Local Government Strategy in Protecting Coffee Farmers from the
Economic Impact During COVID-19
Ikhsan, Nodi Marefanda, Cut Asmaul Husna and Vellayati Hajad
Faculty of Social Sciense and Political Science, Universitas Teuku Umar,
Alue Penyareng, Meulaboh and 23681, Indonesia
Keywords: Strategy; Local Government; Coffee Farmers; Welfare; COVID-19
Abstract: The local government's policy in Central Aceh Regency to protect coffee producers from the COVID-19
pandemic is explained in this paper. Coffee is a mainstay commodity and a support for the regional economy
in Central Aceh Regency. Coffee producers account for at least 34,476 households (KK), or over 90% of
Central Aceh's population. As a result, the coffee commodity is critical to the gayo coffee farming community
in Central Aceh Regency's well-being. The COVID-19 pandemic, on the other hand, had a significant impact
on the global coffee industry, with shipments and prices plummeting. A qualitative technique is used in this
investigation. In-depth interviews and documentation were used to gather data. According to research, the
COVID-19 pandemic had a substantial influence on coffee producers' economic conditions, as evidenced by
a 70 percent decline in gayo coffee exports and a drop in selling price from Rp. 110 thousand to Rp. 60
thousand per kilogram during the pandemic. According to the findings of this study, the government can
protect coffee producers during the pandemic by offering coffee growing instruction, providing business
finance help, and assisting farmers in marketing Gayo coffee through meetings with coffee exporters.
1 INTRODUCTION
This research is about the effect of the covid-19
pandemic on the economic condition of gayo coffee
farmers in Central Aceh Regency. The COVID-19
pandemic has also tested the agricultural sales chain
(Kumar et al., 2021; Poudel et al., 2020; Timilsina et
al., 2020). This includes coffee commodities (Vargas
et al., 2021). Based on data, more than 52 countries in
the world use coffee as the economic support for
millions of farmers (Guido, Knudson, & Rhiney,
2020) and one of these countries is Indonesia. Coffee
is a leading export commodity, where Indonesia is the
fourth exporter in the world with an average
contribution of 4.76 percent of total global exports
(Nalurita, Asmarantaka, & Jahroh, 2014). This shows
that coffee is an important sector in Indonesia. As
released by the Central Statistics Agency (BPS),
coffee exports reached 186.8 thousand tons as of July
2020. This figure increased by 10.69 percent
compared to the previous year with Japan, Hong
Kong, South Korea, Taiwan, and China being the
largest export destination countries (2020)
(Nopriyandi & Haryadi, 2017). In Aceh Province,
Aceh Tengah Regency is a production center that
contributes the highest export value in coffee sales.
Figure 1: Graph of Coffee Export Value of Aceh Province
Central Aceh
Regency is an area that makes coffee a mainstay
commodity as well as a support for the regional
economy. In fact, in this district there is a coffee
farmer organization called the Gayo Organic Coffee
Farmers Association (PPKO) which has also been
certified from “Fair Trade”, an international
certificate organization for coffee. Thus, Gayo coffee
is currently recognized as the best organic coffee in
2017
2018
2019
2020
2021
2014
2016
2018
2020
2022
Ikhsan, ., Marefanda, N., Husna, C. and Hajad, V.
Local Government Strategy in Protecting Coffee Farmers from the Economic Impact During COVID-19.
DOI: 10.5220/0011563700003460
In Proceedings of the 4th International Conference on Social and Political Development (ICOSOP 2022) - Human Security and Agile Government, pages 179-184
ISBN: 978-989-758-618-7; ISSN: 2975-8300
Copyright
c
 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)
179

the world and is in demand by international
consumers, as well as being the target of national
consumers. The profit obtained from gayo coffee
exports originating from smallholder plantations of
gayo coffee farmers in Central Aceh was USD11.46
million (2016) and reached USD34.41 (2017)
(Mawardo, Hulupi, Wibawa, Wiryaputra, &
Yusianto, 2008).
However, the COVID-19 pandemic has hit hard
on the world coffee business sector as well as gayo
coffee in Central Aceh Regency. Before the
pandemic, coffee farmers were able to sell their
harvests smoothly, but after the pandemic the number
of gayo coffee exports dropped dramatically to 70%
with the selling price also dropping during the
pandemic, from Rp. 110 thousand to Rp. 60 thousand
per kilogram. In fact, so far Gayo coffee farming
absorbs a lot of labor and is able to support the
regional economy. Every year, coffee production in
Central Aceh is around 28 thousand tons with a value
of around Rp. 1.8 trillion from 48 thousand hectares
of land area or a minimum of 700 kg/ha/year. The
gayo coffee plantations in Central Aceh are entirely
indigenous plantations, with an area of 4,318.39 km2.
Following data from the Plantation and Forestry
Office of Central Aceh Regency, there are at least
34,476 households (KK) who work as coffee farmers
or almost 90% of the total population of Central Aceh
are coffee farmers. Therefore, the coffee commodity
has an important role in the welfare of the gayo coffee
farming community in Central Aceh Regency
(Juliaviani, Sahara, & Winandi, 2017). In this study,
the problem studied was how the covid-19 pandemic
also affected the economic condition of gayo coffee
farmers with the hypothesis that there was an
influence between the occurrence of the covid-19
pandemic on the economic condition of gayo coffee
farmers.
The purpose of this study was to measure the
depth of influence caused by the covid-19 pandemic
on the condition of gayo coffee farmers. The
hypothesis in this study is that the COVID-19
pandemic has a very significant effect on the
economic conditions of coffee farmers. Increasing the
role of the Central Aceh District Government in
establishing welfare programs for coffee farmers as a
preventive measure against possible future economic
failures so that coffee farmers can feel economically
secure and able to function independently. Increased
collaboration between local governments, the private
sector, and farming communities so that they can
form a just economic condition for coffee farmers so
as to create prosperity in the coffee distribution chain
in Central Aceh Regency. Encouraging the creation
of a conducive economic climate through mapping
the impacts caused by the pandemic on the condition
of coffee farmers so that the Regional Government
can create, stimulate, and establish appropriate
business engineering and be able to minimize the
negative impacts of the pandemic.
Increase the active involvement of coffee farmers
in managing coffee commodities for the progress of
Central Aceh Regency significantly so that there is an
increase in economic independence after the
pandemic period. Develop the role of the Central
Aceh Government in maximizing natural resources
and directing the potential of coffee in Central Aceh
Regency for large-scale industry and coffee tourism
so as to create prosperity for coffee farming
communities in Central Aceh Regency. Finding the
right solution that can be applied to coffee farmers
who have lost their income due to the COVID-19
pandemic. This research has an urgency to be carried
out because through this research, researchers can
determine the degree of influence of the covid-19
pandemic on the condition of gayo coffee farmers so
that both the government and the private sector can
protect gayo coffee farmers who are in a vulnerable
position from the economic downturn due to the
pandemic. Thus, economically prosperous coffee
farmers can be created and subsequently able to
significantly encourage regional development.
2 RESEARCH METHODS
This research uses a qualitative method with a case
study approach (Craswell, 2014). This Research was
conducted for 6 month from July 2022 to December
2022. The research location is in Aceh Tengah
District, Aceh Province with the population studied
are gayo coffee farmers. Therefore, qualitative
research methods were adopted in this investigation
to determine the effect of the COVID-19 pandemic on
the economic condition of Gayo coffee farmers. This
research was conducted in Central Aceh Regency,
precisely in Atu Lintang District, which is 36 km
from Takengon City and is the center for producing
the best gayo coffee in Central Aceh.
The resource persons in this study were selected
by purposive sampling based on their knowledge and
expertise about the research theme. Meanwhile, the
population in this study were gayo coffee farmers in
Central Aceh, amounting to 34,476 households. Thus,
one member of each family head was chosen to be the
respondent after the number was determined.
Furthermore, research data was obtained through
field observations, in-depth interviews,
ICOSOP 2022 - International Conference on Social and Political Development 4
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documentation, and Focus Group Discussions (FGD)
to observed and measured as characteristics of the
respondents such as age, gender, education, number
of dependents in the family, and income of gayo
coffee farmers before and after the covid-19
pandemic.
The data that has been collected through
interviews is then analyzed by reviewing all available
data from various sources, such as interviews, field
notes, personal documents, official documents,
photos, and so on. Data analysis was carried out
interactively, with each stage of the activity not
running independently. (1) collecting, reducing,
presenting, and leveraging data or drawing
conclusions are all studied in research; (2) the data
received from the field were analyzed using
qualitative data modeling, namely the Nvivo Plus
program. In addition, conclusions are formed and
drawn from the overall data analysis that has been
completed.
3 RESULTS AND DISCUSSION
Covid 19 or coronavirus disease is an infectious
disease that began to emerge in 2019 (Harapan et al.,
2020). Although it first appeared in Wuhan, China.
However, this disease is able to spread quickly
throughout the world so that WHO immediately
declared covid 19 a global disaster (Cucinotta &
Vanelli, 2020; Sohrabi et al., 2020). The reason is
because this deadly disease has caused many
casualties (Liu, Gayle, Wilder-Smith, & Rocklöv,
2020). As of August 2020, Indonesia had 4,253,992
cases with a total of 143,753 deaths in 34 provinces
(WHO, 2021). This condition causes Indonesia to be
affected not only in terms of: (1) health (McKibbin &
Fernando, 2020; Prem et al., 2020; Setiati & Azwar,
2020; Xie et al., 2020); (2) psychological (Wang et
al., 2019); (3) education (Abidah, Hidaayatullaah,
Simamora, Fehabutar, & L, 2020; Azzahra, 2020); (4)
economics (Hidayaturrahman, M., & Purwanto,
2020; Naryono, E., & Sukabumi, 2020); (5) socio-
cultural (Ansori, 2020; Djalante et al., 2020; Yunus
& Rezki, 2020); (6) religion (Yezli & Khan, 2020);
and (7) politics (Barrios et al., 2020). Economic
issues have become a global problem that has been in
the spotlight because they have a significant impact
on the economic condition of the community to the
lowest level (Yamali & Putri, 2020).
Figure 2: Impact of the Covid-19 Pandemic Based on
Various Literature
Globally, these conditions have resulted in a
slowdown in globalization (deglobalization) in the
form of a global decline in trade due to the
implementation of social distancing, physical
distancing, quarantine and regional restrictions (lock
down) (Noor & Wangid, 2019). The COVID-19
pandemic has forced the government, the private
sector, and the community to further strengthen their
internal capacity to overcome the economic problems
that occur. In Indonesia, there was a spike in the
number of sufferers with a high mortality rate, so
preventive measures were taken, The Center of
Reform on Economics (CORE) closing schools,
working from home (Work from Home) and the
cancellation of various activities held by the
government and the private sector resulted in slowing
economic turnover. because based on data, private
consumption accounts for almost 60% of the total
national economic movement. As a result, it will have
an impact on the informal (traditional) and other
modern economic sectors. So that the government
sees that there is a supply disruption and a decrease in
people's purchasing power so that the policies
implemented are cash transfers, subsidized wages, tax
breaks, and helping people to meet their needs and
their businesses to survive (Nasution, Erlina, &
Muda, 2020).
The same thing also happened to the condition of
export commodity farmers who are in the global trade
net such as coffee. The reduction in orders due to the
decline in the purchasing power of consumers and
suppliers resulted in a decrease in total exports to the
world. As one of Indonesia's leading commodities, in
fact coffee farmers cannot be said to be fully
prosperous because they are still at the bottom of the
chain of trade routes that comply with the prices
offered by collectors. The pandemic that hit the health
of many people had a twice as dangerous impact as it
also affected the economic conditions of coffee
farmers.
Pandemi
Covid-19
Kesehatan
Pendidikan
Agama
Psikologis
Sosial
budaya
Politik
Ekonomi
Local Government Strategy in Protecting Coffee Farmers from the Economic Impact During COVID-19
181

Since the beginning of 2020, the COVID-19
pandemic has hit the world and has had an impact on
human health, economy and social conditions
(Hanoatubun, 2020). Agriculture as a support for the
world economy is also experiencing its impacts
dampaknya (Kumar et al., 2021; Poudel et al., 2020;
Timilsina et al., 2020). However, many articles still
focus on the agricultural food business chain,
especially related to food security and supply chain.
In fact, this sector can immediately become a concern
at the beginning of the pandemic so that various swift
policies are taken to protect this sector (Aday &
Aday, 2020; Niles et al., 2020; Smith & Wesselbaum,
2020). Different conditions occur in coffee farming,
the COVID-19 pandemic has severely hit businesses
in this sector (Guido et al., 2020) which also affects
the economic conditions of coffee farmers.
There are several factors behind this, namely: (1)
the difficulty of obtaining transportation permits
between Indonesia and the destination country; (2)
international coffee buyers experience an economic
recession; (3) the economic conditions of coffee
exporting companies during the pandemic; (4) the
overall decline in the price of green beans for coffee;
(5) social distancing imposed during the pandemic
(Fadli, Hafni, & Tambarta, 2000). As one of the
sectors affected, the coffee farming sector and the
economic conditions of coffee farmers affected by the
COVID-19 pandemic are still rarely studied. In fact,
coffee, especially Gayo coffee (Gayo Arabica Coffee)
is one of Indonesia's leading export commodities
which is well-known both in the domestic and
international markets (Kudus, Widayat, & Abubakar,
2019).
Figure 3: Diagram of Coffee Business Distribution
Constraints.
The coffee plantation sector has been widely
studied, especially related to the marketing chain
which has an impact on the economic conditions of
coffee farmers due to the inefficient market for coffee
commodities in several regions in Indonesia so that
they have not been able to improve the economic
conditions of coffee farmers, even before the
COVID-19 pandemic. 19 happened. For example, a
study conducted by Cristovao (2015) which looked at
the declining economic conditions of coffee farmers
due to the dominance of wholesalers in determining
coffee prices. This dominance occurs because: (1)
there is no cooperation network system between
coffee farmer groups and intermediary traders. (2)
Farmers do not yet have adequate information
regarding the price of coffee in the international
market. (3) Farmer groups have not been functioning
properly (Cristovao, 2015).
Rafika Tania, Sudarma Widjaya, Ani Suryani
(2019), who highlighted the long coffee distribution
chain in the regions, especially Arabica coffee
variants, were the cause of low coffee prices at the
farmer level. The distribution channel formed starts
from farmers, sub-district collectors, district
collectors, ground coffee industry, and consumers
(Tania, Widjaya, & Suryani, 2019). Another study
that talks about the coffee business chain is Ima
(2006), namely: (1) coffee farmers lack information
about commodity prices so they cannot offer them at
a more profitable price for them; (2) selling to
existing institutions because the transaction process is
easier and reduces risk; (3) the sales system has not
been efficient because of the lack of honesty of
intermediary institutions (Ima, 2006).
Figure 4: Factors Causing Low Economic Condition of
Coffee Farmers
However, this study is different because the
economic condition of gayo coffee farmers in Central
Aceh Regency tended to be good before the pandemic
occurred because gayo coffee commodities had a
short chain and aimed at export (Juliaviani et al.,
2017). Meanwhile, after the COVID-19 pandemic,
there was a decline in gayo coffee sales, especially for
exports, by up to 70%, which in the end also affected
the economic conditions of coffee farmers at the
lowest level of the gayo coffee sales chain. This study
measures the degree of depth of influence of the
COVID-19 pandemic on the economic condition of
gayo coffee farmers in Central Aceh Regency.
Transportati
on permit is
difficult
Economic
recession
Exporting
company
conditions
Drop in
coffee
prices
Social
distancing
conditions
Information
about low price
Looking
for an
easier
transactio
n process
Inefficient
sales
ICOSOP 2022 - International Conference on Social and Political Development 4
182

4 CONCLUSIONS
The local government's policy in Central Aceh
Regency to protect coffee producers from the
COVID-19 pandemic is explained in this paper.
Coffee is a mainstay commodity and a support for the
regional economy in Central Aceh Regency. Coffee
producers account for at least 34,476 households
(KK), or over 90% of Central Aceh's population. As
a result, the coffee commodity is critical to the gayo
coffee farming community in Central Aceh Regency's
well-being. The COVID-19 pandemic, on the other
hand, had a significant impact on the global coffee
industry, with shipments and prices plummeting.
According to research, the COVID-19 pandemic had
a substantial influence on coffee producers' economic
conditions, as evidenced by a 70 percent decline in
gayo coffee exports and a drop in selling price from
Rp. 110 thousand to Rp. 60 thousand per kilogram
during the pandemic. According to the findings of this
study, the government can protect coffee producers
during the pandemic by offering coffee growing
instruction, providing business finance help, and
assisting farmers in marketing Gayo coffee through
meetings with coffee exporters.
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