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Sragen Economy

Oct
23
2014
by : 1. Posted in : blog

The entrepreneur with e ‘tain investment value will be free of some local taxes F JR TWO YEARS. concrete and asphalt. This road infrastructure is maintained continuously so that Sragen road condition, especially regency road, can hold big tonnage vehicles.
The infrastructure of agricultural sector is also developed. Irrigation duct for supplying agriculture waters is rearranged to get its perfect function. In
2004, the length of prime duct was 60,688 meters and secondary duct was 295,920 meters. Furthermore, to guarantee water supply in dry season, Sragen Local Government has developed 16 small reservoirs spread ingin many locations.
Besides constructing small reservoir, the entire water supply capacity is improved continuously. Dredging reservoir, building and controlling, sediment are done routinely. More than that, new artificial reservoirs are constructed and so far the result is good. Sragen Local Government can increase capacity of water supply to 4.4 million cubic in 2005 from 2.9 million cubic in 2003.
INVESTMENT POLICY
The most popular and innovative policy is reforming bureaucracy and increasing public service works. The procedure of investment license is simplified to attract prospective local and foreign investors. One Stop Service Office is developed to facilitate investorsinlicense.
More than this, Sragen Local Government gives some stimulating policies for investors who have fulfilled certain conditions, for example, the entrepreneur will be free of legalization expenses for Principle, Construction (IMB), Trading Business (SIUP), Disturbing (HO) and Company legalization (TDP) if he employs more than 100 workers. Furthermore, the entrepreneur with certain investment value will be free of some local taxes for two years.
BUSINESS AND TRADE FACILITIES INDUSTRIAL ESTATE
Manufacture industry is in bigattention. The proof is Sragen Local Government determines some area as industrial estate for manufacture industry development. Total area supplied for this industrial estate is 1,708 Ha spreading at eight Subdistricts, i.e-

There are more than 11,000 traders in Sragen spreading at 57 markets with investment value more than Rp. 176 billion.
Kalijambe, Masaran, Sidoharjo, Ngrampal, Sambungmacan, Sumberlawang, Miri and Cemolong.
In these estates, all industry activities such as raw material supply, production, finishing, export documentation and shipment can be done integratedly and managed in one zone. One of industrial estates increasing well is Kalijambe Industrial Zone. Here, most of the industries produce furnitures and handicrafts. Kalijambe Industrial Zone also makes cooperation with local furniture craftsmen as the partners since Kalijambe area is the biggest furniture center in Sragen.
MARKET AND TRADING CENTER
There are more than 11,000 traders in Sragen spreading at 57 markets with investment value more than Rp 1 76 billion. 46 markets among of them are general markets selling heterogeneous products, eight animal markets, one fruit market and one bicycle market.
The manpower absorbed in trade sector exceeds 37,000 people. The trade activity in Sragencan beseen prominentlyalongSukowati
Street, main road of Sragen city. There are two markets in city center that is Bunder and City markets also one supermarket.
The trading products at City Market are housewares, office stationery, electronics, furniture, textile, convection, vehiclespare parts, etc. There are banking, insurance, loan-saving cooperation and salon facilities. Meanwhile, Bunder Market is the trading center of food, farming and agricultural products. In the future, Bunder market will be developed by constructing 640stalls.
The more specific market is also developed in Kalijambe. The total 59 stalls were constructed to help society marketing their furniture and convection products. It has bright prospect as Kalijambe Subdistrict is frequently visited by traders or tourists from other regions. Besides buying products in retail, they usually offer cooperation for production and marketing furniture and convection. Hopefully, this furnitureandconvection marketcould betourism chain of Kalijambe Industrial Zone, Sangiran Museum, Kemukus Mountain and KedungOmbo Dam.
RK.VSCE INSTITUTION
The fast moving economy needs competent lirr.i – r nstitution to accommodate and manage •dr-, jnds. Currently, there are more than 3 God’-T-Tient Banks, 7 National Banks, 20 BPR ffPteople Credit Bank) operating in Sragen eo*- : -ted by 100 ATM. So the investors have no leas n to doubt when making transaction via Sri gen’s banks.

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Sragen has more than 3 Government Banks,
7 National Banks,
20 BPR (People Credit Bank) completed by 1 00 ATM.
So the investors have no reason todoubtwhen making transaction via Sragen’s banks.
Government support in strengthening capital is also implemented by recovery fund program. Total fund of the program has been worked since 2000 reaches Rp 36.7 billion. This fund is managed by technical departments such as Agriculture and Food Endurance Department, Livestock and Fishery Department, Tourism, Investment and Promotion Office, PKBM Department, Manpower and Transmigration Department, DISPERINDAGKOP & UKM, and BUMD.
Sragen Local Government serves people who ••ant to make business with strengthen society ?.pitaI through non banking finance institution. The government established LPEK (Subdistrict Economic Development Institution) spreading at subdistricts. The asset is more than Rp 1.1 bill ion. There are also 12 LKD (Village Finance nstitution) having soft load fund about Rp. 275 million. Furthermore, Sragen DISPERINDAGKOP & UKM (Industry, Trade, Cooperation and Small- Middle Enterprise Department) also gives supporting fund to pull out proverty Rp 1 0 million foreach village.

Agriculture sector still becomes one of Sragen’s outstandings. Sragen is well known as one of national rice barn and prime supplier of food inquiries in Indonesia. Sragen’s land area is 94,155 Ha and 42.52% (40,037.93 Ha) is farming area and 57.47% (54,117 Ha) is dry area. Manpower support in agriculture sector is very big since most of Sragen’s people are farmers.
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Rice is Sragen prime commodity having planting and croping characteristic all together in large area. The farmer can enjoy two – three time harvest crop in one year with annual rice production exceed 520,082 ton. The range of land productivity in 2002 could reach 5.26 ton/ha from the output of 451,627 ton dry unhulled paddies. Meanwhile, in 1998 – 2003, Sragen had surplus of rice crop for five years continuously. In that period, the rice stock exceeded 305,591 ton with average consummption 100,074 ton so that become surplus205,517 ton.ltmeansthatone year crop could fulfill food inquiry of Sragen inhabitant for mo re than two years.
Fortunately, the hand ling of agriculture sector in Sragen enters new era. Generally, the farmers have known and cultivated organic rice which was launched first in 2001. The development of organic farming, especially organic rice shows significant growth. It can be seen by the increasing of land area and crops in 2001 the organic rice field was only 232 Ha producing 1,256 ton, while in 2004 the land area had increased to 1,973.42 Ha producingl 0,909.65 ton.
Organic rice is produced by organic process. It is planted by compost, animal fertilizer and use natural pesticide of extract leaves and roots to exterminate pest. The organic process itself can recover soil structure and fertility also build continuous ecosystem. Additionally, organic rice
isfree from chemical pesticidesothatitis goodto be consumed everyday. Containing low glucose, organic rice can safely be consumed by Diabetes Mellitus and autis sufferers also the one who follows diet program. The deference between organic and non organic rice can be detected by the taste in which organic rice is more smooth and mellow and will not be spoiled easily. It also can last twodayswithoutkeeping it in refrigerator.
Furthermore, in national economic context, Indonesia will havetargetto move to organic food in 2010, popular as “Go Organic” national movement. This program also has purpose to reduce food import. The interest thing is this program currently is supported by some national politic parties. The awareness of organic farming has appeared in farmer group so they will always increase their skill and ability to cultivate organic farming.
TRADING COMPANY OF PELOPOR ALAM LESTARI (PD. PAL)
PD. PAL is one of Sragen Pilot Project established in 2001. It manages the production both organic and non organic rice. More than this, PD. PAL is also developed to support rice basic price in Sragen especially when facing large harvest, to increase the farmers’ welfare, to give additional value for them so that Sragen can be organic market center as its prime product.
Organic rice program managed by PD. PAL

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aafcr- i’t? -arious organic rice such as Fragrant frcr « and 1R-64. The partnership is made
‘Operation between PD. PAL and the (hfr’ – ;’3up having good skill for organic rice CHftfr a’ The areas for organic rice cultivation JBneiir •• Ti waste water pollution, processed by wpa’ -e•’tiIizer of garbage and dung compost.
oesticide made from spice leaves and MX- —-actsisusedtocontrol plantdiseases.
;anic rice cultivation has many advantages.
r, – ;allv, the production cost is lower than iir-£ . a ue. Besides gaining healthy advantage, Insir : rice cultivation is also beneficial for ‘or.”a : ng-lasting program. All activities related ©r£a~ c rice cultivation are monitored and car – ed by Agriculture technical in Sragen esency.
PO. PAL applies warehouse system to stock
- rs both in dryor wetseasons. Thissystem is **–’a:ed process planned to rice drying in best fu :• as a process place of unhulled paddies to ok a’ :: rice stocking. This system runs according I – :’ket condition. If price in the market is better « – ess stock condition, the rice is distributed lb •- • PD.PAL has big responsibility to maintain sr< t rtabilityforfarmerswhen large harvest.
PD. PAL has about 1,450 Fia organic rice land spreading in Sragen regions with production capacity:
1,450 Fla organic rice can produce 7,975 ton unhulled paddies or 3,987 ton organic rice per year.
Ready packed production of organic rice is 8 ton perweek.
Organic rice mill capacity is 10-20 ton per day. Ready packed production of non organic rice is46ton perweek.
Non organic rice mill capacity is 32 ton per day.
Dry unhulled paddy capacity is 30 ton per day. Machines and Facilities:
a. Unhulled Paddy Dryer : 3 units, machine capacity is 10 ton/8 hours. Now, 1 00 kgs wet unhulled paddies can produce 78 kgs dry unhulled paddies meaningthatthe reduction is22%only.
b. Rice Mill: 3 unitswithcapacity3ton/hour.
c. Cabie Machine : 3 units with capacity 3 ton/hour.
d. RMU integrated machine : 1 unit with capacity50ton/day.
e. PackagingMachine: 2 units.
f. Sunburn Floor: 2,300 m‘
g. Two warehouses with capacity 500 ton per warehouse.
h. Transportation vehicle, i.e. 1 truck and 1 pick upcar.
Organic rice can be safely consumed by Diabetes Mellitus and autis sufferers also the one who follows diet program.

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