Financial Literation Analysis, Marketing Strategies, and Institutional Models of Coffee Farming Creation

Abstract

Coffee is one of Indonesia’s leading commodities that has opportunities in the domestic and international markets. Processed coffee drinks are now increasingly favored by people from various circles, so that the growth of national coffee consumption continues to increase. However, the fate of coffee farmers is not directly proportional to the trend of increasing Indonesian people’s coffee consumption. The purpose of this study was to analyze financial literacy and coffee marketing strategies as well as the institutional model of coffee farming in Jember Regency, especially cooperative of KSU Ketakasi. The research methodology used is explanatory research. This study was carried out at some stages: field studies/surveys (to uncover and unravel the problems of coffee farming), analysis of marketing strategy, and analysis of business institutional models. The research results showed that; (a) the level of financial literacy in accessing financing sources is still very low; (b) the mudharaba and musyarakah financing scheme is more appropriate for KSU Ketakasi to finance coffee farmers; and (c) KSU Ketakasi has implemented a marketing mix consisting of product, promotion, price, and location. In addition, KSU Ketakasi has established a cooperative to accommodate the harvest of coffee from farmers and sell it to buyers. Although the institutional body is still simple, KSU Ketakasi has been able to contribute to Jember Regency in the form of foreign exchange for the local government.