Entrepreneur turns agricultural waste into wealth in S. Sumatra

Khairul Saleh ,  The Jakarta Post ,  Palembang   |  Wed, 05/14/2008 10:32 AM  |  The Archipelago

A small business is not usually instantly successful, but takes years of careful planning and hard work. The case of Wiryo Suparjo, from Purbalingga, Central Java, shows this very well.

Wiryo has become a successful businessman by specializing in handicrafts made of water hyacinth and banana tree trunks.

His secret was to take advantage of two materials that are usually thrown away and cause problems for farmers who need to dispose of them. Wiryo's creations have sold well in South Sumatra and have been shipped to other provinces and overseas, as far away as Australia and France.

His products range from bags, tissue boxes, ornamental lamp fittings and furniture to sandals.

Now water hyacinth and banana tree trunks are no longer blocking up ponds, small rivers and even the renowned Musi River, but instead are much-sought-after raw materials used to make sellable products.

Wiryo has been able to transform agri-waste into wealth by producing high quality eco-friendly products.

He said he started making handicraft products out of water hyacinth and banana tree trunks in 1985 by accident. He used to make handicrafts out of brass.

However when orders for brass products fell and supply of raw material became problematic he switched to rattan products. After using rattan for three years, he was again forced to change when the government decided to restrict the rattan trade.

That's how he fell upon water hyacinth and banana tree trunks as alternative raw materials, which he could easily find near where he lived. "I was interested in utilizing the water hyacinth and banana tree trunks simply because the two materials were often just a nuisance for local people," Wiryo remarked.

"Even though at first I did not know what to do with them, the two materials got on my mind so I thought about how I could use them," he said.

Wiryo said he started to seriously develop his business using the two materials in 2000. His products are sold from Rp 50,000 (US$5.50) to Rp 100,000 per item, depending on types and sizes.

Wiryo said he is not worried about safeguarding product names or with taking out patents, as he is more concerned about helping his neighbors to generate income.

He now employs eight workers assisted by 30 local people and demand for his products is increasing. At least 1,000 product units valued at about Rp 160 million are shipped every month to the provinces, including Batam, Jambi, Yogyakarta and Jakarta.

This year Wiryo is proud that he has started to export, initially over 60,000 product units, of various shapes and sizes, to Australia and France.

His business is also passing on benefits to raw material suppliers in Ogan Komering Ilir and Martapura regencies.

In his workplan Wiryo sets a target for each participating family to produce 50 bags and 50 sandals per month. His ornamental products are made of water hyacinths taken from nearby lakes. They are water resistant with bright coloring.

One unique point is that Wiryo has never borrowed money from banks or other financial institutions and the business is completely financed by his own money.

"I don't want to borrow money from banks because I don't want to be burdened with debts," he said.

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