COFFEE SUPPLY CHAIN AND MARKETING CHANNEL MANAGEMENT IN CENTRAL JAVA

Coffee is an important agricultural commodity for Indonesia as it becomes one of the country's foreign exchange reserves. Coffee is the mainstay of Indonesian exports and includes the top 10 most important plantation commodities. Given the huge opportunity for Indonesian coffee exports, the government is targeting to become the world's second largest coffee producer; where Indonesia is currently still in third position. Coffee in Indonesia comes from various provinces and influences the world's coffee supply. One of the province's coffee producers in Indonesia is Central Java. Based on the existing phenomenon, this study aims to find the best model for supply chain and marketing point of coffee commodity in Central Java with case study in Semarang regency, Temanggung regency, Boyolali regency and Magelang regency. By finding the right supply chain model and marketing channel, it is expected to increase the export of coffee products and make Indonesia the second largest coffee exporter in the world. The results show that some farmer groups have developed a model of coffee garden management with sustainable agriculture system. With the coffee cultivation model is expected to increase the volume and quality of national coffee as well as to improve the welfare of farmers. This indicates that if managed properly, coffee farming in Indonesia will be more developed and can become Indonesia's flagship commodity. Based on the results of the discussion, this study provides some alternative recommendations related to supply chain model and marketing channel of coffee commodity. To improve the supply chain and marketing channels of coffee commodities, three issues of concern are partnerships with related agencies (government), quality management, and the ability to understand consumers. Keywords: coffee, supply chain, quality management, marketing channe