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SUPPLY CHAIN AND FINANCIAL ANALYSIS OF MONITOR
LIZARD AND COBRA SATAY BUSINESSES
INTRODUCTION:
The high abundance of wildlife species wealth makes Indonesia the country with the
3rd highest level of biodiversity in the world (KLHK 2021). The abundance of species
richness can be best utilized to improve the Indonesian economy. According to DKKHSDG
(2022) the value of wildlife utilization in wildlife and natural plant exports generated foreign
exchange of IDR 10.8 trillion, with IDR 1.7 trillion coming from captivity, and IDR 9.1
trillion coming from nature.
In fact, this value will continue to grow due to population growth, increased buyer
power, globalization, and lifestyle (Nijman 2010; Kusrini et al. 2021). This is in line with
Nijman's (2010) opinion that wildlife utilization is at the heart of biodiversity conservation
and sustainable development, by providing income for communities and generating
considerable revenue nationally.
Reptiles as wildlife utilization commodities are usually used as a source of food and
traditional medicine (Alves et al. 2013; Mardiastuti et al. 2021; Xiao et al. 2021; de Souza
and Alves 2014). Usually, reptiles are utilized for their body parts such as meat, fat, bile,
bones, genitalia, blood, and liver (Mardiastuti et al. 2021; Mukherjee et al. 2017). Reptiles
are popular for consumption because they provide health benefits for humans, as they are
high in protein, low in fat, rich in nutrients, and amino acids (Dominguez et al. 2019;
Mazaratti et al. 2023), and can treat a variety of diseases such as skin diseases, respiratory
diseases, digestive diseases, eye diseases, muscle and bone diseases, and even cancer or
tumors (Mardiastuti et al. 2021; Valencia-Aguilar et al. 2013; Mukherjee et al. 2017). In
addition to health and consumption benefits, reptiles are also used as pets, as crafts, and their
skins are used as fashion materials. The use of reptiles can even indicate social status,
fulfillment of hobbies, lifestyle, and for religion (Thomas-Walters et al. 2021). Reptile
utilization is also a major commodity in wildlife utilization, contributing IDR 4.9 trillion in
foreign exchange in 2018 (DKKHSDG 2022). This shows that reptiles have very high
economic potential. Reptiles that are often utilized by the community are monitor lizards
(Varanus salvator) and cobras (Naja sputatrix).
Lizards and cobras are included in the CITES Appendix II list, which is an animal
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species whose population in nature is not yet in danger of extinction, but could be threatened
if the trade is not controlled (CITES 2023). According to the Ministry of Environment and
Forestry (2022), the harvest quota for cobras for consumption in West Java is 33, Central
Java 347, and East Java 350, in addition, there is a quota for skins which also includes meat
and other organs of 292 for West Java, 3,127 for Central Java, and 3,150 for East Java. As
for monitor lizards, there is no specific quota for consumption, and only a quota for skins,
namely 475 heads for West Java, 250 heads for Central Java, and 500 heads for East Java
This is to support sustainable harvesting. According to Parjoni (2012) sustainable harvesting
is the largest amount of wildlife resources that can be harvested each year through natural
population growth, and the main problem of sustainable harvesting is the absence of data on
population development in nature (Mardiastuti and Soehartono 2003). There is also a lack of
data on the actual utilization of monitor lizards and cobras.
To ensure sustainable utilization, it is important to approach all elements of the supply
chain systematically (Govindan and Hasanagis 2018). Supply chains in the wildlife trade
consist of traders, suppliers, and sources (Phelps et al. 2016), within which products flow
from source to seller through various means of transportation (Keskin 2023). In the supply
chain, there is a flow and transformation of goods from the raw material stage to the end
consumer, which also involves the flow of information and money (Chin et al. 2015).
The lizard and cobra satay business is one form of utilization that makes lizards and
cobras a commodity for consumption. This makes the reptile trade, especially monitor
lizards and cobras, better known by the public and can increase the useful value of reptiles as
consumption commodities, thereby improving the community's economy because it involves
the community in a supply chain that stretches from hunters to consumers, driven by local
communities as economic resources (Sulistyo 2020).
Jakarta as the capital city of the country is a prospective market with high purchasing
power and inhabited by various ethnicities (Prastiwi 2014), so the lizard and cobra satay
business can grow well in the city. Considering the economic opportunities and Jakarta as a
strategic area for reptile trade, a financial analysis is needed to determine the good prospects
for sate biawak and cobra snake business activities. In addition, information on the value of
utilization for consumption, especially in DKI Jakarta, has not been widely studied, even
though this can show the real benefits obtained from the utilization of monitor lizards and
cobras. Therefore, this study is needed to assess the supply chain, the form of utilization of
monitor lizards and cobras for consumption and the financial value of the monitor lizard and
cobra snake satay business in DKI Jakarta.
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1.1. Problem Formulation
Nowadays, the utilization of reptiles continues to increase, in line with the increasing
public interest and demand for reptiles. In fact, according to Janssen (2021), reptiles are the
most commonly harvested and traded species group globally. Reptile utilization is usually
used as craft materials, pets, and consumption. The phenomenon of reptile utilization for
consumption occurs not only to fulfill daily needs, but also reptiles are believed to cure
various diseases, such as the Javanese spoon snake (Naja sputatrix) which is used for meat,
blood, bones, fat, bile, and even genitals, to treat skin, eye, digestive, blood, respiratory, and
even sexuality diseases, as well as the use of water monitor lizards (Varanus salvator) for
skin medicine.
The utilization of reptiles for consumption certainly affects the economic analysis
including the impact on the food industry, the reptile trade market, and the welfare of the
community, because the utilization of reptiles These reptiles have high economic potential
that can provide income for the community. Examples of reptile utilization are the monitor
lizard and cobra satay businesses.
The lizard and cobra satay business benefits financially by selling food, which has a
specific segment and target market, making it promising, especially in terms of increasing
production and sales, at a fairly high price. Therefore, the utilization of reptiles as food
ingredients can be a source of community income. In the context of DKI Jakarta, as a big
city with a high level of consumption, the utilization of reptiles for consumption can be a
promising business opportunity.
With such high economic opportunities, sustainable utilization is required by
understanding the supply chains of monitor lizard and cobra satay businesses. A thorough
understanding of the social and economic dimensions of the supply chain can inform the
forms of utilization, supply chain processes, and tangible benefits, which can inform
government wildlife trade policy and management (Robinson et al. 2018). In addition,
knowing the socioeconomic characteristics of communities, especially those participating in
the supply chain, can influence the success of conservation projects (Chukwuone 2009).
Consequently, well-managed sustainable utilization can have a positive impact on
communities and encourage intensive conservation (Gordon and Ayiemba 2003; Hutton and
Leader-Williams 2003). This suggests that conservation is also linked to sustainable use.
However, research and scientific literature related to reptile utilization shows a lack of
attention to the topic, whereas this research is needed as a basis for further research, such as
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bio-ecology and utilization, so that reptiles can be developed through captivity, and can also
be input for the government related to wildlife trade policies, especially reptiles, where
people can still receive benefits, especially economically and the reptile population that is
used can be maintained. This is a challenge for reptile conservation in Indonesia.
From this description, the problem formulations in this study are:
1. What is the supply chain in the monitor lizard and cobra satay business?
2. What are the product types, parts utilized, and properties of utilizing monitor lizards and
cobras in the monitor lizard and cobra satay business?
3. What are the characteristics of intermediaries in the supply chain of the monitor lizard and
cobra satay business?
4. What are the characteristics of consumers in the lizard and cobra satay business?
5. Is the lizard and cobra satay business feasible according to the financial analysis?
2.1 Data Analysis Method
2.1.1 Supply chain of monitor lizard and cobra satay business
Supply chain analysis in the monitor lizard and cobra satay business was conducted
descriptively to show supply chain links, supply chain flow, supply sources, supply chain
processes, quantities, specifications of monitor lizards and cobras, and selling prices. The
supply chain flow was adapted to the typology of wildlife trade flow according to Phelps et
al. (2016), as follows.
2.1.2 Parts and products utilized from monitor lizards and cobras
The parts and processing of monitor lizards and cobras used for consumption were
analyzed using descriptive analysis, to determine the type of product, processing process,
parts used, and efficacy, which are described as follows.
a. Product type
The results of the reptile processing process are offered to consumers to be utilized.
According to Arisnagara's research (2009), some types of reptile products include 1) direct
food, 2) reptile capsules, 3) reptile oil, 4) reptile ointment, 5) reptile turtle, 6) reptile flour, 7)
and shredded reptiles.
b. Product processing
Processing indicates the form of processing of monitor lizard and cobra products from
the seller that will be served to consumers, including fried, grilled / roasted, and dried.
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c. Product price
Shows the range and variation of prices of reptile products sold to consumers, thus
indicating an increase in the value of benefits from the utilization of monitor lizards and
cobras.
d. Utilization section
The utilized parts are divided into eight types of body parts used for consumption,
according to Herzegovina et al. (2021) include meat, bile, marrow, blood, all parts, fat, bone,
and stalk.
e. Efficacy
Reptiles are believed to have various properties that are useful for human health and can
cure diseases. According to Mardiastuti et al. (2020) some of the properties of reptiles can be
a cure for diseases, including
1) skin diseases, 2) respiratory system diseases, 3) circulatory system diseases, 4) eye
diseases, 5) sexuality diseases, 6) endocrine diseases, 7) neoplasm diseases, 8) nerve
diseases, 9) digestive diseases, and 10) tonics.
2.1.3 Characteristics of suppliers and traders
Suppliers consist of agents and collectors. Agents act as intermediaries between
collectors and consumers (Sudjana 2022), and collectors act to collect crops from
producers/hunters (Puryanto 2019). Meanwhile, a trader is someone who buys and resells
goods, which is directly related to consumers (Phelps et al. 2016). The analysis of the
characteristics of suppliers and traders was analyzed using descriptive analysis, to determine
the characteristics divided into several categories, as follows.
a. Gender Composition
The gender group is divided into male and female. This is to show which gender
dominates and is influential in becoming a supplier and trader.
b. Age Group Comparison
Age group comparisons were made to show the age groups that dominate reptile
utilization, especially as suppliers and traders. According to Permenkes (2016), the age
groups are 1) infancy : 0-1 year, 2) toddler period: 1-5 years, 3) childhood
Preschool: 5-6 years, 4) child : 6-10 years, 5) adolescent: 10-19 years old, 6) adult
: 19-44 years, 7) pre-elderly period : 45-59 years, 8) elderly period: >60 years.
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c. Education Level
According to Hasbullah (2005) Education makes a person encouraged to be curious, seek
experience, so that the information received will become knowledge. The level of education
is divided into 1) Not in school 2) Elementary school (SD)/equivalent 3) Junior high school
(SMP)/equivalent,
4) Senior High School (SMA)/equivalent 5) S1, 6) S2. This is to show the dominance and
influence of education levels on the people who are suppliers and traders in the supply chain.
d. Jobs
Employment is divided into main job and additional job. This shows that the motive for
becoming a supplier and trader can be as a main job or an additional job to fulfill other
motives such as hobbies, and so on.
2.1.4 Characteristics of reptile consumers
Consumers are taken as many as 30 respondents in each business, according to Sugiyono
(2009) the use of 30 respondents is because the test results are close to normal curve.
Consumer characteristics are divided into several categories which will be described using
descriptive analysis, as follows.
a. Gender Composition
Sex composition is to determine the proportion of sex in consuming reptiles. The gender
is divided into two, namely male and female.
b. Age Group Comparison
Comparison of age groups shows that the age group that consumes the most reptiles.
According to Permenkes (2016), these age groups are 1) infancy : 0-1 year, 2) toddler
period: 1-5 years, 3) preschoolers: 5-6 years, 4) children: 6-10 years, 5) adolescents: 10-19
years, 6) adults:
19-44 years, 7) pre-elderly period : 45-59 years, 8) elderly period: >60 years.
c. Education Level
According to Hasbullah (2005) Education makes a person encouraged to be curious, seek
experience, so that the information received will become knowledge. The level of education
is divided into 1) Not in school 2) Not graduated from elementary school 3) Graduated from
elementary school (SD) / equivalent 4) Graduated from junior high school (SMP) /
equivalent, 5) Graduated from senior high school (SMA) / equivalent 6) Graduated from
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college. According to Sianipar et al. (2022) education level affects the understanding,
perspective, and knowledge of wildlife conservation.
d. Jobs
Employment is divided into main job and additional job. This is to determine the effect of
occupation on reptile consumption levels.
2.1.5 Financial analysis of lizard satay and cobra satay business
Financial feasibility analysis is conducted to provide an overview of how much
economic benefit can be received from an activity (Wahyudin and Lesmana 2016), in this
case a restaurant that utilizes reptiles for consumption. The basis of the financial feasibility
assessment uses the investment feasibility criteria method, namely Net Present Value (NPV),
Net Benefit Cost Ratio (Net B/C), Internal Rate of Return (IRR), Payback Period (PP), and
sensitivity analysis.
a. Net Present Value (NPV)
NPV is the difference between the total present value of profit and the total present value
of costs over the life of the business (Nurmalina et al. 2010). According to Adnyana (2020)
NPV is a financial analysis method that includes the space time factor because the value of
money will increase over time, so the NPV value can show the value of future investment
flows in the present.
b. Internal Rate of Return (IRR)
IRR is the average annual internal rate of return for companies that make investments
and is expressed in units of percent (Nurmalina et al. 2010). According to Adnyana (2020)
IRR is a method of valuation IRR is an investment made by finding the interest rate value
that can provide a net present value of all investment cash flows equal to zero.
c. Payback Period (PP)
PP is an investment feasibility assessment method that uses the length of time required
for the funds required for an investment to be recovered (Adnyana 2020), so PP is a method
of assessing the feasibility of a business that is used to measure the period in the payback
period. The smaller the PP value, the faster the return on investment that has been issued.
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1.1 Supply Chain of Lizard and Cobra Satay Businesses
The supply chain can show the actors involved and their relationships in the supply
chain of the satay biawak and cobra snake business, which can be seen in Table 4.
The supply chain of the monitor lizard satay business consists of hunters, collectors and
traders, while the supply chain of the cobra satay business consists of hunters, collectors,
agents and traders. This is in accordance with the research of Yudha et al. (2021) which
revealed that the supply chain of monitor lizards consists of hunters, collectors, and traders,
while in Parjoni's research (2012) which revealed the supply chain of cobra snake trade in
East Java which consists of agents, collectors, and traders. The difference in the supply chain
lies in the cobra snake supply chain where there are agents, who act as collectors of cobras
from hunters, which will later be distributed by collectors, while in the monitor lizard supply
chain collecting monitor lizards from hunters is carried out by collectors, and traders take
monitor lizards ordered to collectors. The greater the number of individuals, the greater the
variety of roles, the more complex the wildlife trade supply chain (Sas-Rolfes et al. 2019).
According to Phelps et al. (2016) wildlife trafficking has diverse roles to overcome
geographical and legal barriers. Even individuals play multiple roles in an illegal wildlife
trade network (Basel Institute on Governance 2021).
Both supply chains are included in the gatekeeper supply chain type according to Phelps
et al. (2016) in the gatekeeper type of supply chain there is one actor who is at the center of
the trade. This actor is tasked with coordinating orders, collecting orders, and connecting
between supply chains, which in this supply chain is carried out by collectors in the monitor
lizard supply chain and agents in the cobra supply chain. According to Phelps et al. (2016)
the gatekeeper flow type is the dominant flow type in the wildlife trade market in Indonesia.
Figure 2 shows that in the cobra supply chain, there are collectors who collect the catch
from hunters. The catch will then be purchased by agents according to the trader's order. If
one of the collectors does not fulfill the order, the agent will buy cobras from other
collectors. The agent will also directly deliver the cobras as ordered to the cobra satay
traders. In contrast, the supply chain of monitor lizards is simpler, where hunters will sell
their catches to collectors, and then collectors will process the monitor lizards to sell the parts.
According to Parjoni (2012), there is no attachment in the cobra trade. The influential factors
in the trade are the ease and price given, hunters can sell their catch to agents at a high price
and ease of selling. However, in the study, the collectors sold the poachers' products to a
fixed agent, due to social closeness and close access, and the price determined was favorable
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to each other. This is the same as in the monitor lizard supply chain, where hunters will sell
to fixed collectors, due to social proximity, access, and prices that are already favorable to
each other.
For licensing, in the monitor lizard supply chain, all supply links do not have a license
from BKSDA. According to interviews in the supply chain, licenses are not needed because
the animals are not rare and are still abundant in nature, in addition to the difficult rules in
making licenses, and assuming that the animals are sold for treatment. Meanwhile, in the
cobra supply chain, agents have distribution permits that are valid every five years, and only
one of the collectors has a distribution permit and a capture permit that is valid for one year,
and cobra satay traders also do not have a permit.
The monitor lizard supply chain is simpler than the cobra supply chain, which may be
due to the distance and accessibility of each link in the supply chain. According to Keskin et
al. (2023), the structure of the wildlife trade flow is influenced by the source of the animals,
access, and distance of each trade chain. This is shown in Table 5, which shows the source of
the animals and the location of the supply chain.
Table 5 shows that the supply chain distance for monitor lizards is shorter than that for
cobras. The distance in the monitor lizard supply chain traveled by agents to monitor lizard
satay traders is ± 22 km, which can be reached within 45-60 minutes. In the monitor lizard
trade, collectors do not deliver monitor lizard meat to monitor lizard satay traders, but monitor
lizard satay traders come to buy monitor lizards from collectors. Unlike the lizard trade, in
the cobra trade, the agent will deliver cobras according to the order. The distance traveled by
collectors is ± 83 km, which can be reached in 2 hours 22 minutes - 4 hours, which is
influenced by the weather and the density of vehicles on the road.
Poachers are usually close to agents and collectors in the cobra supply chain and close to
collectors in the monitor lizard supply chain. Lizards hunters hunt around Bekasi in
riverbanks such as Bekasi River, Pulo Puter River, and community ponds in Muara
Gembong, Marunda, and Pondok Soga. If the order for monitor lizards is large or monitor
lizards cannot be found in the Bekasi area, hunters usually hunt as far as Karawang. Cobra
hunters hunt in agricultural and plantation areas close to the hunters, specifically in the
Wadas area of Karawang, and do not hunt outside the area. Hunters do not hunt outside the
area because the agricultural and plantation areas contain abundant food sources, such as
rodents, which are prey for these snakes (Boeadi et al. 1998; Parjoni 2012). This suggests
that the area is a cobra habitat, although it is still close to human areas. Cobras are
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commonly found in areas close to human activities. The proximity of cobra locations to
human presence is because cobras have high adaptability (Widodo et al. 2019). According to
Coad et al. (2013) if the population of animals close to human settlements decreases, humans
will travel farther to maintain the level or amount of catch.
In the supply chain process, the number of monitor lizards and cobras is usually adjusted
according to traders' orders. Traders will order monitor lizards from collectors and cobra
traders will order them from agents, and pass them on to other links in the chain. The
number of monitor lizards and cobras in each link of the supply chain can be seen in Table 6.
As shown in Table 6, in the monitor lizard supply chain there are 18 monitor lizards at
the collectors in a week, which is adjusted to the demand of traders. The monitor lizards are
slaughtered for the orders of the monitor lizard satay traders who take the meat and fat and
send to the monitor lizard satay traders as much as 16 kg of monitor lizard meat in a week or
if it is assumed that the average monitor lizard meat produced per tail is 1.5 kg, then 16 kg of
meat is equal to ± 11 monitor lizards. Therefore, the estimated number of monitor lizards
consumed during one year from the lizard satay business is ±572 l iz a rd s. According to
research by Herzegovina et al. (2021) the number of monitor lizards utilized in Jakarta City
is 1,488 per year.
Usually, collectors will collect the catch of monitor lizards from hunters and put them
into used water tanks (Figure 3). When there is an order, the monitor lizards will be
slaughtered so that the meat is fresh.
Usually, if the supply of monitor lizards is getting low in storage, collectors will order
monitor lizards from hunters. However, if a hunter manages to get a monitor lizard, it can be
sold directly to the collector even though the stock of monitor lizards is still large. According
to collectors, monitor lizards in storage can last for three weeks, unfed and only given water.
The amount of monitor lizard supply is influenced by the season. According to hunters,
monitor lizards are difficult to catch during the dry season and will be abundant when it is
raining and even flooding, this is in accordance with Rahman et al. (2017) that monitor
lizards are more active during the rainy season than the dry season. As ectothermic animals,
monitor lizards will obtain heat from environmental sources, and their activity correlates
with environmental temperature (Gaulke and Horn 2004). In Rahman et al. (2017) most
monitor lizard activity occurs in temperatures between 29o C and 31o C, during the rainy
season monitor lizard activity starts later and ends earlier than in the summer. However,
during the monitor lizard business, monitor lizard supplies are always available and do not
disrupt the business due to lack of monitor lizard supplies.
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In the supply chain process, there are 9 monitor lizards that are not utilized by monitor
lizard satay traders, which are usually used to be traded into monitor lizard satay by
collectors, this is because collectors also have additional jobs as monitor lizard satay traders
in Bekasi.
The cobras will be sorted to be sent to traders according to orders by agents, usually 30
cobras are ordered for a week of trade, so the estimated number of cobras consumed for
cobra satay business is ±1,560 cobras in a year. According to research by Herzegovina et al.
(2021) the number of cobra utilization in Jakarta City was 37,320 per year.
The supply of cobras is also adjusted according to the season. According to hunters,
cobras are difficult to catch during the breeding season. The breeding season for cobras is
during the dry season between August and October (O'Shea 2005), according to Patria et al.
(2022) cobras are more active during the rainy season than the dry season. This may also be
due to the fact that the snake's main food, such as reptiles and small mammals, also becomes
more active during the rainy season, so the snake is also more active during the rainy season
(Ochoa et al. 2020). Snake hunting is also not done all the time, as during the rice harvest
season, many snake hunters turn into farmers (Parjoni 2012). However, during the business,
cobra supplies are always available and do not disrupt the business due to shortages.
There are specifications for monitor lizards and cobras to be utilized. Specifications
consist of total length (cm), Snout Vent-Length (SVL), which is the length from the tip of the
snout to the cloaca (cm), body weight (gr), age class, and sex. The study measured 18
monitor lizards and 30 snakes.
The average total length of monitor lizards sold was 153.1 cm, with an average SVL of
79.6 cm. Males have a longer total length than females, in addition male monitor lizards
have a greater body weight than females, this is in accordance with Shine et al. (1996) that
male monitor lizards grow longer, have longer tails, and are larger than females but at SVL
length females have a longer size.
There are special specifications in selecting monitor lizards taken from the wild. Lizards
collectors do not accept lizards <5 kg, this is because <5 kg is considered too small and
therefore has little meat and also makes it difficult to cut the lizards, besides that small
lizards have little fat which will also be taken for sale. Lizards that weigh <5 kg or do not
meet the size, will usually be returned to nature, and some hunters even deliberately raise the
lizards at home.
Cobras have an average total length of 105.7 cm, with an average SVL of 94.9 cm, with
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an average male SVL of 95.3 cm and female SVL of 94.4 cm. In contrast, Boeadi et al.
(1998) found that the SVL of male cobras (95.7 cm) was shorter than that of females (101.3
m). However, although male cobras tend to grow longer, have longer tails, and are overall
larger than females, female cobras have longer SVLs (Boeadi et al. 1998). Size differences
at different sites may be due to disturbance levels and prey availability (Natusch et al. 2019;
Twining et al. 2017).
According to interviews, cobra collectors do not accept cobras <70 cm in length so that
the snakes can continue to regenerate and be preserved, and small snakes are less desirable to
traders because small snakes have less meat and traders also believe that small snakes lack
medicinal properties. This suggests that snake size is influenced by market demand
(McNamara et al. 2016). This is related to price and quantity, which are determined by
optimizing consumer satisfaction (McNamara et al. 2016). Size restrictions are also effective
in protecting wildlife with high reproductive rates and allowing populations to continue to
grow (Dee et al. 2014).
According to Shine et al. (1996) monitor lizards are called sexually mature when they
have a minimum SVL length of 40 cm in males and 50 cm in females. The results showed
that the minimum length of monitor lizards in the supply chain was 61 cm, suggesting that
monitor lizards in the supply chain are sexually mature that are already adults. The capture of
mature animals suggests that many individuals in the population still have the potential to
reproduce, both before and after reaching harvestable size (Khadiejah et al. 2019).
Cobras are considered adults if they have an SVL of 90.8 cm for males and 82.8 cm for
females (Boedi et al. 1998), so 26 adult cobras and 4 cobra pups were found. This suggests
that the cobra supply chain also trades cobra pups. The study also found productive monitor
lizards and cobras, characterized by the presence of eggs. One monitor lizard was found
laying eggs, which will also be collected and sold (Figure 5); monitor lizards can produce 6-
17 eggs in one year (Shine et al. 1998), and one cobra was found laying eggs, but according
to the agent the eggs usually break in storage and cannot be utilized.
Capture of juveniles and eggs can cause economic and ecological losses. This will lead
to a decline in productive populations, which will impact population sustainability (Santana
et al. 2020). Capture of juveniles can also cause economic losses both in the present and
future, as juveniles are usually cheaper due to their smaller size compared to adult cobras,
and capture of juveniles can eliminate potential future income (Najmudeen 2008).
For gender, collectors prefer male monitor lizards because they are larger and have more
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meat, while females are smaller and have more fat. In addition, male monitor lizards are also
more commonly found in nature. According to Hanjar et al. (2016) male monitor lizards
move more when looking for food and protecting territories, while females move a lot when
looking for nests and laying eggs.
In contrast to the monitor lizard supply chain, there is no gender-specific preference in
the cobra supply chain. In the study, female cobras were more numerous with a ratio of 1.2 :
Most snake studies have found the sex ratio to be similar to 1:1 (Brown and Weatherhead
1999; Luiselli and Angelici 2000; Chaltae 2011). Females were found to be more abundant
due to males being less active. According to Todd et al. (2008) males are more active during
the breeding season. According to Phelps (2007) in the Naja nivea study, female snakes will
be more active during the breeding season leave the nest and enter the vegetation around the
nest, while the males only sunbathe and return to the nest.
The results showed differences in each supply chain. The price of monitor lizards in the
supply chain from hunters to collectors is Rp10,000/kg sold alive. The monitor lizards are
slaughtered and the meat and fat sold to monitor lizard satay traders for Rp60,000/kg for
meat and Rp15,000/kg for fat. Furthermore, the meat is processed into lizard satay, which is
sold at a price of Rp20,000 / portion, so that in 1 kg of lizards can generate income of
Rp120,000 / kg and fat is processed into lizard oil at a price of Rp10,000 / bottle, so that in 1
kg of fat can generate income of Rp66,667 / kg. This price is different from the research of
Yudha et al. (2021) in Bogor that the price of live monitor lizards from hunters to suppliers
ranged from IDR 3,000-Rp4,000/kg, and research by Arida et al. (2020) in North Sumatra
that the price of monitor lizard meat from suppliers to traders is IDR 10,000/kg. According
to the study, the price of monitor lizards is set by collectors. Collectors will determine the
price and measure the weight of monitor lizards from hunters, and determine the price of
monitor lizards to be sold to traders at an agreed price.
Unlike the price of monitor lizards, there are no specific categories or classes. The price
for cobras is determined by length class, with class A being >110 cm in length, class B being
90-110 cm, and class C being 70-90 cm. However, the price from poachers to collectors is
fixed and not adjusted by length class at IDR 15,000/head, but if there are snakes below the
market criteria, collectors still do not accept the snakes, and snakes that do not meet the
criteria are returned to the wild. The price of snakes from collectors and agents is
Rp25,000/head for class A, Rp20,000/head for class B, and Rp18,000/head for class C. The
price from agents to cobra skewer traders is Rp40,000/head for class A, Rp35,000/head for
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class B, and Rp30,000/head for class C. The price from traders to consumers has increased,
but the price of cobra skewers has increased. Prices from traders to consumers experienced a
high increase with the price of class A being Rp. 200,000/head, class B is Rp150,000/head,
and class C is Rp100,000/head. The snakes can also be sold for meat only to be served to
consumers at Rp40,000/portion. Price determination in the cobra supply chain is usually
done by the trader, who sets the purchase price of the cobra to the agent, and the agent will
adjust it to reach an agreement. This price is higher than in Parjoni's (2012) study where the
price of cobras from collectors to traders was Rp12,000-Rp16,000 for class A, Rp5,000-
Rp8,000 for class B, and Rp2,000-Rp3,000 for class C, while the price from sellers to
consumers was Rp30,000-Rp40,000. Price differences can be caused by regional differences,
inflation, scarcity, and supply-reception effects (Aristides et al. 2016; Kovak 2013; Sterman
and Dogan 2015; Sas-Rolfes et al. 2019)
The high price may be due to the fact that wildlife is a prestige and rare item. According
to Xiao et al. (2021) wildlife is one of the prestige goods and shows social status. Consumers
can buy cobras even though they are expensive because cobras are rare prestige items to
show social status. This is related to personal knowledge and social perceptions. (Hinsley
and Sas-Rolfes 2020; Xiao et al. 2021). Hermawan and Haryanto (2013) argue that prestige
perceptions are goods that are rare and rarely purchased, which require higher knowledge,
and are related to individual self-concept. This prestige perception has a direct influence on
purchase intention (Wong and Zhou 2012). In addition, according to Parjoni (2012), the
domestic price of wildlife, especially cobras, is quite high because these animals are used for
traditional medicine. This suggests that monitor lizards and cobras have their own market
segments.
The price of monitor lizards and cobras can also determine losses in the supply chain, if
there are monitor lizards and cobras that die during the supply chain process to consumers.
In the monitor lizard supply chain, no monitor lizards died during the storage treatment at the
collectors, even though monitor lizards are usually not fed and only given water. Lizards are
well adapted to anthropogenic land and habitat changes (Sanchez 2019). Lizards are well
adapted to being near water (Karunarathna et al. 2017). Shipments of monitor lizards from
collectors to traders are delivered dead, so no losses are incurred.
In the cobra supply chain, there are dead cobras in each link of the supply chain. This can
be due to the fact that the snakes are traded alive during the supply chain process. According
to the results of the interview, at the collecting stage in a week there are 1-5 dead snakes that
cause a reduction in income of Rp25,000 - Rp125,000 in one week. Usually the snakes die
15
due to overcrowding, overheating and stress. According to collectors, cobras can survive in
storage for 2 months if only given water, but snakes will not survive for one week if storage
is too hot or exposed to direct sunlight for too long.
Furthermore, at the agent stage there are also cobras that die due to travel, usually 1-6
snakes that die, resulting in a reduction in income of Rp40,000 - Rp240,000 in one week, if
using the assumption of the highest price when selling the snake from the trader. Snakes
Those that die at agents and collectors are usually given to catfish farmers to be used as feed.
Finally, cobra satay traders also usually experience losses due to dead snakes, usually
due to stress and overheating. The number of dead cobras ranges from 1-10 in a week, which
results in a reduction in income of IDR 200,000 - IDR 2,000,000, if using the assumption of
the highest price when selling the snakes to consumers. Dead cobras from traders are usually
collected and disposed of in landfills.
The total number of cobras that died during the cobra trade in one week ranged from 3-
21 cobras, resulting in a percentage of cobra supply chain mortality of 5%-35% in one week
of cobra trade. This is consistent with Wyatt et al. (2022) that the loss of animals in the
supply chain can be as high as 30%-90%. Wildlife in the supply chain die due to painful
capture methods, disease, improper transportation, cramped and inadequate confinement,
and insufficient food (Peng and Broom 2021; Miranda-de la Lama et al.2014; Godde et al.
2021). In addition, the death of animals in the trade supply chain has both ecological and
economic consequences (Puspitasari 2022; Prayudhi 2015). More integrated supply chains
have lower mortality rates, such as quotas, restricted adult-only harvests, and good animal
management systems (Jennings et al. 2016). For a sustainable supply chain, it must consider
all aspects from the hunting, storage, processing, transportation and retail stages
(Kazancoglu et al. 2018).
1.2 Product Types, Processing Processes, and Income Potential of Lizards and Cobras
Lizards and cobras are processed into a variety of products to maximize utilization and
increase the value of lizards and cobras, as well as processing to facilitate consumers in
utilizing lizards and cobras. These products can be seen in Table 11.
1.2.1 Group of supplier groups and traders
Age characteristics show the percentage of age groups in the reptile trade for
consumption. The distribution of suppliers and traders by age group can be seen in Table 15.
Overall, the majority of ages are included in the productive age, according to BPS
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(2022) the productive age is the age between 15-64 years. In contrast to the research of
Taogan et al. (2020) who had an age range of 28-72 years in the wildlife trade. Actors in
productive age have high work quality and are supported by high knowledge and
responsibility (Suyono and Hermawan 2013).
The oldest cobra satay trader is 64 years old, who is currently assisted by his son.
This indicates succession and knowledge transfer in the cobra trade. Knowledge and
attitudes passed down from generation to generation born from experience is local wisdom
(Pattiselanno et al. 2015). In terms of age as well, when the age is more than 60 years where
it has reduced the effectiveness in work, so there is marked delegation or regeneration as a
stage of facing retirement (Putri 2012). According to Vu (2023), knowledge and skills in
selling wildlife as traditional medicine are usually passed down from generation to
generation. In the wildlife trade there is a transfer of skills and values that are passed on to
the next generation (Dou and Li 2012), and the oldest age in the monitor lizard business is
the collector who is 44 years old.
The predominant tenure in the cobra supply chain includes a long tenure with >10
years, while in the monitor lizard supply chain the tenure is in the long and medium tenure
(6-10 years). This shows that in the cobra business, trade actors are more experienced than
the monitor lizard business. This is different from Maulany's research (2021) which shows
that the working period is dominated by the new working period (<6 years) in the wildlife
trade in Makassar.
The longest working period in the monitor lizard business is for one of the collectors
who has worked as a collector since 2012 or for 11 years, while the monitor lizard satay
trader is in the medium working period category, which was only established in 2016 or 7
years.
The longest working period in the cobra business is found among cobra satay traders
who have been trading since 1982 or for 41 years, who are now starting to pass on their
knowledge to their children. This shows that the reptile trade is a hereditary business. The
importance of family ties and friendships in the reptile trade. Kinship ties form the basis of
trust before establishing a trading relationship. The emotional attachment creates trust in the
moral integrity of the individuals trusted in the partnership (Ayari and Boulila 2023). Close
kinship and family ties built on trust and cooperation are important elements in facilitating
wildlife trade. Family, kinship and ethnic ties often form the basis of communication,
financial flows and logistical support (van Uhm and Wong 2019; Costa 2022). Kinship ties
17
reduce market transaction costs, improve information flows, reduce the risk of opportunism
and screen potential partners (Parella 2021).
The length of tenure also indicates that the monitor lizard and cobra business is
profitable and has a positive impact on the income of actors. According to Triantoro et al.
(2017) the tendency of actors to do business in the animal trade illustrates that the work has a
positive impact on business actors, so they continue to do it.
1.2.2 Education level of supplier groups and traders
The level of education shows a picture of education in the monitor lizard and cobra
trade and its influence on the trade, which is presented in Table 17.
Overall, the highest level of education was junior high school (50.0%) in the cobra
satay business and senior high school (50.0%) in the monitor lizard satay business.
Compared to the study by Sianipar et al. (2022) which showed the highest level of education
in the wildlife trade of Dwarf Kuskus in South Minahasa was junior high school (58.3%).
According to Sianipar et al. (2022) a relatively low level of education causes no opportunity
to get adequate work so that it only utilizes natural resources is around him. In addition,
according to Herzegovina et al. (2019) low education, has low conservation knowledge as
well.
It was found that 12.5% of the lizards and cobras in the trade did not finish school,
and those who did not go to school were of an older age, where access to education was
difficult in the past. In addition, there are family economic demands and family traditions to
continue the business. According to McNamara et al. (2016) higher levels of education
enable people to find better-paying jobs, which is associated with an increased willingness to
leave the wildlife trade.
1.2.3 Group work of suppliers and traders
The occupational group can indicate whether or not the monitor lizard or cobra
business is the main occupation of each operator. This can be seen in Table 18. Based on
Table 18, 100% of lizards consider the lizard business as their main job, while 75.00% of
cobras consider the cobra business as their main job. This shows that the reptile trade,
especially monitor lizards and cobras, is profitable for daily life. This is different from
McEvoy et al. (2019) the main occupation in the wildlife trade in Myanmar is farmers, who
conduct wildlife trade to supplement their income.
Agents who consider the trade in monitor lizards or cobras not to be their main
18
occupation are cobra agents who became agents because they were inherited from their
parents, and agents who make farming their main occupation. In addition to being a
derivative of their parents, the benefits of farming are considered greater than being an agent.
This shows that many people are involved in the wildlife trade because of opportunities and
to increase their income (Putra et al. 2008).
In addition to the main job, it can be seen that trade actors have side jobs to supplement
the economy, which can be seen in Figure 16.
Figure 16 shows that the majority of actors have an additional job as a trader (50%),
this is due to the opportunity to expand the trading business, such as cobra collectors who are
also traders to sell frogs, in addition to one of the monitor lizard collectors who also opened
and sold monitor lizard satay, and the monitor lizard satay trader who also opened a shop.
This is different from the research of McEvoy et al. (2019) that the dominant additional
occupation in the wildlife trade in Myanmar is farmers.
Farming is an additional occupation that is also widely practiced (33%), especially if the
trader has their own farmland, such as cobra agents. According to Parjoni (2012), when the
harvest season arrives, traders will turn into farmers. Even according to Takandjandji and
Sawitri (2016), the majority of occupations in the animal trade are farmers who do business
because there is an opportunity or to increase income.
1.2.4 Motivation of supplier groups and traders
Occupation can also indicate the motivation of reptile traders, as not all reptile traders
are economically motivated. The distribution of suppliers and traders by motivation can be
seen in Table 19.
Overall, the highest motivation for trading monitor lizards and cobras is economic. This
is similar to the wildlife trade in the Ngasem Bird Market in Yogyakarta, where the
motivation is economic (Artati 2002). This is in line with Nijman (2010) who stated that the
main factor in the wildlife trade is economic. According to Leberatto (2016), traders are
economically motivated to earn or increase their low income. The wildlife trade is associated
with economic deprivation, as the wildlife trade offers better economic prospects (Duffy et
al. 2016).
In addition, there are religious and traditional motivations (12.5%). In this case, business
actors are business actors who continue the trade from the previous generation, such as cobra
agents who continue to be agents from their parents.
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There is also a motivation for many enthusiasts (25%) in lizard satay traders, this is
because in 2018 the business was closed, and reopened because many consumers wanted the
business to reopen and asked about the availability of lizard satay. This shows that there are
many enthusiasts in the lizard satay trade.
1.3 Consumer Characteristics
The study was conducted among 60 consumers, divided into 30 lizard consumers and 30
cobra consumers. Consumer characteristics are divided into several categories, namely
gender composition, age class, education level, occupation, income, religion, ethnicity,
motivation, and source of information, as follows.
1.3.1 Gender composition
Sex composition shows the ratio between sexes in consuming reptiles, which can be
seen in Figure 17.
Males dominate in the entire gender composition of lizard and cobra consumers, this is
in accordance with Satria's research (2016) which shows that males dominate in becoming
consumers of wildlife in Indonesia Jakarta. This is also consistent with the dwarf cuscus trade
in South Minahasa, where males also dominate the purchase of dwarf cuscus (Sianipar et al.
2022), and the loris trade in Cirebon, which is dominated by males (Nuraeni et al. 2018).
This could be because reptiles are believed to increase stamina and overcome male
sexuality problems (Nijman 2015), according to Margulies et al. (2019) wildlife products
that are believed to have medicinal purposes are more popular among male consumers.
According to Belk and Wallendorf (1994) men tend to like unique things that are unusual to
be considered socially exceptional. In addition, women consider reptiles as disgusting
animals and are afraid to consume them (Arisnagara 2009).
1.3.2 Age group
The age group of cobra and monitor lizard consumers ranges from 19 to 73 years old.
The distribution of cobra and lizard consumers by age group can be seen in Table 20.
The age of lizard consumers ranged from 23-71 years, while the age of cobra
consumers ranged from 19-72 years. This is not much different from wildlife consumers in
North Sulawesi who ranged from 25-72 years old (Taogan et al. 2020), and consumers in the
wildlife trade in Peru with an age range of 18-75 years old (Cruze et al. 2021).
20
The age group that dominates in cobra and monitor lizard business consumers is 25-37
years (early adulthood). This is in accordance with Satria's (2019) research on consumer
characteristics in the Jatinegara animal market, which revealed that wildlife consumers are
dominated by adults. Similar to the research of Olmedo et al. (2021) which shows that
wildlife consumers are in the age range of 25-37 years, this can be because this age group
wants to show that their finances can afford to pay for expensive food and show they have
the ability to do something.
According to Henrietta (2012), early adult consumers have a fairly high level of
consumption due to the development of independence and finance. In addition, according to
the early adult group, there are many consumers of cobra satay and monitor lizard satay
because in early adulthood individuals tend to like new things that challenge themselves to
achieve independence and identity (Santrock 2002). According to Islamy et al. (2021) Early
adult consumers have different ways of dressing, eating food and drinks, how to treat
personal life, and social interactions.
1.3.3 Education
The results showed that the education level of consumers of monitor lizards and cobras
ranged from elementary school to graduate school. The distribution of lizard and cobra
consumers based on education level is presented in Table 21.
The majority of education levels in the consumption of monitor lizards and cobras are
high school. This is in accordance with research by Herzegovina et al. (2019) which shows
that the dominant level of education in herpetofauna consumers in Jakarta is high school, in
contrast to wildlife consumers in North Sulawesi who are dominated by junior high school
education (Taogan et al. 2022).
According to Arisnagara (2009), consumers with higher education levels will choose
to use more modern treatments, but this study shows that consumers with relatively higher
levels also consume reptiles which can be an alternative traditional treatment. The interview
results also show that consumers consume reptiles because they have tried modern medicine
but it is not very effective, so they turn to traditional medicine such as consuming monitor
lizard satay or cobra satay.
Wildlife consumption is not influenced by high or low education (Herzegovina et al.
2019). According to Feltz et al. (2022) that education is effective in increasing knowledge
about animals used as food. Research by Zhang et al. (2008) in Guangzhong, China showed
21
that low education level is not always the reason why wildlife consumers consume wildlife,
even in the study showed that wildlife consumers have good education and high income.
According to Zhang et al. (2008), wildlife consumers are influenced by traditions and
attitudes towards wildlife that can be utilized.
1.3.4 Ethnicity
Ethnicity is a concept created by society based on the social characteristics of a group
of people that distinguish it from other groups (Asmore et al. 2001). Therefore, ethnicity has
different beliefs, languages and goals but must be within the unity of the nation and state
(Sibarani 2013). The distribution of lizard and cobra consumers by ethnicity can be seen in
Table 22.
Javanese ethnicity and dominates in consuming lizards (33.33%) This is because
Javanese and Betawi ethnicities are the majority in DKI Jakarta province, 35.16% for
Javanese ethnicity and 27.65% for Betawi ethnicity, in 2010 (Pitoyo and Triwahyudi 2017).
Javanese also believe that lizards and cobras can cure diseases, especially skin diseases, so
many consume lizards or cobras (Nijman 2015).
Trade in cobra satay is dominated by ethnic Chinese consumers at 46.67%. This can be
due to the sales area of cobra satay which is mostly found by ethnic Chinese. Ethnic Chinese
dominate and sell in the mangga besar area (Reinhard 2014; Santoso and Choandi 2020). In
addition, cobras are also popular among ethnic Chinese. According to Yuan et al. (2023)
cobras (Naja sputatrix) are the most consumed and popular snake in Hong Kong. Eating
snakes has been a long-standing tradition in Chinese culture, which is believed to cure
diseases and warm the body (Yuan et al. 2023; Cheung 2013). According to Prastiwi et al.
2015) the consumption of Labi-labi in DKI Jakarta is also dominated by ethnic Chinese. The
largest consumers of reptile meat, especially turtles, are ethnic Chinese (van Dijk et al.
2000). Type of Work
The number of types of consumer jobs found in the study was 12 types of jobs, which
were divided into 10 types of jobs in the monitor lizard satay business and 8 types of jobs in
the cobra snake satay business. The distribution of lizard and cobra consumers by type of
work can be seen in Table 24.
Based on Table 24, the overall dominant occupation of consumers was self-employed
at 26.7%. In accordance with Satria (2016), the dominant consumer in the wildlife trade in
22
Jatinegara is self-employed. According to Xiong et al. (2018) People who have permanent
jobs tend to have a greater willingness to pay because they are supported by a relatively
stable income.
Employment status is related to judgment, because someone who is employed is
likely to get more information about a product.
many compared to those who do not work. This affects the motivation of confidence to
choose and make decisions to buy a product (Heitman et al. 2007). Based on this, the
existence of a job affects consumer decisions in choosing products, such as consumers who
choose cobra satay or monitor lizard satay products for traditional medicine or just to try.
3.4.6 Income Level
The level of community income can be a factor that determines consumption.
Consumers with high income can buy not only basic needs but also spend money on
recreation, health, goods, and other needs (Ikram et al. 2015). The distribution of lizard and
cobra consumers by income level can be seen in Table 25.
The dominant income level for cobra consumption is very high income (50%). This is
due to the high price of cobras, with cobra satay costing Rp40,000/portion or Rp100,000-
Rp200,000 for one cobra. However, in the lizard satay business, the level of consumer
income that is most commonly found is high. This can be due to the fact that lizard satay is
relatively cheaper than cobra satay, so people with high incomes can buy lizard satay. Cobra
snake satay is priced at Rp20,000/portion. This is in accordance with Prastiwi et al. (2015)
that the trade of lizards for consumption in DKI Jakarta is dominated by people with high to
very high incomes.
This is consistent with Zhang and Yin (2014), who stated that the higher the income,
the higher the value of wildlife consumption. According to Prasad et al. (2022) wildlife is a
luxury item that shows the status and income of consumers. According to Ikram et al. (2015)
the tendency of people to spend their income for consumption needs is largely determined by
the level of income.
3.4.7 Motivation
Consumer motivation is an internal drive that forces to take action resulting from
pressure due to unmet needs, desires, and demands, which then with the process of thinking
and knowledge, causes behavior to achieve goals or goals.
23
fulfillment of needs (Schiffman and Kanuk 2010). The results identified three consumer
motivations for consuming monitor lizards or cobra satay, namely experiential, social and
functional. The distribution of consumers based on motivation can be seen in Table 26.
Based on Table 26, overall the dominant motivation in consumers of monitor lizard satay
and cobra satay is functional, where consumers consume these animals for treatment and
health. This is in accordance with Arida et al. (2021) that the motivation for reptile
consumption in East Java is for health. According to Mardiastuti et al. (2020) that most of
the herpetofauna species utilized by local communities in Indonesia are used for health
aspects or known as traditional medicine. This shows that reptiles are believed by the
community to cure diseases.
Functional motivation is also dominant in male and female gender differences. The results
showed that men's motivation in consuming lizard skewers and cobra skewers in addition to
skin diseases is to increase vitality. Whereas in women, consuming lizard skewers or cobra
skewers to prevent premature aging, treat acne, and smooth blood during menstruation. This
is in accordance with Margulies et al. (2019) that the purpose of wildlife consumption for
men and women is different, women consume wildlife to relate to beauty such as improving
skin color and brightening the skin, while men consume wildlife for medicinal purposes and
related to sexual activity.
Experiential motivation is the dominant motivation after functional. Experiential
motivation is the desire to fulfill hedonistic pleasure and satisfy curiosity. Consumers want
to try eating lizard satay or cobra satay because it is unique and different from satay in
general. Experiential motivation is dominated by men, this can be because men are more
accepting of risk, do new experiences, do something unique and unusual to be considered
extraordinary and seen socially (Belk and Wallendorf 1994).
The location of the merchant also affects consumer motivation, where the cobra satay is
located on Jalan Mangga Besar, which is one of the nightlife centers in Jakarta, and many
street vendors who trade various types of food (Kurniawan 2019), so many tourists come to
the area, and try cobra satay as an experience. In addition, selling cobra satay is also a special
attraction for tourists who see traders taking, cutting, and processing the cobra snake, besides
that consumers can eat the meat and drink the blood and bile of the snake, this is a unique
experience for consumers. According to Symons (1999), wildlife consumption can be an
attractive factor to enhance the tourist experience. This can encourage the demand for
wildlife, especially consuming cobras as a tourist destination as a unique experience (Ying et
24
al. 2020).
3.4.8 Consumption trend
The consumption trend shows fluctuations in the number of consumers buying
monitor lizard or cobra products in one week. The consumption trend can be seen in Figure
17. It can be seen in Figure 18, that many consumers buy cobras or monitor lizards on
Saturdays. This shows that consumers will increase on holidays, in accordance with Tanjung
(2020) that the number of consumers will increase on holidays. Cobra snake satay consumers
only increased by one visitor from Friday, while on lizard satay consumers increased by up
to five consumers from Friday. According to cobra satay traders, holidays do not really
affect sales.
In addition to the increase in consumers, the figure also shows that there are more
consumers of monitor lizard satay than cobra satay. This could be due to market competition
and the location of the vendors. Lizard satay vendors are less common in Jakarta than cobra
satay vendors. At the location of the cobra satay vendors, there are 10 street vendors selling
cobra satay, even from the same form and trade product. This shows economic competition,
according to Ramdhan (2015) competition affects income, the higher the competition, the
lower the income. In addition, the products offered are similar, thus reducing income The
more homogeneous the products sold with competitors, the revenue will decrease (Ramdhan
2015).
3.4.9 Information Media
The distribution of sources of information about lizard satay and cobra satay can be
through various media. The study revealed that there are three media used by consumers to
find out about lizard satay and cobra satay, namely information from friends or relatives, the
internet, and directly meeting with lizard or cobra satay traders. Details of the distribution of
consumers based on the information media used to find out about lizard and cobra satay can
be seen in Table 27.
Overall, internet media is the highest information media used by consumers to find
out about lizard satay (43.3%). This is in accordance with Feddema et al. (2021) that the
internet is the main source of information in the wildlife trade in Indonesia. This shows the
rapid development of wildlife trade. The internet is a medium that can facilitate the search
for information about monitor lizard satay and cobra satay. According to Saputri and Huda
25
(2020), internet users in Indonesia in 2018 amounted to 171.17 million people or around
64.8% of the total population in Indonesia. According to Hermawan (2012) marketing via
the internet has great opportunities, marketing products via the internet can help because
internet access is faster, more effective, and less costly, so it can increase sales.
The lizard satay business uses internet media such as Gojek, Grab, Gmaps,
Facebook, and Whatsapp. Meanwhile, the cobra satay business uses internet media such as
TikTok, Whatsapp, Facebook, and Gmaps. This shows that the more the use of the internet
for information and promotion media, the higher consumers know about the product so that
it can increase sales.
The spread of information from friends or word of mouth is a medium of information
that is widely used, especially in the lizard satay business. Usually information about lizard
satay is spread from friends, relatives, and family, because of its medicinal properties,
besides that lizard satay is widely recommended because the price of lizard satay is cheaper
than other lizard satay businesses in Jakarta, because lizard satay traders sell lizard satay for
Rp20,000 / portion, while in the lizard satay business in other places sell lizard satay for
Rp40,000-Rp60,000 / portion.
3.5 Financial Analysis
3.5.1 Investment Costs
Investment costs are costs invested in order to prepare business needs so that the
business can operate properly (Qomaruddin et al. 2021). If the initial investment is
economically no longer used, then reinvestment is made or called reinvestment (Sifa 2014).
A summary of the estimated investment costs for a 0-year business life or when the business
is just about to start can be seen in Table 28.
The total investment cost of the cobra satay business is Rp28,299,000 and the lizard
satay business is Rp29,522,000. The biawak satay business has a higher investment cost
because the biawak satay business invests in a vehicle, with a price of Rp18,000,000 for
production purposes to buy satay ingredients, such as biawak meat to agents. Meanwhile, in
the cobra satay business, the largest investment cost is a cart with a cost of IDR 5,000,000.
This investment cost is greater than the research of Sifa (2014) on Sagita restaurants, namely
one of the traditional Sundanese restaurants, with an investment cost of IDR 14,465,050.
According to Mukmin and Gusprasetyo (2017) entrepreneurs must be able to maximize the
26
investment they already have, in order to cover expenses and be able to get as much income
as possible.
3.5.2 Operational Costs
Operating costs are costs incurred to carry out business activities in order to achieve
business goals (Fathony and Wulandari 2020). Operational costs are divided into fixed costs
and variable costs. The amount of variable costs depends on the sales volume or production
process, so it follows the increase or decrease in business, while in fixed costs, costs are
always constant even though the sales volume of production increases or decreases (Winarso
2014). The fixed and variable costs of the lizard satay and cobra satay businesses are as
follows.
1. Fixed Cost
Fixed costs are costs incurred in a period whose amount is always fixed, not affected by
the size of the business volume or business processes being run in that period (Assegaf
2019). The estimated fixed costs of the lizard satay and cobra satay business in the first year
of business can be seen in Table 29 and Table 30.
Seen in the table, the fixed cost of the cobra satay business is Rp61,645,550 greater than
the fixed cost of the lizard satay business of Rp15,307,000, this can be because in the cobra
satay business there are two employees who are paid, the cost of employee salaries is paid
per day, namely Rp100,000 and Rp50,000, so that the total employee salary a year is
Rp54,750,000, while in the lizard satay business has no employees so it does not incur
employee costs, in the lizard satay business consists of the owner who is assisted by his wife.
This investment cost is more small compared to sagita restaurant with fixed costs of
Rp99,015,840. (Sifa 2014).
Depreciation costs are also included in fixed costs. Depreciation expense is the
allocation of the amount of an asset that can be depreciated over its estimated useful life,
which can reduce operating profit (Harefa and Hulu 2022). According to Wahyuni (2022)
depreciation costs are included in fixed costs.
2. Variable cost
Variable costs are costs that change proportionally with business activity (Assegaf 2019).
The variable costs of the lizard satay and cobra satay businesses in the first year can be seen
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in Tables 31 and 32.
Overall, the variable costs of the lizard satay business were greater at Rp85,444,000
than the variable costs of the cobra satay business at Rp75,382,000. This could be due to the
lizard satay business requiring more needs than the cobra satay business, which is also due to
the lizard satay business having more customers than the cobra satay business (Figure 18).
Operating costs in years 2 to 5 are assumed to be fixed.
3.5.3 Cash flow projection
Cash flow is a report that provides information about cash receipts and expenditures
of a business in a certain period (Harahap 2002). Cash flow can be useful for assessing
business capabilities as well as in the process of making economic decisions (Mutia 2012).
Operating costs and investment costs can determine the net profit earned with the results of
revenue each year. The cashflow results of the lizard satay and cobra satay businesses can be
seen in Table 33.
The cash flow results show that the monitor lizard business has a higher net profit
than the cobra satay business. This can be due to smaller operating costs compared to the
cobra snake satay business, despite having smaller revenues than the cobra snake satay
business. According to Mukmin and Gusprasetyo (2017), the smaller the costs, the greater
the profit generated. Details of the cobra and monitor lizard business cashflow estimates can
be seen in Appendix 3 and Appendix 4.
3.5.4 Financial evaluation criteria
The financial evaluation criteria used in the research are Net Present Value (NPV),
Internal Rate of Return (IRR), Net Benefit Cost Ratio (Net B/C), and Payback Period (PP).
The results of the financial evaluation calculation can be seen in Table 34.
Based on Table 34, the NPV value of Rp64,186,500.89 was obtained for the cobra satay
business and Rp68,880,673.25 for the monitor lizard satay business. The results of the NPV
calculation show that both businesses are feasible to run and make a profit. NPV is the net
present value which is the sum of all future cash flows (Arshad 2012). NPV is used to
estimate whether the expected financial return from a project will be greater than the current
investment, indicating that the project is viable (Archer and Ghasemzadeh 1999). Compared
to Sifa's (2014) research on sagita restaurants with an NPV of IDR 45,074,513.53, the cobra
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satay and monitor lizard satay businesses have higher values. This shows that both
businesses are more profitable. According to Sifa (2014) a large NPV value indicates the
faster the period of return on investment invested.
The results of the IRR calculation show that the IRR value of the cobra snake satay
business is 65% and the lizard satay business is 69%, with a discount factor of 6%, the two
businesses are feasible and profitable. Compared to research by Sifa (2014), the IRR of
sagita restaurant is 39% at a discount factor of 8%, this shows that the cobra snake satay and
lizard satay businesses are higher so they are considered more profitable. According to
Hidayat and Mhaydali (2008), the higher the IRR value, the lower the risk level of the
business. Sullivan (2015) stated that the IRR method is a method commonly used to display
the economic rate of return. This shows that the rate of return from the cobra business is 65%
per year and the monitor lizard business is 69% per year.
The Net B/C calculation shows that the Net B/C value of the cobra satay business is
3.27 and the monitor lizard satay business is 3.34, indicating that both businesses are feasible
to run because >1. Net B/C shows an illustration of how many times the benefits obtained by
the costs incurred (Fika et al. 2016). The Net B/C value of 3.27 means that the cobra satay
business will provide net benefits of 3.27 times the costs incurred and in the lizard satay
business 3.34 times the net benefits of the costs incurred. Compared to sagita restaurant with
Net B/C of 1.12 (Sifa 2014), the Net B/C value of the two businesses is greater. According
to Wedley et al. (2001) the higher the Net B/C value, the more it guarantees a positive return
on investment.
PP shows the period required to return all investment capital spent. The results of the
PP calculation show that the PP value of the cobra snake satay business is 1.58, which means
that the investment capital invested will return in about 1 year and 7 months, and the PP
value in the monitor lizard satay business is 1.47, which means that the investment capital
invested will return in about 1 year and 6 months. This PP value is smaller than the sagita
house which has a PP value of 3.09 years (Sifa 2014), so the two businesses have a faster
investment return time.
CONCLUSIONS :
1. The supply chain typology of the monitor lizard and cobra satay business is gatekeeper with
agents in the cobra supply chain and collectors in the monitor lizard supply chain as the
center of the supply chain.
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2. Lizards are utilized for meat, fat, and bile, while cobras are utilized for meat, blood, bile,
bones, fat, and stalks, for consumption with general medicinal benefits for the skin.
3. Suppliers and traders are predominantly male, aged 19-44 years with a medium tenure (6-10
years) for monitor lizard businesses and 45-49 years with a long tenure (>10 years) for cobra
businesses, with a predominance of junior and senior high school education levels. The side
jobs of suppliers and traders are dominated by traders and farmers, and are dominated by
economic motivations.
4. Consumers are dominated by men, with an early adult age group (25-37 years). the education
group is dominated by high school, the dominant ethnicity is Javanese with Islam.
Occupation consists of 12 types of jobs with the dominant occupation being self-employed,
with high income for lizard consumers and very high for cobra consumers. The highest
consumer motivation is functional for treatment. Consumers get most of their information on
monitor lizard and cobra satay from the internet.
5. The financial analysis shows that the lizard and cobra satay business is feasible.
