The Role of Arabica Coffee in Local Economic Development in Highland of Simalungun District, North Sumatera, Indonesia

DOI

10.2991/iclick-18.2019.53How to use a DOI?

Keywords

arabica coffee; local economy development; local policy; Simalungun-Sumatera

Abstract

Coffee is very important commodity in the global trade. Arabica coffee is superior commodity for farmers in Simalungun highland, North Sumatera, Indonesia. Productivity of arabica coffee in the region is only 50%-65% of the expected productivity. Therefore, there is a 35% to 50% productivity difference between actual and expected productivity. As a superior commodity, arabica coffee development requires adequate policy and program. This research analyzed the role of arabica coffee farm in local economic development. The role is measured with three indicators, that is farmers income, employment, and increased local economic activities. These indicators are analyzed with Share Analysis and Scenario Analysis. Arabica coffee farming has a 1.70% contribution to regional income, 3.34% to agricultural sector income, and 5.61% to income of smallholder plantation. In employment aspect, arabica coffee farming roles about 8.26%, 13.32%, and 25.84%, to district, agricultural sector, and smallholder plantation employment, consecutively. Economic activity as a result of backward linkages of arabica coffee farming will increase by 30% in 2020 and 85% in 2025, such as productive area and input factors. Local government policy is good enough to develop arabica coffee commodity, but relevant technical office program is not optimum even it is less focused. This research recommend local programs to support better arabica coffee development.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jef Rudiantho Saragih
PY  - 2019/07
DA  - 2019/07
TI  - The Role of Arabica Coffee in Local Economic Development in Highland of Simalungun District, North Sumatera, Indonesia
BT  - Proceedings of the 1st International Conference on Life, Innovation, Change and Knowledge (ICLICK 2018)
PB  - Atlantis Press
SP  - 259
EP  - 263
SN  - 2352-5398
UR  - https://doi.org/10.2991/iclick-18.2019.53
DO  - 10.2991/iclick-18.2019.53
ID  - RudianthoSaragih2019/07
ER  -