The United States government through the US Agency for International Development (USAID) launched the "Indonesia Coffee Enterprise Resilience Initiative" (Resilient Coffee) to support coffee farmers in Indonesia. The initiative is a new partnership with US beverage company Keurig Dr Pepper and non-governmental organization Root Capital to provide credit for rural farming businesses, the US Embassy said Monday (19/12/2022)
Coffee farming communities in Indonesia are facing mounting crises due to market volatility, climate change and gender inequality, which pose major challenges for rural communities and agricultural sector businesses, the US Embassy said.
To overcome this problem, Resilient Coffee will support 14 coffee companies in Aceh, East Java and North Sumatra, which reach 14,000 small farmers, while offering sustainable agriculture that balances economic needs with preserving the environment. “A lack of business management skills and access to credit has prevented coffee companies from tapping into the full potential of their farmers for growth,” said USAID Indonesia Director Jeff Cohen.
"USAID's collaboration with Root Capital and Keurig Dr Pepper will expand public-private capacity and trust to strengthen and increase inclusive economic growth, as well as prioritizing investment in women's economic empowerment and building resilience to climate change," he said. According to the US Embassy statement, USAID will leverage local expertise to help Root Capital build smallholder resilience by expanding access to finance for small coffee farmers and entrepreneurs who do not have adequate access to credit and business education.Partners will also leverage Keurig Dr Pepper's private sector leadership and Root Capital's experience with the coffee entrepreneur to help businesses strengthen resilience through financing and training, the US Embassy said in a statement.
The program will work with businesses to strengthen gender equality and social inclusion practices and implement new digital solutions to improve coffee business management and resilience. In addition, partners will strengthen climate action in the coffee industry, with a focus on tackling climate change, protecting fragile ecosystems, and supporting rural communities to adapt to climate impacts. The new partnership will accelerate inclusive economic growth in the face of global climate change and the ongoing COVID-19 pandemic, while expanding public private capacity and maximizing women's economic empowerment, the US Embassy said.
