6.1 Considerations for organization structure and determination of the executing agency should be based on the objectives of the project and the characteristics of the undertaking. In addition, environmental conditions as well as the availability of the required resources should also be taken into consideration.
In this way an apparatus can be composed, which is in accordance with the requirements. This Project financed with a loan from the Asian Development Bank (ADB), is a giant fresh water/prawn culture pilot project in the transmigration region of Lampung.
The project is designed as a pilot in the development of a new-style transmigration program by connecting it with a giant fresh water/ prawn culture undertaking.
The management of this undertaking is faced with the implementation and exploitation of a hatchery and commercial ponds as well as the provision of facilities and equipments for shrimp cultivation. Likewise, the development of marketing aspects, the channels as well as the facilities required, should be taken into consideration. Therefore, the basic requirement of the structure as well as the form executing agency is that it should be capable of executing the management of a relatively complex organization, in terms of size as well as inter-relationship between the various divisions or with other agencies.
Apart from the above considerations, this project will also be endeavoured in such a way, that it can develop transmigrant farmer undertakings in the field of giant fresh water shrimp/prawn culture in the project area.
Thus, the economic development of this project should be related to the development of transmigrant farmers with non paddy-field undertakings.
Therefore, the considerations on form of the executing agency to be chosen, should be related to these two basic objectives.
6.2. In the composition of the organization and the determination of the executing agency the process and functions of giant fresh water/prawn culture should also be taken into consideration. There are three important determinants in the effectiveness of the project namely:
Hatchery;
Commercial Ponds; and
Marketing Activities.
These three processes constitute an inter-related system, which can be performed either integrated in one executing agency or each process is performed by separate agencies. The important point is, that the success of the project is determined by the integrated functioning of these three sectors into a system.
6.3. There are two phases in the implementation of this project, namely; the first phase covering the project preparation, implementation and initial operation, and the second phase covers the commercial operations of the project. In order to ensure, that these two phases can be implemented smoothly, an executing agency should be considered, which c can implement these two inter-related phases.
6.4. From the outset, this project was planned as a pilot project of the Directorate General of Fisheries (DGF).
Therefore, the hatchery activities should preferably be managed by an agency directly subordinated to the Directorate General of Fisheries (DGF). This agency can be a project management, which is responsible to DGF.
The utilization of a Government agency as the executing agency for the hatchery is necessary, as the seedling/hatching of giant freshwater/prawns is the most complicated process in freshwater shrimp culture.
The cultivation process and breeding of shrimp larvaes require accuracy and should be supported by specialized technical know-how. As stated in an earlier chapter, the mortality-rate in this seedling/ hatching stage is the highest.
By making the hatchery a Government project, the Government can pave the way towards the development of shrimp culture by bearing the costs and the risks of hatchery as well as by provision of consultants and experts. These are important aspects of shrimp culture which are relatively expensive to be borne by the farmers.
6.5. If in the hatchery, the project management units can be used in the implementation phase as well as the commercial operation phase, in the case of the commercial ponds which will be owned by small-holders farmers, another kind of executing agency should be used.
In the implementation phase, the construction of commercial ponds, various buildings, and other facilities can be performed by the project management unit together with the hatchery.
In the commercial operation phase, the commercial ponds, including the equipments, will be transferred to the farmers, who will implement the production process of giant fresh water prawns through the Primary Fisheries Cooperative (PFC). This transfer can be conducted on credit basis through a handling bank (cq. Bank Rakyat Indonesia), in which the bank will subsequently supervise the repayment of credits. The transfer values to be used and the amounts to be paid on credit basis by the farmers through the Primary Fisheries Cooperative, can be determined later-on, by taking into consideration the capacity of the farmers and the feasibility of this smallholders shrimp pond culture undertaking as a pilot project of non paddy-field agriculture for transmigrants.
6.6. Although the farmers will individually manage the commercial ponds and implement the production/breeding process of shrimps by themselves, the ownership of the ponds remains with the PFC. The PFC is responsible for the repayment of the credits to Bank Rakyat Indonesia. The PFC in turn stipulates the payment procedures and periods of rents or hire-purchase of the commercial ponds by members of the cooperatives.
The organization of the farmers in a cooperative is necessary, as the production and sales methods of shrimp culture products are different from ordinary agriculture and require considerations beyond the individual farmer. It is apparent, that this planning/scheduling of seedlings scattering, shrimp catch as well as the drying of ponds for maintenance purposes, should be cooperatively arranged, in order that the whole project can operate as one system.
Furthermore, the marketing process should be coordinated as one undertaking unit, in order that the bargaining position of the farmer-producers, in determining the terms of trade vis-a-vis the traders can be stronger. Ideally the farmers themselves, through the cooperatives, should sell directly to exporters so that the integration between production and marketing can be ensured. In this way, the interests of the farmer-producers can be observed.
6.7. The choice of a cooperative as the executing agency at the commercial ponds requires organizational and managerial preparations, so that at the commencement of commercial operations, the cooperative can already operate as an organization.
The preparations for this cooperative should be started as soon as possible, as the cooperatives in Indonesia is still in the development stage. Likewise, the involvement of various agencies in the implementation of this project requires time to build-up a basis for integration, to assure the smooth operation of the project.
6.8. From the above, it is apparent that the required form of executing agency is a Project Management Unit, which can cooperate with the PFC in the development of giant fresh water prawn culture.
6.9. In performing the overall management of this project, various agencies should be developed in such a way that the same platform can be obtained for cooperation between the hatchery, the PFC and the shrimp farmer-producers.
Besides that, cooperation should be developed with other outside agencies, such as the local irrigation service, the local cooperative service as well as the regional administrators, relevant to the effectiveness of the project. Cooperation between these various elements is necessary, as the success of the project will be greatly determined by the integration of the various processes in relation to the aforementioned elements.
6.10. The fact, that the commercial ponds will be owned by the PFC, which coordinate the production process of commercial ponds, will perhaps create some problems.
Difficulties may arise in coordinating the farmers. The relationship between farmer cooperative members and the PFC is not a relationship between labourers and employer. Therefore, the authority of the Cooperative should be developed in another way.
In connection with this possibility, a mechanism should be developed, which can prevent the problems as mentioned above.
The important thing is, that the consciousness of the farmers should constantly be developed, they should realize the benefits of joining a cooperative.
The training conducted by the Directorate General of Fisheries (DGF) as well as by the Directorate General of Cooperatives (DGC) should stress the benefits of such a cooperation, to the farmers, management board and the officers in the cooperative.
Anyhow, the PFC is only a mechanism, which will facilitate the development of farmers as well as the repayment of credits.
The cooperative should realize, that its existence has the purpose to develop the growth and production of giant freshwater prawns conducted by the farmers. The cooperative should be able to offer more attractive deals than the traders, who are also interested in this shrimp business. The interests of the farmers should be centre of the undertakings of the cooperative.
6.11. The organization structure of this giant freshwater prawn Project can be observed in Appendix VI.1., particularly for the hatchery. Whereas the organization structure of the PFC, which will coordinate the commercial ponds operations and conduct the marketing activities of giant freshwater prawns, can be observed in Appendix VI.2.
6.12. From the organization chart in Appendix VI.1., it can be observed, that the highest authority is held by the Director General of Fisheries (DGF), representing the Government.
DGF will determine general policies in the management of this project. The officer responsible for the implementation activities of the project is the Project Manager, who is appointed by the Director General of Fisheries on behalf of the Government.
In conducting his activities, the Project Manager is assisted by four Division Heads with operational functions as line officials, namely Head of the Culture Division, Head of the Biological Division, Head of the Chemical Division and Head of the Feed Division. Besides that, the Project Manager is also assisted by one Head of the Administration Division (Secretary of the Project) as a staff.
6.13. The brief job-discriptions of the personnel of this Project, are as follows :
The Project Manager is the highest authority within the project, with the following principal duties :
to plan, coordinate, develop, direct and supervise/control all the activities of the project, in accordance with the aims/ objectives and general policy, determined by the Director General of Fisheries.
to determine the general policies of the project in the fields of biological culture, chemical culture and giant freshwater shrimp/prawn feed as well as general administration, including the personnel administration of the project.
The Head of the Culture Division manages the giant freshwater shrimp/prawn culture division, and is responsible to the Project Manager, with the following principal duties :
to arrange the technical activities for the development of giant freshwater shrimp/prawn cultivation, cultivation of larvae (juvenile shrimps) and search as well as acquisition of larvae / juveniles and healthy/productive giant freshwater shrimp/prawn seedling-stock.
to plan, coordinate, direct and supervise all the activities of the culture division, in order that this division can operate effectively and efficiently.
to distribute juveniles to pond farmers.
The Head of the Biological Division manages the giant freshwater shrimp/prawn biological division, and is responsible to the Project Manager, with the following principal duties :
to conduct research activities and to search for/obtain natural seedlings, including production, as well as research on giant freshwater shrimp/prawn seedling-stock, concerning their lives/ existence and their productivity.
to plan, coordinate, direct and supervise all the activities of the biological division, in order that this division can operate effectively and efficiently.
The Head of the Chemical Division manages the chemical division, and is responsible to the Project Manager, with the following principal duties :
to conduct tests and keep records on the water condition and on suitable pesticides, which do not have bad effects on the larvae/juveniles.
to plan, coordinate, direct and supervise all the activities of the chemical division, in order that this division can operate effectively and efficiently.
The Head of the Feed Division manages the feed division and is responsible to the Project Manager, with the following principal duties :
to conduct activities to search for the formulation and production of proper feed for the growth of giant freshwater shrimps/prawns at a relatively low price and to distribute it.
to plan, coordinate, direct and supervise all the activities of the feed division, in order that this division can operate effectively and efficiently.
The Head of the Administration Division/Secretariat (the Secretary of the Project) manages the administration division/Secretariat, and is responsible to the Project Manager, with the following principal duties :
to arrange the administration activities, correspondence, finance, accounting/bookkeeping and personnel administration as well as activities on provision/supply of materials and equipments required by the project.
to plan, coordinate, direct and supervise all the activities of the administration division, in order that this division can operate effectively and efficiently.
The Head of the General Technical Division manages the activities on production supporting machinery, with the following principal duties :
to plan the utilization and maintenance of production equipments.
to plan the requirements for raw materials and other materials for the smooth operation of supporting equipments.
to supervise the operations performance of technical equipments.
6.14. From the organization chart in Appendix VI.2. it can be observed, that the highest authority of the Primary Fisheries Cooperative, which coordinates the giant freshwater shrimp/prawn culture undertakings at the commercial ponds, is held by the Members Meeting, consisting of pond farmers.
The Members Meeting will appoint a Management Board and determines the general policy of the Primary Fisheries Cooperative.
The highest responsible party on the operational activities of the Primary Fisheries Cooperative is the Management Board, which is appointed and dismissed/discharged by the Members Meeting. In conducting its activities, the Management Board is assisted by two managers, namely the Operations Manager the Training/Up-grading Manager.
6.15. The brief job-descriptions of the operational executive managers and division heads are as follows :
The Operations Manager manages the operations/undertakings of the cooperative with the following principal duties :
to implement the policies in the field of operations, determined by the Management Board of the cooperative.
to determine the implementation program of the field of operations of the cooperative.
to conduct planning, coordination and supervision on the operational activities of the cooperative.
The Head of the Production Division manages the implementation of the operations of the cooperative, with the following principal duties :
to manage and coordinate all the production activities.
to determine the production work-programs, in accordance with the policy of the manager.
to assist the operations manager in the planning of coordination and supervision/control of production.
The Head of the Marketing Division manages the implementation of shrimp marketing, with the following principal duties :
to manage and coordinate purchases of shrimps from the farmers.
to coordinate the transportation of shrimps.
to sell the shrimps to exporters.
The Head of the Financial Administration Division manages the implementation of financial administration, with the following principal duties :
to implement the adminis4ration- and financial policies, in accordance with the provision determined by the Operations Manager.
to coordinate, guide and supervise/control the accounting/ bookkeeping tasks, the financial section and the general affairs section.
The Training/Upgrading Manager manages the principal duties of cooperating with the competent agencies in providing training/upgrading and guidance to the members and candidate-members of the Cooperative, concerning :
Shrimp Cooperative Organization/management;
the necessity of cooperating in the cooperative;
techniques and time-schedules of giant freshwater shrimp/prawn cultivation and the utilization of important equipments.
6.16. The number of personnel required for the Hatchery project in the implementation-, initial-, and full operation phases for five years is 47 persons, consisting of :
| a. | Management | 1 | person |
| b. | Division Heads | 6 | persons |
| c. | Section Heads | 11 | persons |
| d. | Staff | 12 | persons |
| e. | Drivers | 2 | persons |
| f. | Administration Personnel | 2 | persons |
| g. | Common labourers | 12 | persons |
| h. | Assistant Driver | 1 | person. |
6.17. The number of personnel required for the Primary Fisheries Cooperative, in the initial- and commercial operation phases for five years is 20 persons (not including the Management Board), consisting of :
| a. | Managers | 2 | persons |
| b. | Division Heads | 3 | persons |
| c. | Section Heads | 7 | persons |
| d. | Drivers | 2 | persons |
| e. | Technical Personnel | 2 | persons |
| f. | Administration Personnel | 2 | persons |
| g. | Assistant Drivers | 2 | persons |
6.18. In order to hold the Management function of the Hatchery and its Division, the following qualifications are required :
Management of the Hatchery :
minimally possessing Fisheries Senior High School education;
experienced in the field of shrimp culture;
ever having participated in a refreshing course or up-grading course in the field of shrimp culture.
Head of the Culture Division :
minimally possessing Fisheries Senior High School education;
experienced in the field of shrimp culture;
ever having participated in a refreshing course or up-grading course in the field of shrimp culture.
Head of the Biological Division :
minimally possessing Fisheries Senior High School education;
experienced in the field of shrimp biology;
ever having participated in a refreshing course or upgrading course in the field of shrimp biology.
Head of the Chemical Division :
minimally possessing Chemical Analysis High School education;
experienced in the chemical field;
ever having participated in a refreshing course or up-grading course in the chemical field.
Head of the Feed Division :
minimally possessing Fisheries Senior High School education;
experienced in the field of shrimp feed;
ever having participated in a refreshing course or up-grading course in the field of shrimp feed culture.
Head of the General Technical Division :
minimally possessing Technical High School education, majoring in machinery or electricity;
having work experience in the technical field;
ever having participated in a refreshing course or upgrading course in the technical field.
Head of the Administration Division :
minimally possessing Economic Senior High School or Senior High School education;
having work experience in the field of administration;
ever having participated in the a refreshing course or up-grading course in the field of administration.
6.19. In order to hold the functions of Manager and Division Head of the Primary Fisheries Cooperative, the following qualifications are required :
Operations Manager :
minimally possessing Economic Senior High School or Senior High School education;
having work experience in the operational field;
ever having participated in a refreshing course or up-grading course in the fields of marketing- or sales operations.
Training/Up-grading Manager :
minimally possessing Fisheries Senior High School education;
having work experience in the field of training/up-grading;
ever having participated in a refreshing course or up-grading course in the field or training/upgrading.
Head of the Production Division :
minimally possessing Technical High School Education;
having work experience in the field of production;
ever having participated in a refreshing course or up-grading course in the field of production.
Head of the Marketing Division :
minimally possessing Economic Senior High School or Senior High School education;
having work experience in the fields of marketing or sales;
ever having participated in a refreshing course or up-grading course in the fields of marketing or sales.
Head of the Financial Adminisbration Division :
minimally possessing Economic Senior High School or Senior High School education;
having work experience in the fields of administration and finance;
ever having participated in a refreshing course or up-grading course in the financial field.
6.20. This freshwater shrimp pond culture project is intended as a pilot project for developing new non-paddy field undertakings for farmers.
In this respect, this project will in particular be connected with transmigration. In this way the undertakings of transmigrant farmers will have a more extensive scope, namely with an export product.
Therefore, the manpower required for this project will be recruited from Java or Bali.
The required condition is, that they should be paddy-field- or pond farmers.
According to the Directorate General of Transmigration, the number of 30 family-heads to be assigned at the commercial ponds, is too small to be implemented as general transmigration.
Therefore, the pattern, which can be used, is spontaneous transmigration with financial aid (DBB). The program should be an “integrated” program, as the selection of this manpower will be conducted by the Directorate General of Fisheries (DGF).
6.21. As giant freshwater shrimp/prawn culture is a new undertaking in the Lampung region, it is therefore very difficult to obtain manpower with sufficient experience in giant freshwater shrimp/prawn culture.
So that training is required for the success of this giant freshwater shrimp/prawn culture project. The required training-needs to be taken into consideration and to be conducted, are as follows :
Knowledge and skill in the breeding of giant freshwater shrimps/ prawns for the staff personnel and executive personnel of the Hatchery.
Knowledge and skill in the cultivation of giant freshwater shrimps/ prawns in commercial ponds for the staff personnel of the Cooperative and the pond farmers.
Knowledge and skill in the processing and marketing of giant freshwater shrimps/prawns for the staff personnel of the Cooperative.
