Potency of Wool Handicrafts Production in Indonesia

Abstract

Wool from local sheep have not been utilized and become a waste when the farmers shear the wool for sanitation purposes. The wool of local crossbred sheep can be still processed for a handwoven handicrafts. Study of the wool processing in Indonesia are still very limited, it was therefore this study was conducted to investigate the potency of the product itself and the economic potency of this product. This was a case study in a wool processing small industry in Indramayu, West java. Wool materials used were from local crossbred sheep. Wool product potency evaluated were types, capacity and favorability of the product through primary and secondary data from observation, questioners and references. Economic potency was analyzed with descriptive and financial analysis. Descriptive analysis was used to describe value chain and labor absorption. Financial analysis used indicator of NPV (net present value), IRR (internal rate of return) and PBP (payback period. The results show that the wool processing products were mostly wool woven wall hangings (size of 60 x 120 cm2) which were only produced at 4 % of its production potency. The consumers liked the products as they were beautiful as natural fiber product and had high value of arts. The wool handicraft production also had good economic potency in terms of its NPV, IRR and PBP. In addition of financial profit, the small industry also provided jobs to community. It is concluded that this wool handicraft small industry can be recommended to develop as a profitable small business in Indonesia.