Designing Model for the Development of Sustainable Small Coffee Agroindustry at the Agropolitan Area of Ijen, East Java, Indonesia

Abstract

Considering Indonesia is one of the world's major coffee producers, the small coffee agroindustry has much room to grow. The industry faces some challenges, including low output, limited access to the market, insufficient human resource capabilities, and improper waste treatment. This research aimed to create a model for the coffee agroindustry's growth utilizing a sustainable development concept in the form of decision support systems. The model is named AgroCoffee, which comprises six submodels: submodel of superior product selection of coffee agroindustry, submodel of social, submodel of institutional, submodel of technology, submodel of environmental, and submodel of economic. This study used several data analysis methods: exponential comparison approach, multi expert-multi criteria decision-making, interpretative structural modeling, analytical hierarchy process, and financial analysis. The model was verified in the agropolitan area of Bondowoso's Ijen highland in East Java, Indonesia. The findings revealed that the model could accurately simulate the coffee agroindustry system, which allows the model to generate recommendations for decision-makers on how to establish sustainable coffee agroindustry. Further improvements and adjustments to the model need to be conducted to develop a better model that dynamically follows the current needs and conditions to make the latest data and information obtained more accurate.