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should always start with skill development and
capability to adopt market access (Githaiga et al.
2016).
From the positive NPV value, which has the
amount of IDR 134,173,933 with initial investment of
IDR 36.000.000 it is obtained the value of
Profitability Index of 3,73. Both points show that the
business is feasible and can be developed, but the
value of IRR coffee processing business is likely to
be low, at 6.66% and only slightly higher than the
interest rate with Payback Period for 19 months.
Therefore, the profit earned by this business is quite
low. Therefore, in the coffee processing business in
Sumba Barat Daya, it is necessary to intervene local
government to protect the coffee processing business
through any program such as Credit for Bussiness
(KUR) program or other similar program that gives
low interest to business actor, technical assistance for
SMEs, and help the SMEs to market penetration.
General challenge faced by micro-small enterprise is
their slow growth, and idea of inducing venture
capital to boost the growth as found in a study to
creative SMEs in Makasar (Heslina, 2016) could be
accommodated. It is recommended that SMEs
operators should be educated on how to plan,
organize, direct and control their businesses (Oppong,
et al.2014).
As the results of in-depth interview to business
owner, it is obtained that the business nature of this
coffee processing business unit is more directed to the
creation of employment for the community around
the production house. While the product is sold at a
price that does not give burden buyer who is a
community with low purchasing power. Based on the
proportion of variable costs in the process of ginger
coffee production, it can be seen that the highest cost
is the cost of purchasing raw material coffee (47.84%)
and labor costs (33.78%). This indicates that the
ginger coffee processing business is trying to provide
the greatest benefit for local economic development.
According to the research results of Atmaja, et al.
(2015), coffee farmers can increase their income,
apart from the coffee harvest, through increasing the
added value of coffee by processing coffee powder.
Powder coffee processing business can be improved
by promotional efforts and expansion of marketing
area.
If the coffee processing business uses the
cooperative system, the profits collected can be
directed to improve the welfare of its members
through the fair annual benefits (SHU) and the
establishment of new business units that can expand
employment. Based on this, the role of the
government is very significant in developing and
expanding of public-based coffee processing business
where this business can expand employment need and
provide benefits for the community of cultivators and
coffee processors in Sumba Barat Daya. Oppong, et
al. (2014) study recommend that government should
re-introduce the small business credit scheme so that
beneficiaries can use them to run the micro, small and
medium enterprises.
4 CONCLUSIONS
The coffee business unit may become a sustainable
micro-enterprise activity if (1) a consistent mentoring
is performed both for the technology and
management sides of the business; (2) the business is
a social business that concerns the low purchasing
power of local society and it does not harm the
business itself; (3) the business is conducted in groups
through cooperatives where the remaining results can
be used to improve the welfare of the community
members.
The results of this research can be used as a source
of information to build community empowerment
roadmap through coffee processing business with
specific character in Sumba Barat Daya.
ACKNOWLEDGEMENTS
The author thanks the Center for Appropriate
Technology Development of LIPI (Indonesian Scince
Agency) in Sumba Barat Daya, as well as to the
Regional Government of Sumba Barat Daya that has
provided support so that this activity can be
implemented. Special thanks are given to Hari
Siswoyo, Dominggus Bula, Elizabeth Malo, Merry,
and Johanis Pageru who have helped us in reading the
socio-economic potentials of coffee producers in
Sumba Barat Daya.
REFERENCES
Atmaja, I.P.E.P., Tamba, I.M., Kardi, C., 2015,
Peningkatan Pendapatan Petani Kopi Arabika Peserta
Unit Pengolahan Hasil (UPH) (Kasus di Desa Belok
Sidan Kecamatan Petang Kabupaten Badung), Jurnal
Agrimeta, No. 10, Vol. 5, Page 32-42.
Baxter, P. dan Jack, S., 2008, Qualitative Case Study
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No. 4, Vol. 13, Page 544-559.
Chauhan. S K, 2014, Fundamentals of Farm Business
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