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Panca Datu Partnership in Support of Inclusive Business for Coffee Development: The Case of Ngada District, Province of Nusa Tenggara Timur, Indonesia

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  • Sedana,Gede
  • Astawa, Nengah Dasi

Abstract

Coffee development has big potential as coffee is one of the globally traded commodities in the world. Arabica and Robusta are the most popular coffee varieties produced by smallholder farmers in Indonesia, including those in Flores Island, Nusa Tenggara Timur Province. The produce of this island is well known in the global market as Flores coffee. Coffee farmers have poor knowledge and skills in farm management, which, along with poor postharvest practices, had contributed to low productivity and low quality of coffee beans. A project (AIP-PRISMA) has been implemented in Ngada District in Flores Island with the goal of increasing productivity and developing goodquality coffee. This study aims to describe the model business implemented in coffee development and the roles of actors involved in the business model. Ngada District was purposively selected as study site because a coffee development center exists in the island. Data were collected using focus group discussion (FGD) and documentation techniques. In this study, data collected is fully analyzed using descriptive method. The results of study pointed out that there are five main value chain actors involved in the market system. The first three are the coffee farmers’ cooperative, PT. Indokom Citra Persada (coffee exporter), and the Bank of Nusa Tenggara Timur (a local government bank). Also, there are two supporting value chain actors, namely the Indonesian Coffee and Cocoa Research Institute (ICCRI, a research institution), and VECO-Indonesia (an international non-government organization or NGO). Inclusive business among the actors was based on a business model. There is a strong partnership among the five actors locally called panca datu (panca is five, and datu is element). Sustainability of inclusive business is happening because each actor plays the roles and generates an economic incentive for each.

Suggested Citation

  • Sedana,Gede & Astawa, Nengah Dasi, 2016. "Panca Datu Partnership in Support of Inclusive Business for Coffee Development: The Case of Ngada District, Province of Nusa Tenggara Timur, Indonesia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 13(2), December.
    • Handle: RePEc:ags:phajad:258966
    DOI: 10.22004/ag.econ.258966
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    References listed on IDEAS

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    1. Markelova, Helen & Meinzen-Dick, Ruth & Hellin, Jon & Dohrn, Stephan, 2009. "Collective action for smallholder market access," Food Policy, Elsevier, vol. 34(1), pages 1-7, February.
    2. Unknown, 2008. "Institute of Agricultural Economics," Economics of Agriculture, Institute of Agricultural Economics, vol. 55(3).
    3. Ortmann, Gerald F. & King, Robert P., 2006. "Small-Scale Farmers in South Africa: Can Agricultural Cooperatives Facilitate Access to Input and Product Markets?," Staff Papers 13930, University of Minnesota, Department of Applied Economics.
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    1. Gede Sedana & Nengah Dasi Astawa, 2019. "Establishment of inclusive business on coffee production in Bali province: lesson from the coffee development project in Nusa Tenggara Timur province, Indonesia," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 9(1), pages 111-122, June.
    2. Boris Kaido & Nina Takashino & Katsuhito Fuyuki, 2021. "Challenges of Arabica Coffee Marketing: A Case Study in Kerinci Regency, Indonesia," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 11(1), pages 53-62, March.

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