Project News

As introduced in the last Project News, several Ulos producers in Samosir have been jointly delivering Ulos-applied handicraft products to local hotels and shops for consignment sales. Although relatively slow-moving at first, sales of the products are beginning to increase as they diversified the product types and strengthened sales promotion.

These Ulos producers have formed a joint business group called "Harungguan" (a name of traditional Ulos motif) to seek self-sustained business operation. They have never experienced operating their own business, as they have depended upon support from the government for their production activities and merely undertaken weaving jobs commissioned by brokers. Until now, those handicraft products displayed for consignment sales have been also prepared with financial support from the Local Working Group (LWG).

Under this circumstance, the members of Harungguan agreed to utilize a part of profit made from the consignment sales for raw materials procurement for their further production. In addition, through the facilitation of LWG, a provincial development bank (North Sumatra Bank) decided to provide yarns for further handicraft production to the Harungguan members under its Corporate Social Responsibility (CSR) program. An uncertainty for sales makes them hesitate to take risk of buying raw materials for preparation of handicraft products. Hence, LWG facilitated the Bank to providing the yarns to the Harungguan members as initial capital so that they could start handicraft production for consignment sales. This is the first and important step toward realization of their self-sustained business operation.

This joint-business group shall be further facilitated by the LWG so that they can be equipped with the skills of business/ financial management, and jointly work for production/ marketing of Ulos handicraft products.

Discussion among the joint-business group

Improving product display at one of the hotels