Investigating the Value Chain-Based Model of the KOMASTI Variety Agroindustry in Indonesia

Abstract

Purpose: This study aims to develop an integrated value chain-based model for the Komasti coffee agroindustry in North Sumatra, Indonesia. It intends to overcome structural inefficiencies while enhancing smallholder farmers’ welfare through a sustainable agroindustrial framework aligned with the Astagatra resilience concept of Lemhannas RI, which integrates natural (Trigatra) and social (Pancagatra) dimensions of national development.

Design/methodology/approach: A mixed-methods design was adopted, involving interviews, focus group discussions (FGDs), a structured survey, and a value-added analysis using the Hayami method.

Findings: The Komasti coffee agroindustry records a value-added ratio of 47.34% and a profit margin of 97.59%, reflecting strong economic potential. Nevertheless, the proportion of value captured by farmers remains low due to rudimentary processing methods and limited market connectivity.

Originality/value: The study presents a holistic model that integrates multi-stakeholder collaboration and digital platforms to enhance efficiency and inclusiveness. It is projected to increase farmers’ income by 35% and support access to international markets. This model strengthens national resilience by promoting a competitive and sustainable agroindustry aligned with Indonesia’s strategic development goals.