SUSTAINABILITY ANALYSIS OF ARABICA COFFEE PLANTATION AGRIBUSINESS IN NORTH SUMATRA PROVINCE

Abstract

This study examines the sustainability of Arabica coffee agriculture in Samosir Regency, North Sumatra, a significant region for Arabica coffee production in Indonesia. Using a modified Multidimensional Scaling (MDS) approach, Rapid Appraisal Technique Coffee (RAP-Coffee), the research assesses five sustainability dimensions: Ecological, economic, social, institutional, and technological, covering 52 attributes. Furthermore, sensitivity analysis through leverage and Monte Carlo methods is also conducted to evaluate the impact of various factors on the sustainability index. Accordingly, data was gathered from purposively selected locations and key stakeholders. The results reveal that the Arabica coffee agribusiness in Samosir Regency, North Sumatra is generally sustainable, with sustainability index values exceeding 50 for all dimensions: Economic (57.26), ecological (51.63), social (61.31), institutional (51.90), and technological (50.08). In addition, the report underscores the necessity for ongoing enhancements in these domains to ensure future sustainability. Nevertheless, the findings are crucial for policymaking, suggesting that strengthening the technological, institutional, and economic dimensions will be essential for ensuring the long-term viability of the Arabica coffee industry in North Sumatra.