Learn Asset Management based on PTPN 9 Case – Preliminary Overview of the Institution, the Function, and the General Business Assets

Asset Management in general and IFAM specifically is very important. The knowledge and science need to be developed step by step. PTPN-9 can be used as an excellent Case Study. A general overview was developed as a base for studying the AM in PTPN-9. PTPN-9 is a state-owned-enterprise, whose duty is to manage the business of yearly plantations and seasonal plantations (sugar-cane plantations and sugar factories), in Central Java. Practically, all of the yearly plantations and seasonal plantations (sugar factories) were started by the Dutch, since the colonialization era. As the first step, this paper observes the production assets, the product, and the market. As production assets, the enterprise has 15 yearly plantations and 8 seasonal plantations. As products, it has 7 consumption commodities, 10 commercial commodities, 8 agro-tourism objects, and 14 restaurants and coffees. The enterprise sells its products into the international market and the domestic market. Keyword : asset management, infrastructure & facility asset management, general overview, PTPN-9.


INTRODUCTION
Asset Management (AM) in general and Infrastructure & Facility Asset Management (IFAM) are important to be learned, known, practiced, mastered, and developed. This journal, the JIFAM -Journal of Infrastructure & Facility Asset Management, is established to develop the Knowledges and Science of IFAM, and of course with AM in general.
One of the easiest ways to learn the AM and the IFAM is by observing and learning from real cases. It is good to observe institutions that have asset management work to execute their business. To have a good comprehension of the problem, the observation must be started from the general observation on its institutional aspect, its functional aspects, and followed by its assets understanding. Such a learning method has been done already by observing a university medical center (Ratnasari & Suprayitno, 2019). This method needs to be repeated to observe other institutions. The observation and learning must be executed, systematically, by observing step-by-step from the whole general overviewed, followed by special cases more in detail oneby-one.
PT Perkebunan Nusantara 9 (PTPN-9) is a state-owned-enterprise (SOE) for Agro-Business Sector. It has an enormous production asset, product variety, and market variety. PTPN-9 can function as an excellent Case Study to be observed, to learn AM and IFAM. Meanwhile, state-owned-enterprise is vital for Indonesia, and in general, its performance needs to be evaluated. This paper can function as the first step toward enterprise performance evaluation (Fitriningrum, 2006;PTPN-9, 2017;Soejono, 2006;Soejono & Heriyanto, 2010).

Previous Works
Several related kinds of research have been done and published in Jurnal Manajemen Aset Infrastruktur & Fasilitas (JMAIF) and Journal of Infrastructure & Facility Asset Management (JIFAM). The first work published is a scientific paper defining the AM, and the IFAM . This work has been followed by a special reflection on IFAM for Public Infrastructure. This reflection indicates that managing Public Infrastructure is regulated by Law on State Treasury and Government Regulation on Management of State and Region Asset as the base (ISO 55000; PP27/14; Suprayitno & Soemitro, 2019; UU 1/04). After these two papers discussing the basic knowledge, a Basic Learning for IFAM has been done and published, by using ITS Medical Center as the case. This kind of paper needs to be developed and continued by other papers, more in-depth (Ratnasari & Suprayitno, 2019). Some other works concerning more detailed topics, such as infrastructure demand, infrastructure operation, infrastructure & facility evaluation, factor analysis, infrastructure financing, and others, have been done also (Al Bari, 2019;Chilongola et al, 2020;Firlandy et al, 2020;Eryani et al, 2020;Kye & Susilawati, 2020;Muhtadi et al, 2019;Slamet & Fajarwati, 2020;Soejono & Heriyanto, 2010;Suprayitno, 2015;Suprayitno et al, 2020;Teguh, 2020).

PTPN 9 -Institutional Aspects
The PTPN 9 is a State-Owned-Enterprise (SOE). Its main task is to operate all of the National Public Plantations and National Sugar Factories in Central Java, together with developing and commercializing its product. The head office is located in Semarang and the second main office in Surakarta. The PTPN 9 operates under a National Plantation Holding Company called PTPN-3 (PTPN-9, 2017).

PTPN 9 -Functional Aspects
The PTPN-9 main task is to manage the business of 15 national yearly plantations and 8 national seasonal plantations (sugar-cane plantations and sugar factories), as well as to develop the business. All of the plantations are scattered all over Central Java. The plantations consist of rubber plantations, coffee plantations, tea plantations, cacao plantations, and nutmeg plantations. The 8 sugar-cane seasonal plantations (sugar factories) are all scattered all over Central Java. All of the 23 plantations were built by the Dutch (PTPN-9, 2017). From the point of view of Asset Management, the PTPN-9 main function can be presented through a diagram shown in Figure 1. Regarding the main function related to assets, we have to consider that PTPN-9 has production assets, products, and markets to be managed.

PTPN 9 -Production Asset
The first asset to be observed is of course the production asset. The production asset is the physical asset producing product to be commercialized. The PTPN-9 has two groups of production assets: the yearly plantations and the seasonal plantations (sugar-cane plantations and sugar factories). PTPN-9 has been organized into three Division, Division 1 manages the yearly plantations, Division 2 manages the seasonal plantations (sugar-cane plantations and sugar factories), and a new Division 3 manages the agro-tourism, hotel, restaurant, and coffees business (PTPN-9, 2017).

Yearly Plantations
PTPN-9 manages 15 yearly plantations consists of 4 kinds of plant, i.e. rubber, tea, coffee, and cacao. Apart of these there is a small nutmeg plantation. The 15 yearly plantations scattered all over Central Java, from the easternmost in Pati Regency to the westernmost in Brebes Regency, from the northernmost in Jepara Regency to the southernmost in Pacitan Regency. The coffee plantations are all robusta lowland plantations. While PTPN-9 has both lowland and highland tea plantations. While the rubber plantation, cocoa, and nutmeg plantation are all lowland plantation. The list of plantations is presented in Table 1 as follows (PTPN-9, 2017). The map of plantation locations is presented in Figure 2 as follows. It can be seen that the plantations are scattered all over the Central Java Province. As an illustration, several examples of plantation photos are presented in Figure 3. The four photos are, from the left to the right, tea plantation, coffee plantation, cacao plantation, and rubber plantation.

Seasonal Plantation (Sugar-Cane Plantations and Sugar Factory)
As seasonal plantations, PTPN-9 owns 8 sugar cane plantations together with 8 sugar factories. Again, these are scattered all over Central Java Province. The easternmost is located in Sragen Regency, while the westernmost is located in Brebes Regency. The northernmost is located in Kudus Regency, while the southernmost is located in Klaten Regency. The list of the 8 sugar factories is presented in Table 2 as follows. All of the sugar-cane plantations are located in the surrounding of sugar factories (PTPN-9, 2017). The location map of the sugar factories is presented in Figure 4 as follows. It can be seen that the sugar factories are scattered all over Central Java Province. To give images of a sugar factory, several examples of sugar factory photos are presented in Figure 5. The three photos show the front face, an aerial view, and a side face of a sugar factory. The three photos were not taken from a single sugar factory.

AgroTourism, Hotel, Restaurant, and Coffee
Apart from the yearly plantations and the seasonal plantations (sugar-cane plantations and sugar factories), since several years ago, PTPN-9 develop a new business, i.e. AgroTourism, Hotel, Restaurant, and Coffee. This idea came out after several experiences that the selling price of plantation products are not always stable. They are sensitive to the general trade conjuncture. And also, the new business will maximize the use of the plantations area, the sugar factories area, and help to market the consumption commodities of the PTPN-9. It is also due to the Indonesian Tourism, either domestic and international, which are in general run well. The consumption commodities are tea, coffee, sugar, and nutmeg syrup (PTPN-9, 2017; PTPN-9, 2018).

Agro-Tourism
The PTPN-9 has 9 Agro-Tourisms Objects, and they are various. Those are located in coffee plantations, tea plantations, and sugar factories. It covers outbound facilities, camping facilities, plantation visit tour facilities, product processing visit facilities. All agro-tourism objects are equipped with a restaurant, coffee, people owned stall (PTPN-9, 2017).
The 8 agro-tourism objects developed in 8 different locations. The list of 8 agro-tourism is presented in Table 3 (PTPN-9, 2018).

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The Location Map of those 8 AgroTourism Objects is presented in the following Figure  6. It can be seen that those eight are located scattered in the whole of Central Java, from east to west and from north to south.

Figure 6. Location Map of AgroTourism Objects
As an illustration, several photos of agri-tourism and hotel are presented in Figure 6 as follows. These photos show the hotel and the agro-tourism in coffee plantations, tea plantations, and sugar factories.

Resort Hotel
The hotel business is also developed in Banaran Resort, Bawen. This Banaran Resort Hotel was developed to serve MICE (Meeting, Incentives, Conferencing, and Exhibition) activity (PTPN-9, 2017).

Restaurant and Coffee
Restaurants and Coffees were developed, first operated by PTPN-9 itself. Then after several years, PTPN-9 creates franchise mode for anybody who wants to participate. Certain is opened as a restaurant, the others are opened merely as a coffee. This business was already opened in 14 different locations scattered in Central Java. Four of them are organized by Banaran Unit, in Bawen, Gimawang, Majenang, Magelang, and Semarang City (PTPN-9, 2017). The list of 9 of 14 units is presented in Table 4 as follows.
As an illustration, several photos of Banaran Restaurant and Banaran Coffee are presented in Figure 7. The photos show restaurants in Bawen, Gimawang, Semarang, and Majenang. Examples of culinary served are also presented.

PTPN 9 -Product
Products and product selling are central to PTPN-9 activities. These need to be well observed. It has been mentioned before that the PTPN-9 has two types of products, i.e. the hard product and the service product. The service product is agrotourism. Agrotourism and related has been discussed before. This sub-chapter is destined to present the hard product (PTPN-9, 2018).
Hard products can be classified as consumption commodities and commercial commodities. Consumption commodity is consumption products directly consumed by the end-user, while the commercial commodities are commercialized for the distributor or industry to be processed for the need of the end-user (PTPN-9, 2018).

Consumption Commodity
The consumption commodities consist of tea, coffee, sugar, cacao, nutmeg, and lemongrass. The lemongrass is merely fill-in plants, while the cacao and nutmeg plantation is not large. The tea consumption product consists of powder and tea back. The coffee consists of coffee powder and coffee beans. As a consumption product, sugars are produced in sugar crystal. The cacaos are also sold in fermented cacao bean and cacao powder. The nutmegs are marketed as nutmeg syrup and nutmeg oil. Finally, PTPN-9 also produces lemongrass oil, in collaboration with PT. Sinkona Indonesia Lestari (Anonim, 2020;PTPN-9, 2018;Putra, 2017). The list of consumption commodities is presented in Table 5 as follows. Several photos of consumption commodities are presented in Figure 8 as an illustration. It can be seen from left to right: coffee bean, sugar crystal, nutmeg syrup, tea powder, and tea back.

Commercial Commodity
The commercial commodities sold in gross for the industry and the distributor. This commercial commodity will be used by the industry to produce a more end consumer product or another form of commercial commodity, or they are sold to the grand distributor. These cover rubber, tea, coffee, and sugar. Rubber is sold in four forms of a commercial commodity. Tea is sold in two grades. Coffee is sold in four grades. Sugar as consumption commodities are sold in small packs of sugar crystal, while as commercial commodities are sold as sugar crystal in bags and molasses (PTPN-9, 2018;Saraswati & Sari, 2012).

Waste Product
It can be noted that the sugar factory and plantation produce certain waste which can be used and commercialized as fertilizer and livestock food. These are normally sold locally for the surrounding population. The sugar factory, for example, produces sugarcane mud and sugarcane dregs (Agustono et al, 2017;Muhsin,2011;PKG PR, 2012;Yulianti et al, 2005).

PTPN 9 -Product Market
Again, another important aspect, need to be observed, is the market. The agrotourism, restaurant, and coffee up to nowadays are still consumed by the main domestic market, and also few international tourists. The consumption commodity market is still mainly the domestic market, with certain tea and coffee are already exported. The commercial commodities are for the domestic and international market (PTPN-9, 2017).