Citation:

Maria Benedikta Prematirosari, Anggara Wisesa. "Defining a Decent Living Income of Cocoa Farmers in Correlation with the Continuity of Cocoa Production in Indonesia" International Research Journal of Economics and Management Studies, Vol. 5, No. 7, pp. 6-19, 2026. Crossref. http://doi.org/10.56472/25835238/IRJEMS-V5I7P102

Abstract:

This study explores the correlation between a decent living income from cocoa farming and the continuous supply of cocoa beans in Indonesia. Using Robert Yin's multiple-case method and the Sustainable Livelihood Framework, we examined the economic struggles of farming families in Lampung and West Sulawesi. Our analysis shows that when cocoa prices drop too low, farmers are forced into a survival mode. Lacking cash at the start of the season means they delay basic farm maintenance, such as purchasing and applying fertilizer and pesticides, which could lower cocoa productivity and damage their long-term farming assets. The study has identified that, from the perspective of Indonesian cocoa farmers, IDR 70,000 - 75,000/Kg dried beans represents the ideal price, while IDR 25,000 - 30,000/Kg dried beans represents the minimum acceptable price required to sustain production. Data were analyzed using pattern-matching and causal-loop frameworks, with pricing thresholds derived from median data to neutralize extreme outliers and reflect true realities. To bridge this financial gap, we propose a Quality Driven Aggregation Strategy based on a three-way partnership. First, the cocoa industry mentors local cooperatives to improve the quality of cocoa beans, including achieving uniform fermentation results. Second, local Dinas Koperasi teach these cooperatives better business management. Third, state funds, such as BPDP and BPDLH, as a transition enabler, provide cash flow to support farmers while the cocoa dries. Turning cooperatives into high-quality hubs helps smallholders earn higher prices.

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Keywords:

Cocoa Farmers, Cocoa Price, Cocoa Productivity, Cocoa Supply, Decent Living, Sustainable Livelihood.