During a workshop at IPB Convention Center, Bogor, West Java, the minister explained that the support is aimed at resolving some challenges that are hindering the growth of coffee commodities.
"From the upstream (sector), we want to strengthen business institutions through the corporatization of cooperative-based coffee farmers and the development of an integrated business model from production, access to financing, supply chain, and marketing," Masduki informed.
He said that business institutions are still weak because they are being managed individually, the productivity and quality of micro, small, and medium enterprises (MSMEs) and cooperatives are still low, and access to financing and marketing is still difficult.
Until now, he added, coffee commodities have driven the performance of MSMEs and cooperatives from both the upstream and downstream sectors.
He pointed to data showing that 96 percent of Indonesia's coffee plantations are controlled by 1.3 million farmers, and more than 2,950 coffee shops are managed by young people and creative economy players.
"Amid the pandemic, each country is looking for its own domestic unique strength. This is important so that Indonesia is not always behind developed countries," Masduki said.
According to him, coffee and spices are the country's top commodities that must be managed properly and supported with technological innovations to ensure added value, help farmers prosper, and make businesses sustainable.
Furthermore, he said that his ministry has conducted several pilot projects related to the corporatization of farmers in the coffee sector.
From the downstream side, the Cooperatives and SMEs Ministry is promoting coffee consumption in the country, especially among young people, by expanding coffee shops to secondary city areas by involving creative communities and pesantren or Islamic boarding schools.
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Translator: M Alatas, Kenzu T
Editor: Suharto
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