Bussiness Proposal : COMMUNITY FORESTS ZERO CARBON SMART CASE

BUILDING THE FOREST FROM ZERO CARBON SMART CASEPRODUCT INNOVATION THAT CONVERT EMISSIONS of WASTE INTO COMPENSATIONA SOCIAL ENTERPRISE Based Community Forests

EXCUTIVE SUMMARY

Indonesia is a country with the potential of natural resources are abundant, diverse culture, and has a high biodiversity. On the other hand, Indonesia still has many problems from becoming one of the biggest causes of global warming, there are 7.4 million unemployed and 28 million poor people. It also continues ditimpah multidimensional disasters and crises, floods occur almost every year, the crime rate tends to increase, and the crisis that still afflict people with the rupiah continues to decline. Indonesia is currently facing a pretty heavy burden in the form of CO2 emission reduction commitments (greenhouse gas emissions) by 29% at their own expense and 40% with foreign aid in 2030 (from 1.6 to 2.6 Giga tons of CO2 emissions). 

Alba Community Forest a social business idea (social enterprise) engaged in the production of goods and services in the forestry sector of the people, is present in an effort to help ease the burden on the state and resolving these problems, especially in the problems of unemployment, poverty reduction, and the reduction of GHG emissions. With a product called Zero Carbon Smart Case which is one of the products of innovation utilization of waste wood and waste plastic, this product will be able to create jobs 320 jobs (40 jobs goods production, and 290 jobs forest management), to raise funds investment the empowerment sector areas generated 5.13 billion rupiah, potentially as much timber producing 9832 m3 / year, and the absorption of CO2 emissions reached 907.5 tons / year with total emissions uptake reached 6148.3 tons in 2030. 

As one of the products goods, Zero Carbon Smart Case also financially analyzed to show that the product is well worth the effort as a concession project goods and services. Analysis of the feasibility of conducting analysis NPV, B / C ratio, and IRR as a parameter in the investment feasibility analysis. From the results of the analysis showed that the product is worth a run with an investment of Rp. 75.42 million, - (Seventy Five Million Four Hundred Twenty Thousand). On the interest rate of 20%, the NPV value of Rp. 538 401 775, - (five hundred and thirty eight million four hundred and one thousand seven hundred and seventy-five rupiah) with B / C ratio of 1.712 and an IRR of 84.90%. Sensitivity analysis was also performed and the effort shows that businesses remain viable when there is an increase in operating expenses of 10% and also if there is a decrease in revenue of 10%. 

Zero Carbon Smart Case is a product made from waste wood processed products and wastes, household consumption and waste plastics are recycled into products mobile phone casing. Zero CSC will be marketed under the four schemes which offer general, donations, loans (loan capital), and Investment (for the development of community forests). By buying and using these products, consumers will automatically contribute to the environment in the form of planting 10 trees (adoption) as an absorber of CO2 that he makes on their daily activities, while also helping farmers in raising venture capital for tree planting in the form of donations (scheme extra), soft capital loan, as well as in the form of investment with the profit-sharing scheme at the end of the harvest period. 

The development plan of the company in general consists of: (1) The development of creative products (wood and non-wood); (2) Development Program; (3) Expansion of community forest management unit; (4) The network expansion of cooperation with many companies including the timber industry companies; (5) Business expansion in the environmental services sector in cooperation with industrial companies public (as CO2 emitter); and (6) Development of the industrial sector plywood and pulp, as well as alternative energy. The development effort will begin in the second year after the company running. With this development plan are expected to achieve the vision and mission of ALBA Community Forests as social enterprises that seek to forestry and forest products in community forests and agriculture sectors. It is also expected to provide empowerment of rural communities, opening up more jobs, and reduce the burden on countries in overcoming the problem of unemployment and poverty.

INTRODUCTION

1.1 Background

Global Climate Change

Over the years humans have continuously release carbon dioxide into the atmosphere by using fuels derived from fossil fuels such as coal, natural gas and petroleum. This has led to increased natural blanket the world, leading to rising global temperatures and climate change that can not be predicted also can be deadly.

According to data from Pem-building Planning Agency (Bappenas), during the 20th century, Indonesia has experienced an increase in the average temperature of the air at ground level of 0.5 degrees Celsius. If compared to the period 1961 to 1990, the average temperature in Indonesia is projected meninges-kat 0.8 to 1.0 degrees Celsius between 2020 to 2050.

As a result of this global warming is melting its polar ice caps, rising sea temperatures, prolonged droughts, the spread of a dangerous disease outbreaks, massive floods, coral bleaching, and large storm surge.

National Geographic Indonesia (2013) mentions at least six impact of climate change on everyday life are:

1. Food prices increased
2. The cycle of life is unhealthy
3. The destruction of infrastructure after disasters
4. Reduced water resources
5. Increased respiratory diseases
6. hydrological disasters (hurricanes and extreme weather)

If left unchecked, the impact of climate change will hurt many parties and various sectors including forestry and agriculture are at the end of his felt by small farming communities. Ilkim change so that this becomes a serious problem that can not be ignored.

Currently, Indonesia is now becoming one of the country's largest greenhouse gas emitter in the world. Kurniatun Khairi in the journal Agroforestry (2008: 4) mentions Indonesia ranks third in seven countries the world's biggest carbon emitter, which amounted to 3,014 Mega Ton CO2 after the USA and China. Indonesia's emissions by 2030 should reach 1.6 to 2.6 gigatons of CO2e.

Inventory assessment of GHG emissions while the energy sector by the Ministry of Energy and Mineral Resources (2013) states that emission indicators can be summarized into three, namely emissions per inhabitant, per GDP emissions and emissions per energy. For BAU (Business as Usual) emissions per inhabitant was still rising from 1.78 tonnes CO2 / capita in 2012 to 4.5 tonnes CO2 / capita in 2025. Emissions per GDP is relatively constant from 0.17 tonnes of CO2 / million USD. In 2012 to 0.18 tons CO2 / million USD. in 2025. Emissions per energy there is a tendency to decrease from 0.39 tonnes CO2 / BOE in 2012 to 0.37 tonnes CO2 / BOE in 2025.

Unemployment

Unemployment is a common problem that needs to be combated. In life and economic development of a country, unemployment is often inhibit investment, lower national income, and led to a decrease in purchasing power.

The number of unemployed in Indonesia in February 2015 reached 7.4 million. The level of education is the highest position is the education of vocational schools (9.05%), then the high school level (8.17%), the third level of education Diploma I / II / III (7.49%), SMP (7,14 %), and the level of university education reached 5.35% (BPS in the Official Statistics: the state Employment, May 2015).

The unemployment issue will have negative impacts such as rising crime, the sluggishness of business, declining economic growth, declining productivity of the company, many people who experience mental illness or strees (Xplorejob.co, 2015).

Poverty (28 Million Poor)

The problem of poverty is positively correlated with the issue of climate change and the problem of unemployment. Poverty also need to be confronted and combated together.

BPS (Statitic Centre) states in March 2015, the number of poor people in Indonesia reached 28.59 million people. Consisting of 10.65 million urban dwellers and 17.94 million rural residents. They only earn Rp. 330 766, - per month per capita or income Rp. 11,025, - per day (still below 1 USD).

The number of poor people most in Java reached 15.45 Million People from poor urban consists of 7.13 million people and villagers as much as 8.32 million. Because of its much needed contribution of the various parties to alleviate this poverty problem.

MEA and Rural Community Empowerment

Asean Economic Community (AEC) / AEC (Asean Economic Community) in 2015 is a project that has long been prepared all members of ASEAN which aims to improve the economic stability in the ASEAN region and form the economic area among ASEAN countries is strong.

The government has issued Presidential Instruction (Instruction) No. 11 of 2011 on the implementation of the AEC Blueprint commitments in an effort to prepare for the ASEAN free market. In the AEC Blueprint, there are 12 priority sectors that will be integrated by the government. The sector consists of seven sectors namely agro industrial goods, automotive, electronics, fisheries, rubber-based industry, wood-based industries, and textiles.

But there are many who say Indonesia is not yet ready to face the MEA. It is based on the data level of workforce education Indonesia. Central Statistics Agency data, per-February 2015 level of workforce education Indonesia is still dominated by primary school education down, which amounted to 54.61 million people, or 45.19 percent. Secondary level of 21.47 million people, or 17.77 percent, over the medium 19.81 million, 11.80 million vocational. While educated diploma and university respectively by 3.14 million and 10.02 million people.

To anticipate the readiness of society, especially rural communities in the face of MEA necessary assistance in order to make the concept of empowerment. Empowerment is a society of development strategies. In this development perspective, realize how important human capacity in order to increase self-reliance and internal strength over the material and non-material resources.

As a development strategy, empowerment can be defined as activities to help clients to gain the power to make a decision and determine the action to be performed, associated with them, including reducing barriers to personal and social action through increased ability and confidence to use the power possessed by transferring power from the environment (payne, 1997: 266 in the book "modern social work theory"). Meanwhile ife (1995: 182 in the book "community development: creating community alternatives-vision, analysis and practice") imposes limits empowerment as making available to people over resources, opportunities, knowledge, and skills to improve their ability to determine its future and to participate in and influence the lives of their community.

Meanwhile, sutrisno (2000: 185) explains, in the perspective of empowerment, communities are empowered to manage their own development funds either from government or from other parties, in addition they must actively participate in the electoral process, planning, and implementation.

Of the various terori can be concluded that the empowerment of people, especially the village is very important to be able to compete with other countries are doing the people of ASEAN.

Ecological Principles

Contribution of private forests in sustaining the local environment in which private forest it is not in doubt. Several studies, surveys show how community forests contribute in improving the original environment has become critical and barren and lush green region. Edi Suprapto (2010: 6) in Community Forests: Aspects of Production, Ecology and Kelebagaan (journal Arupa.or.id) states that avoided the island of Java of ecological disasters such as floods and droughts were not for the successful management of state forests, but precisely because of the wisdom of the community forest development dilahan his people.

Sustainable forest development that will contribute to the environmental benefits therefore need a concept of community forest management in order to stay there and sustainable (sustainable). This concept is often known as the Sustainable Forest Management (SFM).

1.2 Objectives

The purpose and objective of the establishment of this company is:

1. Take an active role in the field of managing business and entrepreneurship based on social-preneur in farm forestry sector.
2. To facilitate the public and companies or governments in managing social funds allocated to the sector and environmental conservation.
3. Empowering rural communities through community forest programs, education, and entrepreneurship as a place to develop their own potential and natural resources.
4. Establish community as a forum for the empowerment of young people in the fields of environment, education, and entrepreneurship, and
5. Getting the gains or profits will be channeled to the social environment and forestry activities as well as integrated farming folk.

1.3 Vision, Mission, Value

Vision: "The Community Forest Group widened se Indonesia environmentally sound and holds the principles of sustainability through Community Based Forest Enterprise (CBFE)."

Mission:

1. Sticking to science and knowledge so that people understand about sustainability,
2. Empowering communities through Community Based Forest Enterprise (CBFE) to produce real products that can benefit, directly or indirectly,
3. Embracing all stakeholders in order to build a sustainable community forest management,
4. Build communities with environmental youngsters with real activities that focus on the actions of saving the environment, education, and creativity.
5. Giving to the public understanding of the meaning of development and forestry investment and environmental protection activities are basically sustainable living.
6. Opening market access for small industries in the sector of private forest exploitation.

Value: "O YES!"

Optimistic

Be optimistic that in every problem will find a way out.

Optimistic about all the opportunities that exist to be able to at get.

Young Social Entrepreneur

Youth is the future generation that became the capital investment for the future development of the nation.

Education

Education through we will be able to reach the progress of thinking.

Social Responsibility

Humans have a responsibility to help others in dealing with the problems of life (fear, misery, poverty)

Motto: "Begin to your smart life"

1.4 About ALBA Community Forests

ALBA Community Forests

At first ALBA stands for the word of the Environmental Action Based Albasia, was conceived as an NGO / NPO (non profit organization) which operates in the sector of public forests, then as the development of the mind and the founder and co-founder with seeing the potential for business development in agriculture, forestry, and farm, stands for "Albasia" was replaced with "Agrosilvo-Pastural", which means an action to save the environment with the development of forestry and agricultural sectors are integrated.

Agrosilvo-Pastural itself is a forest management system that combines hardwood plants, crops, and livestock that will be interconnected to form a chain of nutrition and food sources.

At the end of November 2015 Alba CF are ripe to be projected into the form of a social business in the form of corporate / enterprise (social enterprise).

Developments Alba CF

• The idea emerged: July 2015
• Starting Work: September 2015
• Search Investor: December 2015 - March 2016
• Implementation: -
• Legal Status: Not Legal
• Website: www.alba-forestry.org

Founder

Name: Rahmat Supri Anggono, S.Hut

Address: Jalan Raya No. Branti 10 Village Beji

District. East Ungaran, Kab. Semarang,

Central Java (50 519)

Email: rahmadsa46@gmail.com

Tel No: +62,812,988,335 78

+62 896 0810 7877

Alba team

Alba CF team consists of two teams, the first team and the support team. The team is included in the main organizer keoraganisasian company structure consisting of the CEO and the Leader (Leader Operations; Finance and marketing; Admin and Human Resources; and the Community Leader). While the team is a team supporter or supporters who were recruited under the program of work of each division in led by the leader. The team is diverse, ranging from developing a team for Forestry and Production, Marketing and IT teams, and community development team.

Number of members in the team as well as support tailored to the needs of its open recruitment program based on a project that will be done. While the first team remains sabanyak numbered five people and only change when there are changes in the structure keoragisasian.

Perspective The Future of Business

Alba Community Forests is a forest management model future given the increasing population growth and the need for agricultural land and arable higher in the end, especially natural forest production forest will be depleted divided ownership.

Therefore Alba Community Forest sees great potential as a pioneer of community forest berbasia forest managers in the present and the future. The conviction arises from the experience of the company Sodra (www.sodra.com) in Sweden which became one of the community forest management company with 51,000 members of forest owners and become one of the largest pulp producer in the world with a production of 1.9 million tons per year, also a producer of alternative energy sources biofuel by 4.3 Tera Watt year.

It also saw the success Vasham Kosa PT Sejahtera (website: www.vasham. Co.id) which is a social enter-prize helped finance a corn farmer in Lampung with a total of 1,708 farmers who helped sebanya farmers and total capital loans disbursed 34.7 billion rupiah. Then it is possible for Alba can grow as the companies engaged in the forest with the People ranging from Java, now and later.

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