SUSTAINABLE SUPPLY CHAIN MANAGEMENT IN ORGANIC COCONUT SUGAR PRODUCTION: FOCUSING ON SMALLHOLDER FARMERS IN INDONESIA

Abstract

This research addresses the paradox between global organic market growth and structural smallholder vulnerabilities in Indonesian organic coconut sugar supply chains. The objective is to analyze supply chain dynamics, evaluate sustainability practices, and formulate an integrated management model. Employing a qualitative dual-case study design, data were collected through 23 semi-structured interviews, 32 participatory observation days, and 3 focus group discussions across Cilacap District. Thematic cross-case analysis revealed a non-sequential, six-layer supply chain where smallholders capture only 28–32% of export value due to seasonal liquidity shortages and informal tenure constraints. However, digitalized cooperative governance reduced internal disputes by 85% and increased price premiums. Synthesizing these findings yields the Local Ecological Knowledge and Agrarian Institutional-based SSCM (SSCM-LKAI) model, which formalizes traditional ecological knowledge and positions inclusive cooperatives as critical mediating bridges. Future research should quantitatively validate this model across diverse agricultural commodities.