EMPLOYMENT ABSORPTIVE CAPACITY OF SMALLHOLDER COFFEE PLANTATIONS AND SUSTAINABLE COFFEE DEVELOPMENT IN JEMBER DISTRICT

Ebban Bagus Kuntadi; Joni Murti Mulyo Aji; Dewi Churva H. Sholihah

Ebban Bagus Kuntadi Universitas Jember
Joni Murti Mulyo Aji Universitas Jember
Dewi Churva H. Sholihah Universitas Jember

Abstract

Jember District is the second largest of coffee producing area in East Java (after Malang) with coffee
planted area around 5,608 hectares. Based on the data in 2012, 27 of 31 sub districts in Jember are
coffee producers which means only 4 sub-districts in this region do not produce coffee. Each area,
however, has a different potency on coffee production. To understand the role of coffee in the regional
development, an area mapping on distribution of smallholder coffee plantation is therefore needed as
it related to labor employment in plantation sector, particularly as most of those run by smallholders
as well as the change of economic structure in Jember District. The importance of smallholder coffee
plantation’s role on labor absorption and economic growth on Jember will eventually determine the
further policy on the development of smallholder coffee plantation as an important subsector in
Jember. This research aimed to: (1) describe the characteristic of distribution coffee plantation area by
smallholders in Jember District, (2) know the shift of GDP value from smallholder coffee in Jember,
and (3) know the employment absorptive capacity on smallholder coffee plantation in Jember District.
Both descriptive and analytic methods were used in this research. Methods of analysis used in this
research include location quotient (LQ), locality coefficient and specialization coefficient, shift-share
analysis, demo-metric model, and contribution. The result of this study showed that (1) the
characteristics of distribution smallholder coffee area in Jember Regency were not concentrated, (2)
the shift share and position of GDP value from smallholder coffee were positive, and (3) smallholder
coffee plantation ability on producing the economic outputs and its contribution to the region
economic growth is followed by increasing labor absorption and have positive impacts on the district
regional development.