The Resilient Coffee Initiative is a new partnership with US beverage company Keurig Dr Pepper and Root Capital and a US non-governmental organization (NGO) to provide credit to agricultural enterprises in rural communities, according to a statement issued by the US Embassy on Monday (Dec 19).
Coffee farming communities in Indonesia face overlapping crises as market volatility, climate change, and gender inequity pose critical challenges to rural communities and agricultural enterprises, the Embassy noted in a statement.
To address those issues, Resilient Coffee will support 14 coffee enterprises across Aceh, East Java, and North Sumatra, reaching 14 thousand smallholder farmers, as it promotes sustainable growth that balances economic needs with environmental sustainability.
"A lack of business management skills and access to credit impedes coffee enterprises from harnessing farmers’ full potential for growth," USAID Indonesia Mission Director Jeff Cohen stated.
"USAID’s collaboration with Root Capital and Keurig Dr Pepper will expand public-private capacity and commitment to strengthening and increasing inclusive economic growth, as well as prioritizing investment in women’s economic empowerment and building resilience against climate change," he added.
USAID will leverage its local expertise to help Root Capital build smallholder resilience by expanding access to finance for farmers and small coffee enterprises that lack access to credit and business education.
The partners will also capitalize on Keurig Dr Pepper’s private sector leadership and Root Capital’s experience with coffee enterprises to help businesses strengthen their resilience through financing and training, the US Embassy said.
The program will work with businesses to strengthen gender equity and social inclusion practices while implementing new digital solutions to improve the management and resilience of coffee enterprises.
Finally, the partners will strengthen climate action in the coffee industry, with focus on mitigating climate change, protecting vulnerable ecosystems, and supporting rural communities to adapt to climate impacts.
The new partnership will accelerate inclusive economic growth in the face of global climate change and the ongoing COVID-19 pandemic while expanding public-private capacity and investing in women’s economic empowerment, the US Embassy noted in its statement.
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Reporter: Yuni Arisandy Sinaga
Editor: Suharto
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