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Received: 01.02.2022 Accepted: 26.03.2022 Published: 01.04.2022 DOI: 10.47750/QAS/23.187.26
Abstract
Coffee is one of Indonesia's leading commodities that has opportunities in the domestic and international markets. Processed coffee drinks are now increasingly favored by people from various circles, so that the growth of national coffee consumption continues to increase. However, the fate of coffee farmers is not directly proportional to the trend of increasing Indonesian people's coffee consumption. The purpose of this study was to analyze financial literacy and coffee marketing strategies as well as the institutional model of coffee farming in Jember Regency, especially cooperative of KSU Ketakasi. The research methodology used is explanatory research. This study was carried out at some stages: field studies/surveys (to uncover and unravel the problems of coffee farming), analysis of marketing strategy, and analysis of business institutional models. The research results showed that; (a) the level of financial literacy in accessing financing sources is still very low; (b) the mudharaba and musyarakah financing scheme is more appropriate for KSU Ketakasi to finance coffee farmers; and (c) KSU Ketakasi has implemented a marketing mix consisting of product, promotion, price, and location. In addition, KSU Ketakasi has established a cooperative to accommodate the harvest of coffee from farmers and sell it to buyers. Although the institutional body is still simple, KSU Ketakasi has been able to contribute to Jember Regency in the form of foreign exchange for the local government.
Keywords: Coffee, KSU Ketakasi, Financial Literation, Marketing Strategy, Institutional Model
1.INTRODUCTION
Coffee is one of Indonesia's leading commodities in the plantation subsector that has opportunities in both domestic and international market. Data retrieved from Export Product Dynamics (EPD) show that there are three countries, including Indonesia, which have lost opportunities to be able to trade with other countries, especially coffee products (Rahardjo et al., 2020). As one of the largest coffee producers in the world, Indonesia has a wide variety of products with quality recognized in the international market. According to statistical data from the International Coffee Organization (ICO), Indonesia is the 4th largest coffee producing country after Brazil, Vietnam, and Colombia (Widiyani, 2020). However, it turns out that there are still gaps found between the growth of national coffee consumption and the level of coffee production in Indonesia in...