AN EMPIRICAL STUDY ON INDONESIA’S COFFEE SUPPLY CHAIN - SOUTH SUMATERA

• Main Author: Numaru Nainggolan, Jordan
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/86106
• Institution: Institut Teknologi Bandung

Indonesia is one of the biggest coffee producers and the biggest exporters of coffee. In 2019 the total value of coffee exports is $872,355.44K (World Integrated Trade Solution, 2023). Since the number of exports is big, I want to analyse the supply chain of coffee in South Sumatra focusing on coffee. Civet Coffee is the rarest type of coffee made from the indigestion of coffee cherries from civet, it is known for its unique taste of chocolatey and smoothness of texture and the low acidity in the coffee that makes it unique (Graham, 2023). However, the supply chain is not sustainable and most producers lack knowledge of the product in the international market. This research aims to expand the international market awareness for key stakeholders especially farmers and consumers in the coffee business, especially farmers. Additionally, the section aims to explore the potential of civet coffee as a driver for tourism (Bali Golden Tour, 2024), taken from Bali as an inspiration to open the opportunity for farmers to expand their business. Primary data are types of data that will be used in this study. I'll conduct casual interviews and conduct an online survey with those involved in the coffee industry to gather primary data. Government publications, academic papers, and research on Indonesian coffee cultivation and commerce will provide additional data. I'll also examine data from Indonesia's Central Bureau of Statistics. This will improve my comprehension of risk management in the coffee supply chain. I'll investigate how Indonesia's coffee supply chain functions by examining primary, with a focus on South Sumatran farmers. I'll make a comparison between civet coffee producers and traditional coffee growers. I'll visually represent the data with graphs or drawings to make things easier to understand. The results of the dissertation hold significance for Indonesian coffee enterprises. First, they can save time and money by improving the efficiency of their supply chains with the help of research. To stand out in the market, they can also concentrate on producing unique varieties of coffee, such as civet coffee. Thirdly, they can locate new markets for their coffee, both domestically and internationally. They can also locate the flaws of the supply chain and improve the system of the supply chain making it sustainable in the continuity of the coffee sector.