Does Certification Ownership Foster Sustainability in Indonesia’s Coffee Industry? An Empirical Investigation

Coffee is a significant agricultural export commodity of Indonesia which contributes 16.15% of its GDP. Currently, Indonesia coffee faces significant challenges from other coffee-producing. Challenges include limited knowledge, weak institutions, financial constraints, technological gaps, and unsustainable practices. Unsustainable agricultural practices, including monoculture, crop residue burning, inadequate fertility management, and improper tillage, have led to negative environmental consequences such as deforestation and soil degradation. Sustainable agriculture improves profitability and environmental preservation, is essential for growth. This study examines factors influencing the ownership of sustainability certificates among Indonesian coffee farmers, focusing on information availability, farming systems, financial aspects, technology, land, institutions, productivity and experience. Using a binary logistic regression model, data from surveys and interviews revealed that technology and experience significantly impact the ownership of sustainability certificates. The study emphasizes the need for stakeholder collaboration and supportive government policies to enhance sustainability. It aims to strengthen the Indonesian coffee brand, improve farmer livelihoods and promote environmental conservation.