PT Lintas Jeram Nusantara (Arus Liar)

Generating Income in Under-Developed Village

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Author

Meutia Prima

Meutia Prima

School

IPMI International Business School

IPMI International Business School

Professor

Amelia Naim Indrajaya

Amelia Naim Indrajaya

Global Goals

1. No Poverty 4. Quality Education 8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 11. Sustainable Cities and Communities

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Summary

A sustainable and profitable business generating wealth and income in an underdeveloped village is possible by empowering local people and giving them learning opportunities. The locals are given skills needed to become professionals in the tourism industry of white water rafting. The mission is to establish a self-sustained community, and give more opportunities to young and productive adults. They are able to scale-up their social and economic status and support their families with pride.

Innovation

From Unemployed to Manager

  • It is a cooperation of partners (association, government, other tourism operator etc) willing to create employment and entrepreneurship for the locals in under-developed area
  • Focusing on high standards vocational training for locals along the supply chain of the business operation
  • Providing social support, network opportunities, new business consultancy and environment preservation initiatives for the locals
  • Creating a great adventure and extreme sport of white-water rafting, for a good cause
  • Achieve financial profit and improvement of the organization’s overall sustainability

Generating Income in Under-Developed Village

Inspiration

According to Amelia Yunita, when the company started, the area along Citarik River remained in the under-developed village (IDT) category. It had a poor infrastructure, electricity had not yet penetrated this area, and so the conditions of the village is deserted and pitch black at night. It was also hard to find local people with good educational background that meet the needs of the company. Mostly they were graduated only from Junior High School. Most of the communities of the village made a living as laborers on the tea plantations. Most of the youths are in their productive age, only work as motorcycle taxis (ojek). This happened since the public transportation has not reached the village because of the damaged main street that connects to their village. The people’s habit of throwing trash into the river is not only bad for the business but also for the region and Indonesia will lose its full potential for tourism destination.

So her business tries at once to address it, not only for the business sake but also for a mission that can deliver massive impact for the communities. To really support the destined-area to improve and the locals to become involved, productive, creative, growth and proud with their lives, we need tourism business models in under-developed area that combine the best practice of the business, community empowerment, stakeholders’ supports and engagement and scale it up with holistic approaches.

For Yunita, what she gives from her business not only comes from tangible result financially and economically both for people and the village, but also the intangible outcome which is the pride and life experiences for all their stakeholders involved (employees, customers, partners, suppliers, etc) that they have been part of the acts for a good cause.

Overall impact

1. No Poverty: Get unskilled, unemployed, and unproductive local young and adults involved in the business, give them a vocation, training and education, place them at decent jobs or help them with setting up their own business.

4. Quality Education: Give the locals relevant vocations and quality skills training with professional instructor from national and international level.

8. Decent Work and Economic Growth: Given the required skills and employment in the business, scale them up to be professions, and creates entrepreneurship of the locals, it makes impact on the people, their families, their communities, and the economy.

9. Industry, Innovation and Infrastructure: Business diversification by being not only in adventure sports but expanding in hotels, restaurant and management training creates access of small-scale business operated by the locals and their integration into the company value chains and markets

11. Sustainable Cities and Communities: The company presence and operation induce the improvement of economic, social and environmental condition and making the village from under-developed to be the tourism destination.

Business benefit

Arus Liar had difficult start. First concerns came from the business aspect: the demand. There were not many Indonesians interested in rafting because of the safety aspect that are highly required in the activities. The second was the social and economic aspect of the people in the under-developed village where the business operated.

So the company’s innovation of business model by getting the locals involved in the business, gave them relevant vocations, quality skills and certified training with professional instructors from national and international level, then place them at decent jobs as rafting instructor, managed to answered both concerns. Some of the local employees of Arus Liar are the first Indonesian Rafting Guide certified from International Rafting Federation and some also succeeded being professional rafting athletes participating in national or international rafting event.

These facts gave the company benefits for getting the trust and winning the top preference from the customers, and using it as their competitive advantage to face competition as more the same companies operate in the areas. Another thing that can be considered as competitive advantage is that customer using the services will get the experience of adventure for a good cause because of the Arus Liar Go Green package. With the high quality skill of their local employees and service of good cause helps improving the company’s brand reputation and winning competition.

Social and environmental benefit

  1. Upgrading the unskilled, unemployed and unproductive locals young and adults for employment by vocational education, skills training and certified professions
  2. Generate jobs through hotels, restaurants, transportation, and souvenir sales tc
  3. Contribution to local economies through the supply of goods and services needed by tourism-related businesses
  4. Induce the local government to make infrastructure improvements
  5. Replicate this concept successfully for other tourism operators to share the potential market in the area or any other under-develop region with a potential for tourism destination
  6. Give people dignity and pride and change their destiny
  7. Improve the community's quality and standard of life

Interview

Ir. RA. Amalia Yunita, MM, CEO

Watch video on YouTube

Business information

PT Lintas Jeram Nusantara (Arus Liar)

PT Lintas Jeram Nusantara (Arus Liar)

Sukabumi, West Java, ID
Business Website: https://www.arusliar.co.id/
Year Founded: 1995
Number of Employees: 51 to 200
Amalia Yunita, an adventurous mother of three inspired by her experience rafting at Zambezi River in Africa as well as other rafting spots in Europe, convinced that rafting has its potential in Indonesia’s tourism industry. However she had to face the harsh reality of surrounding environment and the social economic aspect of the people in the underdeveloped area where she was planning to establish her business. Thus, she decided to establish Arus Liar with a mission not only for business orientation but also for community and environment improvement in order “to generate wealth and income creation for the people and the region by being involved, productive, creative, growth and proud with their lives." The company recruits local people and provides training and certification needed in the tourism industry and special training that is required for an extreme sport like rafting. Nowadays Arus Liar hires more than 170 skilled local laborers. Some of them are the first Indonesian Rafting Guide certified from International Rafting Federation as Instructor and some also succeeded being professional rafting athletes participating in national or international rafting event. As Arus Liar grows and attracts more operators along Citarik area, opportunities are created for entrepreneurship and new business for the locals be part of the supply chain of the company. The company also provides training that gives knowledge and skills to the local suppliers in order to meet the company standard. Up until now, the company has 55 local suppliers. The existence of Arus Liar also induces the local government to make infrastructure improvements, such as better roads, electricity, telephone and public transport networks, all of which can improve the quality of life for local residents as well as facilitate tourism. The company also focuses on people behavior to preserve the nature along Citarik River, to keep the river clean because of the people’s habits of throwing trash into the river. The company’s never ending efforts are socialization and education programs directly to the locals and from school to school, waste management for locals to manage their home waste, Back Terrace initiative where they encourage the locals to build terrace at the back of their home so they can see how happy the tourists enjoy clean river aiming locals’ heart to keep it off trash. To support this effort as well, the company embedded their tourism package with the community volunteering to support local community by encouraging employees, partners and customers to volunteer their time to support environment preservation programs in Citarik River area (Arus Liar Go Green) by cleaning up village, local market and school area together and plant the trees.