agency Functions Aspects of Project Implementation . . . . . . . . . . . . .
36
Budgeting . . . . . . . . Procurement . . . . . . . Disbursement . . . . . . Quality and Cost Controls Accounts and Audit Cost Recovery . . . . . . 4.
.
. . . . . . .
..
Project Summary Costs
.
.
..
THE PROJECT Project
.
1 1 1
.
The Environment..
.
.
.
.
.
41 42
.
5.
DEMAND AND MARKETING ARRANGEMENTS . . . . . . . . . . . . . . ..... Rubber .. ... Food Crops
43 43 44
6.
PRODUCTION, TECHNOLOGICAL FACTORS, AND FARM INCOMES .....
45
General
.
Crop Recommendations Yields
7.
.
..
and Production
...
.
.
.
. .
. .
.
.
.
45
.45
. . . . . . . . . . . . . . . . . . .
47
Farm Plans . . . . . . . . . . . . . . . . . . . . . . . . Farm Incomes . . . . . . . . . . . . . . . . . . . . . . .
47 49
COST, BENEFITS, AND JUSTIFICATION . . . . . . . . . . . . . . Project Benefits and Justification . . . . . . . . . . . . ... Costs
51 51 52
This report is based on the findings of an appraisal mission composed of Messrs. P.R. Melkye, G.B. Fox, T. Prins (Bank), C. Carlier, R. Fuentes, C. Relf, and M.E.L. Robey (Consultants) which visited Indonesia in September/October 1977. Messrs. B.S. Gray, R. Alexander and B.H. Pottker also contributed to the preparation of the report.
Financial Results .... . . . . . . . . . . . . . . . . . Economic Results .... . . . . . . . . . . . . . . . . . Project Risks . . . . . . . . . . . . . . . . . . . . . . . 8.
AGREEMENTS TO BE REACHED AND RECOMMENDATIONS .
No.
Page
- 2 -
. . . . . . .
52 54 56 57
ANNEXES 1. 2. 3. 4.
Project Area . . . . . . . . . . . . . . . . . . Project Phasing, Cost Estimates, Disbursements . Project Road Component . . . . . . . . . . . . . Crop and Farm Budgets ... . . . . . . . . . . . .
. . . .
. . . .
. . . .
. . . . . . . . . . .
62 65 79 86
LIST OF TABLES IN MAIN REPORT 1. 2. 3. 4. 5. 6. 7.
Annual Inflation Rate for Project Costing Project Cost Summary Farm Incomes - New Settlement Farm Incomes - Rubber Replanting Results of Cost-Benefit Analysis Results of Economic Analysis Economic Rate of Return Sensitivity Analysis
CHARTS Organization Chart of Directorate General of Estates Organization Chart of Government-owned Estates System Organization Chart of a Government-owned Estates Group (PTP) Organization Chart of Provincial Government Organization Chart of Settlement Projects Organization Chart of Flow of Funds - Noncredit Items Organization Chart of Flow of Funds - Credit Items Bar Chart - Project Implementation Schedule - Settlement Activities Bar Chart - Project Implementation Schedule - Estate Activities
1. 2. 3. 4. 5. 6. 7. 8. 9.
LIST OF FIGURES l. Settlement Devlopment Plans 2. Schematic Settlement Layout - Rubber and Food Crop Area 3.-4. Low-cost Housing Plan - First Stage
MAPS 13518 - Riau Project Area 13519 - Jambi Project Area
BACKGROUND ANNEXES - Related documents and statistical data available in Project File.
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERSII PROJECT STAFF APPRAISAL REPORT
I. THE SECTOR AND SUBSECTOR
A. Background
1.01 The Governmentof Indonesia (GOI) has requested Bank assistanceto develop 38,000 ha of rubber and food crop land to settle 7,600 poor families in Riau and Jambi Provinces, Sumatera, using the public sector estate PTP IV /i as the developmentagent under the nucleus estate development scheme. Assistance is also sought to replant 7,500 ha of rubber for 3,750 families in Riau and Jambi Provinces; strengtheningPTP IV through new rubber development of 3,500 ha in Riau Province; and program support for smallholderand nucleus estate devlopment through technical assistance to the Directorate General of Estates, the Directorate General of Highways and the Dinas PerkebunanDaerah Extension Center in Jambi Province. 1.02 The project was identifiedby the GOI with assistanceof the Bank. It gives expression to national needs and priorities as outlined in GOI's Second Five-Year Plan and is consistentwith the recommendationsof the Bank's 1972 Agricultural Sector Survey. The project was prepared by the FAO/World Bank CooperativeProgram.
B. The Agriculturaland Rural Sector 1.03 In spite of the steady decline in the contributionof agriculture to GDP from 55% to 33% over the last fifteen years and the declining relative importanceof agriculturalexports to total export earnings from 55% to 30% in the same period, the rural sector remains a major force in the country's economy and development. Agriculture and to a lesser extent forestryand fishing, still dominate the life and welfare of the Indonesianpeople. The sector's importance in the economy is mainly in terms of its contributionto employment,export earnings and food production. The sector provides a rising demand for manufacturedgoods and a potential large pool of labor available for employmentin other sectors of the economy. 1.04 Some 80% of the country's 135 million people live in rural areas and about two-thirdsof the labor force is partly or fully employed in the sector. With the exception of oil palms and tea, agriculture is dominated by smallholder production; there are some 14.4 million smallholderfamilies cultivating subsistenceand cash crops on 14.2 million ha. In addition there is estate
/1 A Perseroan Terbatas Perkebunan (PTP) is a State-OwnedEstate Enterprise.
production from some 1,300 large estates occupying 1.7 million ha. Over the last five years the volume of agriculturaloutput increased at an average rate of 4% p.a. while the total output of the Indonesian economy grew at about 7% p.a. The major factor influencing the rate of growth in agricultural production is rice output which in 1976 accounted for nearly 30% of agricultural GDP. Growth in the total area harvested has remained steady at about 1% p.a. and yield increases have been about 2.6% p.a. for the five years to 1974 after which these yields have been stagnantbecause of adverse pest and drought conditions. The present level of rice production,however, will not be sufficient to close the gap between supply and demand which is expected to continue to be in the order of 10% of annual production. The production of corn, sweet potatoes and cassava has remained almost constant over the longer term; the production of soybeans has steadily increased, albeit from a small base. There has been growth in the production of almost all of the tree crops, the growth in production of palm oil being particularlyrapid and growth in rubber output being much slower. Coconut production has remained virtually stagnant since the late 1950s. 1.05 The population of the rural sector constitutesthe major part of the country's poor. The major problems of the sector relate to over population of Java, an uneven distributionof population in the rural sector, uneconomic farms, and low levels of productivity. Java, Madura, and Bali which have the most favorable soil and climatic conditions in Indonesia have 64% of the population, but only 7% of the total land area. Although it is estimated that these inner islands have 45% of all land most suitable for cultivation,the high populationdensities on these islands together with the high proportion of people living in the rural areas have led to intense pressures on arable land. On Java where 70% of the total land area is cultivated,nearly all the marginal land and some of the submarginal land has been brought into production. Fragmentationof farms has increased to the point where about 60% of all farms are less than 1 ha and about 30% of these are less than 0.25 ha. Division of farms into more than one parcel of land has also increased by 40% in the last 15 years. The effect is to lower farm incomes and increase the gap between urban and rural incomes, the latter now being 40% below the level observed for urban areas. On Java, about one-third of the agricultural labor force is landless and about 40% of farm family incomes are derived from off-farm work. With these proportions likely to increase and existing alternate employment opportunitiesalready overcrowded,the future looks bleak. 1.06 To alleviate these problems in the rural sector, Government set its priorities for developmentof the rural sector in the Second Five-Year Plan, April 1974-March 1979. These were: employment creation, balanced regional growth and social development,increased food crop production in pursuit of rice self-sufficiencyand increased export crop production,particularly in rubber to retain Indonesia'smarket share. In line with these objectives, the Governmenthas set itself the following tasks: continued intensificationof food crop production and creation of more off-farm employment opportunitieson Java; implementationof an accelerated land settlement and transmigrationprogram which would bring some of the estimated 40 million ha of unutilized land on the other islands into smallholder food crop and tree crop production, implementationof a national replantingprogram for rubber and coconuts, and alleviation of poverty in the most severely disadvantagedareas.
-3-
1.07 In support of these objectives, the Government has embarked on a sizeable program of smallholder tree crop development outside of Java. The program acknowledges several objectives including the improvement of existing agriculture while utilizing available resources for the development of large new areas of unutilized land for land settlement. In view of scarce technical and managerial capabilities, one of the main approaches selected by the GOI for a land settleiuentprogram has been to use state-owned estate companies (PNP/PTPs) to plant tree crops on land to be settled by local landless families, and transmigrants. The estate companies provide a range of services with efficiency and the technology of "estate crops" including the provision of planting material, land clearing and planting, procurement of inputs and provide processing and marketing facilities to the smallholders. The main tree crop at the outset of this program is rubber.
C.
The Subsector
Crop Production 1.08 The Indonesian rubber industry, at one time the world's largest producer of natural rubber, is currently second largest to Malaysia, producing about 783,000 tons and exporting 750,000 tons in 1975/76 - 22% of total world exports. The third largest export commodity of Indonesia, natural rubber comprises 6-8% of total agricutlural GDP, 8% of export earnings and 20% of non-oil exports. The industry provides full-time employment for 2 million people and part-time employment for an additional 8 million people. 1.09 In the years to 1970 there was steady growth in the industry. From 1965-1970 for example total rubber production increased on average 2.1% p.a. and the area under rubber increased on average 1.7% p.a. From 1970-1975 however there has been a marked and ever-accelerating decline, total rubber production fell on average 0.48% p.a. and the growth in rubber area slowed to 0.09% p.a. Rubber yields in these 10 years remained stable, around 300330 kg DRC/ha. Future total production is likely to decrease significantly due mainly to the relatively small area of new plantings over the past 15 years and the deterioration of many of the rubber plantings established in the ten-year period after World War II. In order to return rubber production to present levels (1975), new planting and replanting would need to be at a rate of about 50,000 ha a year, a program which would be enormous relative to past programs. Without such a program it is expected that by 1990 the total area under rubber would be about 870,000 ha and total production as low as 610,000 tons. Structure of Rubber Production 1.10 About 70% of national production comes from smallholders who have 80% of the total rubber area with average rubber holdings of 1.5 ha. About 70% of the 1.9 million ha of smallholder rubber is grown in Sumatera and 19% in Kalimantan. Most of this area was planted in the 1950s and early 1960s when prices in 1975 constant terms remained favorable at over $1/kg. These plantings, however, were slightly greater than those needed to replace rubber that had become too old or was abandoned. Consequently the total planted area of smallholder rubber increased from 1.4 million ha in 1959 to 1.8 million ha
- 4-
in 1970 and has remainedat that level to the present. There is very little evidenceof replantingby smallholders,most of the area being rejuvenatedby poor quality self-sown seedlingrubber growing through existingstands. Smallholder productioncharacterizesmost of this area development. During the 1960s productionincreasedfrom 480,000 to 571,000 tons in 1970, then stagnated until 1973 when productionreached almost 600,000 tons due to a short-term price increase. By 1975, smallholderproductionhad declined to 536,000 tons. In the absence of settlementand rubber replantingprograms,this decline is expected to continueso that by 1990 the area of smallholderrubber will be about 630,000 ha and productionabout 270,000 tons. There is a well-establishedestate rubber sector of 432,000 ha 1.11 comprisedof the PNPs and PTPs with 190,000ha (44%); private national estates with 171,000ha (40%), and private foreign estates with 71,000 ha (16%). The main center of estates production is Sumatera,followed by Java and Kalimantan. The area under rubber in governmentestates decreasedfrom 225,000 ha in 1970 to 180,000 in 1977 while productionincreasedfrom about 118,000 tons to 145,000 tons. Similarly,private foreign estate companiesdecreased their area from about 71,000 ha to about 68,000 ha in the same period while their productionincreasedfrom 40,000 tons to about 55,000 tons. Developmentof the private national estates has in many respectsbeen similar to that for smallholders. The area of these estates was estimatedto be 171,000 ha in 1976, productionwas 52,000 tons, 55% of this coming from North Sumatera. Although plantings and replantingssince 1961 by private national estates are 50,000 ha, it is expectedthat by 1990, their area will have dropped to 65,000 ha, and the productionto 43,000 tons. The forecastof a substantialdecrease in the future production 1.12 of rubber has stimulatedGovernmentto initiate an expansionprogram for rubber replantingand new rubber planting. The focus of this program is smallholderdevelopment,first to raise the productivityof existingholdings through the provision of high quality planting material,fertilizersand improvedfarmer education in modern husbandry,and secondly, to assist poor and landless familiesto clear unused jungle and plant new rubber. Such a program is pressing not only to reverse the trend in decliningexport crop productionand foreign exchange earningsbut also for immediatelybenefiting the rural poor. AgriculturalInstitutions The Ministry of Agriculture (MOA). The MOA comprisesfive Direc1.13 torates General (Estates,Fisheries,Food Crops, Forestryand Livestock). The DirectorateGeneral of Estates (DGE)/1has regulatoryresponsibility for all privately owned estates,smallholdingsinvolvingtree crops and industrialcrops which include rubber, coconuts,oil palms, tea, coffee, tobacco,etc. These responsibilitiesare shared within three Directorates within the DGE in Jakarta; Planning,Productionand Means of Operation. Organization of the DGE is presented in Chart 1. Extensionservices to tree /1 The term "estates"in Indonesia compriseslarge estates and smallholdings planted with tree crops.
- 5 -
crop smallholders are the responsibility of the DGE and the Provincial Estate Crop Service (Dinas Perkebunan Daerah) for which the DGE has technical responsibility in each province. The responsibilities for public sector estates rest with the Minister of Agriculture and the Ministry of Agriculture Support Staff for Agricultural Enterprises created in March 1976. This body assists the Minister in policy formulation, coordination of estate crop activities, estate inspection, estate budget approval and control, and monitoring and evaluation of the operations of the public sector estates. Both the MOA Support Staff and the DGE have received technical assistance under the Nucleus Estates and Smallholders I Project, Loan 1499-IND, in order to facilitate more efficient operations of the public sector estate system and to assist the DGE in preparation and implementation of smallholder development projects for which finance, facilities, and manpower have been small in relation to the size of the program. Improved operations and project implementation have resulted from this technical assistance. Extension services to tree crop smallholders continue to suffer because neither the DGE nor the Provincial Estate Crop Service has had adequate funds to improve the scope of extension to smallholder tree crop farmers or the number of tree crop extension personnel. 1.14 Public Sector Estates. The Indonesian Estates Industry is dominated by the public sector estates comprising 28 estate groups which are located mainly in Northern Sumatera and Java with over 500,000 ha of plantation crops excluding pine forests. Organization of the Government-owned estates system is shown in Chart 2. Government policy is now to convert their fully owned estate enterprises, the PNPs,/1 into PTPs which are limited liability companies operating under the Indonesian Commercial Code. The majority of these estates have now been converted. Organization of a Government-owned estates group is shown in Chart 3. The importance of this vast estate enterprise to the rural sector is that it employs over 500,000 resident and seasonal staff and labor, and it is estimated that the welfare of 3 million people is immediately dependent on the estates system. The quality of management on the estates has greatly improved since the 1960s and with such improvments, the estates are now able to facilitate smallholder development. 1.15 Bank Rakyat Indonesia (BRI). BRI provides short-term credit to agricultural cooperatives, farmers, fishermen and other agricultural enterprises. BRI participates in the administration of the Mass-Guidance (BIMAS) program of seasonal production credit, a national program to raise food crop production and farm income by supplying credit and cash inputs at subsidized prices, mainly to rice farmers. This program administered by the Director General of Food Crops (also MOA) is implemented through village units throughout Indonesia in each of which the BRI establishes a credit office. With the exception of the Tea Smallholders and Private Estates Project (Credit 400-IND), BRI has had very little involvement in the provision of long-term credit necessary for tree crop financing. Under the proposed IDA assisted Rural Credit Project the BRI would expand credit operations to tree crop agriculture. Until such time as BRI is fully capable of tree crop credit operations, the BRI has
11 The PNPs, Perusahaan Negara Perkebunan, were classified in 1968 during reorganization of the estates groups as PNP I-
PNP XXVIII.
-6-
agreed to utilize a simplified credit delivery system for administrating rubber loans through nucleus estate contractors as presently implemented under the first Nucleus Estates and Smallholders Project (Loan 1499-IND). Other Institutions and Government Planning for the Rubber Sector In addition to the aforementioned institutions, the Ministry of 1.16 Trade and Cooperatives (MOTC) intervenes in the subsector with responsibility for policies on product specifications, quality control and smallholder marketing. The Ministry of Industry is responsible for processor licensing. The salient feature to this mix of institutions in the rubber subsector, however, is that there is no single authoritative body such as a national rubber board representing the interests of the rubber industry. The Government is presently considering the possibilities for such a board and the introduction of a national rubber tax, the CESS,so as to plan, guide and finance a national rubber replanting scheme. Although the public sector estates in the rubber subsector can further national rubber production through rehabilitation of their own existing areas, significant increases in national production can only be achieved with massive replanting in smallholder areas and new plantings in smallholder settlements and estates. The proposed project starts this replanting process utilizing the nucleus estate approach for both new rubber development and rubber replanting to provide for about 26,200 ha of rubber development in addition to the ongoing projects and those under preparation encompassing about 150,000 ha spread over 5-6 years. Bank Group Lending in the Subsector In support of the policy objectives of Government, Bank Group 1.17 assistance to smallholder rubber producers has included Credit 358-IND (North Sumatera Smallholder Development Project) for $5 million and Loan 1499-IND (Nucleus Estates and Smallholders I Project) for $65 million. The full program of oil palm and rubber planting by smallholder participants in the former project, now nearing completion, has been successful. Costs of the project have increased from $10 million estimated at appraisal to about $30 million by project completion. Higher than anticipated outputs and prices for rubber and oil palm, and improved project development techniques, should more than compensate for the cost increases. The Project's return to the economy is likely to be higher than the 14% estimated at appraisal. 1.18 It is too early to judge the success of the Nucleus Estates and Smallholders I Project since the Loan only became effective in January 1978. Preliminary indications are, however, that the Project is off to an excellent start. Land clearing is in full progress, high quality planting material is being prepared for distribution to smallholders and an experienced project staff with comprehensive technical assistance backing is being assembled on the project sites in Aceh, South Sumatera and West Java. The project will benefit some 5,750 settler families and raise their present level of net income from $250 to about $800 (constant 1976) by year 10. It will also create about 11,500 permanent jobs and a further 4,000 casual jobs and will return about 15% to the economy. Smallholder rubber development has also been started on modest areas in Southern Sumatera under the Transmigration and Rural Development Project (Loan 1318-IND).
1.19 Assistance for rehabilitationof existing rubber in public sector estates was given to certain priority estate groups under IDA Credits 155, 194 and 319 since these estates were planted between 1935-40,and had by the early and mid-1960'sbecome low yielding and uneconomic. Credit 319-IND (FourthAgricultural Estates Project) has progressedparticularlyrapidly with plantings of rubber and oil palm in excellent condition and well ahead of appraisal estimates. The recently published project performance audit Report for Credits 155 and 194, /1 the latter providing assistance for the rehabilitation of PTP IV, has found that from both the Governmentand Bank's viewpoint, both projects, on balance have been successfulin physical and financial terms. PTP IV has been selected as the nucleus estate for the proposed project. The scope of the program of NES projects and a replantingprogram must be made sufficientlylarge with the goal to plant 50,000 ha/year if production in 1990 is to return to present levels and the share of Indonesianrubber in the world market is to be retained.
2. PURPOSE, PRIORITY AND FORMULATIONOF PROJECT A. Prolect Oblectives
2.01 Basic Objectives. GOI economic objectivesfor the rubber subsector and for the regional development to which the project would contributeare (a) to increase the efficiencyof the subsectorby raising yields and lowering unit costs of production; (b) to increaseproduction of rubber leading to increased exports and foreign exchange earnings; and (c) to increase the supply of raw materials for local processing in the rapidly expanding industrialand urban areas outside of Java, particularlyin Sumatera thereby creating secondary employment. The proposed project is designed as a particularly effectivemeans of helping to achieve GOI objectivesfor developmentof the rubber subsector since the project would not only settle poor and landless families on largely unproductiveland while raising rubber output and export income, but would also minimize the drain on public resources through an innovativesystem of cost recovery. Sociallythe project would generate productive employmentat a 2.02 relativelylow cost, raise family incomes of the landless or near landless poor, and stimulate small business in the project areas. The project would provide for a low cost health delivery system (Puskesmas)includingmalaria control, improved water and sanitation,family planning and basic health services for about 65,000 people. Primary and secondary education facilities would be provided for children of 11,350 families. Regional needs would be served with new and upgraded roads to improve transportationfor about 150,000 people living in or near the project area. The project would establish at the end of the project period a high-yielding,permanent tree crop and provide a stable and proven agriculturalsystem responsiveto critera for protection of the environment,particularlysince shifting cultivationand indiscriminate /1 Project Performance Audit Report - Indonesia - First and Second North Sumatera Estates Projects (Credit 155-IND and Credit 194-IND) Report No. 2033, April 20, 1978.
-8-
forest clearing are serious problems. The project would assist in institution building with benefits for the DirectorateGeneral of Estates in planning, implementationand evaluationof ongoing projects, and the Directorate General of Highways through technical assistancefor road development. Assistance for a Dinas Perkebunan Extension Training Center in Jambi would provide a new facility to serve the extension trainingneeds in rubber management in Sumatera. 2.03 GOI requires that public sector estates with their technicaland managerial expertise be utilized as nuclei to promote and guide smallholder development. The use of public sector estates is an effective way to realize these stated GOI objectivessince in an environmentof scarce technical and managerial skills the GOI can rely on the PNP/PTPs to meet the demanding requirementsof settlementand rubber developmentin clearing jungle, providing employmentto poor and needy families to be settled in the area, and securing sufficientinputs and marketing facilities to ensure that settlersbecome successfulsmallholderproducers. Most other schemes to meet these objectives would require new and costly organizationalefforts on the part of GOI agencies when these services are already comprehensivelycarried out by public sector estates. The crops which best lend themselvesfor developmentby nucleus estates at present are rubber, coconuts and oil palm. These crops have satisfactory export potential; their returns to the farmer are satisfactory,production and processing techniquesare well known in Indonesia and the crops are well suited to the poorer soils of Sumatera and Kalimantanwhere there are large tracts of undevelopedagriculturalland available for settlement.
B. Prolect Formulation Project Constraints. The formidablenumber of poor farmers, land2.04 less people and the growing number of underemployedand unemployedin the rural labor force and the shortage of finance for developmentnecessitates that the project be designed to minimize the cost of settlementper family and yet provide sufficienton-farm investmentto assure their successfullivelihood. The project has thereforebeen formulatedto utilize fully the opportunities of farm family self-helpand to minimize Governmentexpenditureson agriculturalsupport, social servicesand project infrastructure. Conceptually, the proposed project is the same as the Nucleus Estates and SmallholdersI project, the role of the nucleus estate, however, being broadened to include rubber replanting. Technical,organizationaland financial details are, except in a few minor cases, the same as in the first nucleus estate project. 2.05 The project should be effective in meeting the various constraints which have been encounteredin past smallholderprojects in the subsector. These are managerial in relationto physical planning and implementation; administrativein respect to estate and settler financingarrangements; and social with regard to smallholderorganizationand training. Firstly, the public sector estate, PTP IV, would provide servicesas a nucleus estate to assist smallholderdevelopmentas contractorsfor rubber establishment, including land clearing,planting and maintenanceduring the first five years to rubber maturity and later as suppliersof servicessuch as processing, marketing and settler training in rubber industry. Secondly,since past
problems with project financing have been caused by the use of multiple sources of funds, each with different cumbersomeprocedures for allocation, provision and release,project financing has been simplified into two separate streams: budget funds from the Government for infrastructure,social services, main access and primary village roads, and the provision of credit for rubber development through the Bank Rakyat Indonesia (BRI). The administrative burden of maintaining separate settler accounts and credit arrangementshave been minimized for rubber development by providing the necessary funds directly to a public sector nucleus estate for each settlementarea and establishinga standardmortgage for each settler. Finally,problems of organizing the trainingof settlers will be minimized if they are organized on the estate in working groups under the supervisionof experiencedforemen who can help them learn the skills of their new trade. As estate laborers for the first three years of settlement, they would have an assured source of income and access to health, education and welfare facilitieson the estate. In order to facilitatean environmentfor fair treatment in respect to input costs, prices for produce and continuoustraining in farm management, the Director General of Estates would have overall authority for project implementation and settler organizationin collaborationwith ProvincialGovernment. Rubber Replanting. The project has been designed to broaden the 2.06 developmentalrole of public sector estates in the areas contiguousto those where new settlementswould be establishedto include rubber replantingon existing smallholdingswhere the productive life of rubber trees is now less than 10 years. An expanded role of the nucleus estates to include replanting would not conflictwith other plans and strategiesnow being formulatedfor rubber replantingin this or any other areas of Indonesia nor would it conflict with the plans for Assisted Rubber Replanting Programs utilizing either Project Management Units or the local Dinas PerkebunanDaerah (Provincial Estate Crops Services). In the area surrounding the proposed project sites, present holdings 2.07 support a substantialnumber of familieswhich are actively tapping rubber, growing food crops and earning average annual net family incomes of about Rp 300,000 (US$720). Although the incomes of existing rubber smallholdersare relativelyhigh compared to a large part of the rural population, and these families are well settled on productive land, incomes of these familiesare likely to substantiallydecline as their rubber trees become exhausted. These smallholdersshould not be ignored in the developmentof the project area. It would be particularlycostly to uproot these people and consider them as new settlers,provide them with new housing, bulldoze their old but still economic rubber trees, consolidateand redistributetheir land, plant new improved rubber clones and then have them wait six years for the new rubber to mature. Rather, the inclusionof existing surroundingsmallholdersin rubber replanting in the project would provide project management and local governmentauthorities with the opportunityto meet the present and future needs of project beneficiaries either through new settlementor rubber replantingdevelopment. Nucleus Estate Development. Vital to smallholderdevelopment,the 2.08 project is also designed to strengthen the capacity of the public sector estate, PTP IV, for its role as the nucleus estate. To achieve this objective, PTP IV would be assisted to improve its economic efficiencyby increasingits area of planted rubber. The project would provide for the establishmentof a
-
10
-
small, but viable nucleus estate of 3,500 ha of rubber in the Riau project area and also with an office and nucleus estate facilities in the Jambi project area. C.
Project Area
2.09 Location. The project is located within the Provinces of Riau and Jambi in Central Sumatera. In Riau Province the project would be sited in the Air Molek west block which is about 140 km south of Pakanbaru and north of the Indragiri River. Project developments would also include the Air Molek east block which is located about 22 km east from the Air Molek west area and south of the Indragiri River. Rubber replanting would be undertaken predominately along the existing roads in both areas for rubber smallholders. The project area in Riau Province is shown in Map 13518. The siting of the nucleus estate development for PTP IV in the Riau area would be located in the Air Molek west block on the eastern most portion just north of the Provincial road bordering the Indragiri private estate. It is expected that the Indragiri estate may provide additional land to the project area since the estate is returning concession land to the GOI and is presently consolidating its own area about 10 km to the east of the block boundary and converting old low producing seedling rubber to oil palm. Total gross land area to be made available to the project in Riau Province for new settlement and nucleus estate development would be about 41,000 ha. 2.10 The Jambi project area located on the Bajubang block is about 20 km southwest of Jambi town and south of the Batang Hari River. Total gross area for new settlement in this block would be about 11,875 ha while an additional 4,500 ha of land would be replanted for existing smallholders living predominantly in the southern part of the Bajubang block between Tempino and Bajubang town. Much of the southern part of the Bajubang area has been excluded for new settlement since Pertamina is located in this area on large holdings and much of the topography in the southern forest area is not suitable for smallholder development. The Senami area of Jambi just west of the Bajubang block was similarly excluded from development since high investment costs would have been required for drainage, soil conservation and roads. The Bajubang area is shown in Map 13519. 2.11 Climate. Mean monthly rainfall figures for Jambi and Riau are provided in Annex 1, Table 1 and 2. Total rainfall is adequate for growing rubber. The mean temperature for the town of Palembang, about 150 km southeast of Jambi and 300 km southeast of Air Molek varies from 260 to 27.50 C in January and May, respectively and reflect those of the project area (Annex 1, Table 3). Wind velocities are low in both project areas and present no risk to tree crops. Soils and topography of the project area are covered in para 6.03. 2.12 Land Use. The project areas have a low land use intensity. About 60% of the Jambi project area is covered in primary forest and further 30% is under secondary forest mixed with rubber. In Riau 14% of the project area is primary forest, 30% is swamp land and 47% is secondary forest mixed with rubber. The primary forest is not suitable for large scale mechanical exploitation, as the volume of commercial timber is less than 25 cubic meters per ha. A number of small forestry concessions have operated in the area for many years.
-
11
-
2.13 Much of the rubber in the area is senescent. Some 15% of the rubber trees are more than 40 years old, 22% are older than 30 and 56% are between 10 and 30 years, their average being 19 years. Less than 20% of the trees are under 10 years, most of these are low yielding, self-sown seedlings. There is very little evidence of replanting. Of the mature rubber between 10 and 30 years old, some 20% is not tapped due to problems of access, shortage of tappers and poor production. The condition of the trees is poor. Growth is very slow due to severe weed competition, soils of low fertility and lack of fertilizer. Tapping which starts usually around year 10 is excessive and of a low standard with the result that there is serious wounding and wastage of bark. Yields in the project area are low, averaging 350 kg per year. About 65% of the farmers in the project area grow annual subsistence food crops, upland rice being the major crop. In addition a mixture of fruit trees and vegetables is grown around the house. In general, techniques are traditional and typical of shifting cultivation systems. Livestock is not important. 2.14 Population and Incomes. About 5,000 families live in and adjacent to the Riau project area, 85% of these in Air Molek west. The average family size is five and the average population density is six per square kilometer. Some 25-30% of families in Riau, and a similar percentage in the Jambi project area, are landless. Farm holdings in both areas are large by most Indonesian standards, averaging six ha. Of the families with land, about 18% have holdings between 0.1 and 2 ha in both Jambi and Riau; 17% in Jambi and 46% in Riau have holdings from 2.1 to 5 ha; 23% of families in both areas have holdings between 5.1 and 10 ha; and 39% in Jambi and 14% in Riau have holdings greater than 10 ha. Roughly 45% of both project areas are farmed by individuals with user rights to more than 10 ha. The amount of land available for closer settlement and intensification of production is considerable. 2.15 The average annual family income of a typical household in Riau and Jambi is about Rp 300,000. The percentage composition of income is: rubber 45%, food crops 42%; and off-farm labor 13%. Rubber smallholders in these areas are above the national average and have 4.5 ha rubber of which 3.0 ha are in production and 1.5 ha is too old to tap. On average farmers grow 50% of their family's rice requirements. In addition, garden crops such as cassava, soya bean, peanuts, vegetables and fruits are grown for home consumption. Off-farm jobs are more readily available in Jambi than in the Air Molek areas of Riau where there has been an outmigration in recent years due to lack of remunerative employment opportunities. Infrastructure 2.16 Roads. The present road network in both the Riau and Jambi project areas is poor and conditions are inadequate even for current needs. In Riau Province access to Air Molek west from Penkanbaru, the provincial capital, and from Rengat, the district headquarters and inland port, except for a regular air link, is by earth surfaced road with sporadic gravel stretches which have minimal drainage. Some stretches of road, particularly the links from Rengat to the north, become impassable during the rainy season. Access to Air Molek east is by ferry which requires substantial improvement. Internal roads exisL in both project areas of Air Molek west and east, but in Air Molek east the Kabupaten and Inpres roads are in extremely poor condition. Roads in Jambi
- 12 -
link the provincial capital and inland port to Padang (560 km) on the west coast via Muarabungo and to the southeast with Palembang (300 km). 2.17 Water Transport and Port Facilities. The Kuantan River in Riau Province provides transport from Rengat to Baserah, Kualacenako and Tembilahan on the coast. Riverboats and barges up to 100 tons cap'acitycan operate from the coast to Rengat in the wet season and Kualacenako in the dry season. Facilities at both ports are minimal, but sufficient for project implementation. In Jambi the Batang Hari River flows west to east from Muoratembesi to Jambi port (140 km). The river is navigable to Jambi for sea going vessels up to 1,000 tons DWT and port facilities are adequate for project requirements.
D.
Design Standards
2.18 Family Income and the Farm Plan. GOI formulation of a family net income target coupled with the decision to recover a proportion of the farm development costs are key elements in determining the size and type of farm operation required for financial viability. In formulating policy for Nucleus Estates projects for the Pelita II period, GOI has indicated that the minimum level of net family income of US$800 (constant 1976) would be acceptable at full development (US$900 constant 1977). The farm plan has been designed to provide the least investment cost allocation by GOI for settlement projects while maintaining incomes per farm family at about US$900 at full development and after cost recovery (para. 3.51). 2.19 Family income of US$900 at full project development is an acceptable target for Nucleus Estates projects within the national criteria for absolute poverty levels, and regional requirements in the project areas. The absolute poverty level in Indonesia is estimated at Rp 39,500 (US$95) per person per annum. A target net family income of US$900 after debt service implies a growth rate of 5% in per capita consumption to 1990-91 from the poverty income level. Comparison of this family income target with present family incomes of prospective settlers indicates that US$900 at full development would provide adequate incentive to relocate. A farm plan generating this income would ensure that families remain on the settlement and develop their holdings. This farm income level would keep pace with projected gradual improvements in real wages of casual laborers in the area which are expected to be about US$850-900 by 1990-91. 2.20 The analysis of various farm models when related to potential family income resulted in a plan which would allocate a block of two ha of clonal rubber within a total farm size of 5 ha for each settler. Provision is also made in the farm plan for production of basic family food supplies. In addition to the establishment of a small (0.15 ha) intensively cultivated house garden, the farm plan envisages that each family would practice rotational annual food cropping in a total area of 2.8 ha. The role of the nucleus estate, PTP IV, would be to block plant rubber and allocate 2 ha to each family as well as clear the first 0.4 ha of food crop land. In the period of immaturity, one member per smallholder family would be offered full-time employment as a rubber smallholder-trainee employed by the nucleus estate. The settler's income would clearly be higher than what he would earn purely by food cropping. At full development, the total farm area would consist not only of 2 ha of
- 13 -
rubber (planted under nucleus estate supervision) and a 0.15 ha house lot with fruits and vegetables, but it is expected that smallholders would plant an additional ha of tree crops from their resources in either coconut or rubber. About 1.8 ha of land would then be left for rotational food cropping/leguminous fallow. 2.21 Assistance for rubber replanting for existing smallholders in or near the project area is targeted for those families below the average income level of Rp 300,000 (US$720). In practice it is expected that beneficiaries for rubber replanting would be families with incomes between Rp 150,000 and 200,000 (US$350-500) and with 2 ha or less under rubber for which the productive life of existing rubber would be 10 years or less. The farm plan would be implemented according to a strategy similar to the nucleus estate role in new settlements. PTP IV would assist in clearing, planting and provision of inputs for a three-year period for two ha replanted rubber for each family included in the project (para. 3.03). Inputs would be provided and supplied by the nucleus estate to the time of rubber maturity. Smallholders for rubber replanting would not be required to work as nucleus estate laborers but would provide their labor on their immediate holdings. It is envisaged that most rubber replanting would be carried out with the first of 2 ha per family cleared and planted in Year 1 while the second would be planted in Year 3 in order that smallholders do not have drastic reductions in their present incomes. This strategy does not require additional allocations of land for food cropping although credit facilities would be available for additional inputs for food crop needs as required. The farm plan would also be consistent with GOI income objectives since replanters would have net family incomes of US$900 at full development which would provide sufficient cash income to enable smallholders to plant additional areas with tree crops or provide additional inputs for food crops. Incomes from both farm plans are further described in para. 6.16. 2.22 Rubber Development. Estate standards for rubber development including labor and machine requirements for land clearing, the use of fertilizer and other inputs and the cost of rubber establishment would be used as provided in the Project File. Standards for rubber are based on experience with PTP X, V, and IV. PTP IV selected as the nucleus estate for the proposed project has developed considerable skill in land clearing and rubber development under Credit 194-IND. To carry out the proposed project it is essential that PTP IV has full authority over the resources, machinery, material inputs, the training of labor and control of finance, required to achieve and hand over to the settler potentially high yielding areas of three-year old rubber. Project design has therefore aimed at making the nucleus estate responsible not only for clearing of land, rubber planting and maintenance, but also the construction of rubber area roads, provision of building materials and supervision of settlers' own construction of housing, the procurement and application of inputs for development during the entire rubber immature period, and the clearing of an initial food crop area (0.4 ha) for each new settler family. Rubber would be established in large blocks of at least 500 ha so as to maximize economies of scale. The nucleus estate would be required to hire new settlers as laborers and provide temporary housing until settlers' own houses are constructed. PTP IV would be authorized to recruit casual labor whenever settler labor is unavailable or when additional demand requires.
- 14 -
Settlement Design Standards Village Layout. In planning a new land use pattern for the project 2.23 areas of Riau and Jambi, the basic principle in design has been to identify areas suitable for rubber and food crops and those areas now occupied and potentially suitable for rubber replanting. New food crop blocks would be restricted to land within slope classes 1 and 2 (00 - 30and 40 - 60 respec-
tively) to reduce the need for soil conservationand minimize extension requirements. Rubber has been allocated to slope classes 3 and 4 (70 - 120 and 130 - 180 respectively). Detailed mapping of the distributionof land for rubber and food crops was undertakenat appraisal and is available in the Project File.
Central and satellite villages for new settlement have been
based on the location of these blocks in order to locate villages on the food crop areas in a nucleated layout /1 therebyminimizing road developmentcosts and maximizing community developmentas in the traditionalSumateran village layouts. Each village has been sited for smallholdersto live on a 0.2 ha house and garden lot on their food crop area within a maximum of 3 km distance from the extremitiesof this lot to the rubber area. Primary villages would vary in size between 160-225 families and satellitevillages from 75 to 125 families. SettlerHousing. The design standards for settler housing have been 2.24 based on considerationsof cultural preferenceof the settlers themselves,the availabilityof building materials,and the Indonesian concept of gotong royong (mutual self-help among farm families). Two basic settler houses on a core shell basis, have been designedfor settlement,one being more suitable for upland areas (Figure 3) and the other more suitable for lowland areas (Figure 4). Both houses would have an enclosed living area of 35 sq m, which representsan expansion of the house designed for the NES I project. The cost for each house type is estimatedat Rp 165,000 (US$395),a reduction in the housing cost of past smallholderprojects owing to the fact that settlers would construct their own houses in work units under nucleus estate supervision. The upland house is characterizedby stub walls made from Cimva-Ram type cement stabilizedbuilding blocks (40 cm x 20 cm x 10 cm) with timber cladding on a timber frame and a verandah. The lowland house would be built on stilts of concretewith an entirely timber frame and cladding. Both houses would require BWG 34 galvanizedsheeting for roofing material. SettlementFacilities. To ensure replicability,settlementd,sign 2.25 for village buildings includingcommunity halls, schools, religious facilities would be based on GOI standarddesigns and would be constructedby existing provincial services and agencies. Initially,higher levels of these services would be concentratedin central villages. Health and school facilitieswould be designed to reflect target levels set in the second Five-YearPlan and developed under the INPRES (Rural Public Works) Program. 2.26 Road Development. Design standards for roads have been based on the requirementsfor access to the settlementscheme with particularattention given to the requirementsof collectionand transportinglatex as a perishable /1 Settlementand village layout plans are in Figures 1 and 2.
-
15 -
product. The hierarchy of roads and tracks forming a comprehensive network over a wide area would include: (a)
main access road in each project area to remain open in all weather to medium-weight passenger and goods vehicles;
(b)
primary village roads forming spurs from main access roads to provide all-weather access to light passenger and goods vehicles;
(c)
secondary village roads leading from either main access roads or extensions to primary village roads to provide an earth-surfaced access to four-wheel drive vehicles and agricultural tractors; and
(d)
rubber collection tracks through the newly planted-rubber areas to provide access through most of the year to four-wheel drive vehicles and agricultural tractors; in addition tapping paths to each plot of smallholder rubber would provide access by foot or bicycle for tapping requirements in the new rubber trees.
2.27 Planned alignments for the main access, primary village and secondary village roads as well as descriptions of existing roads, soils and terrain and proposed road cross sections are detailed in the Project File. Design specifications for roads include: (a) main access to be 'bvilt6.5 m wide with a pavement width of 4.5 m on a wearing surface of laterite or gravel depending on sources of sound materials and a maximum gradient not exceeding 12%. Access roads would be on a crown height of 70 cm above prevailing land, would have the combined thickness of a laterite subbase and base of 25 cm and 10 cm on the 1.0 m shoulders. Cement stabilization of poor soils may be needed and detailed engineering studies would be required for analyzing the stabilization of base and subbase materials/i; (b) primary village roads to be built 5.0 m wide with a 3.0 m wearing surface of laterite included in a 30 cm embankment crown height; (c) secondary villge roads to be built to estate standards (secondary estate road) with 3 m width of improved earth surface on an embankment height of 25 cm; and (d) rubber collection tracks with a 2.5 m width of earth surface would also be built to estate standard and would equal about 25 m per ha of new rubber. Management and supervision of construction of the road network in the project area is covered in para. 4.11. 2.28 Selection and Recruitment of Smallholders. New settlements have been designed to provide for landless participants or those who presently have small uneconomic holdings. Priority would be given firstly to suitably qualified rural families within the project area, and secondly to those residents of the Province in which the project is located. It is anticipated that about 25% of the new settlers would be transmigrants from Java who would be recruited by the Directorate General of Transmigration in coordination with the DGE. Applicant families would include male heads of households between 20-40 years and preference would be given to families with incomes below Rp 150,000 (US$360).
/1
The Central Road Research Directorate of Bina Marga, Jakarta, would carry out these initial stabilization studies.
-
16 -
Preferencewould be given to applicant families for rubber replantingwith incomes below Rp 200,000 (US$500) (para. 2.21). Recruitment for new settlement and rubber replantingwould be carried out by the Project Manager in cooperation with the ProvincialCoordinatingCommittee (para. 4.08). Detailed guidelines for selection and recruitmentare available in the Project File.
III. THE PROJECT A. Project Summary
The project areas are outlined in paras. 2.09 and 2.10. The main projeci 3.01 componentsare summarizedbelow: 3.02 New land settlementand developmentfor smallholdersutilizing a public sector estate as the nucleus: (a) New settlementin Air Molek, Riau (i) block planting of 11,400 ha of rubber with nucleus estate maintenance for three years; (ii) distributionof seeds and fertilizerfor food crops for the first year of each settler family arrival covering 3,420 ha within an overall available area of 17,100 ha including 1,140 ha of house and garden lots; (iii) constructionin the new settler areas of eleven central villages each with a village center, and 18 satellitevillages with houses for 5,700 families; (iv) constructionand upgrading of 108 km of all-weatherproject access road, 56 km of all-weatherprimary village roads and 73 km of earth surfaced secondaryvillage road and 373 km of farm roads and tracks; (v) constructionof school facilitiesin each central village and health facilitiesin all villages; and (vi) establishmentand staffing of agriculturalcredit, extension and cooperativeservices. (b) New settlementat Bajubang, Jambi (i) block planting of 3,800 ha of rubber with nucleus estate maintenance for three years; (ii) distributionof seed and fertilizerfor food crops for the first year of each settler family arrival covering 1,140 ha within an overall available area of 5,700 ha including380 ha of house and garden lots;
- 17 (iii) constructionin the new settler areas of four central villages each with a village center and eight satellitevillageswith houses for 1,900 families. (iv) constructionof 33 km of all-weatherproject access road, 10 km of all-weatherprimary village road, 36 km of earth surfaced secondaryvillage road and 96 km of farm roads and tracks; (v) constructionof schools and facilitiesin each central village and health facilitiesin all villages;and (vi) establishmentand staffingof agriculturalcredit,extension and cooperativeservices. 3.03 Rubber replantingfor existingsmallholdersin each of the project areas utilizing the nucleus estate for development. (a) Rubber replantingin Air Molek, Riau (i) replantingof 3,000 ha of senescent seedlingrubber by the nucleus estate with improvedclones to benefit 1,500 families; (ii) constructionof roads as outlined in 3.02 (a)(iv)to also benefit 1,500 families in the rubber replantingarea; and (iii) establishmentof agriculturalcredit, extensionand cooperative services. (b) Rubber replantingin Baiubang,Jambi (i) replantingof 4,500 ha of senescent seedlingrubber by the nucleus estate to benefit 2,250 families; (ii) constructionof roads as outlined in 3.02 (b)(iv)to also benefit 2,250 familiesin the rubber replantingarea; and (iii) establishmentand staffingof agriculturalcredit, extensionand cooperativeservices. 3.04 Strengtheningof the public sector estate group of PTP IV for its role as the nucleus estate: (a) new plantingof 3,500 ha of block rubber in Air Molek west in Riau Province; (b) constructionof 274 single and double houses for estate employee families resultingfrom the employmentof about 1,737 laborers and nucleus estate staff by the end of 1983 as requiredfor both smallholder and estate development/1; and /1 The total housing program includes 1,157 single and double houses of which 883 houses mostly for field staff, would be provided under new settlement developmentcosts at Riau.
- 18 -
(c)
3.05
construction of buildings for divisional offices, social services, garages and workshop and technical assistance. Program support and technical assistance for smallholder and nucleus estate development:
(a)
technical assistance to the Directorate General of Estates (DGE) for project preparation, planning, implementation and evaluation: (i)
(ii)
a specialist in smallholder coconut agronomy for program preparation for a period of three years; short-term consultants for quality control inspection services, pest and disease management, upland soils, surveying, project preparation, and monitoring and evaluation;
(b)
technical assistance to develop extension and training facilities at the Dinas Perkebunan Extension Center at Sungai Tiga (Jambi) to facilitate extension and training in smallholder rubber management in Sumaterz and
(c)
technical assistance to the Directorate General of Highways for preparation and supervision of construction of all-weather main access and primary village roads, and preparation of a road maintenance program for the project areas.
Detailed Features /1 (a)
New Settlement - Riau (IJS$32.1million)
Physical Development 3.06 Rubber Block Planting (US$13.9 million). Each settler family would receive a 2 ha block of rubber in a total land allocation of 5 ha subject to conditions as detailed in para. 4.14. A total of 11,400 ha would be planted with rubber in blocks of 500 ha or greater. Land would be cleared by the PTP IV nucleus estate, who would supply polybag clonal planting material and fertilizer and employ settlers on contract as trainee rubber farmers, ti) plant, maintain, fertilize and weed rubber for a period of three years after field planting. During this three year period, the nucleus estate would have authority to centrally manage the trainee rubber farmers in a grouped manner, in accordance with normal estate management practices. After the three year period, settlers would be responsible for the operation of their individual rubber areas, but would receive guidance, training and advice through arrangements with the nucleus estate. During years 4-6, up to the production stage, the nucleus estate would act as procurement agent for on-farm inputs and would provide processing and marketing services.
/1
Project costs listed in this section are quoted in constant late 1977 prices and exclude price and physical contingencies.
-
19 -
3.07 Food Cropping (US$1.2million). Within six months of entry to settlementproject,settlerswould receive conditionaltitle to 5 ha, including 3 ha of land, part of which would be used for subsistencefood crops. As part of the total subsistencepackage to be provided to new settlers,PTP IV would clear an initial 0.4 ha per settler family (US$0.5million) to facilitatefood crop establishment,and would provide an initial cash payment to settler families of Rp 25,000 (US$60)for food and transportationneeds (US$0.3million). PTP IV would procure and provide inputs for food crop productionand house and garden establishmentincludingseed and fertilizerat US$48 equivalentper family (US$0.4million). Thereafterinputs for food crop productionwould be supplied under the National Bimas program (para. 1.15). Assuranceswere obtained at negotiationsthat arrangementsnecessary to extend the provincial BIMAS program into the project areas would be made by August 1, 1979. An assurancewas also obtained that the nucleus estate would continue to supply food crop inputs for project settlersand replantersuntil such time as the BIMAS program is extended to adequatelyserve the project areas (para. 8.01(b) (ii)). 3.08 Village Centers (US$0.4million). Eleven central villages, 18 satellitevillageswould be built in Air Molek west and east to accommodatea total of 5,700 settler familieswith between 150-250 families per central and 75-125 familiesper satellitevillage. Centralvillages which would cater to satellitevil1baaes would include a village office, primary school,village health post, modque, communitycenter and nursery house (day care center). Satellitevilla&eswould include constructionof a first aid post, community hall, mushalla, and a nursery house. Health centers and junior high schools would be distributedamong the central villages in relation to locationand proximity to main access roads. One village center in each scheme would include buildings for the project office, estate offices, garages and guest house. 3.09 Housing and civil works (US$6.1million). In the Riau project area, PTP IV would provide materials and supervisionfor work units of settlersto constructtheir own houses (US$2.3million). About 5,700 houses would be constructedeach costing about US$395. Upland and lowland houses have been designedfor lateral expansionand it is anticipatedthat settlerswould expand on the basic structureusing their own resourcesin later years (para. 2.24). Initial housing for arriving settlershas been provided with five dormitories to be constructedby PTP IV to house 60 families each. Additionalhousing for foremen,estate managers and labor requiredfor smallholderdevelopment,all requirementsfor civil works for constructionof garages,workshops,and project buildings (US$3.8million)would be constructedaccording to GOI specifications. 3.10 Health (US$0.04million). The project's low cost health system would consist of primary medical care operatedunder Governmentstandardsfor the Second Five Year Plan and coordinatedwith the higher level facilitiesof the administrativeregion. The health system would include provisionof village health posts, health centers (Puskesmas),and malaria controland family planning as provided by the Puskesmas. 3.11 Water supply and sanitation (US$0.6million). Hydrologicalinformation indicates that adequategroundwatersupplieswill be availablefrom wells. Provision is made for 1,140 wells and hand pumps (1 per 5 families).
- 20 -
Pit latrines would be dug for each family. In the event of water shortages, standby water equipment for deep well construction has been included in the machinery of the nucleus estate PTP IV. 3.12 Roads (US$7.2 million). In the Riau project area 108 km of all weather main access road, 56 km of primary village road and 73 km of secondary village road would be constructed. Development of 373 km of rubber collection tracks is included in the cost of rubber block planting. The road component for the Riau project area is more extensive than roads required for the NES I Project (Loan 1499-IND) owing to the extremely poor conditions of existing roads through the area, the requirement to upgrade the road between Air Molek west and east, and to provide improvements to the ferry across the Kuantan River. The road component for Riau also includes some equipment (US$400,000) to be procured by the Provincial Public Work Services (DPUP) for maintenance of the project area roads. 3.13 Vehicles (US$0.2). Vehicles required during project implementation would include pickup trucks and mobile agricultural equipment. Other transport vehicles including jeeps, motorcycles, and service cars are to be provided by the nucleus estate PTP IV. 3.14 Agricultural Services. Settlers would receive on-the-job training in rubber husbandry from the nucleus estate. The project manager would arrange extension services for food cropping activities and after three years for rubber in cooperation with the nucleus estate. Within the settlement area, BUD/KUDs would be established during the project. Processing and marketing services would be provided by the nucleus estate after the project period. 3.15 Project Management (US$2.5). Central Government responsibility for project management would be placed upon the DGE. At provincial level the Chairman of Bappeda would be project coordinator (para. 4.06). The operating costs of the Dinas Perkebunan Daerah and the staff salaries including the project manager have been costed in the project (US$0.1 million). Estate management and overheads would include field and head office overheads (US$2.4 million). (b)
New Settlement - Jambi (US$12.2 million).
3.16 Physical and agricultural standards for development would be similar to Riau new settlement activities. The following details the main differences. 3.17 Rubber block planting (US$4.9 million). A total of 3,800 ha would be planted in blocks of minimum size of 500 ha by the PTP IV nucleus estate. 3.18 Physical Development (US$2.8 million). Construction of four central villages and eight satellite villages to accomodate 1,900 families (US$0.1 million). A total of 1,900 settler houses would be constructed (US$0.8 million) while housing for managers, field assistants, and the building program for nucleus estate facilities (US$1.9 million) including a watering system for the nursery and a guest house would also be constructed. 3.19 Health, water supply and sanitation (US$0.5 million). Improved water supply and sanitation (US$0.45 million) would be complemented within a health program (US$0.45 million) as outlined in para. 3.11.
- 21 -
3.20 Roads (US$2.1 million). In Jambi 33 km of all-weatherproject access road and 46 km of all weather primary and earth surfaced secondary village road would be constructed. Development of 96 km of rubber collection tracks is included in rubber block planting. As in para. 3.12, some road maintenanceequipmenthas been included for the DPUP Jambi (US$0.1million). 3.21 Project management and agriculturalservices (US$1.9 million). The remainder of project costs for Jambi new settlementwould include the food cropping and subsistencepackage (US$0.6million), some agriculturalvehicles (US$0.1million), office equipment (US$0.3million) and project and estate management (US$0.9million). (c) Rubber Replanting - Riau (US$2.1million). 3.22 Rubber replanting (US$1.9 million). A total of 3,000 ha of existing rubber would be replantedpredominantlyin the Air Molek west area of Riau province for 1,500 families. PTP IV would assist in clearing 2 ha of existing rubber per family and would provide estate labor for survey, chain-saw operations, lining, lalang eradicationand the necessary foremen for supervision. Smallholderswould provide their own family labor for burning and stacking felled trees, for terracing,holing, planting, establishmentof cover crop and weeding. During project implementationthe effectivenessof weeding practices would be reviewed and if found to be inadequate,Governmentmay wish to make small incentive cash payments to rubber replantersto ensure proper weeding during the developmentperiod. PTP IV would supply clonal planting material after land clearing and would provide fertilizersthroughoutthe developmentperiod. Nearing the production stage, PTP IV would provide processing and marketing facilities. 3.23 Other physical development. Project area roads (para. 3.12), the constructionof health facilities (para. 3.10) and project and nucleus estate buildings (para. 3.09), would also benefit the 1,500 families in the rubber replantingscheme. Since rubber replantinghas been phased to begin one year after the start of new settlement in 1980, and after the extension of the BIMAS program to the project area, credit for food crop inputs would be available to also serve the families for rubber replanting. 3.24 Agriculturalservices and project management (US$0.2million). PTP IV would be expected to provide training in rubber husbandry. This training and supervisionwould be provided at the time of initial land clearing and at the time of fertilizerdistributionin each year to maturity. The Project Manager would arrange for extension services in food cropping. Project management costs include head office and field overheads of the nucleus estate. (d) Rubber Replanting - Jambi (US$3.1million). 3.25 Rubber replanting (US$2.8 million). The same strategy for rubber replanting in Riau would be employed by PTP IV as in Jambi (para. 3.22) to replant a total of 4,500 ha for 2,250 families.
- 22 -
3.26 Agricultural services and project management (US$0.3 million). Supervision and training by PTP IV would be provided to 2,250 families in the Jambi rubber replanting areas (as in para. 3.24). The construction of health facilities and project area roads would also benefit these 2,250 families (para. 3.19, 3.20). (e)
Expansion of PTP IV - Riau (US$8.1 million).
3.27 Agricultural development (US$6.0 million). Rubber development for the new estate of PTP IV in Air Molek west would support new planting of 3,500 ha as part of an eventual program of PTP IV to expand to 5,000 ha in this area. Under the project, PTP IV would clear secondary jungle, lalang grass, and old rubber in the area with mechanical clearing equipment and the use of herbicides. These operations would be followed by sowing a leguminous cover crop and planting of polybagged rubber. Total investments for agricultural, power and transport equipment (US$1.8 million) includes transport vehicles (US$0.6 million) required for estate transport of materials, supplies and labor for smallholder development. 3.28 Physical developments (US$2.1 million). Housing would be constructed for 360 families (274 single and double units) as part of the total 1,157 houses to be constructed by the end-1983 for laborers and nucleus estate staff as required for both smallholder and estate development. Other civil works would include construction of divisional offices, garages and workshops, social facilities for estate staff, and the civil works required for housing, power and water. Specifications for the workshop are based on a 1,000 cu m area while garages would be 240 cu m. One of the three required generators for power would be provided under PTP IV development costs with a capacity of 400 KVA. The proposed sheet and crumb rubber factory (US$3.4 million, constant 1977 $) at Kotamedan would not be provided under the proposed project but in a second phase development beginning in 1984 when additional maintenance of smallholder and nucleus estate rubber would be required. 3.29 Corporate operations. The production and processing units for PTP IV are located in 13 estates comprising about 30,000 ha with 10 of these estates situated in Deli Province in North Sumatera. Since estate development (3,500 ha) and new settlement rubber (11,400) would be 600 kms from present operations, PTP IV would need to move and recruit a full range of estate personnel and laborers to implement the project. Although estate facilities in Riau would be more extensive than in Jambi where PTP IV would not have its own planting program, PTP IV would also need to provide well qualified estate managerial personnel to the Jambi project area. To ensure managerial obligations of PTP IV and monitor the progress of the project with respect to field conditions, infrastructure, housing, and finance, an assurance at negot4aations was obtained for the DGE to employ short-term consultants for field inspection services acceptable to the Bank and on terms and conditions satisfactory to the Bank (para. 3.05 (a) (ii)).
- 23 -
(f)
Project Program Support to the Directorate General of Estates and the Directorate General of Highways (US$2.9 million).
Directorate General of Estates.
3.30 (a)
Bank financed smallholder rubber and tea projects (Credits 358 and 400-IND) and the NES I Project (Loan 1499) have been the responsibility of the DGE. To assist the three Directorates within the DGE for planning, production and means of operation, technical assistance was provided under Loan 1499 for two specialists, one in project preparation, implementation, monitoring and evaluation and another for project finance, procurement and administration. Assistance to the DGE (US$2.1 million) to expand its smallholder development program is now required in the form of: (i)
(ii)
(b)
a specialist in smallholder coconut agronomy for program preparation; and short-term consultants for pest and disease management, upland soils, surveying, quality control inspection services, socio-economic analysis, subsistence intercrop management and settlement planning.
Technical assistance to the DGE would also include support for development of extension and training facilities at the Dinas Perkebunan Extension Center at Sungai Tiga in Jambi to facilitate extension and training in smallholder rubber management in Sumatera (US$0.6 million). At present there are no extension workers (PPL) in either the Riau or Jambi project areas specifically trained in smallholder rubber extension. In order to implement DGE plans for new rubber and rubber replanting development on the scale proposed in the next five years significant improvements both in the number of extension personnel and the training for extension officers in rubber husbandry would be required. An existing but presently inadequate facility located about 20 km from Jambi town is well located to service the training of personnel both in the project area and those extension officers to be recruited for training from northern or southern Sumatera. Facilities would be upgraded with improvements to existing buildings and construction of new dormitories, houses and classrooms to provide training courses for about two weeks for groups of 20 extension officers. Developments at Sungai Tiga include establishment of 75 ha of rubber, budwood, field, and polybag nurseries and a demonstration farm for the new settlers. The manager of the training center and extension teachers would be recruited by the DGE (para. 4.12).
Directorate General of Highways. As separate from engineering 3.31 studies to be carried out by the Central Road Research Institute and the Directorate of the Bina Program of the DGH, support for preparation of the project's road component with route locations, cost estimates and location of materials, and for supervision of construction about 35 man-months of consultant services would be provided to the DGH (US$0.2 million).
- 24 -
Project phasing. The physical componentsof project phasing are 3.32 shown in Annex 2, Table 1. Project implementationschedules for settlement, rubber replantingactivities,and PTP IV rubber development are shown in Chart 8 and 9 respectively. To facilitateproject start-up in 1978-79, the DGE has ensured the availabilityof budwood material from the Teluk Kuantan nursery in Riau province and the pre-projectnursery in Jambi for about 50,000 m of budwood from each nursery for the first year of the project. The requirementfor a five-year implementationperiod necessitatesa second-phase of development to provide additionalmaintenance for smallholderrubber and estate plantings. Finance for the constructionof PTP IV's rubber processing facilities in Riau and Jambi is also required in a second phase. Assurances were obtained at negotiationsthat the Borrower would make funds available to complete the maintenance program for a total of 26,200 ha of rubber in the proposed project and for a 120 ton per day sheet and crumb rubber plant in Riau and a 60 ton per day rubber processing facility in Jambi. B. Project Costs and Financing Arrangements Project Costs The project would be fully implementedover a ten-yearperiod. The 3.33 Bank loan would assist with the financing over a five-year period. Table 2 on page 25 summarizes the costs of the project over the first five years of implementation. Project costs during the period are estimated at US$100.5 million. The foreign exchange component is estimated at US$50 million (50% of total cost). Full implementationof the project over a ten-yearperiod is estimated at about US$155 million. Details of the project costs are presented in Annex 2, Tables 2-10 and in the Staff Project File. Base cost estimates in mid-1977 prices updated to late 1977 prices 3.34 were derived from detailed cost analyses of several public sector estates including the proposed nucleus estate PTP IV and from data gathered at appraisal. The investmentprogram and all operating costs for project componentsare incremental. A physical contingencyof 10% is allowed on all investmentitems and on the number of man-days of management consultants. The provisionsfor expectedprice increases have been computedand are given in Table I below. The contingenciesfor civil works are estimated slightlyhigher than in other Bank projects in Indonesia due to the isolation of the project areas, the small number of contractorsin these areas and the expectationof higher transport costs in Jambi and Riau than elsewhere on Sumatera. Table 1:
1978
Civil works Equipment and services
15 8
Annual InflationRate (%) 1981 1980 1979 15 7.5
12 7
12 7
1982-83 10 7
The estimated schedule of project expendituresis shown in Annex 2, Table 10
Table 2:
Local
Smallholder Development Riau new settlement Jambi new settlement Riau rubber replanting Jambi rubber replanting Subtotal II.
III.
Public Sector Estae Development PTP IV Riau rubber development Technical Assistance, Training and Supervision Directorate General of Estates Sungai Tiga Extension Training Center Directorate General of Highways Subtotal Base cost estimates
IV.
Contingencies Physical Expected price increases Subtotal Total expected costs of project
PROJECT COST SUMMARY
(Rp Million) Foreign Total
Local
(US$ Million) Foreign Total
% Foreign Exchange
% of Base Cost
6,716 2,490 421 621
6,605 2,572 466 670
13,321 5,062 887 1,291
16.18 6.01 1.01 1.50
15.92 6.19 1.12 1.62
32.10 12.20 2.13 3.12
50 50 52 52
53 20 4 5
10,248
10,313
20,561
24.70
24.85
49.55
50
82
1,803
1,565
3,368
4.35
3.77
8.12
46
13
238
636
874
0.57
1.53
2.10
73
3
142 14
97 73
239 87
0.34 0.03
0.23 0.18
0.57 0.21
40 85
1 1
394
806
1,200
0.94
1.94
2.88
67
5
12,445
12,684
25,129
29.99
30.56
60.55
50
100
1,243 7,267
1,270 6,798
2,513 14,065
3.00 17.51
3.06 16.38
6.06 33.89
50 48
8,510
8,068
16,578
20.51
19.44
39.95
49
20,955
20,752
41,707
50.50
50.00
100.50
50
I
100
- 26 -
Project Financing Arrangements 3.35 The proposed Bank loan of US$65 million would finance for the first five years of project implementation 65% of total project costs. The Bank loan would include US$15 million for finance of about 30% of the total local costs. Local cost financing would be for smallholder development for which total Bank finance would be about US$56 million. Bank finance for the expansion of the public sector estate PTP IV and for technical assistance under the project would be about US$9 million. GOI would finance about US$35.5 million of the proposed project (35% of total costs). Sources for all project finance are detailed in Annex 2, Table 11. 3.36 Smallholder development. The Riau and Jambi smallholder settlement and rubber replanting components would be financed from both Bank and GOI sources (US$82.5 million). Noncredit items to smallholders including village infrastructure, power and water, main access and primary village roads, health services and management fees would be financed from GOI annual budget sources and INPRES programs (US$10 million) and from the proceeds of the Bank loan (US$9.7 million) for the main access and primary village roads. The flow of funds for noncredit items of expenditure is shown in Chart 6. Credit items of smallholder development and the provision of materials for housing would be financed by the Bank (US$46.3 million) and from GOI's Dana Rekening Investasi (US$16.5 million) or similar sources of finance in the Ministry of Finance. The flow of funds for credit items of expenditure is shown in Chart 7. 3.37 Bank and GOI finance for credit items to smallholders would be passed by Bank Indonesia, through BRI, acting as the handling bank, to the nucleus estate PTP IV on the basis of a Financing Agreement between the three parties. GOI would bear the risk on all funds passed to PTP IV for smallholder development. PTP IV would develop each area of block planted rubber and rubber replanted through Year 3, at which time development expenditures made by PTP IV would be translated into standardized credit amounts for individual settlers and rubber replanters in credit agreements with the BRI. The completion of a satisfactory Financing Agreement between Bank Indonesia, BRI and PTP IV would be a condition for disbursement for the smallholder project components. Loans to the smallholders would be for 19 years in the case of new settlers and for 14 years for replanters, both loans including four years grace period, and repayment starting in the seventh year after planting and four years after signing of the smallholder's credit agreements. Interest would be at 10.5% p.a. with capitalization of interest during the grace period. 3.38 Estate component - PTP IV. The proceeds of the Bank loan (US$6.0 million) for development expansion of PTP IV in Riau to serve as a nucleus estate would be on-lent by Bank Indonesia to PTP IV under a Subsidiary Loan Agreement. The total loan of US$13.5 million (including GOI contribution of US$7.5 million) would be made for 16 years including 8 years of grace and repayable in 16 equal semi-annual annuities starting January 1, 1987. Interest would be 13.5% p.a. and would accrue from January 1, 1979 and be payable beginning January 1, 1983. In order to facilitate PTP IV's own expansion program at Labuhan Batu in North Sumatera, all funds for Riau development have been provided in the form of a loan. On this basis PTP IV would be able to secure a substantial portion of its program for Labuhan Batu from internally generated
- 27 -
funds. In order to secure the availability of these funds, assurances were obtained at negotiations that PTP IV would distribute dividend payments based on annual cash flow analysis and only in the event that such analysis demonstrated that dividends could be paid without impairing PTP IV's cash balances required for its investment program and operations. The entering into of a Subsidiary Loan Agreement between Bank Indonesia and PTP IV would be a condition of disbursement of the Bank loan. 3.39 The Bank loan of US$65 million will be lent to Government for 20 years, including 5 years of grace at the prevailing interest rate on the date of circulation of the President's Report to the Executive Directors.
C. Budgeting 3.40 Categories of investment for the smallholder components which would require GOI budget funds include all noncredit items (e.g., village infrastructure, power and water, management fees, main access and village roads, health, etc.). Assurances were obtained at negotiations that budget funds from APBN, APBD, and INPRES would be made sufficient in size to cover noncredit expenditures during project implementation, and wherever these sources were insufficient, the Borrower would make timely arrangements from other GOI sources to meet additional requirements. The Provincial Coordinating Committee for each project area would submit annual budgets for all noncredit expenditures six months prior to the start of the fiscal year. The DGE would be responsible for making its own budget allocation for power and water facilities to smallholders, and management fees to PTP IV for development of the project areas. The DGE would also make annual DIP budget requests to the Central Government including the proposed allocations from the Ministry of Public Works and Power (MPW) for main access roads, primary village roads and the technical assistance for roads, and from the Department of Health for construction of health facilities and provision of health services (para. 3.10). Since a large portion of the finance for noncredit items would come from INPRES sources, the Chairman of Bappeda in each of the two project areas would secure financal requirements with the Provincial Government (para. 4.08). This responsibility would include coordination of finance from the INPRES Sekoklah for school facilities, the Puskesmas INPRES for village health, and Gotong-royong for village infrastructure. The Chairman of Bappeda and the DGE, in cooperation with the Directorate General of Highways (DGH), would review all annual budget appropriations to coordinate noncredit development activities with the rubber development as carried out by PTP IV. Bank supervision missions would review with Government the annual budget allocation and work program of GOI agencies participating in the implementation of the project.
D.
Procurement
Smallholder Components 3.41 GOI would finance 100% of all noncredit categories of investment for the Riau and Jambi smallholder components with the exception of main access and primary village roads for which the GOI contribution would be about
- 28 -
35%. The standards for civil works and equipment would be set by the present and village development as maintained in GOI regulations for health, schools, the existing INPRES regulations. In cases where costs or standards required for the project exceed limits of the present INPRES regulations, INPRES would be supplemented by APBD and APBN funds (para. 3.40). In cases where the provincial governments are not capable of fully carrying out the village
and social development, the Ministry of Finance
funds from PTP IV would be provided with additional to carry out these responsibilities. Procurement
guidelines for PTP IV in the credit categories of investment and for the Directorate General of Highways within MPW for construction of main access and primary village roads would be as follows:/1 (a) Rubber development (US$46.9 million). Total block planting of 15,200 ha of rubber and 7,500 ha of rubber replanting in both project areas with maintenance for up to three years would be carried out under the terms of a Financing Agreement between Bank Indonesia, the BRI, and PTP IV since it involves the execution of a specialized, integrated service which cannot be procured through a competitive bidding process. PTP IV has demonstrated its ability to carry out such a contract in a cost-effective manner. Unit cost information for PTP IV is well established and would be used to monitor financial requirements and guarantee quality control. Supplies paid in local currency for the execution of the contract would be procured in accordance with current GOI procedures which are satisfactory to the Bank. Agrochemicals (US$6.6 million), including fertilizer for the first year of subsistence crop development, also procured by PTP IV, would be procured on the basis of international competitive bidding (ICB) in accordance with the Bank Group's guidelines on procurement. Agrochemicals costing less than US$100,000 annually, would be procured following prudent shopping procedures with at least three quotations. Subsistence cash payments (US$0.8 million) have been costed at Rp 25,000 (US$60) per farm family entering the project. Cash payments would be made by the nucleus estates to families approved for new settlement by the Project Manager and Provincial Coordination Committee. Head office and field overheads for new settlement and these overheads for rubber replanting (US$6.6 million) would be payable to PTP IV at the rate of 15% of the direct expenditures made for rubber development and machinery and equipment in the case of new settlement and 12% of same for rubber replanting. PTP IV would be allowed to draw on the loan funds for these overheads only at the end of each year based on DGE approval of satisfactory performance of clearing and planting. Accounts would be maintained by PTP IV, satisfactory to the Bank, of all development expenditures for each of the smallholder components; (b)
/1
Agricultural machinery, vehicles and equipment (US$4.9 million). All agricultural machinery for rubber development, vehicles and equipment for the construction of secondary village and rubber collection roads
Procurement estimates do not include the noncredit items of village infrastructure, health services and the overheads of the Dinas Perkabunan Daerah.
- 29 -
to be built by PTP IV would be procured through internationalcompetitive bidding in accordancewith Bank Group guidelines. A preference limited to 15% of the cif price of the imported goods or the customs duty, whichever is lower, would be extended to qualified local manufacturersin the evaluationof bids. However, procurement under contracts of less than US$50,000 would be met through prudent shopping involving the solicitationof at least three quotations. The total procured in this manner would be limited to the equivalent of US$250,000for each of the Jambi and Riau project areas. (c) Civil works (US$15.0million). The civil works as part of the credit component of the project, including constructionof housing and secondaryvillage and rubber collection roads would be carried out as part of the Financing Agreement between Bank Indonesia,the BRI and PTP IV, similar to the arrangementsfor rubber development. Materials to be provided for settler housing each costing about Rp 165,000 (US$395constant 1977) for each family would be provided based on standards for: (i) a core house with minimum area of 35 sq m; and (ii) timber framed or cimva-ramblocks with timber frame constructionwith a galvanized sheeting double pitched roof. The civil works cost of road developmentundertakenby the estates would be based on established design of secondary farm roads (3 m wide) and rubber collection roads (2.5 m wide) as outlined in para. 2.27; and (d) Road construction(US$13.5million). Responsibilityfor construction and upgrading and awarding of contracts for 141 km of all-weather main access road (US$10.8million) in the project areas, 66 km of primary village roads (US$1.4million) and improvementsto the ferry at Pasirringit (US$0.6million) would rest with the Directorate General of Highways in the Ministry of Public Works and Power. Internationalcompetitivebidding would not be appropriatefor constructionsince these roads are located in three separate locations and the extended phasing of road works timed with village developmentis not likely to attract foreign firms. Civil works would be carried out under unit-pricecontracts awarded after domestic competitivebidding. Detailed design standards for these roads (para. 2.27) would be reviewed and agreed with the Resident Mission Indonesia prior to submissionof proposals by local prequalified local firms. An assurance was obtained at negotiations that the Borrowerwould cause the Directorate of the Bina Program within DGH and assisted by consultants to carry out site surveys, detailed planning of alignments,experimentationfor stabilization and other engineeringrequirementsfor the road improvementprogram by June 1979. The DPUP for Riau and the DPUP for Jambi would each procure road maintenance equipment (up to US$0.6 million and US$0.15 million respectively)during project implementation. Contracts for this equipment would be met through prudent shopping involving the solicitationof at least three quotations.
- 30 -
3.42 Estate development component. in Riau province would be:
Procurement for PTP IV development
(a)
Rubber development (US$8.3 million). Total block planting of 3,500 ha of rubber in Air Molek west and maintenance for up to three years would be carried out under the terms of a Subsidiary Loan Agreement between the Borrower and PTP IV. Most of the work required for block planting involves the integration of labor and machine services which cannot be procured through ICB. Supplies paid in local currency for the execution of the contract would be procured in accordance with current GOI procedures which are satisfactory to the Bank. International competitive bidding in accordance with Bank Guidelines would be used for fertilizers and agrochemicals (US$0.8 million) including the purchase of urea (US$0.1 million). Small lots of chemicals costing less than US$100,000 annually would be procured following prudent shopping procedures with at least three quotations;
(b)
Agricultural machinery, vehicles and equipment (US$2.7 million). All agricultural machinery, vehicles and equipment would be procured through international competitive bidding in accordance with Bank Group Guidelines. A preference limited to 15% of the cif price of the imported goods or the customs duty, whichever is lower, would be extended to qualified local manufactureres in the evaluation of bids. All office equipment (US$0.5 million) and procurement for contracts of less than US$50,000 would be locally procured through prudent shopping involving the solicitation of at least three quotations; and
(c)
Civil works (US$2.5 million). All civil works contracts for housing would be awarded after local competitive bidding among prequalified contractors in accordance with GOI procedures which are acceptable to the Bank. Consultants located in the MOA under Loan 1499-IND would provide recommendations on bid evaluations in cases of local procurement for construction of garages, workshops and project offices.
Consultant specialists to the Ministry of Agriculture Support Staff employed under Loan 1499-IND would advise on procurement arrangements. 3.43
Technical assistance (US$4.5 million). (a)
Consultants and technical services to the DGE (US$3.3 million). Consultant and technical services to the DGE in the proposed project are detailed in para. 3.05. Consultants would be engaged in accordance with the Bank's Guidelines on terms and conditions approved by the Bank. Internationally recruited consultants have been costed at US$70,000 per man-year (including international travel, housing allowances, and local transportation) on the basis of past experience in Indonesia;
(b)
Extension Training Center - Sungai Tiga, Jambi (US$0.9 million). All civil works contracts (US$0.2 million) for the training center
31 -
-
including classrooms, houses, garages and workshops, offices and dormitories would be awarded after local competitive bidding in accordance with GOI procedures which are acceptable to the Bank. All agricultural machinery, equipment and vehicles (US$0.2 million) would be procured through ICB in accordance with Bank Group Guidelines. A preference limited to 15% of the cif price of the imported goods or the customs duty, whichever is lower, would be extended to qualified local manufacturers in the evaluation of bids. The manager selected for the training center would be assisted with bidding documents and evaluation of bids by consultants employed by the DGE under Loan 1499-IND. (c)
Consultants and Technical Services to the DGH (US$0.3 million). Internationally recruited consultants to the DGH and the Directorate of the Bina Program for preparation and supervision of road construction have been costed at US$6,000/month on the basis of past experience in Indonesia. Consultants would be engaged in accordance with the Bank's Guidelines on terms and conditions approved by the Bank.
E.
Disbursement
3.44 An estimated schedule of disbursements is shown in Annex 2, Table 12. Disbursement for the new settlement and rubber replanting components would be as follows: (a) Civil works consisting of housing, estate workshops, garages and farm roads at the rate of 60%; (b)
100% of the foreign exchange cost of directly imported agricultural machinery, vehicles and equipment, 95% of the ex-factory cost of equipment manufactured locally and 65% for imported farm equipment, Disbursements for the cost of a few vehicles procured locally for project start-up on the basis of prudent shopping [paras. 3.42(b)] would be at the rate of 40%;
(c)
100% of the cif cost of agrochemicals or 50% of urea procured locally on the basis of contracts awarded after international competitive bidding;
(d)
rubber development expenditures other than agrochemicals or vehicles and equipment procured under (b) or (c) by PTP IV at the rate of 75% against certified quarterly reports of the nucleus estate; and
(e)
road construction and upgrading for all-weather main accoss roads and new construction of primary village road at the rate of 65% of total cost as certified in quarterly reports provided by the DGH to the DGE.
3.45
Disbursement for the PTP IV estate component would be as follows: (a)
100% of the cif cost of agrochemicals and 50% of urea procured locally on the basis of contracts awarded after international competitive bidding;
- 32 -
(b)
100% of foreign expenditures of agricultural machinery, vehicles and equipment, 95% of ex-factory cost of equipment manufactured locally, and 65% of imported farm equipment procured locally. Disbursements for the cost of a few vehicles procured locally for project start-up on the basis of prudent shopping [para. 3.43 (b)] would be at the rate of 40%;
(c)
60% of all civil works costs including estate housing buildings, garages, workshops and divisional offices; and
(d)
rubber development expenditures other than agro-chemicals or vehicles and equipment procured under (a) or (b) above at the rate of 20% against certified quarterly reports by PTP IV.
3.46 Disbursement for consultants and technical assistance to the DGE, the DGH and for technical asistance to the Extension Training Center at Sungai Tiga are as follows: (a)
100% of foreign exchange cost of all consultant specialists, inspection and technical services and 100% of local consultants fees;
(b)
60% for all civil works for buildings including classrooms, garages, workshops and housing for the Extension Training Center at Sungai Tiga, and 100% of all foreign expenditures of agricultural machinery, vehicles and equipment, 95% of the ex-factory cost of equipment manufactured locally and 65% of imported farm equipment procured locally on the basis of contracts awarded after international competitive bidding. Disbursements for vehicles procured locally for project start-up on the basis of prudent shopping would be at the rate of 40%.
Any savings from the project would be made available for financing additional works. Documents to support claims for rubber development expenditures and force account work not submitted for reimbursement would be retained in Indonesia and made available for inspection and review by Bank supervision missions. It is expected that disbursements would be completed within five years from loan effectiveness.
F.
Quality and Cost Controls
3.47 Rubber development for new settlement and replanting, all civil works and village development in the project would require quality and cost control on a regular basis. Rubber development and other works carried out by PTP IV on a credit basis would be checked for quality and cost control by the DGE staff assisted by technical advisors appointed under the project (para. 3.30) as set by their agreed standards. Certification of satisfactory completion of each year's development objectives for rubber development would be made by the DGE as a condition to making payments for head office and field overheads to the nucleus estate PTP IV. Civil works and village development on a noncredit basis would be monitored for quality and cost control by the Project Manager
- 33 -
and the Provincial Coordinating Committee and reviewed by the DGE. Monitoring and evaluation of the upgrading and construction of main access and primary village roads would be carried out by consultants under short-term contracts [para. 3.05 (a)] employed by the DGH in consultation with DGE. Smallholder rubber plantings by PTP IV and PTP IV's own rubber expansion would be subject to quality inspection by independent consulting organizations employed by the DGE in cooperation with the MOA (para. 3.29).
G.
Accounts and Audit
3.48 Smallholder components. During negotiations assurances were obtained that the nucleus estate PTP IV in coordination with the BRI would keep separate accounts of all credit expenditures for new settlement and accounts for credit expenditures for rubber replanting by year of planting. The responsible agencies in the Provincial Government in cooperation with the on-site project managers for Riau and Jambi would be required to keep accounts of expenditures made under the Inpres program, APBN and APBD funds for the noncredit categories of investment based on existing regulations. The DGE, assisted by its technical advisors provided under the project, would receive and keep all project accounts and consolidated statements of credit and noncredit expenditures made under the project. These accounts would be in a form acceptable to the Bank and furnished as part of a quarterly project report by the DGE to the Bank within 30 days of the close of a quarter. During negotiations assurances were obtained that these accounts, both separate and consolidated, would be audited by the State Auditor yearly and the audit would be submitted to the Bank within six months of the close of each fiscal year. The Bank would reserve the right to request an audit from auditors other than the State Auditors and acceptable to the Bank of either accounts maintained by PTP IV or project accounts of the DGE if the State Auditors prove to be unable to submit audits in time or in a form similar to that agreed between the DGE and the Bank. The BRI, following its normal procedures of accounts and audit, will report to the DGE on expenditures made by PTP IV in the quarterly reporting process. 3.49 Estate component. PTP IV would be required to submit to the Bank annual audited reports of accounts as carried out by independent private auditors within six months of the close of the fiscal year. Assurances to this effect were obtained at negotiations. (In order to facilitate further monitoring and supervision of PTP IV, assurances were obtained that PTP IV would submit annual budgets of the work program for expansion of the estate in Riau, each year to the Bank for review and comment before final approval by their Board of Supervisors.)
H.
Cost Recovery
3.50 Credit delivery system. Project finance and the flow of funds in the credit delivery system have been described in para. 3.37. Credit delivery would be simplified with all credit expenditures in Years 1-3 incurred by the nucleus estate PTP IV for which accounts would be maintained by PTP IV and the BRI (para. 3.48). Credit agreements between farmers and the BRI at the end
- 34 -
of Year 3 would include provisional estimates of total credit and would be amended in Year 6 to include the actual funds to farmers for the costs of establishingrubber to full maturity. Title would be received to 5 ha of land, Hak Milik, in year 1 by new settlers while rubber replanters "sconditional" would receive this conditional title to 2 ha of land. At the end of year 3 all smallholderswould receive "full" Hak Milik without conditions. These titles would be pledged as collateralwith the BRI to secure repayment obligations. Cost recovery. Since the BRI has had little experience in lending 3.51 tree crop development,the GOI has proposed the adoption of a smallholder for system with repaymentsby new settlers and rubber recovery cost flexible as accepted inTloan 1499-IND. Loan accounts would kind" "in replantersmade be standardizedfor smallholdersand expressed in financial terms while repaymentswould be made in kg dry rubber collected weekly by PTP IV for processing the rubber. Total number of kg to be delivered would initiallybe fixed to the loan amount as if calculated on a normal amortizationschedule. The system would be flexible,however, so that the number of kg to be delivered could be adjusted to reflect possible adverse or favorable rubber price changes or changes in yields affecting smallholders'incomes. Smallholders would be required to deliver a predeterminedportion of their product for debt service to PTP IV collectionagents, but would be free to sell their remaining production to any processor. A price formula would be set for rubber sold for debt service during project implementation,to be agreed by PTP IV, the ProvincialCoordinatingCommittee and the DGE, in consultationwith the Bank. The price received for the rubber is estimated at about 70% of the fob value which would cover PTP IV processing,marketing, collectionand overhead charges (para. 5.04). PTP IV would have the incentive to collect smallholder rubber in order to reduce its own overheadand processingcosts. PTP IV would keep all records of rubber receivedper smallholderwith daily records of rubber prices. Records and revenue from PTP IV would be sent to BRI weekly for which accountswould be closed monthly or quarterly by convertingthe net amount of rubber collected at the prevailingprice minus 30% (estimated factory, tax and overhead costs). The quantity of rubber to be collected would be based on loan 3.52 amounts as if calculatedat 10.5% on terms of 19 years repayment for new settlers and 16 years repayment for replanters,both with 4 years grace on interest. On this basis credit amounts estimatedat Rp 3.12 million for new settlerswould be repaid with 25% of annual rubber production,or 9,475 kg collected over 15 years, while Rp 1.74 million for rubber replanterswould be repaid with 25% of annual rubber production,or 5,100 kg collected over 10 years. Repaymentswould begin with new settlers and replanterseach delivering about 150 kg per year or 3 kg per week, rising to 800 kg per year at full developmentfor new settlers and about 700 kg per year for rubber replanters. Ability and willingness to repay. Farmers are not likely to have 3.53 any particularproblems with depressed cash incomes after repayment. When a household expenditureallowance of about US$420 is charged against net family incomes of new settlers and replantersat full development,new settlerswould have net cash incomes of US$475 and replanters,about US$300, sufficientfor more replantingor new planting of rubber or other on farm investments. No particular risks are associatedwith recovery since adjustmentsfor adverse price effects (or lower than expected yields) in the kg of rubber to be
- 35 -
delivered would be immediate, thereby extending the repayment period to full recovery. Similarly, increases in the price of rubber or increased yields above those forecast would permit recovery prior to 15 years for new settlers or 10 years for rubber replanters. It is assumed that recovery of credit in the proposed project would be high since most settlers would want to sell all their dry rubber production to PTP IV owing to a more favorable price for rubber than traditionally received. Prices received by smallholders for rubber in the Jambi and Riau areas are rarely above 40% of the fob price since there is price collusion among middlemen and smallholders have no procedures for representation. The value received by smallholders on rubber delivered for all farm production minus deduction for debt service would be about 70% higher than the value received if smallholders were to avoid repayment and deliver 100% of their production to other processors. 3.54 Rent and cost recovery indices. Rent and cost recovery indices for both new settlers and rubber replanters are shown in Annex 2, Table 13. All figures are in terms of late 1977 constant prices and in incremental present values, discounted over the project period to reflect an opportunity cost of capital in Indonesia of 10%. 3.55 An investment cost for 2 ha of rubber for new settlers and for 2 ha of replanted rubber for existing rubber farmers would provide sufficient project rent to allow beneficiaries to pay for project costs. Project rent, net of all costs of family labor, depreciation and allowance for risk, is about 41% of net cash income for new settlers and 31% for rubber replanters. The project's target income objectives to provide farm families with about US$900 at full development are reasonably well correlated with cost recovery objectives. The cost recovery indices are 55% and 62% for new settlers and rubber replanters respectively. Although there is some scope for more recovery, the element of GOI subsidy of 45% and 38% for these two groups of project beneficiaries reflects the GOI decision to maintain such project costs as schools, roads and social services as noncredit items in public sector outlays for nucleus estate and smallholder projects. The proposed project has incorporated provision for maximum product pricing for smallholder rubber, about 70% of fob (para. 5.04) within the international market place determination of this price. Assuming that most prices in Indonesia reflect their value of scarcity, taxation might be used as a means to achieving greater recovery. Cost recovery may actually be greater should the GOI introduce its plans for a rubber replanting tax (CESS) in the course of project implementation. Too large an increase in present taxes or introduction of new taxes, however, would not be justifiable since prospective settlers at full development would not be far above the level of critical consumption (estimated at 50% of national per capita income) and would still be below national per capita income. Any increase in the interest rate of 10.5% to increase cost recovery and eliminate interest subsidy would not be feasible as it would provide smallholders with incomes below US$900, a target level which should be maintained for farm families to remain on their holdings in relation to alternative employment and provide these families with sufficient resources for replanting or new planting of rubber.
- 36 -
IV.
A.
ORGANIZATION AND MANAGEMENT
Borrowing/Executive Agency Functions
4.01 The Borrower for the project, including new settlement, rubber replanting and expansion of PTP IV, would be the Government of Indonesia. Overall responsibility for execution of the project would rest with the Director General of Estates while the project would be implemented by existing central government agencies (para. 1.13) and the Provincal Governments of Riau and Jambi. The nucleus estate PTP IV would be directly responsible to the Ministry of Agriculture in Jakarta for its own expansion program under the proposed project and would ensure its responsibility to the Directorate General of Estates for the smallholder rubber development components in the project. 4.02 The proceeds of the Bank loan for estate development of PTP IV would be on-lent to PTP IV under a Subsidiary Loan Agreement. Finance from the Borrower including Bank loan proceeds for smallholder development would be passed through BRI, acting as a handling bank, to PTP IV for the provision of services to smallholders in Riau and Jambi and would be governed by a Financing Agreement between Bank Indonesia, BRI and PTP IV. PTP IV would ensure its services for smallholder development to the DGE under a Rubber Development Contract (para. 4.09) to be signed by the two parties. BRI would act as a fiscal agent for cost recovery on behalf of the Borrower with recovery from smallholders made by PTP IV rubber processors. Additional proceeds of the Bank loan would be made for main access and primary village road development with budget funds from the Ministry of Public Works and Power, and for technical assistance under the project with budget funds from the DGE and the DGH. New Settlement and Rubber Replanting 4.03 Directorate General of Estates (DGE). As in Loan 1499-IND, it is considered essential that overall responsibility for settlement, implementation and management be located in Jakarta, where a centralized body can more readily utilize the technical and managerial resources available, organize project financing and monitor and evaluate project quality and design standards. These responsibilities would be vested in the appropriate line agency, the DGE. Given the technical assistance provided in Loan 1499 and in the proposed project, the DGE would increase its capacity to plan, coordinate and oversee smallholder project operations. The DGE does not have the capacity however to implement a large program of land clearing, tree crop establishment, maintenance and infrastructure. Under present conditions and arrangements, and in the particular smallholder development areas, these functions would best be fulfilled by the nucleus estate PTP IV and in the case of infrastructure by the Provincial Government agencies. Institution building would aim at further developing the management expertise within the DGE to guide, plan, direct and evaluate the activities of nucleus estates such as PTP IV. The functions of the DGE for the proposed project would be: (a)
project and village master planning, preparation of annual budgets and work programs;
- 37 -
(b)
advice to the Project Manager (para. 4.04) and Provincial Coordinating Committees (para. 4.08) for recruitment of new settlers and selection of rubber replanters, design and supervision of smallholder participation agreements, crop processing and marketing arrangements;
(c)
approval of project budgets, coordination and organization of project financing arrangements;
(d)
advice on project procurement;
(e)
formulation and execution of the contract between the DGE and the PTP IV for new rubber development and rubber replanting, and at a later date for extension, processing and marketing services;
(f)
project monitoring and evaluation in relation to guidelines to be agreed in consultation with the Bank.
4.04 In carrying out these functions the DGE would coordinate its activities with members of the Provincial Coordinating Committee for Riau and a PCC for Jambi (para. 4.08). The Project Manager would have the status of a provincial department head and would be responsible to the Director General for preparation of action programs and budgets, supervision and coordination of all project activities undertaken by PTP IV and the Provincial Coordinating Committee. The duties of the Project Manager would be: (a)
preparation of an action program, subject to the approval of the DGE, for implementation of master plans, and annual work programs;
(b)
preparation of budgets for all functions other than rubber development and functions for which Provincial Government agencies are responsible;
(c)
supervision and coordination of the implementation of project and village master plans by the nucleus estate PTP IV and Provincial Government agencies;
(d)
design and supervision of settler and rubber replanting participation agreements, land transfers and allocation of food crop and rubber areas for new settlers;
(e)
recruitment of new settlers and rubber replanters, selection, administration, and arrangements for smallholder training; and
(f)
monitoring and reporting on project progress to the DGE, the Provincial Government and the Bank.
The Government would, in consultation with the Bank, appoint a project manager for each of the Riau and Jambi areas. 4.05 To further strengthen the DGE, technical assistance would be provided for a period of three years, through international recruitment of a smallholder coconut agronomist for project preparation (para. 3.05). Terms of reference for
- 38 -
this specialist are available in the Project File. An assurance was obtained at negotiations that the Bank would be consulted upon the selection of this specialist and that this appointment would be made by February 28, 1979 on terms and conditions acceptable to the Bank. 4.06 The Provincial Governments. The delegation of much more responsibility to the Provincial Government for nucleus estates projects is consistent with the GOI objectives of involving Provincial Governments in area development. Since the provision of village infrastructure, health, arrangements for food cropping and social services are complementary and interdependent, organization of these services must be determined at the Provincial level. The Provincial Chairman of the Bappeda has been delegated the task by the Provincial Governor of coordinating the government agencies involved in area development. The Provincial Government operates in a hierarchy of regency, district and village organizations with central government departments represented at the Provincial Government. Organization of the Indonesian Provincial Government system is shown in Chart 4. 4.07 The organization for the smallholder project components is shown in Chart 5. The Chairman of Bappeda is responsible to the Provincial Governor through a Provincial Coordinating Committee of which he would be Chairman. The Provincial Coordinating Committee would be stationed in the provincial capital where the headquarters of the provincial government agencies involved in implementation of the project are located. In addition ot the Chairman of Bappeda, the Committee would comprise the Bupati, the head of the Dinas Perkebunan Daerah as Deputy Chairman, the Project Manager, the Nucleus Estates Manager and representatives of the BRI and provincial government agencies. The functions of the Provincial Coordinating Committees of Riau and 4.08 Jambi in implementation of the smallholder projects would be: (a)
preparation of programs and budgets for implementation of Provincial Government functions in accordance with a master plan;
(b)
coordination and monitoring the activities of the Provincial Government agencies concerned with provision of village infrastructure, main access and village roads, health, educational and community facilities, and the implementation of food cropping programs;
(c)
advice and assistance to the respective Project Managers in smallholder recruitment and administration; and
(d)
determination from time to time of the rubber price to be paid by the PTP IV nucleus estate to participating smallholders in agreement with PTP IV.
The Nucleus Estate 4.09 The nucleus estate selected for development of the new settlement and rubber replanting areas is PTP IV. Full authority would be given to PTP IV to operate resources, machinery, material inputs and finance required to replant rubber and to develop and hand over to new settlers potentially high yielding
- 39 -
areas of three year old rubber. Under the terms and conditionsof a Smallholder Rubber DevelopmentAgreement with the DGE, PTP IV would be responsible for the following services in the Riau and Jambi project areas: (a) for the period up to three years after planting. In new settlement areas PTP IV would be responsible for land clearing, planting of rubber, procurementand the supply of materials for settlers' own house construction,water supply, rubber planting and maintenance, constructionof secondaryvillage and rubber collection roads, rubber maintenance,procurement and application of inputs for rubber development,land clearing for initial settler food crop area (0.4 ha/family),and provision of food crop seed and fertilizer in the first year of settler entry. In rubber replantingareas PTP IV would be responsiblefor land clearing, the provision of planting material and all necessary inputs and supervisionand organization of smallholder'sown labor for planting, weeding, etc. PTP IV would be responsible for all smallholder training of settlers and rubber replanters; (b) for the period from three years after planting to production. Procurement and applicationof inputs for both new settlers and rubber replanters,the maintenance of secondaryvillage and rubber collection roads, smallholder training in rubber tapping and arrangement for extension services; (c) during the productive period. Extension services, organizationof latex collectionfor cost recoveryand the provision of comprehensive processing and marketing services. A conditionof disbursementwould be that the nucleus estate PTP IV would sign a SmallholderRubber Development Agreement with the DGE and the contract would be acceptableto the Bank for provision of the above services. Bank Rakyat Indonesia 4.10 A descriptionof BRI and its role in the agriculturalsector is outlined in para. 1.15. BRI would act as the handling bank for the Government to channel funds for rubber developmentto PTP IV (para. 3.37). BRI would also provide short-termcredit to settlers for food cropping through the BIMAS program. During the period of cost recoveryby the nucleus estate rubber processors,BRI would maintain settler loan accountson behalf of the Government (para. 3.50). The Governmentwould bear all risks in the credit delivery and cost recovery systems. For administrationand handling of settler loans, however, the BRI would split with Bank Indonesia 1% on the outstanding balance per annum on all smallholdercredit funds. 4.11 DirectorateGeneral of Highways. The project's road componenthas been described in para. 3.02 (a)(iii)and (b)(iii)and the design featuresare elaboratedin para. 2.27. Since PTP IV has the ability to carry out road constructionand maintenance for rubber related farm roads, the program for constructionof earth-surfacedrubber collectionand secondaryvillage roads would be carried out by PTP IV and would be financedas part of the rubber
- 40 -
development costs in smallholder credit arrangements through BRI to PTP IV. Construction and upgrading of all-weather main access and primary village roads as part of area development of the provincial road network in Riau and Jambi would be the responsibility of the Directorate General of Highways within the Ministry of Public Works and Power (MPW) and would be coordinated with the DGE. The Borrower would be responsible to ensure that the DGH would: (a)
direct its Directorate of the Bina Program and the Central Road Research Institute, assisted by consultants to carry out initial stabilization studies of base and subbase materials for all-weather main access and primary village roads by June 30, 1979;
(b)
direct the Directorate of the Bina Program, assisted by consultants to carry out site surveys, plan alignments, design and prepare the engineering requirements for the road improvement program also by June 30, 1979;
(c)
cooperate with the DGE to prepare all tender and bid documents for new road construction, upgrading, and ferry improvements to be provided under the project, and to direct the Directorate of Construction, assisted by consultants to supervise construction;
(d)
ensure that the Provincial Public Work Services (DPUP) of Riau and Jambi would adequately maintain newly constructed and upgraded main access and primary village roads./l
Assurances were obtained at negotiations for actions in (a), (b) and (d) above. Design standards for the main access and primary village roads would be agreed by the RSI prior to contract bidding procedures. Finance for monitoring and evaluation of the road works have been included under provision of technical assistance to the DGH (para. 3.47). 4.12 Extension Training Center - Sungai Tiga, Jambi. Although PTP IV would have primary responsibility for smallholder rubber training in the proposed project, the DGE seeks to assist the Extension Training Center in Jambi for training of existing and newly recruited extension personnel to provide for improved smallholder rubber management throughout the proposed project areas and facilitate through training, improved rubber extension to other areas of Sumatera. Responsibility for the improvement program to physical infrastructure and development of training curriculum and techniques would rest with the DGE. A project manager for the facility would be appointed by the DGE prior to disbursement of funds for technical assistance at the facility. Consultant specialists to the DGE under Loan 1499-IND would arrange for the recruitment of teachers, teacher training, recruitment of extension personnel, development of the training program, and improvements to the facility.
/1
Maintenance for national roads is covered in budget funds of DGH while maintenance for provincial roads is covered in budget funds of the Ministry of Home Affairs.
- 41 -
Expansion of PTP IV in Riau Area 4.13 Ministry of Agriculture. The MOA has the major role of policy formulation and coordination responsibilities of the estate group activities, estate inspection, estate budget approval and control and provision of advice to the Boards of the PTPs and the Directorate for Government Limited Liability Companies (Directorate of PTPs) within the Ministry of Finance. Technical assistance has been provided under Loan 1499-IND to the MOA Support Staff for Agricultural Enterprises for guidance, monitoring and evaluation of the operations of the PNP/PTPs. In particular, the MOA has recently initiated estates inspection services for monitoring performance of the PNP/PTPs. An assurance, as in para. 3.29, was obtained to provide, under the project, quality control inspection services to PTP IV.
B.
Aspects of Project Implementation
4.14 Settler Selection and Land Title. New settlers in the project would be selected on the basis of criteria agreed with the Bank which give priority to landless farmers in the project vicinity, but when these have been accommodated, would be extended to transmigrants. New settlers would have some farm experience, be married, between the ages of 20-40 years, in good health, with annual incomes of less than Rp 150,000 (US$360). Preference would be given to applicant families for rubber replanting with incomes below Rp 200,000 (US$500) with the same age criteria as for new settlers. Responsibility for settler selection rests with the Project Manager (para. 4.04). Costs of transportation for transmigration to the project site would be borne by the Directorate General of Transmigration. The issue of Certificates of Hak Milik (right of ownership) is made by the Directorate General of Agraria in the Ministry of Home Affairs in Jakarta. Assurances were obtained that new settlers would receive Certificates of "conditional" Hak Milik for a five ha land area within six months of entry to the settlement project as a prospective settler. Rubber replanters would receive "conditional" Hak Milik to two ha of land for rubber to be replanted in the project. The conditions for new settlers would be that the settler would work as a laborer in the rubber area developed by the nucleus estate up to three years after rubber planting and that his performance in this work is judged satisfactory by a Provincial Committee responsible to the Governor. If such performance is satisfactory, the settler would receive Certificate of "full" Hak Milik title without conditions at the end of Year 3. Rubber replanters would also receive "full" Hak Milik at the time their individual credit agreement is signed with the BRI. These titles would, however, be retained by BRI until loan obligations of settlers and replanters had been fulfilled. The issue of certificate of "'full" Hak Milik requires a detailed plot survey which is the responsibility of the provincial and district offices of Agraria. 4.15 Settler Training in Rubber Management. The nucleus estate would give priority attention to training of settlers in rubber management, initially during the settlers' period of employment as rubber laborers and later as independent farmers. Rubber replanters would receive training during the first
- 42 -
year of clearing and planting for new rubber and during maintenance visits by PTP IV for input applications. To ensure a high standard of rubber development, the nucleus estate would be responsible for application of fertilizer until the end of the immature nonproductive phase for both new settlers and replanters. The nucleus estate would also operate a tapper training program. 4.16 Food Cropping Program. Assurances were obtained at negotiations that GOI would extend the BIMAS programs to cover the food production activities of new settlers and rubber replanters by August 1, 1979 and that an adequate number of BRI mobile units or village units would be established to serve each development area in Riau and Jambi at the commencement of the BIMAS program. During the first year of a settler's residence, however, inputs for food crops would be supplied by PTP IV, as part of the settler's credit package. In the event the BIMAS program is not established in the first year of project implementation, PTP IV would continue to provide seed and fertilizer to settlers for subsistence crop development. The DGE would be responsible for requesting a sufficient number of PPL for food crops to the project area. The requests would be made yearly to DG Food Crops. 4.17 Annual Work Programs. Each agency involved in the implementation of the project would prepare annual work programs including cost estimates for budget approval which would detail project work for the year ahead, including the recruitment and training of required personnel. Assurances were obtained from the Government at negotiations that each agency would prepare a program by September 30 of each year and submit such programs to the Bank for review and comment. 4.18 Health and Nutrition. Arrangements for the project's low cost health delivery system would be the responsibility of the Director of Development in the Provincial Government in each of the two settlement provinces, Riau and Jambi. Arrangements for primary medical care would be made prior to the entry of the first group of settlers in each province. The health system at Riau would consist of one health center (Puskesmas), 11 village health posts for the 11 central villages and 18 first aid posts for the satellite village. In Jambi, the health system would consist of one health center, four village health posts, and eight first aid stations. The Director of Development for each settlement area would ensure malaria control by the provincial health administration including supplies of DDT, chloroquine, house spraying before settler arrival, and malariametric surveys. Under the existing GOI regulations for the health components, mother and child health care, including nutrition and family planning, and guidance by traditional midwives would be provided. Hygiene and sanitation has been included in the project (para. 3.11) in construction of wells and latrines.
C.
The Environment
The vegetation in the areas for new settlement is either 4.19 jungle or coarse lalang grass with only scattered areas of primary Both the secondary jungle and lalang areas represent an uneconomic land use when these areas can be reforestated with rubber or other
secondary forest. form of tree crops.
- 43 -
Project design calls for rubber to be introduced on the more strongly sloping areas where the use of standard soil conservation practices, a leguminous ground cover and the tree canopy, would prevent erosion and build up soil fertility. Food cropping would be confined to flat and gently undulating lands on individual farm holdings rather than the poor economic and ecological pattern of shifting cultivation presently used in the project areas. Fertility would be improved through establishment of tree crops, crop rotation, fallowing and provision of adequate inputs.
V.
DEMAND AND MARKETING
A.
Rubber
Demand and Marketing Arrangements 5.01 Price Projections. The price for natural rubber in the short-term is expected to remain favorable. Demand for all elastomers is expected to increase by 4.5% per annum to 1985. Consumption of natural rubber is expected to benefit strongly from the growth in elastomer demand and from the limited projected capacity for the increased production of synthetic rubber. In 1977 US$ terms, the price of RSS I cif New York is projected to increase from
37.6/lb in 1977 to 43.0/lb in 1985. In the long run, prices for natural rubber are constrained by those 5.02 of synthetic rubbers. The price of natural rubber has to be such that it competes effectively with the available synthetic substitutes. During the past ten years, the prices of natural rubber have moved between those of SBR (styrene butadiene rubber), the floor price for all rubber, and those of IR (isoprene rubber), the ceiling of the synthetic rubber prices which directly compete with natural rubber. The long-term price of natural rubber is therefore forecast on the basis of expected future trends in the cost/price of SBR which is taken as the floor price below which natural rubber cannot fall for any protracted period. The projection of the likely future trend in the cost/price of SBR is based on the relationship between crude oil, chemicals and manufacturing costs. The long run equilibrium price of natural rubber in 1990 through 2000 is forecast in Bank Commodity projections to be around 47.04,/lb in 1977 constant prices. 5.03 Smallholder Rubber Price. The price structure for smallholder rubber in Sumatera and around the proposed project areas is difficult to trace given the wide variation in the dry content of rubber (drc) received, the number of processors and collecting agents and the extent to which they manipulate estimates of drc, and the cost of transportation from area to area. The sequence of marketing is usually from farm to collection agent, about 45% as unsmoked sheet and 55% as slab and lump, and then to processor. In the project areas, smallholders have been receiving about 35 to 45% of the fob
- 44 -
value of rubber or about Rp 130-140/kgbased on 50% drc of slab. The variations in margins for middlemen in the procedure account for at least 5-10% of the fob value of RSS I. Farmers could receive better prices than those presently obtained with improvementin conditionsof marketing their own rubber. 5.04 Under nucleus estate collectionand processing where excessive processor profits and the additional costs of middlemen are removed it is expected that farmerswould be paid 70% or the fob value of Rp 397/kg drc in 1990 (1977 constantprices) even when depreciationand the capital cost of processing is included in addition to the normal factory and collectioncosts. GOI has indicated for the proposed project that nucleus estate processors should collect rubber for smallholder repayment obligationsand all other rubber that project farmers choose to sell at a price about 70% fob. Assurances were obtained during negotiationsthat the borrower would cause PTP IV to pay about 70% of the prevailing fob price for rubber produced by smallholderproject farmers, excluding cases of large variation in the dry rubber content received, or significantreduction in the fob price, or significantchanges in processing or marketing charges of the nucleus estate processor. 5.05 Marketing of Rubber. Production of rubber by PTP IV from expansion of the estate in the Riau area would be sold through the existing and wellestablishedmarketing organizationsincluding regulationand sales determination under the Joint Marketing Office, Medan. New settlers and rubber replanters in Riau and Jambi are expected to produce lower grades of rubber and some latex, and would be free to sell to any dealers/exportersin the project area. However, PTP IV would process and market the amount of latex or slab required for debt repayment (para. 3.51). Owing to favorableprices predeterminedand paid to smallholderson the amount of rubber collected for debt repayment,it is expected that most smallholderswould also sell their additionalrubber productionto the nucleus estate. The requirementsfor processing facilities for both smallholderand estate rubber to be financed in a second phase to the proposed project would be determined in the project Year 3 when expected yields, production, and the desirabilityfor sheet versus crepe rubber would be more certain.
B. Food Crops 5.06 The farm plan proposed for project new settlers and existing farmers is primarilybased on rubber and further farm expansion is expected to be in tree crops. Food crop production by rubber smallholders in the project would largely be limited to such staple crops as upland rice, groundnuts, cassava, and beans, with some fruit tree crops, and vegetables from garden lots. With the limited amount of productionfrom these crops, farm families are expected to consume most of their food crop production. No special marketing arrangementsare therefore required for food crop production. Should family surpluses in food crops develop in later years of the project, food crop marketing is well establishedthroughoutboth project areas. Food crops are marketed by the farmers themselvesin Jambi, along the northern and southern roads to the Bajubang project site and are also taken to Jambi town, less than 40 km away. In Riau familieshave no particulardifficulty marketing their food crops in Air Molek or in Rengat town.
- 45 -
VI.
PRODUCTION ASPECTS, TECHNOLOGICAL FACTORS, AND FARM INCOMES
A.
General
6.01 Rubber would be the main crop cultivated in the Riau and Jambi project areas with food crops (upland rice, cassava, sweet potato, groundnuts, beans and vegetables) being grown to meet the smallholder's food requirements. 6.02 Smallholder Rubber Production. Smallholder rubber establishment, upkeep and production techniques are underdeveloped in Indonesia. The appropriate technology and economics of rubber production are well established but this knowledge is mainly confined to the public sector estates. Smallholder rubber has traditionally been grown under a regime with a low level of farm inputs and smallholder management. Land in smallholder areas is generally not properly cleared causing a high incidence of white root disease in the rubber trees. Inferior, unselected seedlings are used, resulting in widely fluctuating growth and rubber production, and a relatively low stand of medium to high producing trees. Fertilizers are rarely applied. Weeding and maintenance standards during the immature period are low, resulting in very slow growth of the rubber trees and substantial delays in rubber maturity, and soil conservation is not practiced. Smallholder rubber trees are overtapped and many dry up. In Jambi and Riau the trees are often tapped four days per week during nine months per annum with no stimulation techniques. Tapping standards such as bark conservation, slope of cut, and wounding are inadequate and cause heavily callused trees with incomplete bark renewal. 6.03 Soils. Apart from some alluvial soils prone to flooding in southern portions of Air Molek west, the soils in the Riau and Jambi project areas are classified as red-yellow podzolics. These soils were mainly derived from weathering of residual Darent material, primarily sandstone. The soils are heavily leached and are free draining depending on location and topography. Water holding capacity is moderate to good but the nutrient status of these soils is poor while acidity is high. The agricultural system employed by smallholders in the Riau and Jambi areas reflects the low fertility of the soils and the need to re-establish a crop after clearing the forest. Rubber is the preferred, best adapted, and dominant crop in the project areas. Annual subsistence crops are grown in these areas but usually in a system of shifting cultivation or in small house and garden lots. Low lying areas prone to water collection are often cultivated with wet land padi rice. Agricultural practices in the project area are traditional but risks are reduced with farm families dependent on both rubber and food crops.
B.
Crop Recommendations
6.04 Rubber. In the new settlement areas, land clearing would be done mechanically and by using herbicides. Land clearing in rubber replanting areas would be carried out with chain saws and by hand. The clone GTI would be the dominant material used, especially in the new settlement and rubber replanting areas. PTP IV in its own expansion program would plant a wider selection of clones based on the recommendations of the Rubber Research Institutes in Medan and Bogor and the Rubber Research Center in Tanjung
- 46 -
Morawa. The approximate composition of the PTP IV planting program is estimated to be: GTI - 40%; RRIM 600 - 20%; AVROS 2037 - 10%; PR 255 - 5%; PR 261 5%; PR 107 - 5%; PR 300 - 5%; PB 5/51 - 5% and GYT 577- 5%. Planting material would be raised in PTP IV managed nurseries. Bare-root, budded stumps would be used for the initial planting and supplying would be done by using 2-3 whorl polybag budded stumps. Planting density would be 500 trees/ha; the spacing could vary from 8 x 2.5 m to 5.5 x 3.6 m depending on the growth characteristics of the clone. In the latter case, trees tend to develop more uniformly than in the typical avenue spacing of 8 x 2.5 m and the canopy tends to close at an earlier date. 6.05 The shortening of the period of immaturity would be emphasized by using advanced planting materials, by establishing a leguminous cover crop after land clearing, by adequate weed control and upkeep by the use of herbicides, preventing water and nutrient competition between rubber and the cover crop, and by adequate fertilizer applications based on soil and leaf analyses. Attention would be given to adequate white root disease control by Doisoning the tree stumps left in the field, and removing and burning infected wood during land clearing. 6.06 Modern tapping systems with the emphasis on low tapping frequency combined with Ethrel stimulation would be introduced with the objective of obtaining large increases in productivity per tapping and satisfactory bark conservation. Details of the tapping system are available in the Project File. 6.07 For well managed rubber production, PTP IV must closely supervise lalang and mikania control and give attention to weeding practices, pest and disease control, and the rate of fertilizer application. One of the most important prerequisites for sound rubber management is the proper oranization of training for tapping and stimulation techniques including the supervision of exploitation, such as monthly control of bark consumption and tapping quality. PTP IV has proved its ability to supervise rubber establishment and exploitation. Details of all recommendations for land clearing, land preparation and maintenance techniques are also available in the Project File. 6.08 Food Cropping. Input requirements and production levels of rubber can be estimated with considerable confidence, but to date there is incomplete knowledge of the optimum choice of food crops and the optimum use of inputs including fertilizers for sustained annual food cropping on the red-yellow podzolic soils. In the shifting cultivation system practiced at present in the project areas the allowance for regeneration period is kept at 15 to 20 years between 2-year periods of cultivating food crops, and although this system is ecologically damaging, it is economically sound and has allowed a few farmers to satisfy their food requirements and earn some cash from surplus sales. The disadvantages of this system are in poor soil conservation, and poor land use. Yields remain low while the main inDuts are planting materials and the farm family's own labor.
-
- 47 -
6.09 The main ingredients for a technical package for improved food cropping have been established in qualitative terms: high yielding plant materials, fertilizer, weed control, pest and disease control, soil conservation, and rotation requirements between the various crops. In quantitative terms, however, the data base, although expanding quickly, requires improvement regarding types and varieties, quantities, frequencies and methods of application. In addition to a review of the present research being undertaken in Indonesia, close liaison during the project would be maintained with the Bank's first Transmigration and Rural Development Project (Loan 1318-IND) and the first Nucleus Estates and Smallholders Project (Loan 1499-IND) to monitor the technical feasibility, the input-output relationships and labor requirements of sustained annual food cropping on the red-yellow podzolic soils. 6.10 In the project areas adequate attention would be given to food cropping activities. The first year package of food crop inputs for each smallholder family is to be supplied by the nucleus estate PTP IV (para. 3.07). Successive food crop inputs would be supplied through the BIMAS program, but would continue to be provided by PTP IV in the event of delays in organization of the BIMAS program. It is also assumed that many smallholders would purchase seed and fertilizer without the need for credit since incomes from estate employment would be sufficient to meet input requirements.
C.
Yields and Production
6.11 Rubber. Smallholder rubber yields in the Riau and Jambi project areas are rarely above 300-400 kg/ha per annum and 3 kg per tapper. With nucleus estate management, improved practices, and good settler response, peak yields for new settler rubber farmers should reach 1,600 kg/ha per annum while peak yields for rubber replanters should reach about 1,400 kg/ha at full development. Rubber yields for smallholders are shown in Annex 4, Tables 7 and 11. The expansion of PTP IV in the Riau area should produce rubber with peak yields of 2,700 kg/ha or average rubber yields over a 25-year tapping period of 1,750 kg/ha. Food Crops. Garden crops consisting of fruit trees, vegetables, and 6.12 small amounts of cash crops for each new settler family (0.15 ha) would be continuously and intensively cropped. The yield for padi rice is expected to reach 1.6 tons/ha at full development and a yield for cassava of 12 tons/ha wet roots has been projected for the garden areas also by year 15. On the subsistence food crop area (2.8 ha), with much less intensive cropping, yields are expected to reach 1.3 tons/ha by year 9 for padi, 0.45 tons/ha for beans and groudnuts, while 12 tons/ha for wet cassava should also be obtained. Inorganic fertilizers (100 kg/ha urea and 50 kg/ha triple superphosphate) and compost would be used to obtain the projected yields. Farm plans (para. 6.13) show that both new settlers and rubber replanters in the proposed project would be able to supply food crop subsistence needs for their own families. A small marketable surplus of beans and groundnuts may be generated. D.
Farm Plans
6.13 Farm planning for new settlement components in Riau and Jambi has focused on development of an income base for project settlers to be derived
- 48 -
from rubber. The physical allocation of the 5 ha farm model with the initial development of 2 ha of rubber has been described in para. 2.20, and would be identical for new settlement in Riau and Jambi. Clearing and planting of garden and subsistence food requirements for rice, beans/groundnuts and cassava, have been phased to account for other labor requirements on the farm family including their house construction. Given the emphasis on developing an established base for rubber production as well as an assured income of one settler family member employed as an estate laborer, additional clearing of 0.2 ha per year in the 2.8 ha total subsistence food crop area would not be complete in the first full rotation until year 9. It is expected that in addition to the 2 ha of block planted rubber, the farmer will eventually plant an additional ha of tree crops within the 2.8 ha of available crop area. Based on additional man-days and sufficient income, this would be possible by year 8. The crop planting summary for new settlers is shown in Annex 4, Tables 1-2. 6.14 The farm plan for existing rubber smallholders in Riau and Jambi envisions rubber replanting on 2 ha to be carried out with nucleus estate labor and the smallholders own family labor. Since each family would require about 252 man-days of their own labor in the clearing and planting stage for new rubber (year 0), in addition to nucleus estate labor of 70 man-days in this period, only one ha of rubber would be established in the first year with a second ha established about two years later in order to permit full utilization of family labor and shorten the period of reduced family income while the first ha reaches maturity. Provided sufficient family labor is available on some holdings, a few families for rubber replanting may elect to have two ha established simultaneously. It is expected that food cropping would continue on existing family food crop areas and with the introduction of the BIMAS program in the project area, food crop yields would be moderately increased from about 7 tons/ha wet cassava at present to 12 tons/ha and 0.7 tons padi rice at present to 1.3 tons at full development under the project. 6.15 Prices. The smallholder rubber price has been discussed in para. 5.03. Other prices used to estimate farm incomes are described as follows: (a)
Rice: Rice is bought and sold by BULOG, the GOI agency for rice purchasing, at prices below the world market price. The GOI has substantially raised domestic padi prices to encourage rice production. At the same time there has been a fall in world prices for rice which has brought farmgate prices closer to world levels. The floor price for padi is now set at Rp 70/kg while an imputed economic price would be about Rp 72/kg. The financial price used in analysis however is based on the padi price in the project area of Rp 130/kg. Riau and Jambi are rice deficit areas in which farmers traditionally receive higher prices for padi than in other parts of Sumatera or Java.
(b)
Cassava, groundnuts and garden crops: The current farmgate prices in the project area for wet root cassava, Rp 15/kg, and unshelled beans/groundnuts, Rp 100/kg, have been used in projections and are expected to remain constant over the life of the project. Other prices assumed in the analysis are Rp 25/kg for sweet potato, Rp 40/kg for rambutan, Rp 300/kg for coffee and Rp 1,000/kg for cloves.
- 49 -
(c)
Fertilizers: For urea and TSP, applied to food crops the BIMAS prices of Rp 70, and Rp 85 respectively were assumed to remain constant throughout the project life. Farm models have used prices for fertilizer required in rubber production based on IBRD commodity forecasts and converted to farmgate prices. Fertilizer prices in rubber development costs have been kept constant at their late 1977 price with adjustments made for price contingecies.
E.
Farm Incomes
6.16 Farm Incomes. Incomes for new settlers and rubber replanted in the "with project" case are based on the farm plans as described in para. 6.13 and 6.14 and from the physical farm plans in Annex 4. Family incomes are shown in current terms and in constant late 1977 prices to reflect the projected payments for debt service and the relative price changes between rubber and the costs of on-farm produc-tion. Income statements for new settlement in Riau and Jambi are identical as are income statements for rubber replanting in the two areas.
Table 3:
FARM INCOME - NEW SETTLEMENT
3
10
Year 15
------------ (Current Net value /a of: Food production Rubber from 2 ha Total on-farm income Total off-farm income Total income Debt repayments Incremental net income Incremental net income (constant 77$)
20
25
$) -----------
271 -
933 2,329
1,310 4,947
1,837 8,047
2,574 8,167
271 968 1,239 1,239
3,262 3,262 726 2,536
6,257 6,257 1,460 4,797
9,884 9,884 2,339 7,545
10,741 10,741 10,741
713
731
894
921
868
-
Table 4:
FARM INCOME
-
50 -
RUBBER REPLANTING
Year
10 15 3 ------------(Current Net value /a of: Food production Existing rubber Rubber from 2 ha replanting Total on-farm income Total off-farm income Total income Debt repayments Net Income Net income (constant 1977$) Incremental net income (constant 1977 $)
/a
20 $) -------------
25
293
536
752
1,054
1,479
115 -
2,210
4,533
7,455
6,736
408 50 458 458 232
2,746 2,746 694 2,052 539
5,285 5,285 1,351 3,934 669
8,509 8,509 8,509 948
8,215 8,215 8,215 653
70
459
601
874
520
After IPEDA taxes.
6.17 New Settlement. The farm plan for new settlement with net family incomes shown from US$700 to US$900 (constant 1977$) over the course of the project has been specifically designed to provide continuity of income to settlers with estate wages paid until the rubber reaches maturity and thereafter from their own farm production based largely on rubber. Incomes during the development period would never be greatly depressed in the event of food crop failures since off-farm employment would constitute over 75% of net family income. Even after repayment of debt obligations at about 25% of total income, net family incomes are sufficient to provide for subsistence costs (food, shelter, clothing) estimated at about US$420 per family, and would provide a net cash surplus of about US$293 in year 3 rising to a surplus of US$501 in year 20, sufficient for farmers' own planting of an additional 0.5 ha of rubber or other tree crops in any one year. The family income effect as measured would represent an increased income from US$360 or less to about US$900 at full development. 6.18 Rubber Replanting. Family incomes for rubber replanters would rise from about US$232 in year 3 when these families would still be dependent or at least one ha of existing rubber to US$669 in year 15, and to US$948 in the period after these families have completed debt repayments for their rubber replanting. By year 10, most families would have sufficient incomes to initiate further replanting on small areas. Although rubber replanters would have reduced incomes in the early years of the project, family incomes of US$500 or less of those replanters entering the project would be increased to about US$900 at full development.
- 51 -
VII.
COST, BENEFITS AND JUSTIFICATION
A.
Project Benefits and Justification
7.01 Smallholder Components. With the nucleus estate strategy for new and replanted rubber development and provision of inputs and service for food cropping, the proposed project would increase rubber production and food crop yields on a total of 49,050 ha of which 41,550 ha would represent new land development on unutilized and heretofore uneconomic lalang and scrub forest areas. The project would directly benefit some 11,350 smallholder families or 56,750 people in the rural target pouplation and through expansion of PTP IV in Riau would provide employment opportunities for another 2,000 families. Increased regional employment in the project areas as a result of spread and multiplier effects in the regional economy has not been analyzed, but using a conservative estimate of 50% of the permanent jobs created, it can be assumed that an additional 12,350 rubber related, secondary service and tradesmen jobs would result from the project. 7.02 Expected future yields and the cropping pattern for rubber and food crop development are discussed in paras. 6.11-6.14. Gross returns, production costs and net returns (without accounting for labor costs) are given in para. 6.16 and are shown in detail in Annex 4, Tables 8-9, 12-13. The estimated income effects as measured for the project represent increases in per capita incomes from US$70 to about US$180 (constant 1977 dollars) at full development for 38,000 beneficiaries of new settlements and from US$100 to US$180 at full development for about 18,750 beneficiaries of rubber replanting. Other benefits which have not been quantified include improved health and sanitation, the nutritional status of smallholders, improved transportation, and the multiplier effects on the regional economy of local capital formation and increased levels of consumption expenditure. 7.03 PTP IV Development. PTP IV in the expansion of its existing estate of 30,000 ha of rubber, plans to diversify and develop about 17,000 ha in Labuhan Batu including rubber, oil palm and cocoa. Provided the program is implemented on schedule and external borrowings are secured for the Labuhan Batu program, PTP IV's net income would increase from its present level of Rp 1.3 billion (US$3.2 million) to about Rp 30.5 billion (US$73.5 millior) at full development in 1996. With the proposed expansion of PTP IV in the Riau area, net income would be about Rp 36.6 billion (US$88.2 million), or a net incremental benefit from the project of about Rp 6.1 billion (US$14.7 million) per annum at full development. Incremental income generated by PTP IV from Riau is estimated to accrue benefits over the life of the project to the Government from corporation and other taxes, amounting to Rp 91.2 billion (US$220 million) and from dividends, estimated to total Rp 45.1 billion (US$109 million). With the Riau developments in the proposed project and expansion at Labuhan Batu, the GOI is estimated to become owner of a debt-free estate after 1996 with assets at over Rp 170 billion (US$410 million). All figures have been expressed in current terms.
- 52 -
B. Costs GOI investment costs per family have been computed as shown in 7.04 Annex 2, Table 14. With the exception of main access and primary village road developmentcosts, which would provide regional developmentand benefits to at least twice the number of direct beneficiariesin the proposed project, all costs of developmenthave been attributedto new settlers (US$5,839per family, constant 1977) and rubber replanters (US$2,949). Credit costs for all farm development,housing and necessary estate buildings are about US$5,119 for each new settler family and about US$2,442 for each family for rubber replanting. These costs formed the basis for loan and cost recovery analyses as shown in para. 3.52. About 2.0 permanent jobs would be directly created on each small7.05 holding. Job creation per smallholdingwould increase to 3.0 persons through farmers' own planting of an additionalone ha of rubber or other tree crops. On the basis of 2.0 jobs created, however, the cost of individualjob creation by GOI would be about US$2,920 for new settlementand about US$1,475 for rubber replanting. These costs include infrastructuredevelopment and road constructioncosts which might be legitimatelycharged to regional development. This cost compares favorablywith job creation in average small-scale industry in Indonesia estimatedat about US$6,500 and in medium to large industryat about US$17,000. Permanentjob creation at PTP IV-Riau in the initial years of the project would include about 2,000 employees for which the average cost of job creationwould be about $4,057. This cost of job created would actually be reduced in the later years since a large part of the investmentis allocated to the sunk costs of establishinga new estate. C. FinancialResults SmallholderComponents. Results of financial cost-benefitanalyses 7.06 are summarizedbelow and in Table 5. The incrementalfinancial rates of return for smallholdersin new settlements in Riau and Jambi are estimated to be 15% and for rubber replanting16% in the project areas. In the absence of the project, it was assumed that smallholdersfor new settlementwould continue to earn US$350 while rubber replanterswould earn between US$550 and US$300 dependent on the decline in production on their existingholdings. This income was treated as a cost to derive net incrementalbenefits. Investmentitems included only credit items of expenditurethat smallholders would repay, and as such, do not include village and social infrastructure. PTP IV Riau Estate. The overall incrementalfinancial rate of 7.07 return for PTP IV in Riau is etimated at 20% (after taxes). This rate of return is consideredto be excellent owing to the large capital outlays which must be made for buildings,housing and civil works to establish the new estate in Riau and the long developmentperiod before benefits would be obtained.
Table 5:
RESULTS OF FINANCIAL RATE OF RETURN ANALYSIS (%)
Financial rate of return
Rubber price/ yield changes -20 -10 +10 +20
Investment cost -25 +25
Investment costs price/yields -25 +25 -10 +10 -10 +10
Estate Development I.
PTP IV Riau Estate
20
14
18
22
24
25
17
21
29
11
20 Il
Financial rate of return
Rubber price -10 +10 +20
-20
Food crop yield -25 -50 +25 +50
Investment cost -25 +25
Investment Costs price/yields -25 +25 -10 +10 -10 +10
Smallholders Development II. III.
Rubber New Settlement Rubber Replanting
15 16
13 12
14 14
17 17
18 18
14 15
12 14
17 17
19 18
20 18
13 14
19 16
21 20
12 12
14 15
-
54 -
7.08 SensitivityAnalysis. The effects on the financialrates of return based on changing prices, yields and investmentcosts are indicated in Table 5. The effects of project delays estimated to increase investmentcosts by about 25% would not have serious adverse effects on the project components as new settlementand rubber replantingwould have rates of return of 13% and 14% respectivelywhile the rate of return for PTP IV would be reduced to 17%. Smallholder componentswould be fairly insensitiveto changes in yields and levels of production in food crops. Even in the case of a drop in production in food crops by 50%, the rates of return would be satisfactoryat 12% for new settlers and 14% for rubber replanters. Project risks including those of a financialnature are discussed in para. 7.12.
D. Economic Results
7.09 The estimated economic rate of return for the project (discounted over 32 years) is 15%. The economic evaluation of all project components is summarized in Table 6 below.
Table 6: RESULTS OF ECONOMIC ANALYSIS
Component
Economic rate of return
SmallholderDevelopment I. New Settlement II. Rubber Replanting
14 16
Estate Development III. PTP IV: Riau Estate
19
Total Project
15
Since the rates of return are above the accepted cut-off rate for Bank projects in Indonesia (12%), they are satisfactoryfor all project components. The higher economic rate of return for rubber replantingthan new settlement reflects the lower GOI investmentcosts required in rubber replantingand in particular, the lower GOI requirementsfor social services and village infrastructure.
- 55 -
7.10
/1
Assumptions used for the economic analysis are: (a)
Foreign Exchange. Due to the existence of import and export taxes, quantitative restrictions and export subsidies, the official exchange rate of Rp 415 = US$1.00 is not an accurate representation of the economic value to the economy of foreign exchange used in implementing the project and from savings through increased food production. Using the Squire-van der Tak approach,/l the estimated standard conversion factor for Indonesia is 0.8;
(b)
Taxes. Corporation taxes and duties were eliminated from the estate component whereas the export taxes for rubber were added to the net value of smallholdings and estate output. IPEDA taxes were also added back to the value of production in the smallholder components;
(c)
Labor Pricing. Because of the low productivity of most family operated rubber smallholdings in the project areas, and the.considerable number of landless families in Central Sumatera whose major income source is farm labor, considerable unemployment and underemployment exists in the project areas. Additionally, farm labor requirements are seasonal with heavier demands occuring during the wet season. In the project, the financial wage to be paid to smallholders by the nucleus estates and the available wage paid to laborers in the area when work is available is about Rp 650/day. Labor utilization of most prospective new settlers and families eligible for rubber replanting is only about 50% on their Present holdings or as laborers in the project area. In estimating the marginal value of labor to the economy for this project, a shadow wage rate of Rp 325 has been used to reflect the value of labor to the economy. This wage rate is based on a marginal analysis of the monthly demand for labor generated by the project over the 10 years to full employment and at full development. It takes into account the manpower requirements for subsistence food cropping and likely present and future employment opportunities in and around the project area. Based on available man-days of labor for farm families of about 450 after allowing for requirements of 150 man-days for food cropping, available labor at the shadow wage rate of Rp 325/day is equivalent to the minimum subsistence level of Rp 145,000/annum per family.
(d)
Investment Costs. Investment costs are net of taxes and transfer payments. In determining their economic cost, local costs were adjusted using the standard conversion factor of 0.8. Investment costs have been adjusted to reflect the economic value of unskilled casual labor in rubber development and maintenance. Costs include an allowance of 10% for physical contingencies, but exclude price contingencies; and
(e)
Road, Village and Social Infrastructure were fully costed in the economic rate of return.
L. Squire and H. G. van der Tak, Economic Analysis of Projects, Baltimore and London, the Johns Hopkins University Press, 1975.
-
56 -
Sensitivity Analysis 7.11 Cost overruns and lower than expected rubber yields or prices are the most likely constraints to achieving these economic rates of return. Thus, the sensitivity of the rates of return were tested to these variables including a 20% reduction and a 20% increase in investment costs, the latter reflecting about a one year delay in project implementation, and a 10% reduction and a 10% increase in the total value of production reflecting principally a 10% increase or decline in rubber yields or a 10% increase or decline in the fob price of rubber. Table 7 shows the results of the analysis. With the exception of the new settler component adjusted for investment cost increases of 20% and an unlikely decline in rubber prices by 10% over the life of the project (about 11%) all rates of return are about 12%. The sensitivity of the rates of return to labor valued without shadow pricing at financial price of Rp 650/day, indicated that, although lower for new settlement (10%), all rates of return are satisfactory. Table 7:
ECONOMIC RATE OF RETURN SENSITIVITY ANALYSIS
Full wage rate
Investment cost -20 +20
-20 Investment costs +20 Income from prod. -10 +10 -10 +10
Smallholder Development I. II.
New Settlement Rubber Replanting
10 15
17 18
12 15
15 17
18 19
11 14
13 16
17
21
17
20
23
16
18
Estate Development III.
PTP IV:
Riau Estate
Total Project
12
E.
Project Risks
7.12 Although the Nucleus Estate and Smallholders I Project has not been sufficiently implemented to evaluate project risks for the proposed project, no particular risks of a technical or economic nature are foreseen. Since the project would rely heavily on the management and technical capabilities of the PTP IV which has demonstrated its ability in rubber development, risks in the development period of all project rubber is minimized. Risks in obtaining projected food crop benefits would not be significant since project management, improved technical practices and the availability of seed and fertilizer have been designed into the project and should be sufficient to obtain the conservative food crop yields as projected.
- 57 -
7.13 Some oi the organizational and financial approaches employed in this project, as in Loan 1499-IND, are of necessity, innovative and have not yet been fully tested. Although no particular risks are envisioned in the flow of funds for credit items and the design of the credit delivery system (para. 3.37, 3.50))cost recovery on the "in kind" basis has not been tested in Bank-assisted projects in Indonesia nor has it been used by the BRI (para. 3.51). Since smallholders would have the ability to repay (para. 3.53) and a price incentive has been introduced to influence smallholders to repay, the element of risk rests in the responsibility of PTP IV as a collection agent to ensure recovery long after their development work for new settlers and rubber replanters. The GOI has requested this method of cost recovery and is confident that the nucleus estate will collect smallholder rubber for debt repayment in order to reduce their own operating and overhead costs by increased throughput. 7.14 The management capability of the Provincial Governments in the extensive role of settlement planning, arrangements for recruitment of settlers and rubber replanters, budgeting and implementing village construction, and the provision for health services for vast numbers of families would require their closest attention. To minimize risks in management at this level, and to supervise the integration of such components as rubber and food crop development with village development and road construction, close guidance by the DGE and the technical assistance provided under this project will be necessary. It is anticipated that project management at the provincial level with supervision from the DGE will be proven capable of successfully implementing all of its project responsibilities and serve institution building needs at the provincial level, thereby providing the direct benefit of reducing the otherwise high cost of centralized management for smallholder development.
VIII.
AGREEMENTS TO BE REACHED AND RECOMMENDATIONS
The following assurances were obtained during negotiations:
8.01
(a)
the DGE will appoint by February 28, 1979 one consultant specialist in smallholder coconut agronomy for project preparation, acceptable to the Bank and on terms satisfactory to the Bank (para. 4.05):
(b)
(i)
arrangements to extend the BIMAS program coverage to new settlers and rubber replanters in Air Molek west and east, Riau, and in Bujubang, Jambi will be made by August 1, 1979 (para. 3.07);
(ii) PTP IV will continue to procure and supply food crop inputs for project new settlers and replanters until such time as the BIMAS program is fully established (para. 3.07); and (iii)
an adequate number of BRI mobile units or village units will be established at the commencement of the BIMAS program (para. 4.16);
-
58 -
(c) (i) the Provincial CoordinatingCommitteeswill submit annual budgets for non-credit expendituressix months prior to the start of each fiscal year and will maintain appropriatecost accounts acceptable to the DGE and the Bank in respect of such expenditures(para. 3.40); (ii) whenever budget funds from APBN, APBD and INPRES sources are insufficientto cover non-credit expenditures,the Borrower will make arrangementssatisfactoryto the Bank to meet additional requirements(para. 3.40); (iii) the accounts of all agencies of the Borrowerparticipatingin the implementationof the project will be audited each fiscal year by independentauditors acceptable to the Bank (para. 3.48). (d) the Borrower will cause the nucleus estate PTP IV processors to pay about 70% of the fob price for rubber produced by smallholder project farmers, except in cases of: (i) significant reduction in quality of rubber received, or a significant reduction in the fob price from that prevailingat the date of the Loan Agreement (para. 5.04); or (ii) significantincrease in collection,processing and marketing charges of the nucleus estate processor from those prevailing at the date of the Loan Agreement (para. 5.03). (e)
(i) certificateof "conditional"Hak Milik for a 5 ha land area will be received by each new settler family and the same land title would be received by rubber replantersfor a 2 ha land area, both within six months of entry to the project (para. 4.14); and (ii) this certificatewill be convertedto full Hak Milik within three years after entry to the project subject to review of settler performance (paras.4.14);
(f) the nucleus estate PTP IV will maintain separate accountsfor expendituresin connectionwith the settlementcomponentsand rubber replantingcomponents (para. 3.48). Expansion of PTP IV (a) the DGE will employ consultantsproviding inspectionservicesacceptable to the Bank and on terms and conditionssatisfactoryto the Bank for short term assignments,to monitor the progress of the project with respect to field conditions,housing, infrastructure,and finance of PTP IV, as well as other consultantson short term assignments(para. 3.29); (b) PTP IV will be required to submit annual budgets each year of the work program for expansion of the estate in Riau to the Bank for
- 59 -
review and comment before adoptionby PTP IV's Board of Supervisors (para. 3.49); PTP IV would have its accounts for each fiscal year audited by independent auditors acceptable to the Bank (para. 3.49); (c) the Borrower will review the cash flow of PTP IV each year and shall make arrangementssatisfactoryto the Bank to insure that PTP IV distributedividends only in the event that such review demonstratesthat such dividends may be distributed without impairing PTP IV's ability to carry out its investmentprogram, expected to be completed by 1987, and its operationswith adequate cash balances (para. 3.38). General (a) the DGE will provide to the Bank for review by September 30 of each year an annual work program showing in detail the program of work to be undertakenby each agency included in the project (para. 4.17); (b) the Borrowerwill cause the Directorate of the Bina Program of DGH to carry out site surveys, plan alignments,and complete all engineeringwork required for the road improvementprogram by June 30, 1979 (para. 4.11). (c) the Borrowerwill cause the roads and bridges included in the project to be maintained in accordancewith sound engineeringand financial practices and shall make available sufficientfunds and facilities for that purpose (para. 4.11); and (d) the Borrowerwould make funds available to complete the maintenance program for a total of 26,200 ha of rubber in the proposed project and would provide additionalfinance to PTP IV for constructionof one or more rubber processingfacilitiesin each of the project areas of Riau and Jambi (para. 3.32). The following are conditions for disbursementfor the respective 8.02 componentsof the project: New Settlementand Rubber Replanting (a) signing of a SmallholderRubber Development Agreementbetween the DGE and PTP IV to specify work to be carried out for new settlement and rubber replantingin Riau and in Jambi, in form and substance satisfactoryto the Bank (para. 4.09); (b) signing of a FinancingAgreementbetween the Borrower and BRI and a SubfinancingAgreementbetween BRI and PTP IV in form and substance satisfactoryto the Bank (para. 3.37);
-
60 -
PTP IV Estate Development (c) signing of a SubsidiaryLoan Agreement between the Borrower and PTP IV in form and substance satisfactoryto the Bank (para. 3.38). 8.03 With the above assurancesand conditions,the project will be suitable for a Bank loan of US$65.0 million,with repayment over 20 years including 5 years of grace. The Borrower will be the Governmentof Indonesia.
- 61 ANNEX 1 Table 1
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERSII
PROJECT
Mean Monthly Rainfall in the Jambi Area (mm)
Jan Feb Mar
Apr May
June July Aug
Sept Oct Nov Dec
Total
Jambi province Jambi (10 km E)
256 216
Paalmerah
209
182 246 247
Bagantemasu
160
163 208
Pondokmeja
300 282 227
144
129 161
163 266 319 298 2,761
178
114
120 122
112 196 248 249 2,223
207 206
121
86 126
142 239 314
256 2,228
186
182 194 243 207
121
78 162
151 312 311
261 2,408
Sungaitiga
211
182 244
143
87 142
138 215 256
249 2,345
Kenaliasem
223
101 276 238
149
95
116 152
135 195 260 261 2,352
Lubukrusa
211
210 232 243
168
105
80 115
129 193 260 261 2,207
Muaratembesi
291
237 272 278
187
127
110 131
177 243 291
280 2,624
Mersan
244
236 250 258
191
113
90 137
142 229 269
309 2,368
Tempino
210
199 262
209
120
103
141
167 232 292 255 2,462
Bajubang
290 245
359 338 226
132
172
173
196 232 376 329 3,068
Average
277
121
107
142
150 232 291 287 2,468
269 209
272
196 258 261
196
-62-
ANNEX 1 Table 2
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS II PROJECT Mean Monthly Rainfall in the Riau Area (mm) Observation period
No. years observed
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Total
Riau province Telok Kuantan Telok Kuantan
1910-41 1931-60
32 20
259 302
238 292
281 328
351 343
242 275
137 144
107 148
128 156
197 188
290 263
355 341
355 332
2,920 /a 3,112 /b
Air Molek Air Molek
1927-41 1931-55
14 13
235 260
190 196
241 247
222 232
240 225
121 121
104 123
131 149
179 168
230 224
384 345
327 341
2,604 /a 2,631 lb
Sungai
1923-41
18
236
200
244
218
231
106
110
138
193
258
358
289
2,581 /a
53 19
208 257
170 190
210 249
213 232
170 195
109 130
93 115
127 143
155 166
217 240
244 274
205 235
2,121 /b 2,426 /b
Sago Estate Rengat Rengat
1888-1941 1931-59
Source: /a
Verhandelingen No. 37, "Rainfall in Indonesia," by professor Dr. H.P. Berlage Jr.
/b
Meteorological Note No. 8, Part II.
-63
-
ANNEX 1 Table 3
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS II PROJECT
Temperature, Relative Humidity, Sunshine, Evaporation and Rainfall for PalembanR
Total
or Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
mean
Air temperature (0C)
Palembang (1972) Mean Maximum Minimum
26.0 30.6 23.0
26.4 31.4 23.0
26.7 31.8 23.2
27.0 32.1 23.5
27.6 32.4 23.9
26.8 31.7 23.0
26.4 31.9 22.5
26.6 32.1 22.5
26.8 32.5 22.7
27.1 32.7 23.2
26.7 31.9 23.0
26.4 31.1 23.0
26.7 31.9 23.0
Relative humidity (%) Palembang (1972) Mean Maximum Minimum
83 97 60
83 97 60
84 98 61
82 97 59
83 98 61
82 97 59
78 98 57
80 97 55
80 97 53
80 97 53
81 97 57
84 97 62
82 97 58
Sunshine (%) Palembang (1972)
31
32
37
47
36
47
32
39
54
54
32
23
_
145.8
190.4
190.7
178.8
165.1
156.5
204.8
-
-
-
-
142.5
-
278
231
301
251
190
107
121
84
178
Evaporation
(mm)
Tjintamanis Average monthly rainfall Sungai Gerong
104
227
293
2,365
ANNEX 2 Table 1
- 64 -
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS II PROJECT Project Phasing
-----
… I.
Air 1. 2. 3. 4.
II.
Molek
Settlement
- Riau
Rubber planted (ha/yr) Total Settler families Central villages (units) Satellite villages (units)
Bajubang
Settlement
III. Air Molek Rubber Replanting
-
750 375 1 -
1,500 750 1 3
700 350 1 2
2-3_ .-
3
4
2,250 1,125
5
Total
5
3,000 1,500
Total
3,900 1,900
11,400 5,700 12 18
2 3
3 5
4 7
700 350 2 2
800 400 1 2
800 400 1
800 400 1
-
500 500
750 750
750 250
1,000 -
3,000 1,500
Bajubang Rubber Replanting
-
-
500 500
900 900
1,400 850
1,700 -
4,500 2,250
250
500
750
1,000
1,000
3,500
3,800 1,900 4 8
Riau
1. Rubber replanted (ha/yr) 2. Number of families Jambi
1. Rubber replanted (ha/yr) 2. Number of families V.
2
- Jambi
(ha/yr) 1. Rubber planted families 2. Total settler 3. Central villages (units) 4. Satellite villages (units)
IV.
1
Year…-----
Estate Development - PTP IV - Riau 1. Rubber planted (ha/yr)
ANNEX2 -
-
Table 2
INDONESIA NUCLEUSESTATEANDSMlALLHOLDERS II PROJECT Project
Local A.
Local
1979 Foreign
- New Settlement RIAU (Rp million)
Local
1980 Foreign
Local
1981 Foreign
Local
_
1,020.1
-
-
Urea Other fertilizers, chemicals Agric. & machine services
-
-
59.1
14.5 59.1
1.0 119.0
1.0 41.1 119.0
6.4 180.4
6.4 79.6 180.4
14.0 243.2
14.0 130.7 243.2
-
-
193.5
73.6
431.3
161.1
701.2
266.4
999.5
387.9
-
-
13.7
155.2
6.9
73.8
12.7
130.6
11.8
115.6
2.5
34.7
-
2.5
37.5
-
16.2
189.9
6.9
73.8
15.2
168.1
-
-
-
-
209.6 1.9 6.7
389.3 3.6 39.8
231.4 16.4 6.7
429.6 30.5 39.8
135.3 22.7 6.7
-
-
218.2
432.7
254.5
499.9
6.4
9.7
24.8 0.2 1'2.9
37.1 0.3 169.4
49.5 0.2 118.4
6.4
9.7
137.9
206.8
-
-
13.3 3.0 4.7
Power
and
water
/a
/b
Subtotal
_
Road Development Kain access, primary Secondary estate-built Maintenance/equipment
village roads (DPUP)
Subtotal Housing and Project Buildingn Settler hoas. ing Carages, workshop /c Building program /d Subtotal Subsistence PackaRe Initial land clearing Seed f fertilizer Cash payments Subtotal
Subtotal Total
Investrent
Operating Costs Project Office ()PR) Estate overheads Management costs Subtotal
-
=
Villa.e Infrastructure Health Services Water 6 sanitation /e Village health facilities
Costs
_
134.4
-
311.3
-
-
514.4
-
742.3
-
1983 Foreign
Local
Total costs Foreign Total
-
25.0 319.3 1,364.4 14.8
-
25.0 197.1 319.3 541.4 137.7
-
-
2,722.5
46.4 921.0 3,689.9
-
46.4 463.0 921.0 1,430.4
59.9
612.9
5.0
72.2
2,722.5
92.8 463.0 1,842.0 5,120.3 672.8 77.2
11.8
115.6
14.8
137.7
64.9
685.1
251.2 42.1 39.8
150.4 9.3 3.4
279.2 17.3 20.0
190.9 13.2 -
354.9 24.4 -
917.6 63.5 23.5
1,704.2 117.9 139.4
2,621.8 181.4 162.9
164.7
333.1
163.1
316.5
204.1
379.3
1,961.5
2,966.1
74.3 0.3 177.7
74.2 0.4 163.8
111.4 0.7 245.6
99.0 0.4 107.6
148.5 0.7 161.5
128.7
193.1
117.7
176.5
168.1
252.3
238.4
357.7
207.0
310.7
246.4
369.6
6.8 6.4 4.7
26.8 5.9 9.4
13.7 12.9 9.4
40.1 8.9 14.1
20.5 19.4 14.1
53.5 11.8 18.7
27.3 25.8 18.7
69.5 15.4 24.4
35.5 33.5 24.4
203.2 45.0 71.3
103.8 98.0 71.3
217.0 143.0 142.6
109.3
-
-
1.004.6 376.2 1.2 626.8 1.004.2
564.4 2.0 940.4 1,506.8
750.0
940.6 3.2 1,567.2 2,511.0
21.0
17.9
42.1
36.0
63.1
54.0
84.1
71.8
93.4
319.5
273.1
502.6
-
-
4.4
6.7
7.6
11.5
11.8
17.6
14.4
21.5
18.9
28.4
57.1
85.7
142.8
-
-
5.6 0.5
5.6 0.9
11.2 0.5
11.2 0.9
16.8 1.0
16.8 1.8
22.4 1.5
22.4 2.7
29.1 2.0
29.1 3.6
85.1 5.5
85.1 9.9
170.2 15.4
=
-
6.4
9.7
5.8 -
-
-
10.1 9.0 11.8
6.5
11.7
934.1
922.2
1.046.7
13.5 11.8
10.1 27.0 16.8
40.5 16.8
30.9
25.3
53.9
57.3
8.1 597.3
-
12.1
-
17.8 1,212.2
18.6 1,215.5
10.2 54.0 28.8
81.0 28.8
23.9
1,989.0
10.2 81.0 37.9
121.5 37.9
10.2 109.8 51.5
5.8
-
Costs
12.2
9.7
628.2
959.4
976.1
1.104.0
D.
tOntineencles Physical Expected price
1.2 1.7
1.0 1.4
62.9 158.9
95.9 242.9
97.5 365.0
110.3 412.9
130.6 674.7
132.6 163.2 685.2 1,077.6
Subtotal
2.9
2.4
221.8
338.8
462.5
523.2
805.3
817.8
1,240.8
Project Costs for New Settlement - RIAU
15.1
12.1
850.0
1,441.6
1.627.2
2,110.5
2,143.1
2,873.6
1.298.2
Includes some transport vehicles; other vehicles charged to the nucleus estate. Includes deep well construction. Civil works for power, oater and workshop. Building program includes initial housing for settler arrival, estate housing for Includes water pumps, 1 per 5 families and latrines.
93.0
109.8 1,325.3
smallholder
31.1
1,249.1
Total Base
1,305.2
25.1
1,503.7
C.
/a /b Xc /d /e
Local
Wages
Subtotal
E.
1982 Foreign
lnvestment Costs Rubber Development
Machinery & Equipment Agricultural machinery
B.
1978 Foreign
Costs
129.1 1.632.8
development
159.4
171.5
32.7 1,582.5 164.7 51.5
90.6 6,230.8 56.6 280.8 146.8
95.0 6,037.6 421.2 146.8
185.6 12,268.4 56.6 702.0 293.6
216.2
484.2
2.160.5
1,798.7
6.715.0
6.605.6
216.1 1,713.9
179.9 1,455.0
671.5 3,991.8
660.6 3,727.1
1,332.1 7,718.9
1,070.6
1.930.0
1.634.9
4,663.3
4,387.7
9,051.0
2.479.1
4,090.5
3,433.6
11,378.3
10,993.3
22,371.6
1.408.5 140.9 929.7
and other
civil
wcrks.
568.0
1,052.2 13.320.6
ANNEX 2 3 Table - 66
-
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS II
Proiect
A.
Costs Investment Rubber Development Wages Urea fertilizers, Other 6 machine Agric.
-
-
125.5 55.2
13.5 55.2
165.1 1.8 56.0
1.8 24.8 56.0
207.6 4.2 65.1
-
-
180.7
68.7
222.9
82.6
276.9
-
-
13.0 3.5
146.6 74.4
-
12.6
-
16.5
221.0
_
-
-
-
-
-
-
119.6 1.7
221.9 10.0
-
-
121.3
{a
village roads (DPUP)
Subtotal
Local
Local
4.2 37.9 65.1
1982 Foreign
Local
236.2 7.4 66.6
/c
Subtotal
Infrastructure
B.
143.4
1.330.7
(Nucleus) investments
Investment
Costs Operating (DPR) Office Project overheads Estate costs Management Subtotal
Costs
/e
24.1 192.1 311.1 527.3
995.5 48.2 192.1 622.2 1,858.0
310.2
125.4
1.8 2.5
6.3 37.5
-
-
1.8 -
6.3 -
16.6 6.0
159.2 124.5
175.8 130.5
12.6
4.3
43.8
_
_
1.8
6.3
22.6
283.7
306.3
56.7 8.6 1.7
105.5 15.9 10.0
21.4 12.8 1.7
40.0 23.7 10.0
22.3 8.7 0.8
41.2 16.1 5.0
33.5 1.7 -
62.1 3.3 -
253.5 31.8 5.9
470.7 59.0 35.0
724.2 90.8 40.9
231.9
67.0
131.4
35.9
73.7
31.8
62.3
35.2
65.4
291.2
564.7
855.9
313.4 31.3 728.4
34.7 18.4 144.5
23.0 0.3 28.1
34.7 0.5 42.1
26.4 _ 63.8
39.6 95.6
26.4 42.7
39.6 64.1
26.4 28.0
39.6 42.0
125.2 12.4 291.4
188.2 18.9 437.0
32.4
48.7
131.5
197.6
51.4
77.3
90.2
135.2
69.1
103.7
54.4
81.6
429.0
644.1
1.073.1
102.6 95.3 47.4
-
-
-
-
12.5 7.1 4.3
6.4 10.4 4.3
12.5 7.1 4.4
6.4 10.4 4.4
14.3 8.2 5.0
7.3 11.9 5.0
14.3 8.2 5.0
7.3 11.9 5.0
14.3 8.2 5.0
7.3 11.9 5.0
67.9 38.8 23.7
34.7 56.5 23.7
-
23.9
21.1
24.0
21.2
27.5
24.2
27.5
24.2
27.5
24.2
130.4
114.9
-
4.7
7.1
10.5
15.7
4.8
7.3
1.2
1.8
0.5
0.8
21.7
32.7
54.4
-
-
5.2 0.5
5.2 0.9
5.2 0.5
5.2 0.9
6.0 0.5
6.0 0.9
6.0 0.5
6.0 0.9
6.0 -
6.0 -
28.4 2.0
28.4 3.6
56.8 5.6
-
-
5.7
6.1
5.7
6.1
6.5
6.9
6.5
6.9
6.0
6.0
30.4
32.0
62.4
22.5
3.0
0.6
1.0
2.0
10.1
136.7
146.8
15.0
35.0
50.0
-
Subtotal
Total
340.0
995.5 24.1 311.1
23.0 12.1 96.4
-
/d sanitation facilities health
equipment
10.7 64.5 68.2
Total
107.2
Health Services
Miscellaneous
261.1 10.7 68.2
costs Total Foreign
48.7
_
Subtotal
Office
7.4 51.4 66.6
Local
32.4
Package Subsistence land clearing Initial Seed 6 fertilizer Cash payments
Water h Village
1983 Foreign
Local
Buildings
and Project Housing housing Settler workshop tarages, program Building
VillaRe
1981 Foreign
Local
_
Road Development Main access, primary estate-built Secondary Maintenance/equipment
1980 Foreign
1978 Foreign
Subtotal
Subtotal
- New Settlement JAMBI (Rp million)
Costs
Local
che.icals services
6 EquiPment Machinery machinery Agricultural |b Power and water
1979 Foreign
PROJECT
IC
-
-
2.7
111.0
2.9
0.6
0.5
-
-
15.0
35.0
-
-
-
-
-
-
-
-
32.4
48.7
502.0
899.5
384.4
347.5
446.6
420.8
449.3
324.9
466.4
329.7
5.8 -
-
10.1 8.4 12.2
12.6 12.2
10.1 16.8 8.0
25.2 8.0
10.2 26.4 10.8
39.6 10.8
10.2 27.2 10.9
40.8 10.9
10.2 19,2 12.3
28.8 12.3
56.6 98.0 43.2
147.0 43.2
56.6 245.0 86.4
5.8
-
30.7
24.8
34.9
33.2
47.4
50.4
48.3
51.7
41.7
41.1
197.8
190.2
388.0
2,281.1
2.371.1
4,652.2
C.
Total
Base
Costs
38.2
48.7
532.7
924.3
419.3
380.7
494.0
471.2
497.6
376.6
508.1
370.8
2.489.9
2.572.3
5,062.2
D.
Contingencies Physical Expected
price
3.8 1.6
4.9 6.9
53.2 134.7
92.4 233.8
42.0 156.8
38.1 142.3
49.3 255.4
47.1 243.5
49.8 328.5
37.7 248.6
50.8 413.6
37.1 301.8
248.9 1,290.6
257.3 1,176.9
506.2 2,467.5
5.4
11.8
187.9
326.2
198.8
180.4
304.7
290.6
378.3
286.3
464.4
338.9
1,539.5
1,434.2
2,973.7
43.6
60.5
720.6
618.1
561.1
798.7
761.8
875.9
662.9
972.5
709.7
4,029.4
4,006.5
8,035.9
Subtotal E.
/a Lb c /d T.
for New Costs Project - JAM8I Settlement
charged vehicles other vehicles; some transport Includes deep well construction. Includes and workshop. water for power, works Civil and latrines. I per 5 families pumps, water Includes etc. guesthouse, for nursery, system watering Includes
1,250.5
to
the
nucleus
estate.
- 67
AA 4 Table 4
INDONESIA
NUCLEUS ESTATE AND SMALLHOLDERS II PROJECT Project
Costs - Rubber (Rp - Million)
Replanting
RIAU
Local
1980 Foreign
Local
1981 Foreign
Local
1982 Foreign
Local
1983 Foreign
Total Costs Local Foreign
Total
Costs A. Investment Rubber Replanting Wages Urea Other Fertilizers, Agricultural and Services
Chemicals Machine
51.1
1.3
-
1.3
56.9
3.7
-
3.7
77.5
6.6
-
6.6
216.3
11.6
-
11.6
216.3
23.2
-
50.2
-
61.5
-
86.9
-
226.6
226.6
23.7
23.7
36.1
36.1
37.2
37.2
50.5
50.5
147.5
147.5
295.0
54.5
51.7
88.5
87.6
97.8
102.4
134.6
144.0
375.4
385.7
761.1.
0.7
9.6
0.2
2.0
0.2
4.0
9.6
1.8
25.2
27.0
55.2
61.3
88.7
89.6
98.0
106.4
153.6
377.2
410.9
788.1
1.9 2.9
2.9 2.9
4.8 4.5
7.1 4.5
7.6 5.1
23.8 19.7
35.7 19.7
59.5 39.4
Costs
60.0
67.1
98.0
101.2
110.7
122.9
152.0
175.1
420.7
466.3
887.0
Contingencies Physical Expected Price
6.0 22.4
6.7 25.1
9.8 50.7
10.1 52.3
11.1 73.1
12.3 81.1
15.2 123.7
17.5 142.5
42.1 269.9
46.6 301.0
88.7 570.9
Sub-total
28.4
31.8
60.5
62.4
.84.2
93.4
138.9
160.0
312.0
347.6
659.6
88.4
98.9
158.5
163.6
194.9
216.3
290.9'
335.1
732.7
813.9
Total
and
Equipment
Investments
Costs Operating Estate Overheads Management Costs
C. Total
E.
-
28.0
Machinery
D.
-
-
-
Sub-total
B.
30.8
Base
TOTAL COSTS
11.4 5.1
0.7 135.3 9.5 7.2
14.3 7.2
1,546.6
ANNEX 2 Table 5
-68INDONESIA NUCLEUS ESTATEANDSMALLHOLDERS II PROJECT ProjectCosts - RubberReplantin8 (Rp Million)
-
JAMBI 1980 Local Foreign
1981 Local Foreign
1982 Local Foreign
1983 Local Foreign
Total Costs Local Foreign Total
A. InvestmentCosts /a Rubber Replanting Wages Urea Other Fertilizers,
Agricultural Service
Chemicals
-
8.8 138.8
317.2 14.2 -
14.2 325.7
317.7 28.4 325.7
68.2
84.8
84.8
219.9
219.9
439.8
170.7
172.6
221.7
232.4
551.8
559.8
1,111.6
3.1
2.9
13.6
1.6
5.4
7.1
31.7
106.2
173.6
186.2
223.3
237.8
558.9
591.5
30.8 -
28.0
60.4 1.3 -
1.3 58.6
98.4 4.1 -
4.1 100.3
128.1 8.8
23.7
23.7
43.2
43.2
68.2
54.5
51.7
104.9
103.1
1.7
9.6
0.9
56.2
61.3
105.8
-
and Machine
Sub-total Machinery & Equipment Total Investments
Costs
B. Operating Costs EstateOverheads ManagementCosts
38.8 1,150.4
1.9 2.9
2.9 2.9
5.3 5.3
8.0 5.3
10.6 9.0
16.0 9.0
15.2 11.5
22.8 11.5
33.0 28.7
C. Total Base Costs
61.0
67.1
116.4
119.5
193.2
211.0
250.0
272.1
620.6
669.9 1,290.5
D. Contingencies Physical Price
6.1 22.8
6.7 25.1
11.6 60.2
11.9 61.8
18.3 127.5
21.1 139.3
25.0 203.5
27.2 221.4
62.0 414.0
66.9 447.6
128.9 .861.6
28.9
31.8
71.8
73.7
146.8
160.4
228.5
248.6
476.0
514.5
990.5
89.9
98.9
188.2
193.2
340.0
371.4
478.5
520.7
Sub-total F. TOTAL COSTS
/a
Does not includeinvestmentin powerand water,buildingprogram,healthservices,and roads whichhave been includedin investmentcosts for new settlement.
.
49.7 28.7
82.7 57.4
1,096.61,184.4 2,281.0
ANNEX 2 Table 6
- 69 - 69 INDONESIA NUCLEUS ESTATE AND SMALtHLDERS II PROJECT
Pro,letCosts- PT I; Riu Developaent REAU
Local Rubber
1978 Foreign
Local
1979 ForciRn
1980 Local
oreign
Local
1981 Foreizn
Local
19U2 ForeiRn
Local
1983 Foreign
Local
Total Costs Total Foreign
Planting
Wages Urea Other Fertilizers and Chedieala Agricultural and Machine Servicea
-
-
Sub-total General Charges and Start-up Li Agricultural Equipment Housing and Buildings Transport Equipment: Riau Jaibi Pover, Water, Workshop Equipment and Tools Buildings Office Equipment Investmnts Miscellaneous
-
-
31.7 3.1 2.6
0.7 13.7 39.7
171.5 2.1 60.1
2.2 26.5 60.1
247.4 3.0 81.1
3.0 43.6 81.1
6.2 82.8
6.2 59.9 82.8
853.7 11.9 283.4
12.1 148.5 283.4
853.7 24.0 148.5 566.8
64.5
24.5
144.1
54.1
233.7
88.8
331.5
127.7
375.2
148.9
1.149.0
444.0
1.593.0
-
48.0 6.2 t7.2 1.3 1.4
69.2 115.8 12.8 13.7
23.8 3.1 37.5 1.6 1.2
36.0 56.3 12.7 10.0
45.5 4.2 49.8 2.9 1.4
44.1 74.8 25.8 13.7
78.8 6.1 35.1 3.6 1.0
65.2 52.7 32.0 8.3
105.7 1.2 34.6 2.9 3.9
4.0 52.0 25.6 27.2
302.0 20.8 265.9 15.4 11.5
218.5 399.1 136.3 96.8
302.0 239.3 665.0 151.7 108.3
47.5 27.4 23.9
-
-
-
-
-
-
-
-
-
-
1.0 12.4
79.5 18.8
80.5 31.2
22.5
3.0
0.6
1.0
2.0
-
-
-
-
-
_
1.0 12.0
66.9 18.2
0.4
12.6 0.6
_
_
2.7 15.0
111.0 35,0
2.9 _
0.6
0.5
37.4
98.8
229.3
214.6
182.9
338.0
269.7
459.1
286.5
524.7
259.7
1.803.1 1.564.7 3.367.8
-
lb
TOTAL BASE COSTS
103.8 0.6 39.7
286.2
19.7
_ 4.8 19.7
44.8
-
467.7
10.1 15.0
136.7 35.0
146.8 50.0
Contingencies Physical Expected Price Sub-total IDTALCOSTS
9.9 14.1
22.9 58.0
46.7 118.2
21.5 80.3
18.3 68.4
33.8 174.7
27.0 139.4
45.9 303.0
28.6 189.1
52.5 500.4
26.0 247.5
180.3 1.121.7
156.5 776.7
9.0
24.0
80.9
164.9
101.8
86.7
208.5
166.4
348.9
217.7
552.9
273.5
1.302.0
933.2 2.235.2
46.4
122.8
310.2
632.0
316.4
269.6
546.5
436.1
808.0
504.2
1.077.6
533.2
3.105.1 2.497.9 5.603.0
survey and other start-up overheads. for estate
/a
for Includes Rp 40 million to Rp 8 million in addition
Lk
system, guest vatering Includes site preparation for offices.
336.8 1,898.4
3.7 5.3
house equipment,
expeeses
landing
strip
in 1978
and
-
70 ANNEX 2 Table 7
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS II PROJECT
Technical Assistance
Local A.
Technical
Subtotal
Subtotal Vehicles
D.
Total Base Cost
E.
Contingencies Physical Price Subtotal
F.
1980 Foreign
Local
1981 Foreign
Local
1982 Foreign
Local
1983 Foreign
Local
Total Costs Foreign Total
4.2 16.6 4.2
24.9 83.0 24.9
4.2 20.8 4.2
24.9 103.8 24.9
4.2 20.8 4.2
24.9 103.8 24.9
2.1 12.4 4.2
12.5 62.2 24.9
12.4 4.2
62.2 24.9
14.7 83.0 21.0
87.2 415.0 124.5
101.9 498.0 145.5
25.0
132.8
29.2
153.6
29.2
153.6
18.7
99.6
16.6
87.1
118.7
626.7
745.4
-
Staffing and Operations T.A. counterparts (3) Secretaries (3) Clerks (3) Drivers (3) Operations/travel
C.
Local
Assistance
Smallholder coconut program advisor Short-term consultants (200 m/months) 1/ Consultants for inspection (60 m/months) 2/
B.
1979 Foreign
to the Directorate General of Estates (Rp million)
Total Costs - DGE
3.6 0.6 1.1 0.4 28.0
3.6 0.6 1.1 0.4 28.0
3.6 0.6 1.1 0.4 28.0
1.8 0.3 0.6 0.2 14.0
12.6 2.1 3.9 1.4 98.0
12.6 2.1 3.9 1.4 98.0
33.7
33.7
33.7
16.9
118.0
118.0
1.2
9.5
59.9
142.3
-
-
62.9
153.6
62.9
153.6
35.6
99.6
16.6
87.1
237.9
636.2
874.1
-
-
-
-
-
1.2
9.5
10.7
6.0 15.1
14.2 35.9
6.3 23.5
15.4 57.5
6.3 32.5
15.4 79.4
3.6 23.5
10.0 65.7
1.7 13.5
8.7 70.9
23.9 108.1
63.7 309.4
87.6 417.5
21.1
50.1
29.8
72.9
38.8
94.8
27.1
75.7
15.2
79.6
132.0
373.1
505.1
81.0
192.4
92.7
226.5
101.7
248.4
62.7
175.3
31.8
166.7
1/
For advisors in pest and disease management, upland soils, surveying, extension and training, project preparation.
2/
Inspection of rubber plantings at PTP IV, and in Jambi and Riau.
369.9 1,009.3 1,379.2
- 71 -
ANNEX 2 Table
INDOuESLA NUCLEUSESTATE ANDSIA Ld0LDER
Technical
Local (sq a) luildings 300 Dormitory block, foe., 250 Dining * recreation Library 6 study/demonotr. area, 100 Classroom & offices, 400 etc.) 150 Godown (fertilizers, processingshed, 250 Eoeses - Atanagers, 300 - Aast Mgrs. 250 - Caretaker, 200 - Labor bouses (4), 102 Garage & workshop, Z00 Subtotal
D ~ n.tratliForm Plantfog 4 iaintenance Foodcrop area nouse Subtotal Mnager (1) AssIstant Manager 00 (Rp 2 ,000/yr) Laborers Mechanic (1) Subtotal
1.000 5,330 1,508
500 2,670 742
8,000 6,667 5,330 4,100 3,350 41.785
4,000 3.330 2,670 2.020 1,650 20.832
470 560
sao 110 400 116 470 67 8.000
2 ha rubber
10.693 212.0 923.3 -
229.0 189.1 -
359.8 7.8 82.5 450.1
1984
1983 Locel
Feign
Local
Foreign
3.3S0
10,178.3 10.596.4
1.000 5,330 1,508 3.350 8.000 6,667 5,330 4,100 3,350 45,135
1,650
1.650
1,200
300
1.200
300
560 500 110 400 116 470 1,200 67 8,000 _ -
11J893
41.3 1,834.6 3,001.3
44.7 1,693.4 333.7
32.2 1.834.6 3,001.3
34.8 1,693.4 333.7
44.6 1,834.6 3,001.i
48.4 1,693.4 333.7
44.6 1,834.6 3,001.3
48.4 1,693.4 333.7
44.6 1,834.6 3,001.3
48.4 1,693.4 333.7
419.3 10,096.3 15,006.5
4,270.4 9.147.6
1,744.2 3.816.0
2,624.7 7.492.8
1,980.0 4.041.9
2,511.3 7.391,8
2,139.2 4.214.7
2,414.2 7.294.7
2,145.9 4.221.4
2,116.9 6,997,4
2,116.9 4.192,4
27,429.6 52.951,7
271.4 18.2 82.5 37ZL1
2,500 1,500 800 360
Local
2,500
113.9
46.5
113,9
~~~~5.160
5,512.5
7,271.6 18,397.0 25,668.5
7,492.1 18,954.9 26,447.0
1,777.2 6,646.5 8,423.7
551.3 2,061.7 2,613.0
TOTAL COST
98.384.0
101,367.5
26,195.2
8,125.5
17.771,5
70.0
52.8
67.0
57.0
64.4
57.2
56.4
56.4
70.0 y
5.
670
57.0
64.4
kFjI
56A
56.4
2,500 1,500 800 360 5.160
2,500 1,500 800 360 5.160
74.920.5
costs
Comer
4.ooo
72,715.5
base
errags
Training
-
Contineenciev P1hy.icI (10) Price Total contineencies
Total
LLcal
Tiga
1982 Local ForsSgn
1981 Foreiggn
Sungei
PROJICT
5,400 4,700 5,500 900 3,900 1,500 4,950 780 4,000 11,250 240 43.120
13,492.1 14.627.4
(4)
Local
3,350
Vehicles & Machinery L.ndro"er hog wh-al basa (1) Toyota hardtop (1) Bus Motorcycles (2) Tractor 65 hp (1) trailer (1) Tractor Truck (5 to) (1) Tonk (2.5 St7(1) Plough Water tank & pump * piping 25 at * wiring Generator Processing equipment Subtotal lubber Development 8udvood nursery (0.2 ha) Field nu-sery (2.5 ba) Polybag nursery (2.5 ha) & Field establishaent -aintenance (75 ha) Subtotal
2,000 1,250
- Investzment Costs' (Rp O00)
1980
1979 Foreign
4,000 2,500
Assistance
I
-
8
2,500 1,500 800 360 5.160
Total
2,000 1.250
6,000 36750
500 2,670 742 1.650
1.500 8,000 2,250 5.000
4,000 3.330 2,670 2,020 1,650 22.482
12.000 9,997 8,000 6.120 5,000 67.617
4,700 5.500 900 3.900 1,500 4,950 300 180 4,000 11,250 240 43.420
S,870 5,260 6,000 1,010 4,300 1,616 5,420 1,500 847 12,000 11,250 240 55.313
453.7 8,656.1 1,668.5 20,304.5 31,082.8 541.3 18.2 82.5 642.0
873.0 18,752.4 16,675.0 47,734.1 U.034.5 1,272.8 26.0 165.0 1.463.8 15.000 9,000 4,800 2,160 30.960
15,000 9,000 4,800 2,160 3096
2,500 1,500 800 360 5.160
2,500 1,500 800 360 5.160
731.5 7.8 82.5 821.8
Total Costs Forein
12,722.8
4.094.7
13.818.8
4.571.7
12.519.1
4,278.6
12,213.8
4.248.8
141,761.5
97.626.8
239.334.3
1,272.3 6,577.7 7,850.0
409.5 2,116.9 2,526.4
1,381.9 9,210,4 10,502.3
457.2 3,017.3 3,474.5
1,251.9 10,190.5 11,442.4
427.9 3,482,8 3,910.7
1,221.4 13,032.1 14,253.5
424.9 4,533,5 4,958.4
14,176.2 63,964.2 78,140.4
9,762.9 34,167.1 43,930.0
23,939.2 98,131.3 122,070.4
20.572.8
6.621.1
24.321,1
8,046.2
23,961.5
8,189.3
26,467.3
9.207.2
219,901.9
141.556.8
361.458.7
ANNEX 2 Table 9
- 72 INDONESIA NUCLEUS ESTATE AND SMALLHOLDERSII Technical
Assistance
to
the
Directorate
PROJECT
General
of Highways
(Rp Million)
1979
1980
1981
Total Costs
Local Foreign
Local Foreign
Local Foreign
Local Foreign
Total
A. Technical Assistance Consultant Specialists road engineering - 35 man/months
-
6.2
31.1
4.2
20.8
4.2
20.8
14.6
72.7
87.3
0.6 1.6
3.1 7.9
0.4 1.6
2.1 7.8
0.4 2.2
2.1 10.8
1.4 5.4
7.3 26.5
8.7 31.9
B. Contingencies Physical Price Sub-total C. Total
Costs
- DGH
2.2
11.0
2.0
9.9
2.6
12.9
6.8
33.8
40.6
8.4
42.1
6.2
30.7
6.8
33.7
21.4
106.5
127.9
ANNEX 2 Table 10
73 _
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERSII Estimated
Schedule
1978
I.
Smallholder Development A. New Settlement - Riau 1. Investment Costs Rubber development Machinery & equipment Road development: - Main access, primary - Estate-built, secondary - Maintenance (DPUP) Housing & project buildings Subsistence package Village infrastructure Health services 2. Operating Costs Project office (DPR) Estate overheads and management fees Subtotal
1983
-
361 279
873 119
1,565 296
2,442 224
3,668 292
8,909 1,210
21.5 2.9
20 -
810 7 63 466 53 15 17
974 69 69 565 115 28 35
625 105 73 964 172 47 59
756 47 43 911 274 63 86
1,045 72 1,179 388 91 122
4,210 300 248 4,105 1,002 244 319
10.1 0.7 0.6 9.9 2.4 0.6 0.8
7
14
15
90
0.2
-
62
149
4,233
20 723
5.354
925 15
3,100 433
7.5 1.0
101 -
462 16 445 61 16 16 221
239 36 17 190 67 39 17 5
99 59 19 364 84 20 22 37
112 44 10 304 91 5 23 6
183 10 256 99 2 23 8
1,095 149 62 1,660 402 82 107 277
2.6 0.4 0.2 4.0 1.0 0.2 0.2 0.7
7
14
15
16
18
20
90
0.2
61 1,970
85 1.179
142 1,561
158 1,538
-
-
16
34
51
-
-
188
323
410
D. Rubber Replanting - Jambi 1. Investment Costs Rubber development Machinery & equipment 2. OPerating Costs Estate overheads and management fees
-
-
157 17
336 6
604 29
-
-
16
39
Subtotal
-
-
190
-
71 98
120 387 302
292 119 140
-
133
35
169
942
586
983
-
273 200 49
319 34 37
350 27 42
-
522
390
419
270
304 0.7
5.581 13.5
5.544 13.4
7.900 19.0
9X595 23.1
Including
physical
and price
352 7
-
139 1,680
533 20
585 8.036
1.4 19.4
1,327 46
3.2 0.1
73
174
0.4
626
1,547
3.7
869 13
1,966 65
4.7 0.2
78
117
250
0.6
381
711
999
2.281
5.5
521 186 201
808 211 155
1,113 130 166
2,854 1,104 1,062
6.9 2.7 2.5
&
- DGE Trg Ctr - DGH
(US$ M)
53.9
767 -
285 4
Costs
22,372
621 78
157 15
Total
4.2
450 19
-
Technical Assistance Technical assistance Sungai Tiga Extension Technical assistance
7,600
1,735
337 321
Subtotal
/a
3.011
18 490
-
Subtotal
III.
2,147
16 311
-
Subtotal
costs (US$ K)
1982
108
Estate Development PTP IV - Riau 1. Investment Costs Rubber development Machinery & equipment Civil works General charges, start-up misc.
Total (Rp M)
1981
C. Rubber Replanting - Riau 1. Investment Costs Rubber development Machinery & equipment 2. OPerating Costs Estate overheads and management fees
II.
/a
1980
-
Subtotal
Expenditures
1979
27
B. New Settlement - Jambi 1. Investment Costs Rubber development Machinery 6 equipment Road development: - Main access, primary - Estate-built, secondary - Maintenance (DPUP) Housing & project buildings Subsistence package Village infrastructure Health services Others 2. Operating Costs Project office (DPR) Estate overheads and management fees
of Project (Rp million)
PROJECT
contingencies.
75
138 1,312
238 32 -
202 1,611
199 68 -
267 12.783 30.8
583
1.4
5,603
13.5
1,379 361 128
3.3 0.9 0.3
1,868
4.5
41,707 100.5
100.5
- 74
-
ANSSM 2
TabIMle 11
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS II
Sources
of Finance
1978
A.
Smallholder
-
development
and housing;
12 8
Non-Credit: village infrastructure, roads, social services, managesent and water:
access fees,
854 284
7
Subtotal
27
Sev Settlsent on-farn
development
and housing;
access fees,
585 424 2.147
108
Replanting rubber
Non-Credit:
replanting,
machinery,
314 514 1,970
pover
and water,
management
-
-
-
-
-
Replanting rubber
Non-Credit:
4.233
557 428 5.354
726 785 7.600
3,144 2,693
7.58 6.48
8 6
22,372
53.91
54
928 261
928 353
1,009 380
4,509 1,366
10.86 3.29
11 3
194 219
119 253
110 147
125 166
862 1,299
2.08 3.13
2 3
8,036
19 36
19
1,207 271
2.91 0.65
3 1
1,561
1.538
1.680
147 32
252 56
320 72
488 111
9
15
18
27
0.17
-
-
188
323
410
626
1.547
3.73
4
-
146 35
293 71
547 132
769 186
1,755 424
4.23 1.02
4 1
102
0.25
-
5.50
5
34236
2.50
82
533 1.078
2,498 3,105
6.02 7.48
6 7
1.611
5.603
13.50
13
3.03 1.47
3 2
69
- Janbi replanting,
power
machinery,
overheads: -
and water,
management
fees: -
-
Subtotal
_
-
Snallholder
Components
135
9 190
4.11
4.568
17
32
44
381
711
999
6.498
013 10905
2.281
Development
PTP IV - Riau
Area
IBRD contribution GO contribution Subtotal Technical
Subtotal Sources
of which:
123 46
632 310
270 316
436 547
169
942
586
983
-
336 186
265 125
289 130
504 808 1.312
Assistance
IBRD contribution GO0 contribution
522
-
of Fi,nance IBRD loan GOI credit funds GOI non-credit funds of which: GOI portion
/
28 12
-
GOI contribution
Total
28.30 11.55
fees:
IBRD contribution GOI contribution
Total
11,743 4,792
571 195
1.179
Subtotal
D.
4,247 1,842
overheads
G0I contribution
C.
3,039 1,330
- Riau
1BRD contribution 00I contribution
Estate
3,011
1,012 130
-
Subtotal
Total
2 of Total Costs
and village power
I8RD contribution OI contribution
B.
539 546
Costs USS (million)
overheads: 61 47
Non-Credit: village infrastructure, roads, social services, management nd ater:
Credit:
737 503
Total Rp (rillion)
- Jambi
IBRD contribution GOI contribution
Rubber
2,316 832
1983
and village power
IBRD contribution GO1 contribution
Credit:
1,275 496
1982
overheads:
TBRD contribution G00 contribution
Rubber
1981
Riau
on-farm
Credit
1980
Costs
Co-ponents
New Settlement Credit
1979
- Project
PROJECT
nGE DIP /a of loan
to
PTP IV
GOI Contribution
DGE DIP in non-credit expenditures fees and office equipment.
includes
390
419
183 87 270
185 82 267
1,258 610 1,868
4.50
5
304
5.81
5,544
7.900
96595
12783
41707
100.50
100
196 55 7
3,733 414 1,124
3,605 758 865
5,172 1,220 961
6,188 1,887 712
8,082 2,519 1,104
26,976 6,853 4,773
65.00 16.52 11.50
65 16 11
-
397
116
328
230
1.362
3.33
3
46
310
316
547
808
1,078
3,105
7,48
7
108
15848
3 407
4.701
14,731
garages
1.939
and
2,728
arehouses,
power
321
and water,
management
35.50
35
ANNEX 2 TabLe 12 -75-
INDONESIA II PROJECT NUCLEUSESTATE AND SMALLHOLDERS Estimated
Year
Quarter Ending
Schedule
of Disbursements
Cumulative Quarterly Disbursement Disbursement US$ million----------------------
% of Total Loan
1978
December
0.5
0.5
1
1979
March June September December
1.5 2.5 2.5 2.5
2.0 4.5 7.0 9.5
3 7 11 15
1980
March June September
2.5 2.0 2.0
12.0 14.0 16.0
18 22 25
December
2.5
18.5
28
1981
March June September December
2.5 3.0 3.0 3.5
21.0 24.0 27.0 30.5
32 37 42 47
1982
March June Septemnber December
3.5 3.5 4.0 4.5
34.0 37.5 41.5 46.0
52 58 64 71
1983
March June September
5.5 6.5 7.0
51.5 58.0 65.0
79 89 100
_
Closing date: December 1983
ANNEX 2 Table 13 INDONESIA NUCLEUS ESTATE AND SMALLHOLDERSII PROJECT
Rent and Cost Recovery (Constant1977 Rp '000) /a Total project New settlement Rubber replanting 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.
Gross value of farm production 3,157.1 Less: production (cash) costs 610.2 Equals net cash income 2,546.9 Less: depreciation 362.7 Less: imputed value of family /b labor 603.6 Less: allowance fo risk/uncertainty/c 538.9 Less: general taxes Equals project rent 1,041.7 Rent as % of net cash income 41.0 Debt recovery /d 435.1 Benefit taxes /e 331.3 Total direct recovery/taxes 766.4 Rent recovery index (121.8) 74.0 Public sector outlays 1,389.6 Cost recovery index (12tl4) 55.0 Farmers income per capita (year 17) 82.0 Estimated critical consumption level (CCL) /f 49.8 Estimated national per capita /R income 99.6
1,881.4 299.9 1,581.5 166.0 550.0 368.3 497.2 31.0 238.3 218.2 456.5 92.0 735.5 62.0 90.0 49.8 99.6
/a All values in lines 1015 discountedat opportunity cost of capital for Indonesia of 10%; values represent incrementalbenefits and costs. /b Discountedvalue of MSL of Rp 128,650 per family or US$62 per person. /c Fifteen percent of the gross value of production. /d Discounted values of recovery at 25% of annual rubber production for 10 years for replantersand 15 years for new settlers. /e Ipeda tax and rubber taxes as direct benefits of recovery from project. /f Valued at 1/2 of national per capita income. /g National per capital income of US$240 (1977 constant dollars).
- 77 -
ANNEX 2 Table 14
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS II PROJECT
Comparison of Development Costs per Family (Constant 1978 US$)
New Settlement Riau & Jambi NonTotal Credit Credit Costs
Rubber Develpment Direct costs Machinery/a Overheads Subtotal Subsistence Package Initial land clearing Cash payment Seed fertilizer Subtotal Roads Main access, village roads Farm roads & track /b Subtotal Settler Housing
2,974 256 434 3,664
130 60 48 238
397
Village Infrastructure Community buildings Schools Subtotal
-
Health Services Water & sanitation Health facilities Subtotal
0 -
Others Building & civil works/c Equipment & some vehicles Subtotal Project Management Project office (DPR) Management fee Total
-
-
642 178 820
5,119/d
28 28
-
353 353 -
2,974 284 434 3,692
Rubber Replanting Riau & Jambi NonTotal Credit Credit Costs
1,613 50 137 1,800
-
1,613 50 137 1,800
130 60 48 238
-
-
-
-
-
-
353 353
-
_
397
-
-
31 23 54
31 23 54
71 7 78
71 7 78
20 20
662 178 840
24 163
24 163
-
720
5,839/e
2,.442/f
-
_
-
642 642
-
353 353
353 353
-
-
23 23
23 23
7 7
7 7
20 20
662 662
24 80
24 80
507
2,949/g
/a
Machinery for power and water is on a non-credit basis from DGE sources.
/b
These roads included in direct costs of rubber development.
/c
Garages and workshops are provided on non-credit.
/d
In current terms, this equals loan amount of US$7,525, or Rp 3.12 million.
/e
In current terms, this equals total development cost per family of US$8,583 or Rp 3.56 million.
/f
In current terms, this equals loan amount of US$4,200, or Rp 1.74 million.
a
In current terms, this equals total development cost per family of US$5,072, or Rp 2.10 million.
ANNEX3 Table 1 -
78 i N fS
NICI.F.tlI
STT t AN1 SMA tIIIT.
StrcLctore
Clcarins; 6 orubblbt Specificatlon Cost/km Main access road
over 16,000 . per km at 2 Rp 80 per m
Primary village road
over 9,OOD a per km at 2 Rp 80 per m
Secondary village road
over 7,000 m per km at 2 Rp 80 per m
Rubber collection track
over 5,000 n per km at 2 Rp 80 per m
2
2
2
2
Bridge Specification
1.280
0S FCT /a
Comp;lction E dressin ofsbcrAde ub SpecIficatijn C.st/km 2
to crown height 0.45 m, carriageway 4.5 n, shoulders I m and side3 slopes 1:4. 3,490 m 3 per km at Rp 550 per m
1,920
720
to crown height 0.22 m, carriageway 3.0 a, shoulders I m and side slopes 1:4. 1,187 m3 3 per kn at Rp 550 per m
653
over 5,500 m2 per km on average 2 at Rp 75/m
560
to crown height 0.25 m, carriageway 3.0 m, no shoulders and side 3 slopes 1:4. 835 n per km at Rp 550 per m3
460
over 4,000 per km on average at Rp 75/m2
400
excavation to form drainage channela. 3 2 560 m at Rp 550 per m
308
over 2,500 m per km on *verage at Rp 75/12
structures
Main access road
4 m length per km. 4.5 m wide. 33% steel at -Rp 560,000 per m: 67Z timber at Rp 345,000 per m. Equivalent rate Rp 417,000 per *.
Primary village road
3 a length per km timber bridges 4.0 m wide at Rp 310,000 per m.
Secondary village road Rubber collection track /a
t I
of Rg1.dPro[rrum Ut111it_(Csta (lip tlOV1
fECAV.tton to enankssnt SpeciFication Cost/km
_
IA
Cost/km
2
m
2
Cost/km
1,260
412
300
5X by volu.w portland cemont to 10 cm depth over 7.5 m width at Rp 4,640 M per km (but required only on 50% of road length)
7 cm laterite over central 3.0 m plus 5 cm laterite over shoulders. 310 t3 per km including transport at 3 Rp 6,500 per m total
5% by volume portland cement to 7 cm depth over 6 m width at Rp 2.6 M per km (but required only on 102 of road length)
2,015
_
-
_
188
Miscellaneous (mobilization naintainance m of traffic)
Total cost per km for basic formation
625
550
18,898
930
20 m length per km of 0.8 m pc pipe culvert at Rp 25,000 per m.
500
110
5,600
3 a length per km timber bridges 3.0 m wide at Rp 280,000 per a.
840
15 a length per km of 0.8 a pc pipe culvert at Rp 25,000 per m.
375
-
2,535
2.5 a length per km timber bridges 3.0 m wide at Rp 200,DOO per m.
500
per km of 10 m length 0.8 m pc pipe culvert at Rp 25,000 per m.
250
-
1,646
the responsibility of DCH while secondary arc to be constructed by rITP IV.
Cement sthbllHZ.tLon Specificatl.-n C-st/km
25 cm laterite 9.275 over central 4.5 m plus 10 cm laterite over shouldera. 1,325 m3 per km 3 at Rp 7,000 per m including transport
25 m length per km of 0.8 u pc pipe culvert at Rp 25,000 per m.
Main access and primary village roads are village roads and rubber collection tracks
1,668
Culverts Specification
over 9,000 m per km on average 2at Rtp 140/,
Formation of sub-base & bise courses cpLcliication Cost/knm
Surface dressing additional costs/km 1,800
Total cost including surface dressing 20,698
2,320
260
ANNEX 3 Table 2
- 79
-
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERSII PROJECT Road Constructionand ImprovementProgramme - Physical Phasing - Riau (kilometers)
1979
1980
1981
1982
4.1
1983
Total
Air Molek West
Main access road (i) Basic formation (ii) Upgrading (surface dressing) Primary village roads Secondaryvillage roads Rubber collectiontracks Air Molek East Main access road (i) Basic formationLa (ii) Upgrading (surface dressing) (iii) Ferry improvement Primary village roads Secondaryvillage roads Rubbercollectiontracks Total Main access road (i) Basic formation (ii) Upgrading (surface dressing) (WIi) Ferry improvement Primary village roads Secondary village roads Rubber collection tracks
La Including Lb
Sce table
22 km link
15.1. 17.0 2.2 2.2 15.0
8.6 6.1 30.0
7.1 15.1 45.0
2.6 11.0 3.6 5.2 60.0
13.3
12.7
10.5
15.5
8.0
60.0
9.0 -
9.0 -
9.6 /b
27.6 -
6.2 10.8 30.0
5.6 5.4 40.0
6.6 52.5
29.9 35.5 152.5
-
-
-
-
11.0
8.9 10.0
9.2 12.7 20.0
28.4
29.7
14.6
11.1 2.2 25.0
17.8 18.8 50.0
20.0 13.3 25.9 75.0
road between east and west blocks.
showing financial
phlasing.
18.1 20.0 9.2 10.6 100.0
8.7
47.5
11.5
33.5
4.7 8.4 70.0
26.2 37.0 220.0
16.7
107.5
21.1
61.1
4.7 15.0 122.5
56.1 72.5 372.5
-
ANNEX 3 Table 3
- 80
-
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERSII PROJECT
Road Construction-andImprovementProgramme (Kilometers)
1979
-
1980
Physical Phasing - Jambi
1981
1982
1983
27
2.5
4.2
33.0
5.8
9.0
9.0
23.8
Total
Hain access road Mi) Basic formation (ii) Upgrading (surfacedressing) Primary village roads
Secondaryvillage roads Rubber collectiontracks
17.0 -
6.6 -
-
3.6
6.7
-
9.8
.14.6
17.5
20.0
17.5
-
9.9 20.5
-
10.3
2.0
36.3
20.5
96.0
- 81
ANNEX 3 Table 4
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS II PROJECT
Road Construction and Improvement Programme - Financial Phasing - Riau (Rp million)
1980
1979
1981 LC FX
LC
FX
LC
FX
Air Molek West Main access road (i) Basic formation (ii) Upgrading (surface dressing) Primary village roads Secondary village roads Rubber collection tracks /a
99.9 4.3 1.9 8.7
185.5 8.0 3.6 16.1
112.5 16.9 5.3 17.3
208.8 31.3 9.9 32.2
27.1 6.9 13.9 13.2 26.0
Air Molck East Main access road ti) Basic formation (ii) Upgrading (surface dressing) (iii) Ferry improvement Primary village roads Secondary village roads Rubber collection tracks /a
88.0 17.4 5.8
163.4 32.4 10.7
84.0 18.0 11.1 11.6
156.0
Total Main access road (i) Basic formation 187.9 (ii) Upgrading (surface dressing) (iii) Ferry improvement 21.7 Primary village roads 1.9 Secondary village roads Rubber collection tracks /a 14.5 Maintenance/equipment (DPUP) 6.7
348.9 40.4 3.6 26.8 39.8
232.7
Total base costs Contingencies Physical Price Total contingencies Total cost
/a
1982
1983
Total FX
LC
FX
LC
FX
LC
50.4 12.9 25.8 24.5 48.3
17.2 6.9 7.1 4.6 34.7
31.9 12.9 13.1 8.5 64.4
57.5 7.2 9.2 7.4 40.4
106.9 13.5 17.1 13.7 75.1
314.2 21.0 51.4 32.4 127.0
583.5 39.3 95.3 60.2 236.1
897.7 60.3 146.7 92.6 363.2
33.5 20.6 21.5
69.5 5.7 12.2 9.5 17.3
129.0 10.5 22.6 17.6 32.2
102.5 5.7 11.0 4.7 23.1
190.4 10.5 20.4 8.8 42.9
52.9 6.0 58.1 5.8 30.3
98.3 11.2 107.9 10.7 56.3
396.9 17.4 58.1 58.6 31.1 88.1
737.1 32.2 107.9 108.9 57.7 163.6
1,134.0 49.6 166.0 167.5 88.8 251.7
196.5 34.9 16.4 28.9 6.7
364.8 64.8 30.5 53.7 39.8
96.6 12.6 26.1 22.7 43.3 6.7
179.4 23.4 48.4 42.1 80.5 39.8
119.7 12.6 18.1 9.3 57.8 3.4
222.3 23.4 33.5 17.3 107.3 20.0
110.4 13.2 58.1 9.2 13.2 70.7 -
205.2 24.7 107.9 17.1 24.4 131.4
711.1 38.4 58.1 110.0 63.5 215.2 23.5
1,320.6 71.5 107.9 204.2 117.9 399.7 139.4
2,031.7 109.9 166.0 314.2 181.4 614.9 162.9
459.5
283.4
533.6
208.0
413.6
220.9
423.8
274.8
510.7
1,219.8
2,361.2
3,581.0
23.3 58.8
45.9 116.4
28.3 106.0
55.3 207.1
20.8 107.5
41.4 213.9
22.1 145.8
42.4 279.8
27.5 223.7
51.1 415.7
122.0 641.8
236.1 1,232.9
358.1 1,874.7
82.1
162.3
134.3
262.4
128.3
255.3
167.9
322.2
251.2
466.8
763.8
1,469.0
2,232.8
314.8
621.8
417.7
816.0
336.3
668.9
388.8
746.0
526.0
977.5
1,983.6
3,830.2
5,813.8
-
Included in rubber development costs in total project costing.
-
Total
-82
-
ANNEX 3 Table 5
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS II PROJECT
Road Construction and Improvement Programme - Financial Phasing JAMBI (Rp million)
1979
Main access road (i) Basic formation (ii) Upgrading (surface dressing) Primary village roads Secondary village roads Rubber collection tracks /a Maintenance/equipment (DPUP) Total base costs Contingencies Physical Price Total contingencies Total cost
/a
1980
1981
1982
1983
LC
FX
LC
FX
LC
FX
LC
FX
LC
FX
LC
Total FX
Total
112.5 -
208.8 -
43.6 -
81.1 -
17.8 3.6
33.2 6.8
16.6 5.7
30.7 10.5
27.8 5.7
51.6 10.5
218.3 15.0
405.4 27.8
623.7 42.8
7.1
13.1
13.1
24.4
20.2
37.5
57.7
8.6
15.9
12.8
23.7
8.7
16.1
1.7
3.3
31.8
59.0
90.8
11.8
22.0
55.3
103.1
158.4
-
-
-
-
-
-
-
-
10.1
18.8
10.1
18.8
11.5
21.5
11.8
22.0
1.7
10.0
1.7
10.0
1.7
10.0
0.8
5.0
-
-
5.9
35.0
40.9
131.4
250.7
77.1
150.2
47.4
95.2
43.6
84.3
47.0
87.4
346.5
667.8
1,014.3
13.1 33.2
25.1 63.4
7.7 28.8
15.0 56.1
4.7 24.5
9.5 49.1
4.4 28.9
8.4 55.6
4.7 38.3
8.7 71.1
34.6 153.7
66.7 295.3
101.3 449.0
46.3
88.5
36.5
71.1
29.2
58.6
33.3
64.0
43.0
79.8
188.3
362.0
550.3
177.7
339.2
113.6
221.3
76.6
153.8
76.9
148.3
90.0
167.2
534.8 1,029.8
1,564.6
Included in rubber development costs in total project costing.
-
83
ANNEX Table
-
3 6
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS II
Road Construction
and Improvement
136.3 18.3
26.1 8.4
212.6 30.2 48.4 49.8
18.1 4.2
33.5 25.0
296.5
584.9
165.1
341.0
176.9
66.1 167.3
29.6 110.8
58.4 218.7
16.5 85.3
34.1 176.2
119.2
233.4
140.4
277.1
101.8
456.8
894.4
436.9
862.0
1.9 24.6
3.6 45.6
25.0 39.0
26.5
49.2
2.7 6.7 9.4
337.6
661.0
33-7 85.5
Total contingencies Total cost roads tracks
/b
Contingencies Physical Price Total contingencies Total cost Grand total Base cost - all roads Contingencies Physical Price Total contingencies GRAND TOTAL COST
lb
114.4 16.2
240.1 48.0 8.4
Total base cost
/a
445.9 89.2 49.8
557.7 53.5 49.8
Secondary village Rubber collection
1983 LC
LC
FX
and Jambi
1982 FX
300.4 28.8 8.4
Contingencies Physical Price
- Riau
LC
LC
FX
Total base cost
Phasing
1981
1980
1979 LC
Main access road (i) Basic formation (ii) Upgrading (surface dressing) (iii) Ferry improvement Primary village roads (DPUPs) /a Maintenance/equipment
Programme - Financial (Rp million)
PROJECT
FX
LC
FX
Total FX
Total
1,726.1 99.3 107.9 241.7 174.4
2,655.5 152.8 166.0 371.9 203.8
-
-
929.4 53.5 58.1 130.2 29.4
345.5
224.5
417.0
1,200.6
2,349.4
3,550.0
17.7 116.8
34.6 228.2
22.5 182.8
41.7 339.4
120.0 581.2
234.8 1,129.8
354.8 1,711.0
210.3
134.5
262.8
205.3
381.1
701.2
1,364.6
2,065.8
266.9
551.3
311.4
608.3
429.8
798.1
1,901.8
3,714.0
5,615.8
46.4 72.5
35.5 54.8
65.8 102.0
18.0 69.6
33.4 129.3
14.9 82.5
27.7 153.4
95.3 270.5
176.9 502.8
272.2 773.3
64.0
118.9
90.3
167.8
87.6
162.7
97.4
181.1
365.8
679.7
1,045.5
4.9 12.4
6.4 23.9
11.9 44.5
9.0 46.7
16.8 86.8
8.8 57.8
16.3 107.4
9.7 79.3
18.1 147.4
36.6 214.4
68.0 398.5
104.6 612.9
17.3
30.3
56.4
55.7
103.6
66.6
123.7
89.0
165.5
251.0
466.5
717.5
66.5
94.3
175.4
146.0
271.4
154.2
286.4
186.4
346.6
616.8
1,146.2
1,763.0
364.1
710.2
360.5
703.8
255.4
508.8
264.5
508.2
321.9
598.1
1,566.4
3,029.1
4,595.5
36.4 92.0 128.4
71.0 179.7 250.9
36.0 134.7 170.7
70.3 263.2 333.5
25.5 132.0 157.5
50.9 263.0 313.9
26.5 174.6 201.1
50.9 335.6 386.5
32.2 262.1 294.3
59.8 486.8 546.6
156.6 795.6 952.2
302.8 1,528.3 1,831.1
459.4 2,323.9 2,783.3
492.5
961.1
531.2
1,039.3
412.9
822.7
465.6
894.7
616.2
1,144.7
2,518.6
4,860.2
7,378.8
35.9
For the DPUPs of Riau and Jambi. Included in rubber development costs
in total project
costing.
-
-
253.1 33.9 -
138.2 19.0 58.1 9.2
256.8 35.2 107.9 17.1
-84
ANNEX 3 Table 7
-
INDONESIA NUCLEUS ESTATE AND SNALLHOLDERS II PROJECT
Cost Structure of the Basic Upland and Lowland House Types
Quantity
Materials Cimva-Ram blocks Sand for floor base Cement floor screed Concrete piles Timber (red meranti or similar) Roofing BWG 34, galvanized sheet Rumbia fronds Paint Preservative Nails Fittings
Upland house type Units Unit rate (Rp)
180 0.7 1.05
pcs cu m cu m
-
-
2.12 52 268 16.4 7
cu m sheets pcs lbs
-
-
-
kgs
70 2,500 15,500 -
20,000 1,050 20 500 300 -
Subtotal Subtotal, excluding timber Labor /b
a 28
man-days
650
Total
12,600 1,750 16,275 -
-42,400 54,600 5,360 8,200 2,100 3,500
Quantity
Lowland house type Units Unit rate (RP
Total
-
0.18 3.45 52 -
20 10
cu m cu m sheets -
lbs kgs
24,000 20,000 1,050 450 300
4,320 68,980 54,600 9,000 3,000 3,500
146,785
143.400
104.385
74.420
18,200
man-days
20,800
Total base cost. excluding timber
122.585
95,220
Total base cost. including timber
164,985
164.200
'/a To be applied to materials package if timber is made available free of charge through PTP IV operation of a saw mill after land clearing. /b Labor inputs 'assumedslightly higher for lowland house owing to addltional c'rpentry work.
-85-
ANNEX4 Table 1
INDONESIA NUCLEUS ESTATE ANIDSMALLHOLDERS II PROJECT
New Settlement Five ha Farm Model Farm Development and Crop Production - Field Food Crops RIAU and JAMBI
0 /a
A.
Land Clearing (ha) Mouse lot Garden lot Field crop area Rubber Total developed undeveloped
B. _
Field Food Crop Development (ha) Rice Cassava Groundnuts/beans1:1 mixture Pasture/cover crop Fallow
Z
C.
Yield Estimates (kg/ha) Rice Cassava (wet) Groundnuts (wet) Beans Rubber
D.
Crop Production (kg) Rice Cassava: field crop area Groundnuts Beans Total
0.05 0.1.5 0.4 2.0 2.6 2.4
-
-
1
2
3
4
5
6
7
8
-
0.2
0.2
0.2
0.2
0.2
0.2
0.2
2.6 2.4
2.8 2.2
3.0 2.0
3.2 1.8
3.4 1.6
3.6 1.4
3.8 1.2
4.0 1.0
4.0 1.0
0.4 0.4 -
0.4 0.4 0.4 0.2
0.4 0.4 0.4 0.4
0.5 0.5 0.4 0.5
0.5 0.5 0.5 0.7
0.5 0.5 0.5 0.9
0.5 0.5 0.5 1.0
0.5 0.5 0.5 1.0
0.5 0.5 0.5 1.0
-
-
-
-
-
-
0.1
0.3
0.3
750 -
750 7,000 500 200
850 8,000 500 250
950 8,500 800 300
1,050 9,000 1,000 350
-
-
-
-
300 2,800 100
340 3,200 100
-
-
500
800
900
525 4,500 200
600 4,750 240
650 5,000 300
650 5,500 300
650 6,000 300
70
80
90
90
90
-
-
-
-
-
40
50
60
-
-
3.240
3.690
4,000
5,295
-
-
-
-
Land clearing done by PTP IV or its contractors.
-
1,200 1,300 1,300 1,300 9,500 10,000 11,000 12,000 1,200 1,500 1,500 1,500 400 450 450 450 300
-
Rubber
/a
380 3,400 160
9
5,670
6,040
6,540
7,040
600
1,000
1,600
1,800
886
-
ANNEX 4 Table 2
INDONESIA NUCLEUS ESTATE AND'SMALLHOLDERSII
PROJECT
Production Value and Production Costs for Trees. Venetables and Poultry from a 0.15 ha Garden Lot RIAU and JAMBI
Crop
Area (ha)
Unit range
Unit
Fruit Trees Banana Papaya Pineapple Citrus Ranbutan Jack fruit
bunches fruit fruit fruit fruit fruit
Price per kg (R,p)
5 50 10 100 25 10
100 30 40 10 40 80
Subtotal Vegetables Cassava Sweet potato Rice Peanuts/beans
-
.03 .02 .10 .10
kg kg kg kg
180-360 80-200 75-130 2-4.5/5-15
15 25 130 100
nuts kg kg
75 5 2
20 300 1,000
500 1,500 -
Foultry Chickens Ducks Eggs
no. no. no.
2-10 2-4 100-300
Total gross production value from livestock Production costs for livestock Net production value from livestock Total gross production value from 0.15 ha garden lot Total production costs Total net production value from 0.15 ha garden lot
500 S50 30
500 1,500 400 -
A RS
/a 4 (RpB4) -
-
5 --
6-30
-
500 1,500 400 1,000 1,000 -
500 1,500 400 1,000 1,000 800
2.000
2.400
2,900
4.400
5.200
2,700 1,760 9,750 2,000
3,150 2,200 9,750 2,000
3,600 2,640 11,050 2,500
3,825 3,080 12,350 3,000
4,050 3,520 13,650 3,500
4,275 3,960 15,600 4,000
16,210
17.100
19,790
22,255
24.720
27.835
-
-
-
-
-
Subtocal Total gross Production value from crops Production costs for crops Net production value from crops
YE 3
2
500 1,500 400 500 -
-
Subtotal Cash Crops Coconuts Coffee Cloves
1
-
-
1,500 2,000
1,500 2,000
1,500 1,500 2,000
-
-
3.500
3 500
5 000
-
16.210 6,200 10,010
19,100 6,100 13,000
22.190 6,000 16,190
28.655 6,000 22,655
32,620 6,000 26,620
38.035 6,000 32,035
1,000 1,100 3,000
2,500 1,100 4,500
3,000 1,650 6,000
4,000 2,200 7,500
5,000 2,200 9,000
5,000 2,200 9,000
5.100 900
8.100 1,800
10.650 2,800
13.700 2,800
16.200 2,800
16.200 2,800
4.200
6,300
7.850
10,900
13.400
13.400
21.310 7.100
27,200 7.900
32.840 8.800
42.355 8.800
48,820 8.800
54.235 8.800
14.210
19.300
24.040
33.555
40.020
45.435
/a Farmer assumed to arrive midyear of Year 0 and plent rice and cassava.
- 87 -
~~~~~~~~~~IIDNFHSIA
-
Production
Coatr -
kallholder Labor(man-days)
Activity
Crop
12 12 29 a
Land preparation Planting Wbeeding A maintenance labor Fertilizers: Urea TS? MD? control Peat C dtiease post(inl. Harvest harvyst vork)
lice
Total
total
Total
Fertiliter,s Harvest/transport
a
10 13
I
2
1.25
Cuttings:
L50
labor T8P
7.500
ton
6 Itp 1,5001ton
loo k
Rp 77
45 kg 6 fp 85 70 kg I Ip chemicals
3 30
46
11 8 23 4
Seed:
75S of
70 kg/ha-66.5
kg
fkp 150
75 kg 0 p 77 p es 65 kg4 4o kg Q Rp 52 Cbheicals
3 45
11 S 23 4
Bed:
-60 3 41
752 of
30 kg It
40 kglha
75 4kg Itp 77 p 85 45 kg 52 4kg Ip Chnmicals
13 17 22 5
Cuttings:
400 kg 6 fp
15
77 *0 4kg 40 kg 9 Rp 85 60 kg B Rp 52 Chals
4 39
5 3 25 10
Bead:
6k4 0 ftp 900
55 1 f Ip 25+ CQemicals: I 1 I tp 255
3 200 kg4 Rp 85
p 130
1.1.
(°)
0
F.e. (lp)
L.c. (Rp)
7.500
-
50 100 100 100
5,250 6,375 2,400 3,000
5,250 -
239775
57
17.025
12.750
1,875
0
7.700
100
7,700
-
3,825
100
3,825
3,360 1,500
100 100
3,360 1.500
-
18.260
90
16.385
9,975
0
-
5,775 5,525 1,480
100 100 100
5,775 5,525 1,480
22.755
65
14.880
3,900
0
5,775 3,825 3,120 1,500
100 100 100 100
5,775 3,825 3,120 1,500
18.120
78
14.220
6,000
a
6,930 3,400 3.120 1,0
100 100 100 100oo
6,930 3,400 3,120 1,000
20.450
86
14 450
6.000
5,400
0
-
S,400
1,630
100
1,630
-
17,000
100
17,000
-
24.030
78
18.630
17 5
-
-
1.875
-
1.875 7,875
-
7.875
-
3,900
-
3.900
-
6000
-
34
Total
lotes:
lp
10.500 6.375 2,400 3,000
cost
Land preparstion Planting Weeding & intennce Lalang control
PFature/ cover crop
65 kg/ha - 50 k
802 of
cost
Lend preparation of cuttings Preparation and planting Weeding & naint_Cgcs labor rertilizers: A TSP SOP control & disease Pst poetHarvest (inol. work) harvest
Sveat potato
Total Costs (lRp)
Costs
94
cost
Land preparation Planting 'beding & maintenanee labor Fertilizers: IA TSP P control Peat & disease (inel. postHarvest work) harvest
Beans
and Unit
7S
cost
Land preparation Planting 'Weeding & maintenakce labor Pertilizers: SA TUP OP control Pest & disease post(irl. Harvest work) barvest Total
Hatarials
100
mP control Pest & dianste Harvest & transport
Groundnuts
RAU and JA4I6I
150 kg 0 p 70 75 kg 0 Rp S5 Rp 4* 50kg 4 Cbodcals
TSP
Total
Uplaind Crops Per Hacter.
for
Bead:
3 3?
cost
Land preparation of cuttings Preparation planting Weeding & maintenance labor Fertilizers: SA
Cassava
Table 3
PROJECT
AIID SMALLIIOIDE1S It
XUCLNUSJSTFr.s
540o
of beans to a 1:1 ixtora planted the rice are after harvest crop area rice and cassava are intercroppsd; In the field hs are 100 + 78 + 47 + 45 - 270 man-days. The production per intereropped labor requirements The totaI and groundnuts. hacosts are Rp 29,775 + 16,260 + 1,1378 + 9,060 - ftp 68,473 per intercropped In the tield intercropped
crop ares in the garden lOt swet ha are 100 + 76 - 17B saf-day"
per labor requfremnte The total era intercropped. sod cassav potato costs are Itp 20,450 + 186260 - 4p 38,710 per iatercropped The production
ha.
- 88 IN!
bOLl.!
0NI:S
Smal ,'lldi 1
RiIAU__vrd
Activity
5
Land clearisg Rice Cassava
Croundnuts/beans Sweet potato Pasture/cover crop Trees/vegetables/poultry
Md/A-
lia
0.2 0.5 0.6 0.5
0.1 0,7
Rubber
Land clearing
Rice Cassava Groundnuts/beans Sweetpotato Pasture/cover crop Trees/vegetables/poultry
0.2 0.5 0.6
0.5 0.1 0.9 0.05
Subtotal Rubber
2.0 Total
7
Land clearing
Rice Cassava Croundnuta/beans Sweet potato Pasture/cover crop Trees/vegetables/poultry
0.2 0.5 0.6 0.5 0.1 1.0 0.05
Subtotal Rubber
2.0 Total
8
Land clearing Rice Cassava Groundnuto/beans Sweet potato Pasture/cover crop Trees/vegetables/poultry
0.2 0.5 0.6 0.5 0.1 1.0 0.05
Subtotal Rubber
2.0
Total
9
38 50 47 46 10 48
5
Land clearing Rice Cassava Gro.ndnats/beans Sweet potato Pasture/cover crop Trecs/vegetables/poultry
-
-
3 2 4
17 2
3 -
i1armn MoLdel
5 1
Alr
lay
Jui
Ju I
AtIg
Sup
Oct
Nov
Doc
2
1 5 1 5
15 9 1
8 12
-_ 6
-_ i 15
5 2
5 2
I
15 1 17 2 -
1
10
1
2 -
3 1 _
-
-
-
-
-
8
2 r
I
8 -
2 4
I
4 -
I
11
10
27
16
13
35
26
24
15
38
14
15
-
-
-
-
-
-
-
-
-
-
-
-
-
244
11
10
27
16
13
35
26
24
15
38
14
15
38
5 2 -
17 2 5
2
15 1 17 2
6
15 15
5 2
5 2
-
-
-
-
-
6 -
10 I
10
-
15 9 2 I
8 12
4 -
3 2 6 I
-
2 5 I
-
258
12
286 544 38 50 47 46
2
3 2
-
-
1 5 1 6 I
12
27
17
14
35
27
26
17
40
15
16
24
23
24
24
24
24
24
24
24
23
24
24
36
35
51
41
38
59
51
50
41
63
39
40
3 2 7 I
17 2 5
2 10 3 3
1 17 3
6
15 15
5 2
5 2
-
-
2 8
-
-
15 9 3 I
8 12
-
1 5 1 8 I
15
76 5
5 2 I 5 -
-
272
13
13
28
18
16
36
286
24
23
24
24
24
24
558
37
36
52
4~
40
38 50 47 46 10 80 5
5 2 -
3 2 8
17 2 5
2
1
10
S 1 9
50 47 46 10 62 5
10
1
1
1 3
10
2 7
-
-
-
8
11
-
11 I
-
2 6 I
28
28
18
41
16
17
24
24
24
23
24
24
60
52
52
42
64
40
41
15 1 17 3
8 12
6
15 15
5 2
5 2
-
-
-
-
-
9
11
2 8
I
-
3 3 _1
-
15 9 3 I
-
11 I
-
2 6 I
276
14
14
28
1.8
i
36
28
29
18
41
16
17
286
24
23
24
24
24
24
24
24
24
23
24
24
562
38
37
52
42
41
60
-
3 2 8 I
17 2 5 1 3 -
2 10 3 3 -
1 5 1 9
1 6 -
1 3
I
-
52
53
42
64
40
41
1 17
9
12
6
15 15
2
5 2
-
-
-
-
-
-
-
3
11 I
11 -
2 6 I
2 8
0.5
50
0.6 0.5 0.1 1.0 0.05
47 46 10 80 5
I
3 -
I
9 -
238
14
14
28
18
17
21
13
21
18
41
16
17
286
24
23
24
24
24
24
24
24
24
23
24
24
524
38
37
52
42
41
45
37
45
42
64
40
41
2.0 Total
lar
1
I(:'
l .!A5PI
Fo eb
2 -
I'S'.
5 2 .1 6 -
Subtotal Rubber
5
3in
5
1
244 2.0
Total 6
Md
0.05
Subtotal
IA
F;O:'il'61U ANS SNAIlIlI:!;.
L..Lh'r AnilaAys.s oit
Year
ANNEX4 Table 4
-
5
-
ANNEX 4 Table 5
INDONESIA NUCLEUS ESTATE AND SKALLHOLDERSII
Labor
Analysis
of
a Smallholder
PROJECT
5 ha Farm Model
RIAU and JAMBI
Year
Activity
I
Land clearing Rice Cassava Grouudnuts/beans Sweet potato Pasture/cover crop Trees/vegetables/poultry
Md/ha
Ha
188 100 78 92 100 80 100
0.4 0.5 0.1 0.05
Hd
20 16 4 3
Subtotal
43
Rubber
Land clearing Rice Cassava Groundnuts/beans Sweerpotato Pasture/cover
0.2 0.4 0.5 0.4 0.1 crop
Trees/vegetables/poultry
0.2
Rubber
Land clearing Rice Cassava Grouadnuts/beans Sweet potato Pasture/cover crop Trees/vegetables/poultry
0.2 0.4 0.5 0.4 0.1 0.4 0.05
Subtotal
Rubber
Land clearing
Rice Cassava Groundouts/beena Sweet potato Pasture/cover crop Trees/vegetables/poultry
0.2 0.5 0.6 0.4 0.1 0.5 0.05
Subtotal
Jun
_
-
-
-
-
_ -
_
-
-
-
_
_
_
43
_
38 40 39 37 10 7
4 1 1 -
_
_
2 2 -
_
_
-
-
12 13 -
4 1 2 -
4 2 2 -
-
1
1
-
-
1
26
8
8
-
-
-
_ -
1_
-
_
-
-
1
26
8
8
15 -
8 10
5
12 13
4 1
4 2
7
-
-
-
-
-
-
-
2
2
2 1
2 2
-
-
I
-
I
_
-
1
20
13
7
30
23
18
8
27
9
10
7
30
23
18
8
27
9
10
15
15
8
-
_ 1 14
-
-
-
10
4 1
4 2
7 _ 1 I1
_ 2 -
12 13 _ 4 -
2 2 I1
2 4
10
29
10
12
176
6
5
20
38 40 39 37
4 1 -
2 2 -
_
14
13 -
2
-
-
-
I
-
1 4 1 2
-
-
I
21
13
9
30
24
20
10
29
10
12
_
_
15
15
8
-
-
-
-
-
-
-
-
-
15
5
1 4 1 4 -I
1 14 _ 1
5._
1 -
2 8 3 1 _
-
U 2i
II
ii
U
1 4 1 1
8
10
1
-
23 5
1 -
2 I
192
7
7
-
-
-
192
7
7
21
3
38
4 1 -
-
-
2 2 4 I
14 1 4
-
Dec
-
-
I
Nov
1 4 1 -
14
5
2
Oct
15 1 14 _ -
-
1
Sep
-
_
_
Aug
_ 1 4 1 -
j
42 37 10 36 5
Jul
_ 2 8 3 -
-
45
-
_ -
-
j}
Rubber
Kay
5
2.0
Total 4
Apr
176 2.00-
Total 3
Mar
1
0.05
Subtotal
Feb
-
2.0 Total
2
Jan
1
3
-
_
U A
-
15
5 2
-
-
-
-
-
_ 4 _
_ 6 I
_ 5 _
2 3 I
2 4
Uk
A
10
7 _ 1 1
5 -_ 4
.
2
L
2.0
12"L
~~~~~ia I
L
Li
u
IL
i
I
ANNEX 4 Table 6
- 90 INDONESIA NUCLEUS ESTATE A-NOSMALLHOLDERS II PROJECT
Family Labor Availability and Labor Requirements of a Five ha Farm RIAU and JA.IBI
1
A.
B.
Family Labor Availability Age 32 Husband 26 Wife 8 Child 6 Child 4 Child
1.0 0.5 -
2
3
4
1.0 0.5 0.1
1.0 0.5 0.2
1.0 0.5 0.2
-
0.1
_-
Total family labor limits -
1.5
1.6
Totalman-days per family (1 labor unit - 300 man-days)
450
480
/a (md) ha Land clearing (188 md/ha) 0.4 Rice (100 nd/ha) 0.5 Cassava (78 md/ha) Groundnuts/beans 1:1 mixture (92 md/ha) 0.1 Sweat potato (100 md/ha) Pasture/cover crop (80 md/ha) 0.05 Trees/vegetajles/poultry (100 mu/~,) Subtotal 2.0 Rubber Subtutal NES rubber area Off-farm: Total Family labor surplus
/a Growing seasons of the crops
-
_
-
-
1.8
1.7
md 20 16
ha 0.2 0.4 0.5
md 38 40 39
ha 0.2 0.4 0.5
md 38 40 39
ha 0.2 0.5 0.6
md 38 45 42
4 3
0.4 0.1 0.2 0.05
37 10 7 5
0.4 0.1 0.4 0.05
37 10 23 5
0.4 0.1 0.5 0.05
37 10 36 5
43 285 328
176 176 285 461
122
19
43 -
2.0
2.0
192 192 285 477
2.0
33
do not coincide with the calendar year.
6
7
8
1.0 0.5 0.2 0.2 -
1.0 0.5 0.3 0.2 0.1
1.0 0.5 0.4 0.2 0.2
1.0 0.5 0.5 0.3 0.2
1.9
2.1
2.3
2.5
.570
540
510
5
213 213 285 498 42
md ha 0.2 38 0.5 50 0.6 47
ha 0.2 0.5 0.6
md 38 50 47
46 10 48 5
0.5 0.1 0.9 0.05
46 10 62 5
0.5 0.1 0.7 0.05
2.0
750
750
690
630
9
md ha 0.2_-38 0.5 50 0.6 47
ha 0.2 0.5 0.6
md 38 50 47
ha 0.5 0.6
md 50 47
46 10 76 5
0.5 0.1 1.0 0.05
46 10 80 5
0.5 0.1 1.0 0.05
46 10 80 5
0.5 0.1 0.1 0.05
272 2.0 256 558
276 2.0 286 562
238 2.0 286 524
244 244 285 529
258 2.0 286 544 -
-
544
558
562
524
41
86
132
188
226
-
ANNEX 4
-91-
7 ~~~~~~~~Table
- 9l INDONESIA AND S4ALILHOLDERSII PROJECT
NUCLEUS ESTATE
Smallholder Rubber Yield Projections for New Settlement Rubber /a .RIAU and JAMBI
Planting year
Tapping year
Density (No. trees/ha)
Yield (kg/ha)
Cumulative yield(kg/ha)
6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
350 400 410 400 390 380 370 360 350 340 330 320 310 300 290 285 280 275 270
85 85 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113
10 15 17 20 22 26 29 31 33 36 40 44 46 47 49 50 47 45 43
300 500 800 900 1,000 1,100 1,200 1,250 1,300 1,400 1,500 1,600 1,600 1,600 1,600 1,600 1,500 1,400 1,300
300 800 1,600 2,500 3,500 4,600 5,800 7,050 8,350 9,750 11,250 12,850 14,450 16,050 17,650 19,250 20,750 22,150 23,450
25
20
265
113
40
1,200
24,650
113 113 113 113. 113
37 35 32 29 26
1,100 1,000 900 800 700
25,750 26,750 27,650 28,450 29,150
26 27 28 29 30
260 255 250 245 240
21 22 23 24 25
wverageannual yield
a
Grams per tree Tapping days per tapping (No. days/annum)
-
29,150
25
=
1,166
kg/ha
conditions. management and control under good smallholder are estimated These yields by followed years, two first the for assumed is S/2.d/4.50% system The tapping low both on bark virgin the finished having (after 12 year tapp.ing In S12.d/3.67%. on bark renewed the above just be opened will a cut that assumed is it panels) panel B which cut will be tapped upwards. On panel C, a cut is opened at the same height as at opening which cut will be tapped downwards. It is assumed that after 3 months tapping the high panel upwards, tapping will be continued for 3 months on the low panel downwards, after which the panel will be changed again. This tapping system is coded S 2.d/3 (2x3 mo/12) (2x3 mo/12).67%. It is assumed that Ethrel 2-1/2% (in palm oil) will be applied about 10 times a year on a band of lightly scraped bark about 1.8 cm wide.
INDUNEOlA NUCLEUS ESTATE AND SMAILLIULDERS 01 PROJECT income Statonot
Yer:
Gardos area Food .rop floe 0 RIp 13f/kg Case..-9 Rp 9/kg Feaootn/boo- 8 lRp130/kg Onlitotal Robber Ioa
Gardee area Lb Food orops fins 8 Rp 29,775/ha /b Tas...Np 18.380/ha /b Fea..ots/bh.a.s 9 Np 22,755 & ROp 18,120/ho 8Rp 24,030/ha SobtetL1 Robber mltan/oon
0/
0
2
-
21.3
27.2
32.8
-
21.3
39.0 19.6 18.2 104.0
44.2 22.4 19.5 118.9
4
5
6
7
d
9
10
11
12
13
14
12
1b
17
18
19
20
42.4
48.8
54.2
54.2
54.2
54.2
54.2
24.2
54.2
54.2
54.2
54.2
54.2
54.z
54.2
54.2
54.2
49.4 23.8 28.8 144.2
68.3 31.5 35.1 183.7
78.0 33.3 41.6 207.1
84.5 35.0 50.7 224.4
84.5 38,5 50.7 27.9
84.5 42.0 50.7 231.4
84.5 42.0 50.7 231.4
84.5 44.5 84.5 84.5 42.0 42.0 42.0 42.0 5n. 0.7 50.7 50.7 231.4 231.4 231.4 231.4
84.5 84.5 42.0 42.0 SE.750.7 231.4 231.4
d4.5 42.0 50.7 231.4
84.5 42.0 50.7 231.4
84.5 42.0 50.7 231.4
84.5 42.0 50.7 231.4
54.2 845 8. 42.0 50.7 231.4
146.2
242.4
396.8
456.5
517.0
581.0
647.3
674.3
17.2
750.2
863.0
883.0
883.0
883.0
353.3
466.8
824.7
887.9
748.4
812.4
878.7
905.7
932.6
986.6 1040.5 1094.4
21
22
23
24
25
54.2 54.2 85P45 45 8. 42.0 42.0 50.7 50.7 23J1. 4 231.4
54.2 845 45 42.0 50.7 231.4
54.2 8. 8. 42.f 50.7 231.4
863.0
009.1
755.2
700.2
647.3
1094.4 1094.4 1094.4 1094.4
1040.5
986.6
932.6
878.7
-
-
-
21.3
-
-
7.9
8.8
8.8
8.8
8.8
8.8
0.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
8.8
-
-
11.9 7.3
11.9 7.3
14.0 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 8.1
14.9 9.1
14.9 9.1
14.9 9.1
14.9 9.1
-
-
8.2
8.2
8.2
10.2
10.2
10.2
10.2
10.2
10.2
10.2
14.2
14.2
14.2
00.2
10.2
10.2
10.2
10.2
10.2
10.2
10.2
10.2
10.2
10.2
-
-
-
-
4.8 40.1 -
9.6 45.8 -
12.0 53.0 -
16.8 59.8 -
21.6 64.6 37.7
24.0 67.0 75.5
24.0 67.0 75.5
24.0 67.0 75.5
24.0 67.0 75.5
24.0 6_7.0 75.5
24.0 47.0 75.5
24.0 67.0 75.5
24.0 24.0 67. 0 67 75.5 75.5
24.0 67.0 75.5
24.0 67.0 75.5
24.0 67.0 75.5
24.0 67.0 75.5
24.0 24.0 67. 0 67 75.5 75.5
24.0 6k7.0 75.5
24.0 67. 75.
24.0 67.0 755
24.80 670 0 7.
TotL1 neStS Nr
3
for New Settlement 5 ho Farm Mo.del 4 Lau. as d Jan6i (Constan.t 1977 Rp'0007
melee of prodantien
-
-
-
10D4.0 118.9
044.2
183.7
809.1
-
40.1
45.8
_53.0
59.8
102.3
1L42. 5
142.5
142.5
142.5
142.5
142.5
142.5
142.5
142.5
142.5
142.5
142.5
142.5
142.5
142.5
142.5
142.5
142.5
142.5
21.3
63.9
73.1
91.2
125.9
251.0
324.3
482.2
545.4
605.9
669.9
736.2
763.2
790.1
844.1
898.0
951.9
951.9
951.9
951.9
951.9
890.0
844.0
790.1
736.2
-
-
-
Other Inno,e S'b.ist....nash payment 0ff-Care employment /. Ld NE labor Cannel Imbor
Lens: inton Lens:
/d ft
92.6 162.3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
--
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
---
--
334.0
343.5
398.8
251.0
324.3
482.2
5145. 4
605.9
505.9
736.2
763.2
790.1
844.1
898.0
921.9
951.9
951.9
951.9
851.9
898.0
84.
307.3 15.6
334.0 17.8
343.5 21.6
398.9 27.6
251.0 53.0
16.2 308.1 70.0
24.1 458.1 93.7
27.3 518.1 103.2
30.3 575.6 112.3
33.5 636.4 121.9
36.8 699.4 131.8
38.2 725.0 135.8
39.5 750.6 139.8
42.2 801.9 148.0
44.9 853.1 156.1
47.6 904.3 164.2
47.6 904.3 164.2
47.6 904.3 164.2
47.4 904.0 164.2
47.6 904.3 164.2
44.9 853.1 156.1
42.2 801.8 148.0
39.5 750.6 139.9
36.8 688.0 131.8
291.7 704
316.2 762
321.9 776
371.2 894
198.0 477
238.1 573
364.4 877
414.9 1,000
463.3 1,116
514.5 1.239
567.6 1,369
589.2 1,419
610.7 1,472
653.9 1,576
697.0 1,680
740.1 1,783
740.1 1,783
740.1 1,783
740.1 1,783
740.1 1,703
697.0 1.679
653.8 1,575
610.7 1.471
567.6 1,367
1._79. 9 318.5
30O7. 3
179.9 -
319.5 3.2
179.9 434
316.3 762
before debt n-rine US0$
-
252.03
Total leoine
Je
185.3
185.3 89.6 274.9
179.9
Ipedo tan (520 hefere doht enoe aie..a.n. for rink
-
0835. 3 185.3 085.3 117. 58. 75.6 303.92 243.4, 260.9
Sobtotal
NoL i-nom
Lb L]
25.0
Yh Ter 0 eqoal to sic smotbo Fin.t year send and fertiltzer reqoireroet for non,. n.s.. Fe.-I. is Tear 0 werks 139 doye 0 lRp450. Hlsl is Year 0 works 143 days 0 Rp 650. 15% of gross. aine of prednotin..
267.
-
ae-dgarden precEded no
-
-
-dnir by .. anIem
-
-
enCore.
-
-
-
-
-
-
-
-
-
-
--
--
9.
3.
1IDNEOSDIA 00110DUbLSLATE AND D7MA1100101DUIIP8OJECT for New Settlemet - S
eo-sStatemet
So
Fac Nodal
RlAUland 2AL101 Otarrot tho..sa.dRp) Year
2
1
2/
39.2
28.3
Dardocara race
3
4
50.5
70.0
~~80.0 76.2 ~~~~~ 86.1 ~~ ~~~~~ 34.4 39.3 28.2
..
Sabt.tal
28.3
-
Total lost of reodacctn Dordenara RAcelaave Peaat/beae Pastur, cove
-
15
16
17
18
19
20
21
22
23
-
134.4
143.6
153.9
164.8
176.1
189.6
201.8
215.7
220.9
247.2
264.5
282.9
303.8
323.6
346.9
370.7
209.5 104.a 125.7
223.9 111.3 134.3
240.8 119.3 144.0
25c.9 127.2 154.0
274.6 138.5 164.8
294.1 146.2 176.4
318.3 156.2 188.6
336.3 167.2 281.8
360.0 178.9 216.8
385.3 191.5 231.2
412.4 205.8 247.4
44i.1 219.2 264.6
422.4 234.8 283.4
504.5 258.8 302.7
560.8 268.8 324.5
578.0 267.3 346.8
396.3
4_55.5
494.5
538. 7
073,7
613.1
657.2
703.5
752,8
805.3
860.7
901.8
253.3
463.4
818.2
996.4
-
644.86
916.9
1,204.8 1,449.0 1,788.8 1,937.8
1,3d4.7 1,533.1 1.778.5 2,062.1
2,855.6
2,446.0 1~2,61.
1.293.6 13-81.6 1A481.0
1a582.8
3,391.4 3,633.2 3,883.6 4,142.4
4,166.8 4,168.0 4,136.8
4.084.0
3,2_28.9 3,8_35.7 4S_097.0 4.377.2 4.688.4 5,022.9 3,350.2
5,460.4 5.549.6 5,617.8
5.666.8
2,183.6 2,473.6 2,775.8 3,176.8
-
14.5 24.6 15.0 13.5 18.8
15.6 76.4 16.1 18.8 78.7
16.6 28.2 17.2 19.3 40.8
17.8 38.2 18.5 28.7 49.7
19.1 32.3 19.7 02.1 32.1
28.4 34.6 21.1 03.7 55.7
21.8 36.8 22.6 25.2 59.5
23.3 38.5 24.1 27.0 63.6
25.0 42.3 05.8 29.0 68.2
26.7 45.3 27.7 31.0 73.0
28.6 48.4 29.6 33.2 78.0
38.6 51.8 31.7 35.5 83.5
30.7 55.4 33.9 37.9 89.3
35.8 59.3 36.2 40.6 95.5
37.3 63.5 38.8 43.4 122.2
48.1 67.9 41.5 46.5 109.4
42.9 72.7 44.4 49.8 117.6
45.9 27.8 47.5 33.2 123.3
49.2 83.3 58.9 57.0 134.1
52.3 88.9 34.3 60.9 143.3
153.6
60.2 181.9 62.2 69.8 164.2
-
7.7
70.4
87.4
185.8
122.1
135.9
145.3
155.5
166.1
177.5
690.3
203.7
217.8
233.1
249.2
266.6
285.4
305.4
326.9
349.7
374.3
399.9
426.8
458.3
-
-
71.2
153.2
163.8
175.2
102.2
208.1
214.4
229.5
245.4
062.27
280.9
308.5
321.6
.344.3
368.4
394.0
422.0
458.7
483.2
516.4
103.8
193.3
289.1
389.1
338.7
353.3
377.6
484.7
433.2
463.2
495.8
530.1
562.1
607.8
849.2
695.3
243.8
296.3
850.6
912.8
974.7
219.4
451.3
629.6
995.6
~~- 28.3
-
70.4
07.4
112.6
92.5
-
150.6
Total Income.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
305.7 110.6
328.0 151.6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
188.9
483.2
350.3
481.8
416§.3
486.6
-
-
-
-
-
-
--
219.4
431.5
442.8
514.4
566.9
696.8
2a,392.4
2,2_33.1
3,1_05.8
3h529.9
119.6
136.6
155.3
176.5
OfET18C001 (Ce...tan0557
3-94,8
p-idhOd
4,692.1
4,705.8
-
-
-
-
-
-
451.3 -
-
629.8
995.6
31.5
49.8
1,202.4 1,425.2 1,684.5 2,041.3 2,208. 80.1
71.3
84.2
182. 1
-
-
-
-
-
-
-
-
-
115.8 279.0
202.6 488.0
249.0 600.2
301.2 726.0
362.3 873.0
119.4
684.5 447.2 1.078.0 1,187.8
893.2 6,_052.7 1,238.0 1,4-92.0 1,613.2 480.4 743.2 451.3 696.0 442.0 5014.4 566.9 431.5 1,000.0 1,067.8 1,240.3 1.366,0 1,677.0 1,867.0 1,182.0 1,791.0 2,153.0 2,536.0 2,983.0 3,595.0 3,000.0 707.0
667.8
713.8
693.0
peter to yo.r 1. fan fad-rcps
Oc- firet
yna
of p-odctic-
752.0
440.0
440.
620.8
679.0
731.0
783.0
883.0
-
-
596.3 945.8 1,142.3 1,353.9 1,600.3 1.9-39,2 2,887.7 656.0 451.3 414.4 566.9 431.5 442.8 1,040.0 10,67,0 1,240.0 1,366.0 1.622,0 1,007,0 1,142.0 2,279.0 2,753.0 3,262.0 3,656.0 4,673.0 5,835.8
-
iSa -th.l
4,699.0
4,663.9
4,806.4
285.4 116.4
219,4 529,0
a Year 0 of
4,317.6
4,038.7
-
NET INCOME (lorrut 005$)
-,d f-etiliee-
3,770.7
3,529.8
3,105.8
266.8 03.7
-
L..n: Dubtr-pay-ot(loo-et US$)
2,733.1
2,392.4
-
219.4 529.0
INCOME (Coerot DS$)
2,280.1
2,041.3
1,684.5
83.3
246.4 156.8
-
IPE8A Toe
1,425.2
1,202.4
56.3 93.4 38.2
112.9 76.0
30.5
Subtota1
1420./g
13.5 18.3 11.2 12.6 14.8
Otben loa.m. employmet: Off-fano 81 labor Casaul labor
98_5.8 1,855.2 171i9.3
11.4 17.1 10.5 11.8 6.9
57.2
Sabsi.t-uropaymet
25
196.0 97.4 10L7 .6
325.2
-
crp-
24
125.7
238.0 ~~~~~~28.3 149.8 183.0 ~~~~~
-
Veins Peeduetlon of NetIron
Seed
14
183.4 83.0 110.0
325.2
cots To.tal
/ADoauw
13
Lb
Subtotal
/b
12
117.b
238.0
Robber eiatononoc. co-1-
Lea.:
18
[10.0
183.8
-
id
171.3 21.1 182.9
149.8
-
8
147.4 b2.9 78.6
47.2
-
8
102.4
38.8
-
-
7
86.4
2.2
-
R.bb-r
6
120.9 55.8 82.1
-
Peanuts./bau
5
872.8
-----------
3,7-70.2 4,_038.7 4,317.6 4,6_06.0 4,663.94 188.5
201.9
215.9
238.3
233.2
f6_9950 4,705.8
4,692.1
235.3
234.6
234.9
4.464,1 4,478.5 4,657.5 2,272.8 2.596,5 2,950.3 3,333.4 3,581.7 3.8a36,8 4,101.7 4,376.1 4,430. 3,077.0 6,237.0 7,109.0 8,280.8 8,631.8 9,245.0 9,884.0 10,545.0 10,626.0 10,757.0 10,772.8 10,741.0 970.9 1,035.6---847.8 908,3 796.0 605.8 693.8 526.9 1.267,8 1,4668.0 1,672.0 1,813.0 2,043.0 2,189.8 2,339.0 2,493.0--
-
1.745,9 1,998.6 2,256.5 2,559.4 2,733.9 2,9_28.3 3,130.8 3,340.5 4,430,7 4,484.1 4,470.5 4,457.5 6,167.0 6,588.0 7,036.8 7,545.0 8,050.0 10,676.8 10,737.8 10,772.0 100,741.0 4,210,0 4,797.0 3478 860.0
894.8
926.0
981.0
966.8
945.0
921.0
896.0
1J4,13. 1,0-44.8
954.8
866.0
INDONESIA NUCLEUSESTATE AND SMALLHOLDEISII PROJECT Phbysical Description yesrg Witbout Prolect Food Crops Area planted (ha) /a Ckfg/ha) rice Yields; cassava (vet) PeAusor besos sweet potatoes" corn (cobs/ha) Existing Rubber Axeaunderrubber Yield (kg/ha) Total production
0
a
1
3
4
0.75 0.135 0.75 0.75 0.75 700 700 700 700 700 7,000 7,000 7,000 7,000 7.000 425 425 425 425 425 150 150 150 150 1S0 3.000 3.000 3.000 3,000 3.000 6,000 8.000 6,000 8,000 6.000 3 350
31
350
975
1.0s0
3 275
3 300 M
7
6
5
8
9
-
10
Nodel.
Rubber Reelecting 11
13
12
15
14
17
16
0.75 0.75 0.75 0.75 0.73 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 700 700 700 700 700 700 700 700 700 700 700 700 700 7.000 7,000 7,000 7.000 7.000 7,000 7.000 7.000 7.000 7.000 7.000 7.000 7,000 425 425 425 425 425 425 425 425 425 425 425 425 425 130 150 250 150 250 150 I50 150 150 150 150 130 150 3,000 3,000 L,000 3.000 3,000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 3.000 6.000 8.000 8,000 6.000 8.000 8.000 8,000 8.000 8,000 8.000 8,000 8.000 8.000
3 250
3 225
3 200
3 175
f2l75
675
600l
5.5
3 150 50
2 I 350
Totalexisting rubber Production oew rubber productionTotal Total rubberoroduction
700
-
1 2 275
-
-
-
-
-
-
650 -
70
1 2 300
2 I 325
j
-
NO
-
273
1 2 225 -
250
300~ -
1 2 250
-
225 -
250
225
L 2 200 300
1 2 175 500
-
-
200 300 500
I 2 150 800 300
0.75 700 7,000 425 150 3,600 8.000
21
20
0.75 0.75 0.75 700 700 700 7.000 7,000 7.000 425 425 425 150 150 150 3.000 3.000 3.000 8.000 8.000 8.000
24
23
22
0.75 700 7,000 425 150 3,000 8,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1 2 100 900 500
0 2 -
.
-
3'S 0.5 0.5 0.5 0.5 0.5 0.5 0.3 1.500 1.300 1,300~ 1.300 1.300 1.300 1.300 1.300 12.000 12.000 12,000 12,000 12.000 12.000 12.000 12.000 1.500 1,500 1,500 1,500 1,500 1,500 1,300 1,300 450 450 450 450 450 450 450 450 10.000 10,000 10.000 10.000 10,000 10,000 10.000 10.000 10,000 10,000 10.000 10,000 10.000 10,000 10,000 10,000
0 2
0 2
0 2
0 2
0 2
0 2
0 2
0 2
-
-
-
-
-
-
-
-
-
-
1,400 1,400 1,275 1.350 1,150 1.200 1,000 1,100 1.150 1,200 1,275 1,350
1.400 1.400
1,400 1,400
1,400 1.400
1,300 1,400
2,100 1,400
900 1,300
800 1,100
0 2
0 2
0 2
0 2
-
-
-
-
-
.2
I 100 175 150 500 1.100 1.400 1.750 1.900 Z.050 2.150 2.300 2.475 2.550 2.675 2.150 2.800 2.800 2_800 2.700 2.600 2.200 1.900 2.700 2.600 2.200 IJO A 750) 1.900 2.050 2.150 2.300 2.475 2.550D 2.675 2.750 2.800 2.800 2_0 675 L 250 I.500
0.13 ha; Corn 0.05 ha; cassava 0.25 ha-,seet potatoes0.05 ha. j Rice 0.5 ha; beans/groundouts Lb
0 2
0
0 2
950 1,000 1,100 900 950 800
25
0.75 0.75 0.75 700 700 700 7.000 7.000 7,000 425 425 425 IS0 150 150 3,000 3,000 3.000 8.000 8.000 8.000
3 100
With Lroject Food Crops" 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.7 0.3 0.7 0.7 0.7 0.7 0.7 Area planted (ha) 1k 1.300 1,300 1.300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 850 950 1,050 1,200 1,300 700 750 700 (kg/ha) Yields, 'rice 9.000 9.500 10,000 21.000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000O12.000 8.500 7.000 7,000 7,500 8,000 cassava (wet) 1,500 1,500 1.500 1,500 .1.500 1,500 1.500 1,500 1.500 1,500 -1.500 800 1,000 1,200 300 500 425 425 peanuts 450 450 450 450 450 .450 450 450 450 450 400 450 350 250 300 150 200 150 beans 10.000 10.000 10.000 10,000 L0.000 10,000 10,000 9.000 10,000 10,000 10,000 6.000 7.000 8.000 3,000 4,000 5,000 3,000 sweet potatoes 000 10,000 10,000 10.000 10,000 10.000 10,000 10.000 10,000 10,000 10.000 10,000 10.000 IOn 9,000 9,500 8,000 8,500 8,000 corn (cobs/ha) Zsiting area rubber Now *re*of ubber Yields - existing rubber (kg/ha) - new rubber lot ha2hd ha
19
is
In years 0-6. rice 0.5 ha; beass/groundnuts0.15 ha. cassava 0.2 ha; corn 0.05 ha. sweet potato 0.05 ha. 0.2 ha; cassava 0.1 ha. In years6-25, rice 0.4 ha, beaos/grouodnuts,
,-f.p
ANNEX4 Table 11 INDONESIA NUCLEUS ESTATE AND SMALLHOLDERSII PROJECT SmallholderRubber Yield Projections for Rubber Replanting /a RIAU and JAMBI Planting Tapping Density Tapping days Grams per tree year year (No. trees/ha) (No. days/annum) per tapping 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Average annual yield
350 400 410 400 390 380 370 360 350 340 330 320 310 300 290 285 280 275 270 265 260 255 250 245 240 24,175 25
85 85 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113 113
10 15 17 20 21 23 26 28 30 33 36 39 40 41 43 44 41 35 29 27 24 21 18 15 13
Yield Cumulative (kg/ha) yield(kg/ha)
300 500 800 900 950 .1,000 1,100 1,150 1,200 1,275 1,350 1,400 1,400 1,400 1,400 1,400 1,300 1,100 900 800 700 600 500 400 350
300 800 1,600 2,500 3,450 4,450 5,550 6,700 7,900 9,175 10,525 11,925 13,325 14,725 16,125 17,525 18,825 19,;25 20,825 21,625 22,325 22,92> 23,425 23,825 24,175
967 kg/ha
/a These yields are estimated under good smallholdermanagement and control conditions. The tapping system St/2.d/4.50% is assumed for the first two years, followed by S/2.d/3.67%. In tapping year 12 (after having finished the virgin bark on both low panels) it is assumed that a cut will be opened just above the renewed bark on panel B which cut will be tapped upwards. On panel C, a cut is opened at the sase height as at opening which cut will be tapped downwards. It is assumed that after 3 months tapping the high panel upwards, tapping will be continued for 3 months on the low panel downwards,after which the panel will be changed again. This tapping system is coded S 2.d/3 (2x3 mo/12) (2x3 mo/12).67%. It is assumed that Ethrel 2-1/2% (in palm oil) will be applied about 10 times a year on a band of lightly scraped bark about 1.8 cm wide.
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERSIT PROJECT Income
Statement
for
2 be Rubber
Replasting
RIAU AND JA1BI (Coostant 1977 Rp'00
Year:
Without Project of production Cross value Field crops/vegetables/ livestock /a Rubber (3 ha) Subtotal Cost of production Food crops Lb Rubber /c Subtotal Net value Off-fare
of crop production incore /d
Total Lse. Ipeda Net incore
income tacos
(5x)
With Project Gross value of production Food crops Existing rubber New robber (2 ha) Subtotal Cost of Productio Food crops ERisting robber New rubber (2 ha) Subtotal
2
3
4
)
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
80.1 142.5
80.1 131.0
80.1 119.5
80.1 108.0
80.1 96.7
80.1 85.6
80.1 76.6
80.1 67.1
80.1 45.6
80.1 -
80.1 -
80.1 -
80.1 -
80.1 -
80.1 -
80.1 -
80.1 -
80.1 -
80.1 -
80.1 -
80.1 -
80.1 -
80.1 -
80.1 -
80.1 -
228.3
222.6
211.1
199.6
188.1
176.8
165.7
156.7
147.2
125.7
80.1
80.1
80.1
80.1
80.1
80.1
80.1
80.1
80.1
80.1
80.1
80.1
80.1
80.1
80.1
80.1
4.5 11.7
4.5 11.7
4.5 11.7
4.5 11.7
4.5 11.7
4.5 11.7
4.5 11.7
4.5 11.7
4.5 11.7
4.5 11.7
4.5 -
4.5 -
4.5 -
4.5 -
4.5 -
4.5 -
4.5 -
4.5 -
4.5 -
4.5 -
4.5 -
4'5 -
4-5 -
4-5
4-5 -
4
16.2
16.2
16.2
16.2
16.2
16.2
16.2
16.2
16.2
16.2
4.5
4.5
4.5
4.5
4.5
4.5
4.5
45
45
4.5
45
4
4-5
4-5
4-5
4.5
212.1 37.5
206.4 37.5
194.9 37.5
183.4 37.5
171.9 37.5
160.6 37.5
149.5 37.5
140.5 37.5
131.0 37.5
109.5 37.5
75.6 48.3
75.6 48.3
75.6 48.3
75.6 48.3
75.6 48.3
75.6 48.3
75.6 48.3
75.6 48.3
75.6 48.3
75.6 48.3
75.6 48.3
75.6 48.3
75.6 48.3
75.6 48.3
75.6 48.3
75.6 48.3
249.6
243.9
232.4
220.9
209.4
198.1
187.0
188.0
168.5
147.0
123.9
123.9
123.9
123.9
123.9
123.9
123.9
123.9
123.9
123.9
123.9
123.9
123.9
123.9
123.9
123.9
12.5 237.1
12.2 231.7
11.6 220.8
11.0 209.9
10.5 198.9
9.9 188.2
9.3 177.7
9.4 178.6
8.4 160.1
7.3 139.7
6.2 117.7
6.2 117.7
6.2 117.7
6.2 117.7
6.2 117.7
6.2 117.7
6.2 117.7
6.2 117.7
6.2 117.7
6.2 117.7
6.2 117.7
6.2 117.7
6.2 117.7
6.2 117.7
6.2 117.7
6.2 117.7
77.0 98.8 -
77.0 95.0 -
83.7 43.6 -
92.9 39.8 -
105.1 36.0 -
116.3 32.2 -
98.2 48.5 72.7
108.8 43.4 124.0
108.8 38.0 279.0
108.8 25.9 361.9
108.8 462.2
108.8 512.4
108.8 552.9
108.8 579.8
108.8 620.3
108.8 654.0
108.8 687.7
108.8 721.4
108.8 741.6
108.8 755.2
108.8 755.2
108.8 755.2
108.8 728.2
108.8 701.2
108.8 593.3
108.8 512.4
175.8
172.0
127.3
132.7
141.1
148.5
219.4
276.2
425.8
496.6
571.0
621.2
661.7
688.6
729.1
762.8
796.5
830.2
850.4
864.0
864.0
864.0
837.0
702.1
621.2
19.0 3.8 -
23.5 3.8 -
20.5 3.8 75.5
20.5 75.5
20.5 75.5
20.5 75.5
20.5 75.5
20.5 75.5
20.5 75.5
20.5 75.5
20.5 75.5
20.5 75.5
20.5 75.5
20.5 75.5
20.5 75.5
20.5 75.5
20.5 75.5
4.5 7.7 -
10.0 7.7 -
14.5 3.8 -
20.5 3.8 18.8
20.5 3.8 37.5
20.5 3.8 56.3
20.5 3.8 75.5
.810.0
20.5 75.5
-
16.2
12.2
17.7
18.3
22.8
27.3
43.1
61.8
80.6
99.8
99.8
96.0
96.0
96.0
96.0
159.6 -
159.8 -
109.6 -
114.4 12.5
118.3 12.5
121.2 12.5
176.3 -
214.4 -
345.2 -
396.8 -
471.2 -
525.2 -
565.7 -
592.6 -
633.1 -
666.8 -
700.5 -
734.2 -
754.4
768.0
768.0
768.0
741.0
714.0
606.1
525.1
96.0
96.0
96.0
96.0
96.0
96.0
96.0
96.0
96.0
96.0
96.0
icore
159.6
159.8
109.6
126.9
130.8
133.7
176.3
214.4
345.2
396.8
471.2
525.2
565.7
592.6
633.1
666.8
700.5
734.2
754.4
768.0
768.0
768.0
741.0
714.0
606.1
525.1
Less Ipeda taxes (5%) Isrore before debt service Lesa allowance for risk /f
8.0 151.6 26.4
8.0 151.8 25.8
5.5 104.1 19.1
6.3 120.6 19.9
6.5 124.3 21.2
6.7 127.0 22.3
8.8 167.5 32.9
10.7 203.7 41.4
17.3 327.9 63.9
19.8 377.0 74.5
23.6 447.6 85.6
26.3 498.9 93.2
28.3 537.4 99.3
29.6 563.0 103.3
31.7 601.4 109.4
33.3 633.5 114.4
35.0 665.5 119.5
36.7 697.5 124.5
37.7 716.7 127.6
38.4 729.6 129.6
38.4 729.6 129.6
38.4 729.6 129.6
37.1 703.9 125.6
35.7 678.3 121.5
30.3 575.8 105.3
26.3 498.8 93.2
Net
125.2 302
126.0 304
100.7 241
103.1 248
104.7 250
134.6 325
162.3 390
264.0 636
302.5 728
362.0 872
405.7 978
438.1 1,055
459.7 1,108
592.0 1,426
519.1 1,250
546.0 1,316
573.0 1,380
589.1 1,419
600.0 14,458
600.0 14,458
600.0 14,458
578.3 1.392
556.8 1,342
470.5 1,132
405.6 978
/a lb c Ed
If
1
Model
80.1 148.2
4.5 11.7 -
Net value of crop production income / Off-farm Total
0
0
iscore
before (US0)
debt
service
85.0 205
Rice Rp 45,500 (Rp 130/kg); cassava Rp 15,750 (Rp 9/kg wet); peanuts Rp 4,144 (Rp 130/kg); beaus Rp 1,463 co-t Rp 4,000 (Rp 10/cob); fruit trees and vegetables Rp 3,000 poultry and eggs Rp 3,000. Rice Rp 2.000; peanuts Rp 1.500 cassava and sweet potato Rp 1,000, narely for tools, chemicals amd seed. Cost of rented Np 7/kg; Rangles share tapping 10% of crop 75% yield. Rp 625/day a 5 days m 4 weeks a 3 months for years 1-9 1 Rp 500/day x 6 dayu a 4 weeks a 4 mouths for years Rp 625/day x 5 days a 4 weeks. 15% of groso coise of production.
(Rp 130/kg)-
10-25.
sweet
potato
Rp 3,300
(Rp 22/kg);
LNDONESIA NUCLEUS
mnoose RioResent
for
2 Ra Robber Ronlonetco
RIAU and
1
2
3
4
6
5
8
7
9
Model
JAtId RP'OOO)
(Correct
O/a
11 PROJECT
ESTATR AOD sRILRLDERSE
10
11
12
13
14
15
16
17
19
18
20
21
22
23
24
25
418.2
447.8
478.2
512.6
547.9
586.3
418.2
447.8
478.2
512.6
547.9
506.3
23.5
25.2
OftloonProject CrossOslos oR ProdoenRon Fteld Robber
C-ops/ce-eotbles/liRea-ock (3 ba)
106.5 170.3
115.3 177.0
123.3 174.3
132.2 169.0
141.7 164.3
151.4 157.8
162.6 149.0
173.8 143.1
185.8 134.1
198.6 97.7
212.3
.
306.0
309.2
311.6
316.9
310.9
296.3
212.3
9.7 25.4
10.4 29.0
11.1 31.0
11.9
Subtotal274.0 292.3297
227.5 -
243.5 -
227.5
260.3
278.7
243.5
297.9
-
-
260.3
270.7
14.6
15.7
318.8
341.2
-
365.3
-
390.9
-
-
297.9
318.0
341.2
365.3
16.7
17.9
19.2
20.5
390.9
Cost of Prodoction 6.0 15.5
Food Crops Robber
6.9 18.0
6.5 16.8
8.0 20.7
7.4 19.3
Sobtotol
21.5
23.3
24.9
26.7
Not Vo-e of CroProd-ctioOff-farm incom Total itcoe Lnat: IPEDA taxes Nrt incos-
253.3 49.8 303.1 15.1 288.0
269.0 54.0 323.0 06.1 306.9
272.7 57.8 330.5 10.5 314.0
275.3 61.9 337.2 16.9 320.3
102.4 1i18. …
110.9 118.0
120.9 50.1
221.2
228.9
With
8.5 22.1
9.1 23.7
12.8 -
13.7 -
22.0
26.9
28.8
30.8
32.9
-
32.8
35.1
39-4
277.3 66.4 343.7 17.2 326.5
270.6 70.9 349.5 17.5 332.0
278.8 76.1 354.9 17.7 337.2
281.0 81.3 363.1 18.2 344.9
280.5 87.0 367.5 10.4 349.1
254.2 93.0 347.2 17.4 329.8
106.0 54.8
219.0 52.6
199.3 84.4 139.0
236.1 81.1 253.2
252.4 76.0 608.8
269.8 55.4 843.3
1,152.6
1,416.1
1,588.9
1,739.6
1.990.1
2,243.1
2,530.8
2,834.9
3,122.3
3,398.0
3,624.6
3,888.9
4,019.2
4,036.6
3,743.7
3,458.8
422.7
57t.4
937.2
1160.5
1440.9
1.725.1
1.919.6
2 093.2
2.368.7
2.647.8
2.963.8
3.298.4
3.610.4
3.928.9
4,192.5
4.497.1
4.668.7
4.332.9
4.487.9
4.255.2
20.7
30.6
42.1
11.9
12.8
13.7
14.6
15.7
16.7
200.6 99.4 300.0 15.0 285.0
214.7 106.5 321.2 16.1 305.1
229.8 114.0 343.8 17.2 326.6
245.7 121.9 367.6 1804 349.2
263.0 130.5 393.5 19.7 373.8
281.2 139.5 420.7 21.0 399.7
17.9
19.2
20.5
22.0
23.5
25.2
26.9
28.8
300.9 149.3 450.2 22.5 427. 7
322.0 159.8 481.8 24.1 457.7
344.8 171.0 515.8 25.8 490.0
368.9 183.0 551.9 27.6 524.3
394.7 195.8 590.5 29.5 561.0
422.6 209.6 632.2 31.6 600.6
451.3 223.9 675.2 33.8 641.4
483.8 240.0 723.8 36.2 687.6
30.0
32.9
517.1 256.5 773.6 38.7 734.9
553.4 274.5 027.9 41.4 786.5
frolect
Food croPs ERlittsg robber N.s robber (2 h.)
…
Sobtotol
153.3 56.6 …
-
…
187.0
209.9
6.5 11.1 … -
15.4 11.9
23.9 6.4
17.6
27.3
272.4
2400
288.3
309.0
353.6
330.7
378.6
404.7
433.0
463.5
496.1
530.9
567.9
608.2
649.5
696.3
796.4
744.2
-
-
-
Coat of Peodoccion Food crops Hoisting robbec Nee robber
6.0 15.5 -
Sobtootl
21.5
Not VRos of CeoD Prodocrion Off-fars Recot Totol ioneo Less: OPEDA tises (52)
199.7
N.r Oncoe (Cocreo0
before US$1
Debt enrice (Corrent
0005
ilcoso (C.eroot (Coostont
debt
Not
Increneotco (Coo.sitt
i
Ieee Y
0
U000 1977
US$)
Net
1ocono
1977
U0$)
as 1980.
.. ri-ce
1L59
30.3
i7 1
k
33.6 6.0 _
44.4 7.3
40.4
51.7
-
41.6 7.8 35.5 84.9
44.5 8.4 76.1
47.6 9.6 122.2
50.8 10.2 175.2
58.2
62.3
66.6
71.3
76.3
81.6
87.3
93.5
100.0
107.0
114.6
122.4
131.2
140.2
187.2
200.1
214.4
229.5
245.4
262.7
280.9
300.5
321.6
344.3
368.4
394.1
422.0
450.7
483.2
516.4
129.0
179.4
236.2
241.5
258.3
276.7
296.1
306.7
339.0
362.5
387.8
415.1
444.3
475.4
500.7
544.4
581.9
623.4
666.5
54.3
150.1
-
1,199.4
1,466.8
1,642.9
1.797.1
2
2,300.0
2,601.3
2,010.6
3,203.3
3,484.6
3,717.1
3,9004
4.124.3
4,251.0
3,864.5
3.588.7
159.7 8.0
20.6 200.2 10.1
220.7 23.6 244.3 12.2
932.3
211.3 10.6
200.4 22.1 222.5 11.2
337.8
199.7 10.0
337.0 16.9
441.4 22.1
757.8 37.9
932.3 46.6
1,199.4 60.0
1,466.0 73.3
I,642.9 82.1
1,797.1 09.0
2,052 0 102.6
2,308.8 115.4
2,601.3 130.1
2,910.6 145.5
3,203.3 160.2
3,484.6 174.2
3,717.1 185.9
3,988.4 199.4
4,124.3 206.2
4,251.0 212.5
3,864.5 193.2
3,500.7 179.4
189.7 457
200.7 484
151.7 366
190.1 458
211.3 509
232.1 559
320.9 773
419.3 1,010
719.9 1,735
885.7 2,134
1,139.4 2,746
1,393.5 3,358
1,560.8 3,761
1,707.3 4,114
1,949.4 4,697
2,193.4 5,285
2,471.2 5,955
2,765.1 6,662
3,043.1 7,333
3,310.4 7,977
3,531.3 8,509
3,789.0 9,130
3,918.1 9,441
4,038.5 9,731
3,671.3 8,847
3,409.3 8,215
434.9 1,048
497.5 1.199
560.8 1,351
632.7 1,525
211.3 -
-
-
-
-
-
-
-
189.7 457 311
200.7 484 303
151.7 366 212
190.1 458 232
211.3 509 228
30
70
82
115
ill
-
441.4
757.8
-
-
-
5
2,0
-
63.3 153
152.2 367
210.8 508
288.2 694
354.0 853
397.2 957
232.1 559 220
320.9 773 293
356.0 857 296
567.7 1,368 432
674.9 1,626 460
851.2 2,052 539
1,039.5 2,505 600
1,163.6 2,804 629
1,272.4 3,066 627
1,451.9 3,498 653
1,632.6 3,934 669
93
166
326
376
459
530
540
543
594
601
-
-
179
-
-
-
-
-
-
-
-
1,038.5 4,430 712
2,765.1 6,662 976
3,043.1 7,333 982
3,310.4 7,977 974
3,531.2 8,509 948
3,789.0 9,130 970
3,918.1 9,441 941
4,038.5 9,731 862
3,671.3 8,847 714
3,409.3 8,215 653
640
931
889
894
874
938
792
813
649
520
CHART 1
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS 11PROJECT ORGANIZATION CHART OF DIRECTORATE GENERAL OF ESTATES
[
MINISTER AGRICULTURE
PROJECT MANAGEMENT
f
-
..
DIRECTOR GENERAL
|BHOAflO
-
OF ESTATES…------------
SECRETARIAT
DIRECTORATE OF PLANNING
DIRECTORATE OF PRODUCTION
DIRECTORATE OF MEANS OF OPERATION
BAPPENAS
RESEARCH AND. DEVELOPMENT
MIN. OF FINANCE. AGHiA RIA. BRI, ETC.
L - - - - - - - - - - - - - - - - - - - - -
NSSOP
directls-nctiosi -
--
-
-
cowdin.ation
--
___ ____ ______ OESAS
_
_
ADVISORY
BOARD
ICOMMODITY APPROACH)
|.C
- - - - - - - - - -
N
TEA PROJECT
I
RRI
line line
P| OVINCIAL
PROVINCIAL
COORDINATING COMMITTEE
COORDINATING COMMITTEE
-
99
-
CHART2
INDONESIA NUCLEUSESTATEAND SMALLHOLDERS11PROJECT OWNEDESTATESYSTEM ORGANIZATIONCHARTOF GOVERNMENT
MINISTER OF AGRICULTURE
________.
SUPPORT STAFF FOR AGRICULTURAL ENTERPRISES
NOTES 1. A PNP or PTP Unit is a group of Government owned estates. 2. In the caseof PTPs authority for direction and control is delegaled by the Minister of Finance to the Minister of Agriculture as Chairman of the Shareholders Meeting.
World Bank -
7279
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS 11PROJECT
CHART
3
ORGANIZATION CHART OF A GOVERNMENT OWNED ESTATE GROUP (PTP)
CHAIRMAN OF SHAREHOLDERS MEETING
BOARD OF SUPERVISORS
FIRST DIRECTOR
O JOINT
I
-
_
;
|
PRODUCTION DIRECTOR
FIELD PRODUCTION
FACTORY PRODUCTIONMAAEAFIRFNNCCOEC
|
|
~~~~~~~~~~~~~~~~~~~~~
COMMERCIAL DIRECTOR
ESTATE
O
GENERA-
WOFld Bank - 17280
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS If PROJECT OHGANIZATIO CHART Of PROVINCIAL GOVERNMENT
TO O&FARTMENt Of .GMfE AFFAIRS
TO CLNTHAL LOOv
PBO~~~~~~~~~~~~~~~f~~~~~~~~CIAL~~~~~~~~HOICA
r ff
N
>
L
_-----_-_
_
|
rAS
PE
VIBCGE
kPOVlC(
r
f--
-
r-- -
s
'{TO.AT&O
.~~~~~GvT
,ri
MAYO 0X
.D.nrOAE
l ,
UE
7I7-- - - - - - - - - - - - - - - - --
---- --------__ -IA - -
GOOVV'ATHOR^
--
_L|
Of
SPCHEUAY
Pl"~~OmASI W?F.PTEN
_S
I
COAe
I-
CAMAIS
KECAMATANS
M A-iA
S
MUKIM S
102
-
-
CHART5
INDONESIA NUCLEUSESTATEAND SMALLHOLDERS11PROJECT ORGANIZATIONCHARTOF SETTLEMENTPROJECTS
MINISTER OF AGRICULTURE
GOVERNOR
OF 8APPEDA APD PROVINCIAL COOROINATION COMMITTEE
.CHAIRMAN
IRCTOR DIRECTOR GENERAL OF ESTATE l
-
.-0
.
I,~~~~~ ,.0 K10 PROJECT MANAGER
-
-
-
-
-
-
_-
-
-
-
HEAD OF REGENCY (Inprts project manager)
APBN AND CREDIT PORTION
INPRES AND APBD PORTION
NES II PROJECT
direct/function -_
_
_ _
line
coordinationline World Bank - 17283
- 103
-
CRART 6 INDONESIA
NUCLEUS ESTATE AND SMALLHOLDERS 11PROJECT SMALLHOLDER COMPONENTS ORGANIZATION CHART OF THE FLOW OF FUNDS - NON CREDIT ITEMS GOVERNMENT OF INDONESIA
DEPARTMENTS OF THE
DIP
DIP
INPRES
CENTRAL GOVERNMENT
INPRES
Governor Supatis MUayon
PROVINCIAL GOVERNMENT
Camat
SYSTEM
DIP
INPRES
DIP
INPRES
Lurahs
PUSKESMAS INPRES (SANITATION, WATER, HEALTH)
SEKOLAH INPRES (SCHOOLS)
KASUPATEN INPRES (ROADS)
GOTONG ROYONGL/ (VILLAGE INFRASTRUCTURE)
1 Community self-help projects, World Bank - 17285
- 104 -
CHART7 INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS 11PROJECT SMALLHOLDER COMPONENTS ORGANIZATION CHART OF FLOW OF FUNDS -CREDIT
ITEMS
GOVERNMENT OF INDONESIA
MINISTRY OF FINANCE
BANK INDONESIAA
-~-r----REKENING|
IBRtD
INVESTASI I
FUNDS
BRI
S
| NEW SETTEMEN
RIAU AND JAMBI AREAS
IBRD _
~~~~PTP IVl I
RUBBER REPLANTISC
RIAU AND JAMBI AFtEAS
WorldiBank - 17281
CHART 8
INDONESIA
NUCLEUS ESTATE AND SMALLHOLDERS 11PROJECT Project Implementation Schedule Smaliholder Components Main Activities
Activities
1978
1979
1980
1981
1982
-
-
1983
Directorate Generalot Estates Prepare master plans Approve protect budgets Arrange SLA to Nucleus Estates Contracl with Nucleus Estates Appomt project manager Appoint rasiden conhultants Submit annuat work pror_am Inspect settlement/replantings Arrange with DGH road desig__ Cootdinlet project iinanctal requirements Arrange for initial budwood
ln
ProwinteWl Gowrnmemr Afterationof tend Establish project organization Prepa,e proeift budget Comnmence implteentalion, Arra,rge recruitment procedures rrcruit selller,sreplamerts Eatend Birnasprogrem
-_
__
-
NmuclesEstate /PyP IVI In.ntiate nursery deelopment Submit annual work programn/accounts Comnence procurement Frel(tplanting/new settanen_nt Start rulber repl,ntig
VA_ _
SS
BFII Eslabtish project bank account Set up villaye units
Estalslshsettler-accounts Establlish replanmeraccounts lianciat stateanti to OGE Sub.hma
_
_
Governmnt Sg.i trnancing anti sub linancing agreenrrr,ts
WorkJBan_- 1B725
CIIAWI' 9
INDONESIA NUCLEUS ESTATE AND SMALLHOLDERS 11PROJECT Project Implementation Sliedule Estate Development
1978
StilqIIl1d 01 SubSidi8dfy
MOA Support
Loan
Pill
PTP IV
1980
1919
1981
1982
1983
_
Auteemnent
Statf .
Imou:ctwit suivices to PTP IV A5si5lancv
-
Witih
piocutemnelltI_
IV
Anu,Uai bLidgels subainnmed Phepalation lur plocuteinfla t lot initital sufvey
Atditguiiunts
cledfli_____
taswj
Caxmnbltcite
cieaI__
fl,uid Ip dilt in Extaujsion IGE
n
Traifiing Ctuigtw
appalots
ploject
ianfdl l_
Auralatjtu (nocurententCuorsIiuct,otl
.
pttigrati
D)evulopg tiaIllitig
plouj al_
_
We 11 8alk
-
18/26
-
107
-
Figure
INDONESIA NUCLEUSESTATEAND SMALLHOLDERS11PROJECT SETTLEMENTDEVELOPMENT FORTHE AIR MOLEK AREA 5.o0 KM. 2.00 KM.
B~~~~
CENTRAL
VILLAGE
SATELLITE VILLAGE
0
20
Fi
1 25 FAMILIES
B
FAMI1LIES
AREAS FOR OIVERSIFICATION CROPSI
CROP AREA
AAIN
A
hr en-:'4E30
1
108 -
-
Figure
2
INDONESIA NUCLEUSESTATEANO SMALLHOLDERSII PROJECT SCHEMATIC SETTLEMET LAYOUT 3.00
__________
Km.
2.00
A Ha _
2-; a
_a_
2 He
H a~
Km.
|
,e
2 Hs |
-
-
l
~~~~~~~~~~~~~~~~~~~~~2H ~ 2 Ha
~~~~~~~~~~~~~~2 Ha
B
2 Hs
~ ~ ~
2Ha
Al
21Ha
Co.trat VilleaRA Satellite Vilage
2
prm,ary Estate Road 0-01
2
a
a,
C1
M'an Crop Af.a A-C
A-A,
A C
A-A
At
C1
a
C--o
Crop A-
C Cl
1
1
Seconda rY World Sank - 17481
-
109
Figure
-
3
INDONESIA II PROJECT. NUCLEUSESTATES AND SMALLHOLDERS Basic
_
_________
-
-
----------
Front
Side Elevation
I
, 1.8m
i
drOoOllt~ I'
1.8m
I
7.0m
7.OmS.O
nrluvidow
w back
verandahi windowai PLAd
I front
fra-me
door
roof overhang PLAN
½
Upland House Plan
.l 15.O
Elevation
-
110
Figure
-
4
INDONESIA NUCLEUSESTATES AND SMALLHOLDERS II PROJECT Basic
1.4l
Lowland House Plan
_
2. 9m
0.5m
_v__
_
_l
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~a
k
Side Elevation
Front
7
1T.Om
F
r wisndow
w
back ~~~~~main frame
lw
I front
door roof
. l~~~~do I
overhang PLAN
_ I
5.Om
Elevation
S
t03°2Cf
\
~~~~~~103°30
BAtA~~~~~~~~~~GHAfl/ /
J
INDONESIA J/
NUCLEUS ESTATE AND SMALLHOLDERS 11PROJET
Y
-
,
JAMBI PROJECT AREA/ PROJECTEiOUNDARY
-
z
EXISTiNG ROADS
\
/
\
>|AI
LU
ESAT
ANDZbL- JEXITINGROAS SM LLOLE
MOLEKh
AIRR MOLEK-WEST +
4
s
PROJECTBOUNDAR ON ADVLAE
\p A Al MOEKRIERS5,,p
EV,55AIS OC5AY .SA"ESS A
S
PROJEC
I
MOLE-EAS
11C-& PROJECT.I
ARE
|AN
