Request For Proposal – GPSNR-RFP-A02-022-Pilot Provision of Certified Planting Materials in Indonesia – Clone Orders

Deadline for submission has been updated to 8th July 2022

1. Introduction

The Global Platform for Sustainable Naural Rubber is an international, multi-stakeholder, voluntary membership initiative committed to improving the socioeconomics and environmental performance of the natural rubber value chain. Development of the GPSNR was intiated by the CEOs of the World Business Council for Sustainable Development (WBCSD) Tire Industry Project (TIP) in 2018. Members of the platform include tire manufacturers, rubber suppliers and processors, vehicle makers and NGOs. Representatives from each of these stakeholder groups have contributed to the development of the Singapore-based platform and the wide-reaching set of priorities that will define strategy and objectives.

The GPSNR aims to support the natural rubber sector to become more sustainable. Key element in achieving this is to ensure there is capacity among smallholders and industrial plantations to adopt best practices in NR production.

The GPSNR aims to support the natural rubber sector to become more sustainable. Key element in achieving  this is to ensure there is capacity among smallholders and industrial plantations to adopt best practices in NR  production.

GPSNR, through the GPSNR Capacity Building Working Group (Indonesia National Subgroup), is seeking to procure approximately 40,000 certified plants from licensed and accredited institutions in Indonesia. The planting materials are to be delivered by January 2023 at the latest for replanting at selected nursery or budwood garden sites (exact locations to be determined).

Proposed planting programmes should be implemented in line with GPSNR environmental and social commitments and values, based on the GPSNR Policy Framework^[1].

[1] https://sustainablenaturalrubber.org/policy-framework/

2. Context

There are approximately 2.25M smallholders in Indonesia, representing 83% of national natural rubber production (3.6 M tonnes). Smallholders cultivate less than 2 ha of land with an average yield of slightly below 1 ton/ha, as compared to state and private commercial plantations achieving 1.4 ton/ha and 1.5 ton/ha respectively. 

Indonesia’s average rubber yield is significantly lower than neighbouring countries in Southeast Asia; such low yield is due to low-quality clones, limited knowledge of Good Agricultural Practices (GAP) and aging trees.

Most rubber trees in Indonesia were planted from 1978-1991 through several government schemes. Given that rubber trees only have a 25-year productive lifespan, with steeply declining yields thereafter, almost all rubber trees planted under these schemes have passed their peak production. Whilst there is no formal data available on tree aging in Indonesia, the Ministry of Agriculture estimates around 600,000 – 700,000 ha of natural rubber plantations need rejuvenation. Replanting should ideally occur on about 4% of plantations annually to ensure a stable output. Yet, it is estimated that between 2010 and 2017 replanting of only 1.3% was undertaken. 

Using the right clone makes a tremendous difference in a rubber tree’s lifetime yields. The productivity of rubber clonal and seedling-derived plants is almost 3 x lower than for certified clones. Across the region, only 5% of farmers received their seedlings through a government programme. Certified nurseries are only located in provincial and district capital cities resulting in limited access to high-yielding planting materials for remote smallholders.

Additionally, poor tapping techniques are another major cause of low yields and can decrease the productive life of trees by up to 50%. It is estimated that an average smallholder with 1.5 ha of rubber will earn 57% less than the Indonesian minimum wage.  

Five provinces contribute 66.5% of national production: South Sumatra, North Sumatra, Jambi, Riau, and West Kalimantan. South Sumatra province is Indonesia’s largest and most productive area. Its natural rubber area is almost 23% of the total national productive area and smallholders’ plantations take up 98.5% of this area. The productivity of smallholders in South Sumatra is the highest among smallholder areas in Indonesia, producing 1.3 ton/ha, and more likely to have received GAP training. In 2019 the government announced a replanting plan for 2019 – 2027, with a focus on South Sumatra (92,600 ha), South Kalimantan (76,550 ha) and Jambi (69,900 ha). However, this plan has no large-scale lending programme associated with it and is to be executed by local governments and has not yet been implemented. Demand for replanting is strongest in Jambi, where 40% of farmers are willing to undertake replanting. Demand is lowest in West Kalimantan, where only 1 farmer out of 79 was contemplating. Most likely the demand in Jambi is due to peak planting being undertaken in 1995 – 2005 and the majority of the trees are approaching their maximum productive age, and Jambi farmers are more aware of the importance of good quality clones and their impact on yield – they also have the highest rate of nursery clone purchase – and have suffered less from disease. 

Source:
Financial Assessment of Smallholder Natural Rubber Production in Indonesia. July 2020. USAID Green Invest Asia, HeveaConnect, SNV and Financial Access.^[2]

[2] https://www.facsglobal.com/wp-content/uploads/2020/12/Final-Rubber-report-2020.pdf

3. Expected Deliverables

The overall objective of the Pilot Provision of Certified Planting Materials project is to deliver approximately 40,000 plants by January 2023. GPSNR has identified the following clones for procurement:

1. IRR 220
2. IRR 112
3. RRIC 100

The service provider should also detail the initial certification process prior to delivery of clones.

The proposal should justify whether GPSNR should proceed with all of any of the three clones above, and the recommended number of clones to procure.

Submitted proposals should also provide brief justifications and details on the costs, timeline, and rationales for each of the clones listed above, and provide rationales for where the clones are most needed amongst the following regions:

1. Northern Sumatra
2. Southern Sumatra
3. Central Sumatra
4. West Kalimantan
5. East Kalimantan

The GPSNR Capacity Building Working Group (Indonesia National Subgroup) may prioritise funding for specific regions based on relative productivity, coverage of existing coaching services, socio-economic needs, or other considerations.

Service providers are also expected to operate in line with principles and values set forth in the GPSNR Policy Framework^[3] such as commitment to environmental protection and sustainability, zero deforestation, community engagement and FPIC etc.

The selected service provider may also be expected to work closely with the GPSNR Capacity Building Working Group (Indonesia National Subgroup) to fine-tuned or further augment the clone selection and delivery timelines.

Key Metrics

The proposal should elaborate on how the following key metrics can be achieved and measured:

1. Total planting materials delivered by January 2023

• Initial certification of clonal materials
  
  
• Overall expected costs
  
  
• Level of details in justifications for selected clones and recommended regions for replanting

Propoals are also encouraged to include key metrics of importance not listed above.

[3] https://sustainablenaturalrubber.org/policy-framework/

4. Proposal Format and Contents

The proposal should include the following:

1. A workplan that outlines all key activities of the deliverables (as outlined in 3. Expected Deliverables above)
   
2. Timeline and key stages of operations (based on 5. Expected Timeline below)
   
3. Budget, including detailed breakdown of expected manpower, logistics, and costs (based on 6. Budget below)
   
4. Description of past work and technical expertise that is relevant to this RFP
   
5. A list of project team members with their roles in the project and associated qualifications

5. Expected Timelines

The work shall begin by July 2022 and the various phases shall be completed in accordance with the approximate timeline below:

Consultants will also provide fortnightly or monthly progress updates to the GPSNR Capacity Working Group, or on an as-needed basis.

6. Budget

The Platform is anticipating that the total budget of no more than 26,000 EUR be allocated to the project.

Payment terms shall be:

• 30% at the signing of the contract
• 20% upon the First Full Review
• 50% upon the delivery of planting materials

7. Evaluation Factors

GPSNR will rate proposals based on the following factors:

1. Responsiveness to the requirements set forth in this Request for Proposal
   
   
2. Relevant past performance/experience of the consultant
   
   
3. Samples of work (e.g., previous training or coaching programmes in Indonesia)
   
   
4. Technical expertise/experience of bidder and bidder’s staff
   
   
5. Proposed timeline of operations
   
   

GPSNR reserves the right to award to the bidder that presents the best value to GPSNR as determined solely by GPSNR in its absolute discretion.