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

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.