From salty fish to coconut oil: islanders in Papua mean business

BIANCI and SAUKABU, SOUTHWEST PAPUA – Between the light blue sky and the azure blue sea, the islands of Raja Ampat in Southwest Papua are famous for their beauty and as one of the world’s most biodiverse areas. Thanks to a collaboration between the Ministry of Village, Disadvantaged Regions and Transmigration, the International Fund for Agriculture Development (IFAD) and local authorities, the inhabitants of these remote islands have enjoyed a substantive and measurable increase in their living standards. 

Most of the adult population of Bianci village, a four-hour boat ride from the provincial capital of Sorong, participates in the production of salty fish and fish floss. These products earn the villagers twice as much as when they used to sell raw fish. Halal-certified, quality-controlled and vacuum sealed, the products are sold at nearby diving resorts, in supermarkets across the province as well as on Sorong’s central market. 

“The development of the village is our own responsibility – and this project is the catalyst that allows us to take matters into our own hands and grow,” said Village Head Sayuti Daad. “Earlier, there was no significant economic activity here.”

Bianci is one of 1,110 Indonesian villages supported through the Integrated Village Economic Transformation Programme (TEKAD), under the leadership of the Ministry. The villages TEKAD works in have a combined population of over 1.6 million.

In Raja Ampat, 19 communities benefit from TEKAD experts, who help villagers design business plans with long-term development strategies to be supported by the Village Fund. The Fund, managed by the Ministry of Villages, allocates Rupiah 68 billion Indonesian (US $4.3 billion) nationally to develop rural communities. 

While men in Bianci continue their traditional practice of fishing in the surrounding rich seas, women now use equipment and tools provided by the Village Fund to prepare salty fish and spicy fish floss, both of which are staple foods for Indonesians in cities. A kilogram of fish prepared this way fetches around Rp 35,000 (US$ 2.2), almost double the sales price of raw fish, which is just Rp 20,000. 

Furthermore, for many of the women, it is the first time they have a job, Mr Daad added: “It provides a different status, to be paid for their cooking.”

TEKAD’s mission is to support economic transformation in interested villages in the poorest regions of Indonesia, including Southwest Papua. By hiring and training local facilitators to work with the villagers, the programme ensures community buy-in for long-term planning.

“Durable development solutions necessitate money to be spent on projects with long-term economic benefits, rather than spending on various short-term initiatives each year,” said Yumi Sakata, Programme Officer at IFAD’s Jakarta office. “With the support of TEKAD facilitators, the beneficiaries – mostly rural women – are learning sustainable business models.”

According to TEKAD data, the investment in Bianci was Rp 130 million in kind and Rp 100 million in cash, which the villagers used to buy raw materials and construct a facility for drying the fish.

Towards a coconut-based economy

A further hour away by speed boat, the 200 residents of Saukabu have developed plans – with TEKAD support – for an even more significant increase in their income. While their knowledge of English is limited, they are very familiar with the acronym VCO (or rather “vee-cee-oh”), which stands for virgin coconut oil, used in facial treatments, massage and high-end cooking. Located near the group of picturesque isles that decorate Indonesia’s Rp 100,000 note, the island’s primary produce is coconuts – with around 40 tons per year. 

Villagers have traditionally sold coconuts raw or smoked and have earned Rp 100,000 for a large bag of 50 coconuts. They are now piloting the production of virgin coconut oil, which – depending on its final quality – can earn between Rp 1 and 2 million per 50 coconuts. Most of the value-added work is done by women. 

TEKAD has been a major lifeline to the area, said Wahab Sangaji, Special Economic Advisor at Raja Ampat Regency. “If we had one wish, it would be to extend TEKAD support and know-how to all 117 villages of the regency,” he said.

Changes are palpable beyond improved coconut and fish products.

Having worked with the islanders since the launch of TEKAD in 2021, facilitator Trully Novalia says the longer-term benefits outweigh concrete profits: “TEKAD is bringing about a mindset change – for people to have goals and plans and to think about economic opportunities,” she said. “This will enable them to develop and implement business ideas long after this project ends.”

Afi Gamso, a mother of three in Bianci, though, is content with more immediate benefits for now. “From the newfound money, I could buy new clothes and school supplies for my children,” she said. “It’s important they look decent at the high school in town.”