Capability of Coffee Commodities Through Impact of Multiplier and Related Sectors to the East Java Province Economy

Abstract

The roles of coffee commodities for the Indonesia economy are quite important. They are as a source of income for coffee farmers, foreign exchange sources, industrial raw materials producers, as well as employment providers through processing, and also marketing and trade (export and import). This research was conducted with the aims: (1) To know the impact of multiplier caused by coffee commodities to economy of East Java province.; (2) To know the value of coffee commoditis sector relation to other sectors that support the economy in East Java province. The results showed: (1) Coffee commodities have an impact of multiplier on East Java province’s economy of 1.115. It means that if there is a change in demand in coffee sector of one million rupiah while final demand in other sectors does not change; it will increase the use of output of other sectors either directly of indirectly Rp. 1.115.000,-. (2) Coffee commodities have direct and indirect inter-sectoral values of 1,854. It means that if there is an increase in demand for coffee commodities sector of one million rupiah. It will increase the supply of inputs among the whole in the economy of East Java province of 1.854 million rupiah or Rp. 1.854.000