Exploration of challenges and readiness MSMEs coffee business in the age of global trade based on carbon footprint (Ecolabel)

Abstract

Indonesia’s export-oriented products and industries face technological barriers, especially agriculture, and plantations, to declare eco-label products in world trade competition. In fact, exports from this sector are one of the contributing factors to Indonesia’s GDP. The third rank of Indonesia’s mainstay agricultural and plantation sector export commodities is coffee. This study aims to comprehensively determine the challenges and readiness of coffee micro, small and medium enterprises (MSMEs) in Java in the global trade era based on carbon footprint. This study uses in-depth interviews with 7 coffee MSME actors in West and East Java. We use SWOT analysis to explore strengths, weaknesses, opportunities, and threats. The results showed that only 4 out of 7 coffee MSME actors knew about carbon footprint. This is due to limited knowledge of carbon reduction, carbon tax, and the advantage of the certification. Carbon footprint certification is considered an investment. Even though the certification process will be costly, meticulous, and lengthy, it can be an opportunity for the domestic products to be competitive with global products. The government must really know which business sectors will be subject to carbon tax so that they are right on target. They must consolidate with all related parties such as business owners, farmers, academics, and associations.