Success Story of the Sustainable Implementation of the DKI Jakarta Markets Restructuring Programme Prepared by Utomo G.B, Setiarto E, Trianita A, Rajaguguk D; FAO Market DKI Jakarta Restructuring Team; ECTAD Indonesia; 2009 2012 Background Human infection with the H5N1 avian influenza virus has occurred more frequently in the greater Jakarta area of Indonesia than any other urban area in the world. At the moment, DKI Jakarta consumes around 800,000 birds a day. Two hundred thousand birds enter the city in the form of carcasses, the rest (600,000 live chicken ) is brought into the city, collected and slaughtered in thousands of small scale or home based operations. In order to counter the risk of human infection caused by the H5N1 avian influenza virus, the provincial government of DKI Jakarta passed a regulation on 24 April 2007, namely Regulation 4/2007, banning the rearing, movement, and slaughtering of live poultry in the DKI Jakarta metropolitan area. The regulation implies relocating the collection, slaughtering and distribution of live poultry to five government approved collection yards/slaughterhouses in the city with a total processing capacity of more than 400,000 live chickens. However, the construction of the relocation centres was not completed by the April 2011 deadline due to lack of budget allocation and the high resistance among stakeholders to relocation. Accordingly, the DKI Jakarta administration decided to give private local operators the opportunity to participate more actively in the market restructuring process. They were invited to propose new collection and slaughtering facilities that would comply with the pre conditions set by the local division of the Ministry of Agriculture, in an effort to increase the relocation centres capacities and reduce the resistance of the actors. Progress and Achievements FAO started providing technical assistance to the DKI Jakarta government in 2009, which was preceded by conducting various studies analysing the challenges and opportunities associated with the implementation of Regulation 4/2007, validating the number of chickens entering Jakarta, assessing the socio economics of the stakeholders, assessing the role, agenda, support or opposition of the value chain actors and facilitating the dissemination of regulation 4/2007 for the collectors and slaughterers in the city. Based on those study results, FAO has been assisting the government to update the strategy by adding more relocation centres, collaborating more closely with private operators and being more consistent in providing technical support such as infrastructure and cold chain development. In addition, FAO has also analyzed and formulated the necessary criteria for setting up these additional relocation centres in collaboration with the DKI Jakarta administration FAO has supported DKI Jakarta administration on the implementation of poultry market restructuring strategies i.e. improving the construction of relocation centres as well as providing slaughterhouse equipment, and increasing the socialization/promotion of regulation 4/2007 to relevant stakeholders. FAO has also provided training in slaughterhouse management and operation for collectors and slaughterers, improved the cold chain system and chilled carcase distribution in the traditional markets. Capacity has been built to improve entrepreneurial skills, strengthen the animal services division food safety and meat inspection system, activate markets and promote healthy chicken meat (daging ayam ASUH ASUH = A aman (safe), S sehat (healthy), U utuh (pure, not mixed with other material), H halal (according to Islamic precepts) in markets and relocation centres. In order to reduce the negative socio economic impact of market restructuring, FAO in
collaboration with the Jakarta districts has facilitated the establishment of stakeholder forums to improve communication between stakeholders, help them formulate a collaborative relocation process and enter into dialogue with the government through a local NGO (BK Peduli). By the end of 2011, more than 400 critical stakeholders (collectors and slaughterers) were actively participating in discussion forums, and were informed about the latest government decision on allowing additional private sector relocation centres. FAO has increased the capacity of both government and private sector actors through activities such as, study tours to market restructuring projects in other countries; educational visits to well managed modern manual and semi automatic slaughterhouses to observe best practices. Other activities include the up dating of guidelines (SOPs), trainings on slaughterhouse management, maintenance of cold chain and biosecurity, as well as capacity building on food safety inspection for Government officers and market vendors. In efforts to increase awareness and support from consumers for the Jakarta market restructuring programme, FAO in collaboration with the local government and the private sector has promoted and disseminated information on healthy chicken meat (daging ayam ASUH) to more than 3,600 local women s association members. Furthermore, activities such as market activation in 151 traditional markets, participation in the Jakarta Livestock Expo and Food Education Campaign, and providing educational materials such as flyers, banners, documentary videos, and healthy chicken meat stalls have also been conducted. FAO has urged the government of DKI Jakarta to maximize the allocation of funds and increase activities in 2012 and subsequent years in order to accelerate the market restructuring programme. Through a planning process, a future scenario workshop with local government decision makers and evaluating the impact of the FAO restructuring programme, Jakarta local government has made a strong commitment to invest in and accelerate market restructuring after the FAO programme ends in September 2012. The aim is to complete the restructuring of Jakarta s markets by 2014. Funds allocated in 2012 amounted to USD1.90 million, and budgets of USD2.19 million and USD3.39 million are planned for 2013 and 2014 respectively. However, the budget allocations in 2013 and 2014 still need supervision and support from central government so that the plan can be realized as expected. Closing DKI Jakarta government should accelerate the completion of facilities and infrastructure at all their relocation centres as well as the additional relocation centres to be built by the private sector; this will ensure successful implementation of the restructuring regulation. In order to maintain and strengthen the support from poultry business stakeholders, the government should accommodate the needs of the private sector by engaging with them through the established stakeholders forums. These forums will identify the most appropriate modes of relocation and can also be used to promote healthy chicken meat consumption to the benefit of both public and private poultry sector actors and consumers.
Table 1. Budget allocation of DKI Jakarta for Market Restructuring Programme 2012 2014 by district 20000 15000 Million IDR 10000 5000 0 PROVINCE EAST SOUTH CENTRAL WEST NORTH 2012 1495 1785 5100 100 9480 425 2013 1870 4150 3275 1900 17780 3230 2014 1770 4575 2800 2425 7840 1400 Allocation 2012 2013 2014 Table 2. Total Budget allocation of DKI Jakarta for Market Restructuring Programme 2012 2014 35000 30000 Million IDR 25000 20000 15000 10000 5000 0 province budget of five districts budget per year 2012 1495 16890 18385 2013 1870 30335 32205 2014 1770 19040 20810 Total 2012 2013 2014
Picture 1: Healthy chicken meat (daging ayam ASUH) promotion for local women s association Picture 2: Sustainable Healthy chicken meat (daging ayam ASUH) promotion funded by local government
Picture 3: Socialization and education on healthy chicken meat production in Rawa Kepiting slaughterhouse Picture 4. Upgraded manual slaughterhouse for healthy chicken meat production at Rawa Kepiting slaughterhouse