Sragen is popular as rich region with various fruits. Sragen’s people are also well known as skilful and diligent farmers to cultivate any kinds of fruit. This unique personal characteristic is a significant factor in supporting Sragen’s achievement as main fruit supplier in Java. The specific Sragen’s fruits are watermelon, melon, jackfruit, longan, bigcitrusand mango.
BIG CITRUS (Citrus Celebia)
Big citrus cultivation has been popular in Sragen farmers since May 2003. Looking the seriousness and high economic potency of the farmers, made Sragen Local Government facilitating the development of big citrus cultivation centered at some area of Plupuh Subdistrict such as Sumomoro, Wonorejo, Gedungan, and Pungsari villages. The big citrus cultivation is handled by 6 farmer groups with 400 high skillful members of farmers. In the developing location, there are 10,000 big citrus treesand have been harvested atMay 2007. There will be also planted 7,200 big citrus seeds on this location in 2007.
Big citrus cultivation is not difficult; it can be planted on low level area of 900m above sea surface. Big citrus is a high survival plant and can grow easily on any kinds of soil if it gets enough water and good treatment.250 big citrus seeds can beplanted inonehectarearea.lt’sbetterifthe farmers take the fruit crops on the fourth year although it bears fruit on the second year of planting. On the fifth year, the best quality fruits are ready to harvest double. There will be 25 citrus pertree in thefifth year, 100 citrus pertree on the sixth year and 400 citrus per tree on the seventh year.
The farmer gives price Rp. 2,500.00/citrus for the super quality one (A), Rp. 1,500.00 for B quality citrus. Meanwhile, a big citrus price in local market could reach Rp. 3,500.00 to Rp.
4.000.00. The second grade quality could be sold at Rp. 2,000.00 to 2,500.00 per piece. The price of seed is cheap enough, i.e. Rp. 10,000.00 for Pamelo and Muria species. The cultivation plant cost is low. Sukamto, for example, a farmer of Marsudi Mulyo farmer group at Sumomoro village confessed that he spent less than Rp. 100.000.00/tree on the first year of planting. This expense included hoeing soil, controlling, combining chemical, organic fertilizing and pest taking care. It was excluded labour wage. Sukamto paid extra money for watering only at Rp. 1 50,000.00 per hectare in one year.
However, the expense allocated for buying fertilizer each year must be appropriate with each tree nutrition need. On the first year, each tree
Generally, the livestock sector worked in Sragen is beef cattle breeding, various sheep and poultry husbandry, etc. Their productsare meat, milk, eggs, leatherand organic fertilizer. There is a cattle food industry named “Materi Feed” in Sragen.
One of strategic Sragen Local Government program in husbandry sector is Brangus cow development by establishing breeding area in some villages besides developing milk cows, sheep, duck and chicken husbandries. This program is supported by artificial insemination, animal health and beef cattle partnership.
Meanwhile, in fishery sector, Sragen has large potency to be developed. The proof is fish production in 2005 exceeded 3,277,500 kgs with production value Rp 3 billion.
BRANGUS CATTLE BREEDING
Brangus cattle breeding is very popular for Sragen’s breeders. In 2005, the Brangus population reached 7,895 cows spreading in 20 subdistricts. Brangus cattle breeding has been launched since 1981 followed by developing Brangus seeding center. There are seven Brangus seedingareas in Sragen, i.e. Pringanom-Masaran, Tenggak-Sidoharjo, Dawung-Sambirejo, Wonorejo-Kedawung, Karanganyar-Plupuh, T e g a I r e j o – G o n d a n g, and Gringging- Sambungmacan.
Brangus cows developed in Sragen are cross species of American Brahman and Aberden Angus reproduced by artificial insemination. Brangus cow can be breeded together with Brahman cows as beef cattle. Brangus cattle business in Sragen has applied modern method and technology. The fact is the Brangus cattle managed by Sragen’s breeders have been stabled in communal stall. This system is designed to make comfortable place for large cattle, protect them from sun shine, rain, air, stealing, disturbance and wild animal. The more important thing is the communal stall has high accessibility to make management and protection easier.
The breeders have felt these advantages well. Since applying communal stall, the cows’ quality and quantity are increased while the painful or dead cattle number is decreased. The Brangus and Brahman populations in last four years tend increased. In 2002, the total beef cattle in Sragen were 74,561 then it was increased to 76,431 cows in 2004. Moreover, this population reached 77,255 in 2005 including 7,895 Brangus cows. The Sragen’s beef cattle have been distributed at some regions in Indonesiasuchas Jakarta.
Economic potency of beef cattle business in this country has bright prospect. Moreover, the beef meat inquiry, especially for big town people, has not been fulfilled yet. As the illustration, it needs 800 cows per day to fill beef inquiry in Jakarta, 600 cows among of them are Brangus. However, the local breeders could only supply 80 Brangus cows per day by arriving beef outside
: ? arta such as East Java, Central Java and West
1.a. The rest must be completed from outside
2. aand Australia.
The high inquiry of beef cattle is a golden : pportunity. Brangus is the most favorite cow in ~iarket since it produces larger meat than other jwssuch as Brahman. Mo re than this, the price of 3ranguscowin this country arouses excitement.
Brangus cow is ready to slaughter in 2-3 years ncluding 1.5 year fattening period) and has eight ± 450 kgs. It costs Rp 10 million, while the price of 500 kgs Brangus reaches Rp. 1 5 million. The cow’s weight depends on its food and care quality. Generally, 3 Branguscould produce270- 300 kgs meat (60% of its gross weight) but the breeders often slaughter when they are 9-16 monthold.
The Brangus meat price in traditional market orsupermarketisaround Rp40,000/kilo. Itcan be imagined how big turnover would be gained if Sragen could increase 10% Brangus supply (790 cows) per year, 200 cows among of them fill Jakarta market. The effort to increase Sragen cattle productivity could be done by increasing cattle areas. Sragen Local Government is very open to prospective investors who want to invest in beef cattle. The fertile natural source, skilled human resource and friendly government regulation are positive support for investment program in beef cattlesector. More than this, Sragen has large supply of cattle feed. Feed stock guarantee is very crucial in beef cattle business. Sragen nevergetlackof cattle feed until today, even most of the breeder groups currently have ability to blend powerful cattle feed for increasing the cows’ weight in shortti me.
No wonder if Sragen had cattlefeed surplus in 2005 – 2006. In that period, the cattle feed stock was 1,085,880 ton/year and only 250,000 ton/year was used to feed the cattle so there was 835,880 ton surplus/year. Assumed 3 cows need 3 ton/year, so the surplus could feed ± 278,626 cows. Also don’t worry about stock farm since there are many areas which are suitable for cattle breeding location. After processing some licences and completing certain technical conditions, the investor may visit One Stop Service Institution to get legalization. It’s guaranteed legalization process in Sragen will be very easy, cheap, fast and transparent.
For making cattle trading more excited, Sragen Local Government is processing development concept of “24 hour animal market” at Sumberlawang Subdistrict. If there is realization, this market would change traditional transaction pattern to modern one based on direct transaction between the buyers and the breeders. It’s hoped that this animal market existence could support other business sectors such as warehouse, seeding, fattening and slaughter services. Even it could create new business of processing food industry in big scale such as canned corned beeffactory.
Floating Karamba at Kedung Ombo Reservoir
Promising economic potency of fishery could be found at Kedung Ombo reservoir, exactly at Ngasinan village of Sumberlawang Subdistrict. The water area is 2,830 Ha while 3,746 Ha is land area. Now the developing area for fishery is 5% (5.6 Ha) only. The fishery method currently used is floating Karamba (basket put in a stream for raising fish) system. There are more than 586 Karamba managed by 411 fish breeders. Usually, the standard karamba size is 7m2 with net depth reached 3.5m.
Kinds of fish raising in Kedung Ombo reservoir are Red Nila (Oreochromis Sp), Black Nila, Gurame (Osphronemus gouramy), Carp, Tawas and Mas (Cyprinus carpio L). In 2005, this Karamba could produce 1,430 ton and 1,273.95 ton of them was Red Nila (Oreochromis Sp). This kind offish is prime species in Sragen fishery due to its easy raising. Red Nila (Oreochromis Sp could grow fast, gain 400-600 gram in 6 month?
This furniture and handicraft industrial zone was established in 2004. Kalijambe Industrial Zone is a cooperation project between Sragen Local Government and Surakarta’s ASMINDO (Indonesian Furniture and Handicraft Industry Association). This industrial zone is located at Sambirembe village of Kalijambe subdistrict, on the side of Solo- Purwodadi main road. It takes 1 5 minutes and is about 1 0 km from Solo city. The 22 Ha area is designed as integrated zone connecting the furniture and handicraft exporters and producers in Sragen and its around.
Kalijambe Industrial Zone offers business activity or workshop location for the exporters and craftsmen. There are 50 blocks with area 2000 m2/block for the exporters and 370 blocks with area 300 m2/block for the craftsmen. For the beginning, there are 40 workshops for the Asmindo’s members and other 316 units for the entrepreneurs/craftsmen. The construction and development of Kalijambe Industrial Zone could absorb a bout 4,000 men power.
Kalijambe Industrial Zone has complete facilities to support business activity such as asphalt road in industrial zone environment, drainage, safety fence surrounding the zone, electricity, telephone, clean water, banking institute, export legalization department, showroom, kiln dry, supporting machines, and dry port. Kalijambe is chosen as integrated industrial zone of furniture and handicraft since there are more 380 units of private furniture and handicraft business. However, not all the craftmen have enough assets due to large production expense and weak marketing network so they could not complete production quantity if it is done personally. On the other hand, the exporters usually have difficulty to fulfill the orders of foreign buyers relating with stuff’s quantity and quality.
By getting various complete facilities, the exporters and craftsmen could gain many advantages when they invest in Kalijambe Industrial Zone. Definitely, the businessmen could pressure some cost components such as loading-unloading and transportation costs since they could employ surrounding workers supported by raw material source and craftsmen also could avoid bad competence.
The product quality is also under control due to continue guidance by competent parties, i.e. Asmindo and Sragen Local Government. The businessmen who invest in industrial zone would have export marketing guarantee and document hand I ingfaci I ities from Asmindo.
Economy activity is easy by the good infrastructure and general facility towards industrial zone. It is very close to Solo-Purwodadi main road and railway to Semarang. It is 20 km only from Ad isu mar mo airport. The other positive value is friendly regulation of the local government for business world such as legalization and certification. Sragen Local Government also supplies data and mapping zone and human resources.
Industrial activities at Sragen regency and six other regency/municipality becomes one of fast moving sectors. So it needs appropriate transportation means and facility in integrated system. That is why Sragen would like developing Dryportin Kalijambe Industrial Zone.
Kalijambe Dryport is one of two similar facilities in Central Java. The other one is in Surakarta. Due to integration in industrial zone, the facility of Kalijambe dryport is more integrated such as near with raw material stock and workshop for production process completed with finance and legalization institutions. Besides that, main road facility and strategic location make Kalijambe Dryport reachable easily for big tonnage vehicles.
Kalijambe Dryport is constructed to support total transportation and fast delivery of raw material and industrial products, and then distributed to many regions in Indonesia or for export requirement. This dryport is completed by train transportation system connecting to sea port. The train operation is scheduled twice a day, i.e.inthemorningand afternoon.
Kalijambe Dryport existence surely could smooth commodity movement in Sragen, Surakarta, Boyolali, Wonogiri, Karanganyar, Klaten and Sukoharjo regions. Based on data of Central Java Communication and Telecommunication Department in 2001,
commodity movement in Sragen and other six districts exceeded 1,369,602 ton per year. 119,215 ton amongof them was export shipment. ?
Marketing Communication Expert of Sebelas Maret University (UNS) Solo Director of Citra Emas,
School of Management and Public Relations
Sragen in my pointof view is regency which is moving fast in increasing region competition and it is very enthusiastic in promoting its region. Currently, Sragen can be named as friendly region for business world under the leadership of the Regent, Untung Wiyono. Reforming bureaucracy by establishing One Stop Service department causes business and investment legalization process fast, transparent and standard.
The application of good governance and prime service movement by its bureaucracy make incredible interest for the prospective investors. As a fast developing regency in economy and social society, Sragen has to present its potency of economic sector and national or global level business. The first step, Sragen must build its brand image and uniqueness. Then sustain it with capability of available industrial centers.
Sragen has many industrial centers which are very potential to be developed. The sustained programs must be done are how to increase the prime product supply in these centers, how to increase internal competence and also manage communication and other promotion programs. It is better if these industrial centers have offline promotion media directly spreaded in center location or trading business center. Further, it also needs online promotion media using information technology to enter international market.
It is time for Sragen to have representations at trading centers. These representations could make buyerseasy when they wantto buy Sragen’s products. They have not to go to Sragen except
buying via Sragen’s agent. This agent could be managed by both local government and entrepreneur association. The agent also has function as promotion and information center in big cities. It becomes important region’s requirementnow.
Sragen has bright future. It could be settled as region integratingagricultureand industry sectors as its economy basis. The potential agriculture is agribusiness development. This is an effort to give additional values of farming products. Agribusiness could be industrial commodity when it is involved in industrial process.
Agriculture and industry could fill each other. For example, agriculture could be industrial commodity. The development is how we can make additional values for agriculture products. Cigarette factory as a sample, actuallythe product is agriculture product, i.e. tobacco then it is processed to cigarette industry. According to me these models could be patterned so that both agriculture and industry could grow in the same time.
What about tourism sector? Tourism is not always identical with tourism object of natural view or ritual but it can be small industry tourism, howto make Batik, howto plantgood paddy, etc. Small-middle industries could be developed with this tourism model. The trend today is doing something while touring to get new experience felt directly. Grape agribusiness tourism as a sample, the tourist can shop grape while picking them. He would feel as a harvesting farmer. This activity can make agriculture and tourism as integrated program. ?
I have been running this restaurant business since 1992. I feel that business condition in Sragen is greater and greater. Opening business here is appropriate choice. This region has interesting potencies which could make business running well.
These potencies could be natural resource, human resource, government good will, high society income range and stable social, politic, secure conditions. I have proven this condition gives positive im pact for my business.
The government bureaucracy service is better and it creates business comfortable. Moreover, Sragen now has One Stop Service institution so all business legalization and civil documents can be finished easily, quickly, and transparently. There was no longer bend bureaucracy story. It is also supported by various banking or finance institutions operating in Sragen with good service formicrobusiness.
Furthermore, Sragen is a high security level and low crime region. The Sragen’s policemen just handle security problem. The social politic condition is in lowfluctuation, calm down. There is no demonstration except for one-two society one as implication of democracy process. However, this demonstration is always done in peace, secure and no anarchy.
In other regions, the relationship between entrepreneur and labour frequently has big problem. That never happens in Sragen. The labours never demand something difficult, they just ask the common ones and will be very productive as long as the entrepreneur could care for them well. My staffs are 40 people and they are good skill, clever and easy learning to reach my standard.
Restaurant business in Sragen has bright prospect. Food material could be got easily
?SI Sragen has interesting potencies
? which could make business running well.
I have proven
this condition give positive impact for my business.
Haji Hery Nurochim The owner of Bandung Restaurant Jl. Raya Sukowati 18, Sine, Sragen
with competitive price. Bandung’s main menus are fried and baked chicken, Red Nila (Oreochromis Sp) and Curame (Osphronemus gouramy). Everyday I need 200 chickens to serve our customers and they could increase to 25% in week end. So far, I never experience lack of food material since the chicken and fish supply from Sragen’sbreeders is never late.
Besides that, restaurant business in Sragen can not be ruined easily by rumor. When Avian Influenza (Al) news was exposed in mass media, my business was still stable, not much influenced though the turnover was little decreased 10%. Also when monetary crisis influenced Indonesia in 1997, we still had a lot of customers.
So I can make conclusion that Sragen people already get information well, have enough perception, have high educational range so they can not be influenced easily toward negative rumor which can destroy restaurant business. I would give 10 points, in 1-10 scale point, for Sragen Regency in giving safety for business world. This point is appropriate for advanced safety, government public service, people characteristic, social condition and mutual cooperation spirit. ?
SRAGEN ONE STOP SERVICE (OSS)
BytheOne Stop Service Institution, there is rr, re reason to make business legalization difficult. Come and prove it in sagm! First impression faced by customers is —*1- ; -’ – . ir talitvforevery service, it isfarfrom
- • : – and long bends impression. Even
? mpression seems disappear by the inkers using different uniform with usual —-ent officers.
Dne Stop Service Institution isatechnical TB :e unit for license established on May 24,
2002 To handle both licence and non licence in one prime service place. All legalizations are processed in certain time, easy, clean, efficient and transparent expense. No more illegal charge and wasting time due to long bend service. Legalization process used to follow many legalization desks, now it can be processed through one institution and legalization. So it could support for creating secure business climate for the investors in order to develop Sragen’s economy.
me Standard Of License Service
SO KIND OF LICENSE TIME
2 Location 12
-oong of Construction 15
i Disturbing & Business Place 7
5 _-3Cing Business 5
6 •xJustrial Business 7
Company Sign 5
5 ndustry Sign 5
5 Recreation Business and Public Entertainment 5
‘ 0 Restaurant Business 5
Salon Business 5
12 Hotel Business 12
13 Tour Travel Agent 10
14 Resort 12
15 Road Closing 2
16 Advertising tax 1
17 hMer Business 7
18 “tegrated Doctor Practice 5
19 ~>ofcSng of Bithplace Hospital 12
2o -:;-g of Medicine Public Hall 12
21 Speaaist Doctor Practice 5
22 Doctor or Dentist Practice 5
23 MkJw’fe Practice 5
24 Nirse Practice 5
25 HokSng of P^ar^acy 7
26 Optical HokSng 7
27 Tootti Craftsrran Practice 5
28 Holding of Drug Shop 5
29 Traditional Treatment 5
30 Food and Beverage Production 5
NO KIND OF LICENSE TIME
31 Recommendation of Private Hospital Building 5
32 Recommendation of Fitness Center Building 5
33 Recommendation of Salon Building 5
34 Recommendation of Educational Institution 5
35 Recommendation of Integrated Specialist Doctor Practice 5
36 Warehouse Sign 5
37 Using of Boiler and Kettle Oil 7
38 Using of Steam Container /
Water Heater Individual Economizer 7
39 Using of Pressed Container 7
40 Steel Bottle 7
41 Using of Lift and Carry Machine 7
42 Using of Power and Production Machine 7
43 Using of Fire Installation 7
44 Using of Electric Installation 7
45 Using of Thunderbolt Channel Installation 7
46 Permanent Route for Public Transportation 12
47 Transportation Business 12
48 Course 5
49 Animal Husbandry Business 12
50 Animal Butchering 12
51 Floating Karamba 12
52 Construction Service Business 5
53 Recomendation of Dental Care Practice 5
54 Recomendation of Pharmacy Assistant Practice 5
55 Recomendation of Physiotheraphy Practice 5
56 Recomendation of Refraction Optisien Practice 5
57 Recomendation of Private Hospital 12
58 Recomendation of Health Laboratory 12
59 Recomendation of Drinking Water Refill Depot 5
Time Standard Of Non License Service
NO KIND OF LICENSE TIME
1 Family Card for Sragen City 2
2 ID Card for Sragen City 1
3 Birth Certificate 5
4 Death Certificate 2
5 Adoption Certificate 2
6 Authority and Care of Children Certificate 2
7 Name Change Certificate 2
8 Marriage Certificate 2
9 Divorce Certificate 2
10 Information and Complaint 2
The impact of investment increase after One Stop Service application is real in Sragen. According to this institution’s head, Mr. Maksun Isnadi, SE, MM, almost business sectors experienced fast increasing trend in 3 last years due to license simplification. Until 2005 there were 8,105 companies having business legalization whereas in 2002 there were 6,373 companies only. The investment also increased to 61.3%. It was Rp. 592 billion in 2002, Rp 703 billion in 2003, Rp. 926 billion in 2004, Rp 955 billion in 2005 and itcould exceed Rp 1.2 trillion in 2006 as the result of big companies invested in Sragen such as PT. Delta Merlin Sandang Textile, PT. BintangMakmurTextile Industry, PT. Cunung Hijau, PT. Tiga Pillar, etc.
In 2002, the investment value of micro, small and middle enterprises was Rp 33.8 billion, then splash of investment fund kept increasing to Rp
38.7 billion in 2005 with production value exceeded Rp 550 billion. This huge investment result is absorbed from Small-Medium Enterprises, especially Batik (17 units), furniture (1 7 units), houseware (1 unit) enterprise
The same progress is for huge investment. The investors make great investment to construct large-scale industries in Sragen. The investment value of large industries exceeded Rp 556 billion in 2005 while in 2002 the fund absorbed in this sector was Rp 145 billion only. The increasing industrial sector has improved manpower absorption. The manpower absorption in 2002
was 40,785 people only; then in 2005 industrial sector could absorb 46,794 people.
The other positive impact is better society trust towards local government and public officers. It is proven by achieving first champion of Pro-investment Region in Central Java in 2005. Besides that, there was fiscal potency increase,
i.e. PDRB (Gross Regional Domestic Product) increased 5 7.48% in 2001 to 2005, and economy growth increased 4.53% in 2004 and 5.06% in
2005. The businessassetalso increased, even the trustof foreign and world institutions increased as well.
Better and prime service quality has made One Stop Service Institution as national sampling project of OSS. Moreover, the visitto Sragen OSS keeps teeming. There were more than 63 visits of Java regencies along 2005 and the number was double in the following year. There were also many institutes, private organization from many regions and countries which want to know closely about application process in Sragen OSS. ?
BLU MICRO FINANCE
The fast economy rate needs competent finance institution to manage and accommodate society funds. Currently, there are 3 public banks, 7 private banks, 20 BPR (Public Credit Bank) operating in Sragen completed with ATM so that the investors do not need to worry when making transaction via Sragen’sbanks.
Due to many micro-small-middle enterprise, cooperation, micro finance institution and business group having limited assets, Sragen Local Government offers its solution to distribute asset to people who wantto build business. The means is strengthening public capital through non banking institution, i.e. BLU (Public Service Corporation) Micro Finance.
BLU Micro Finance is an UPTD (Region Technical Implementer Unit) of Sragen Industry, Trade, Cooperation and UKM Department (DISPERINDAGKOP & UKM) established to serve asset strengthening for micro-small-middle enterprise, cooperation, micro finance institution and businesscluster. Itwasestablished by Regent Regulation No. 29 in 2006 and has been operating since December 2006. The purposes are:
a. Giving credit service for micro-small-middle enterprise, cooperation, micro finance institution and business cluster in order to increase society income and welfare based on economy and productivity principle by applying healthy business.
b. Developing micro-small-middle enterprise, cooperation, micro finance institution and businesscluster.
c. Strengthening capital with easy, quick, cheap credit for micro-small-middle enterprise, cooperation, micro finance institution and businesscluster.
d. Succeeding government program of pulling proverty out.
The m i cro-smal I – m i dd le enterprise, cooperation, micro finance institution and Business cluster that want to get credit service could submit the application to BLU Micro Finance via their Technical Official Organizer with the following ter ms and conditions:
a. Stay in Sragen
b. Have productive business activity in the field of:
1. Trading : mini market, retail, collect, markettraders, etc
2. Industry : chip, tofu, tempe (fermented soybean cake), roof-tile, brick, furniture, convection industries, metal handicraft, ironworker, etc
3. Service : copying, sewing, silk-screening, touringservices, workshop, etc
4. Business Group : industry, trading, farming, livestock, fishery, etc
5. Cooperation : Central cooperation, KSU (Various Business Cooperation), KUD (Village Unit Cooperation), KSP (Loan SavingCooperation), Syariah Cooperation, etc
6. LKM (Society Finance Institute) : LKD (Village Finance Institute), LKK (Local Administration Finance Institute), LPEK (Subdistrict Economy Development Institute) and joint business group
c. Have no credit remainder sourcing from APBN, APBD I, APBD II, BUMN, bank and others except KUT in which the credit remainder is still on farmer group proven by audit result of public accountant or investigation result from Sragen DISPERINDAGKOP & UKM (special for cooperation supporting KUT program)
e. Have capability and ability for settling credit as per agreement with BLU Micro Finance
f. Willing to transfer guarantee as per technical conditions at least 150% from the credit amount.
g. Creditacceptance and credit paymenttrough BLU Micro Finance of DISPERINDAGKOP & UKM.
By light interest, i.e. 10% per year for LKD/LKK and 1 2% per year for cooperation, Micro Finance Institute/LKM and micro small middle enterprises, the BLU Micro Finance customers could gain credit in two years maximally starting from credit realization. Meanwhile, the credit amount could reach Rp. 25 million for new micro small middle enterprises, Rp 50,- million for old customerorcooperation, micro finance institute, new business group and Rp 250,- million for old customer. ?