Abstract

In supporting the sustainable management of the peat ecosystem, the participation of the community around the peat ecosystem is needed. The challenge faced is how to encourage local communities with sustainable peatland-based economic activities. Rattan is one of the paludicultural commodities that is endemic to habitat that can grow on peatlands and has economic potential and even export orientation. This study aims to [1] analyze the development of a rattan handicraft business model in peatlands [2] Evaluation of the rattan handicraft business on peatlands. The types of data used in this study are primary and secondary. Secondary data were obtained through interviews and FGDs with respondents of MSMEs Rattan in Gohong, Garung and Pilang Villages, Pulang Pisau Regency, and related agencies. The analytical method used is the business model canvas (Business Model Canvas) and the NPV business valuation, IRR, BC Ratio and Payback Period. Based on the analysis, 9 elements of the canvas business were identified as several critical points in the existing canvas business model of rattan MSMEs in Pulang Pisau Regency. Some of these critical points include: [a] technical aspects of improving skills, especially making up to date rattan handicraft designs which still need guidance, [c] access and market reach that are still not broad, (d) difficulties in access to banks (e) constraints on export procedures, (f) ability to do branding. Business valuation shows a positive Net Present Value which indicates that this business has a significant economic impact with a high positive value. IRR has a value greater than the rate of return, Net B / C above 1 and a payback period that is less than the life of the project (assuming the project life is 5 years). Keywords: business model canvas, business valuation, rattan MSMEs, peat

Highlights

  • IntroductionPeat ecosystems are formed from the interaction and unity between the substrate (organic soil), water (hydrology) and vegetation as a whole and solidly

  • Peat ecosystems are formed from the interaction and unity between the substrate, water and vegetation as a whole and solidly

  • This study aims to [1] analyze the development of a rattan handicraft business model in communities on peatlands; [2] Analyzing the feasibility of rattan MSME businesses in communities on peatlands

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Summary

Introduction

Peat ecosystems are formed from the interaction and unity between the substrate (organic soil), water (hydrology) and vegetation as a whole and solidly. Peat ecosystems have important environmental values and services such as controlling and controlling hydrology, carbon sinks and sequesters, sources of net plasma and biodiversity and other socioeconomic benefits. Despite having important values and functions, the peatland ecosystem in Indonesia is facing the threat of deforestation and degradation due to unwise management and use that is unsustainable. Deforestation and peat degradation have an impact on hydrological disturbances, decreased forest cover, peat subsidence, increased fire vulnerability, increased emission of greenhouse gases, loss of biodiversity and other socio-economic conditions (Putri, 2017). The peat restoration effort is carried out using three approaches, namely (1) rewetting dry peatlands (rewetting); (2) restoration of land cover by planting native species in areas with a protected function or with other types of plants that are adaptive and have economic value in cultivation functions (revegetation); and (3) revitalizing community livelihoods (revitalization). The peat that is the target of restoration is land that was burned in 2015 and peat domes that have been opened and degraded (Yuliani, 2018)

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