Economic Feasibility Analysis of Carbonic Maceration Fermentation Technique Implementation for Ijen-Raung Arabica Coffee

DOI

10.2991/978-94-6463-956-8_13How to use a DOI?

Keywords

Economic Feasibility; Carbonic Maceration; Arabica Coffee; Investment Analysis; Agricultural MSMEs

Abstract

Carbonic maceration (CM) is a promising post-harvest technique for enhancing speciality coffee quality, yet its financial viability for small-scale farmers, particularly in Indonesia, remains unexamined. This study addresses this gap by evaluating the economic feasibility of CM for Arabica coffee farmers in the Ijen-Raung region. Using a discounted cash flow analysis that included NPV, IRR, payback period, and B/C ratio, the research demonstrated that the method is highly feasible. The results showed an average NPV of IDR 19 million, an IRR of 44.1%, a payback period of 1.68 years, and a B/C ratio of 1.15. The adoption of CM led to a 51.9% increase in green bean selling prices, boosting average farmer income by 60.0%. Furthermore, the sensitivity analysis confirmed the project’s resilience, with the NPV remaining positive under both cost increases and price declines. These findings suggest that CM is an economically sustainable innovation for smallholders. The study concludes that the favourable 0.5% MSME tax policy supports such technology adoption and suggests that shifting incentives from input subsidies to post-harvest development could significantly improve the competitiveness of Indonesian speciality coffee.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Halil Halil
AU  - Kurniawan M. Nur
AU  - Driyanto W. Wicaksono
PY  - 2025
DA  - 2025/12/26
TI  - Economic Feasibility Analysis of Carbonic Maceration Fermentation Technique Implementation for Ijen-Raung Arabica Coffee
BT  - Proceedings of the 4th International Conference on Economic, Business, and Accounting Studies (ICEBAST 2025)
PB  - Atlantis Press
SP  - 154
EP  - 167
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-956-8_13
DO  - 10.2991/978-94-6463-956-8_13
ID  - Halil2025
ER  -