Proceedings of the 6th International Conference on Social and Political Enquiries, ICISPE 2021, 14-15 September 2021, Semarang, Indonesia

Research Article

Developing Economic and Environment on Innovation Practice of Sustainable Product in MSME Temanggung Arabica Coffee

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  • @INPROCEEDINGS{10.4108/eai.14-9-2021.2321362,
        author={Chusnu Syarifa Diah  Kusuma and Ari  Pradhanawati and Ngatno  Ngatno and Reni Shinta  Dewi},
        title={Developing Economic and Environment                        on Innovation Practice of Sustainable Product in MSME Temanggung Arabica Coffee},
        proceedings={Proceedings of the 6th International Conference on Social and Political Enquiries, ICISPE 2021, 14-15 September 2021, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICISPE},
        year={2022},
        month={9},
        keywords={economic development environment innovation practice of sustainable product},
        doi={10.4108/eai.14-9-2021.2321362}
    }
    
  • Chusnu Syarifa Diah Kusuma
    Ari Pradhanawati
    Ngatno Ngatno
    Reni Shinta Dewi
    Year: 2022
    Developing Economic and Environment on Innovation Practice of Sustainable Product in MSME Temanggung Arabica Coffee
    ICISPE
    EAI
    DOI: 10.4108/eai.14-9-2021.2321362
Chusnu Syarifa Diah Kusuma1,*, Ari Pradhanawati1, Ngatno Ngatno1, Reni Shinta Dewi1
  • 1: Universitas Diponegoro
*Contact email: chusnu@uny.ac.id

Abstract

A target of the Sustainable Development Goals (SDGs) is economic growth and responsible production. To achieve the goal, it needs the support of the economic sector, including the Micro, Small, and Medium Enterprises (MSME). One of the MSMEs, which is the leading commodity in Temanggung Regency, is the MSME cluster of Arabica Temanggung Coffee. The limited land and production in the highlands make Arabica coffee agricultural products fluctuate. This study aimed to explore the process of economic and environmental development on the practice of sustainable product innovations in Arabica Temanggung coffee. The research type was analytical descriptive. Data collection techniques were observation, interviews, focus group discussions (FGD), and literature studies. The results showed that most MSMEs have implemented environmentally friendly production practices, such as energy efficiency, water efficiency, chemicals-free, and reusing waste of production. The practice is the result of sustainable innovation by MSMEs, which impacts on increasing profits, due to efficiency and increased sales. The study found evidences, which may be used in developing and testing hypotheses regarding the performance of sustainable product innovation. The article suggested an idea of more comprehensive environmentally friendly production practices sustainably at all production stages to achieve higher effectiveness and efficiency.