Abstract
The main indicator in economy development was the role and contribution of each sector and or sub-sector to economic growth. One of the sub-sectors that had a major role and contribution in economy development was coffee plantations. To determine the role of coffee plantations on the community’s economy in Kerinci Regency, Jambi Province, therefore the research aims were (1) to determine the role of coffee plantations on income and employment, (2) to determine the contribution of coffee plantations to income and employment, and (3) to determine the ratio of coffee plantation growth to income and employment. The research was conducted in Kerinci Regency in 2015 with 6 months research period. The research data were sourced from secondary data, which was time series data from 2005-2013. Data were analyzed using the Location Qoutient (LQ) approach, and Shift-share. The results showed that coffee plantations in Kerinci Regency were the base sector. The analysis results obtained that coffee plantations played a role as the main driver of the Kerinci Regency’s economy because it had a high income and employment. During the period of nine years 2005-2013, economic growth, income and employment of coffee plantation in Kerinci Regency showed a positive ratio value though it was fluctuated.
Highlights
The data released by the Indonesian Coffee Industry and Export Association (AEKI, 2017), Indonesia was the fourth largest coffee producer in the world after Brazil, Vietnam and Colombia
This research measured the level of community and business income so that the variables which studied were: (a) Gross Regional Domestic Income (PDRB) of the Kerinci Regency and PDRB of the Jambi Province, (b) income of the Kerinci Regency coffee plantation and income of the Jambi Province coffee plantation, and (c) the number of residents working in the Kerinci Regency coffee plantations and Jambi Province coffee plantations
The analysis showed that coffee plantations played a role as the main driver of the economy
Summary
The data released by the Indonesian Coffee Industry and Export Association (AEKI, 2017), Indonesia was the fourth largest coffee producer in the world after Brazil, Vietnam and Colombia. According to the International Coffee Organization Report (International Coffee Organization, 2019), Indonesia exported coffee to more than 50 countries. One of Indonesia's coffee production centers was the Jambi Province (Central Bureau of Statistics Indonesia, 2018). The potential areas which were the centers of coffee production in Jambi Province including Kerinci Regency, Sungai Penuh City, Merangin Regency and West Tanjung Jabung Regency. The types of coffee plants varied from robusta coffee, arabica and liberika coffee (Plantation Agency of Jambi Province, 2018). One of the biggest coffee production centers in Jambi Province was Kerinci Regency
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