CV. Nusa Alam Gemilang

The Production of White Charcoal Among Homesteader in Kalimantan

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Author

Yosa Arfika Naim

Yosa Arfika Naim

School

IPMI International Business School

IPMI International Business School

Professor

Amelia Naim Indrajaya

Amelia Naim Indrajaya

Global Goals

1. No Poverty 8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 11. Sustainable Cities and Communities 15. Life on Land

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Summary

As Mr. Nurwanto established CV Nusa Alam Gemilang in 2014, he began to use Japanese oven technology to produce white charcoal (binchotan), from the forest trees in Center Kalimantan.

The Production of White Charcoal could reduce the fire forests in Kalimantan because it needs the tree as raw materials which used to be burnt for palm oil production. So it's better to burn the trees in the charcoal oven than burn the trees in the forest land because burning trees in the forest land can cause the forest fire. Burning the trees in to the white charcoal oven is more sustainable because less of the tree is needed; just cut down some of the the tree's branches and deliver to the white charcoal oven to be burnt.

The production of white charcoal changed the homesteaders' ("Transmigran") profession, from palm oil farm workers to be white charcoal producers because this charcoal was exported to Japan and Middle Eastern Countries with a decent price which increased their life prosperity.

Innovation

Mr. Narwanto used Japanese oven technology to cultivate the weed plant (Palawan tree) become white charcoal (binchotan), which can be used for:

  1. barbecue flame with less smoke, higher calorie, and longer burn time.
  2. purifying water, and absorbing toxins, smells, and moisture.

After liquefied, the smoke of the white charcoal production had 3 (three) grades:

  1. A-Grade, for cooking and cosmetics (liquefied in 110-130 degree C);
  2. B-Grade, for pesticide and rubber thickener; and
  3. C-Grade for fertilizer.

The raw material:

  1. The diameter of tree trunk: 5 - 10 cm
  2. The tree capacity: 10.000 trees per hectare
  3. Volumes: 200 meter cubic per hectare, which equal to 50 trees per meter cubic.
  4. The needs: 12 meter cubic per hectare per oven per cycle, which equal to 600 trees.
  5. The Cycle: 17 times production per production, per hectare per year.

The Production of White Charcoal Among Homesteader in Kalimantan

Inspiration

Mr. Narwanto and his family left their homeland (Bojonegoro and Surabaya) to develop his skills in implementing a Japanese oven technology in the rural area of Central and South Kalimantan, together with the homesteaders.

As Mr Narwanto got orders from Japan, he encouraged and trained more homesteaders to join his effort in cultivating white charcoal, which made them switched away from planting palm oil, and burning farm land to be white charcoal workers.

Switching the homesteaders' way of planting, from burning farm land, was a big win to prevent forest fires in Kalimantan and Indonesia.

From the production of white charcoal, the prosperity of the white charcoal workers could be increased as Mr. Samto has a permanent house after he took part in white charcoal production. Before that, Mr Samto only lived in temporary wooden house.

Overall impact

The white charcoal uses a weed plant as raw material. This weed plant (Pallawan tree) can be cultivated in all Indonesia. It could eliminate forest fires and bringing back our forests because the homesteaders workers don't have to make palm oil, which is more damaging to the environment.

The white charcoal can be more profitable if it is industrialized and developed to be used for cooking.

The production of white charcoal can raise the income of the workers because this commodity has a good price in international markets as the awareness of the healthy product.

Business benefit

  1. With an investment of IDR 5,040,000 for of raw materials (sand, bricks), workers, and packaging, this oven could get 1,000 kilograms on average per cycle (20 days). Each kilogram is sold at IDR 8,000 , which means a revenue of IDR 8,000,000 per cycle. Based on that data, the business could give IDR 2,960,000 profit per oven per cycle.
  2. In addition the liquid smoke also produces a revenue of IDR 1.050.000 from 150 liters liquid smoke per oven per cycle times the selling price, IDR 7,000 per liter.
  3. The total revenue from the white charcoal and the liquid smoke is IDR 4,010,000 per oven per cycle.
  4. The white charcoals are high valued commodities favored by overseas countries such as Japan, China, Korea, Kuwait, Bahrain, Oman, and Saudi Arabia.
  5. The income from the white charcoal commodity can increase the income of the workers.

Social and environmental benefit

Societal:

  1. The white charcoal cultivation in Kalimantan generates several jobs for the homesteaders such as oven builders, bricks masons, stonemasons, brick layers, lumberjacks, transportation services, oven supervision, packaging workers.
  2. The white charcoal cultivation enabled the homesteads of rural area in Kalimantan to increase their income.

Environmental:

  1. The white charcoal production put the forest trees into the oven and convert them into white charcoal, which then is sold. The benefit is that workers don't have to make palm oil, which paid less and is more damaging to the environment.
  2. The white charcoal product is renewable energy, with high calorie, high carbon content, and less smoke, which also can be used for absorbing toxins and purifying water.

Interview

Narwanto, Founder

Photo of interviewee

Business information

CV. Nusa Alam Gemilang

CV. Nusa Alam Gemilang

Banjarbaru City, ID
Year Founded: 2014
Number of Employees: 201 to 500
The business is about white charcoals production among homesteader people of rural areas in Kalimantan. By using Japanese technology, the weed plant in Kalimantan can be produced to become white charcoal, not just black (traditional) charcoal. This white charcoal had been exported to Japan, China and Middle East at a good price, which could increase the prosperity of those homesteaders.