Local community of Dompas developing business model canvases for various commodities

Revitalization of livelihood is a part of the 3Rs (Rewetting, Revegetation, and Revitalization of Livelihood) approach of Indonesia’s peatland restoration. It is also an important aspect of our participatory action research on fire prevention and peatland restoration. As a part of developing more sustainable alternative livelihoods and empowering local economies, we facilitated a local community and community-based organizations to develop a business model for the action arenas. At Dompas, we have seven action arenas. Action Arena 1 is managed by the Fire Care Community (MPA) on public land; Action Arenas 2 and 3 are managed by a women’s group and a farmers’ group, respectively, on co-managed land; and Action Arenas 4, 5, 6 and 7 are managed by farming families on private land. Action Arena 7, to be specific, is located at the home garden of each Dompas villager.

During the reflection and planning phases, we agreed to facilitate the cultivation of trees, multipurpose tree species and livelihood commodities at each action arena, for example, forest and multipurpose tree species; and fishing for Action Arena 1. Using the business model canvas developed by Osterwalder and Pigneur (2010), we explained to the community the urgency and objectives of formulating a business model canvas. Then, we facilitated the brainstorming and discussion process. Together with the land manager of the action arenas, we have developed various business model canvases for each action arena.

One example is from Action Arena 1 (managed by Fire Care Community). The action arena is located on public land with a high density of understory plants, shrubs and some wood species. In the planning phase, the Fire Care Community, facilitated by CIFOR and the University of Riau Team, formulated plans for land preparation, commodities, a planting system, hydrological engineering and a business model. In the business model canvas, the land managers planned to cultivate forest trees and multipurpose tree species for their fruit. The key activities of Action Arena 1’s business would cover planting, harvesting and transporting the harvested fruit to market. To be able to perform these activities, the land managers of Action Arena 1 would require resources, such as capital, land, fertilizer, skill and traditional tools. They would also need fruits, e.g. durian, if the business expects to produce processed-fruit products, for example, dodol, tempoyak and lempuk. Within the cost structure, the land managers identified the necessary resources to be seedlings, fertilizer and daily wages for the workers. They plan to reach the customers, who want high-quality and affordable fruit, through partners as well as by word-of-mouth marketing. They would utilize channels such as merchants’ shops to be able to reach out to their customers. With durian and various processed durian products as their value proposition, the land managers of Action Arena 1 expect to gain revenue from the profit of fruit sales. To realize their plan, the land managers are aware of the need to be in partnership and further identified a private company, government institution and community-based group as key partners they hope to work with in the future.

Business model canvas for forest & multipurpose tree species at Action Arena 1

Key partners

  • Surya Dumai Agrindo (company)
  • BPDAS (Watershed Management Agency)
  • Bina Cinta Alam Siak (community-based group)
Key activities

  • Planting
  • Harvesting
  • Transporting the harvested fruit
Value proposition

  • Durian
  • Dodol
  • Tempoyak
  • Lempuk
  • There are no durians in Dompas
Customer relations

  • Strategic road
  • Word-of-mouth marketing
  • Partner (merchant)
Customer segment

  • Consumer
  • Consumer who wants high-quality fruit
  • Consumer who wants cheap food
Key resources

  • Capital
  • Land
  • Fertilizer
  • Skill
  • Durian
  • Traditional tools (processor)
  • Merchant
  • Selling/ marketing the fruit by themselves
  • Cost structure

    • Seedlings
    • Fertilizer
    • Workers (wage and salary)
    Revenue stream

    • Fruit

    The business model canvas for forest and multipurpose tree species is just one example among many other business model canvasses developed by the local community and community-based organizations. Each different action arena has unique characteristics in terms of the biophysical condition of the action arena as well as the land manager’s (i.e. local community and community-based organizations) ideas or aspirations. In participatory action research, we respect the community involvement, engagement and decisions. We worked together throughout the process by encouraging their active participation while providing opportunities to interact and discuss with the experts and giving feedback.