Chapter 5
Company–Community Partnership
and Climate Change Adaptation
Practices: The Case of Smallholders
Coffee Farmers in Lampung, Indonesia
Ayu Pratiwi, Guenwoo Lee, and Aya Suzuki
Abstract Climate change affects agricultural production system and the livelihood
of the smallholder producers. To help farmers increase their adaptive capacity, private
sector may serve as an alternative to the government through company–community
partnership, which aims to directly acquire production from the farmers while simultaneously increasing their capacity through knowledge exchange, market access, and
social capital. Despite their pivotal roles, how the private sectors operate in promoting
climate change adaptation and mitigation strategies to their smallholder clienteles
are still understudied. This chapter examines the effects of company–community
partnership upon the climate change adaptation and mitigation practices of the smallholders’ coffee producers in Lampung, Indonesia. Using propensity score matching
(PSM) and inverse probability weighting regression (IPWR), we found that farmers
possessing motorized vehicle, larger farm size, and more active networks inside
their locality are more likely to join the partnership. Such partnership also positively
affects the adaptive capacity of smallholder farmers in two ways. First, it improves
their farm income, thus reducing their income vulnerabilities; and second, through
increased propensity to adopt resource-conserving and agroforestry techniques due
to more opportunity for knowledge exchange and a higher degree of social capital.
Keywords Agricultural technology · Climate change · Adaptation · Mitigation
A. Pratiwi (B)
Turku School of Economics, Economic Geography Unit, Turku, Finland
e-mail: ayu.pratiwi@utu.fi
G. Lee
Institute of Economic Research, Hitotsubashi University, Kunitachi, Japan
A. Suzuki
Graduate School of Frontier Sciences, Department of International Studies,
The University of Tokyo, Bunkyo City, Japan
© Springer Nature Switzerland AG 2021
R. Djalante et al. (eds.), Climate Change Research, Policy and Actions in Indonesia,
Springer Climate, https://doi.org/10.1007/978-3-030-55536-8_5
79
Company–Community Partnership
and Climate Change Adaptation
Practices: The Case of Smallholders
Coffee Farmers in Lampung, Indonesia
Ayu Pratiwi, Guenwoo Lee, and Aya Suzuki
Abstract Climate change affects agricultural production system and the livelihood
of the smallholder producers. To help farmers increase their adaptive capacity, private
sector may serve as an alternative to the government through company–community
partnership, which aims to directly acquire production from the farmers while simultaneously increasing their capacity through knowledge exchange, market access, and
social capital. Despite their pivotal roles, how the private sectors operate in promoting
climate change adaptation and mitigation strategies to their smallholder clienteles
are still understudied. This chapter examines the effects of company–community
partnership upon the climate change adaptation and mitigation practices of the smallholders’ coffee producers in Lampung, Indonesia. Using propensity score matching
(PSM) and inverse probability weighting regression (IPWR), we found that farmers
possessing motorized vehicle, larger farm size, and more active networks inside
their locality are more likely to join the partnership. Such partnership also positively
affects the adaptive capacity of smallholder farmers in two ways. First, it improves
their farm income, thus reducing their income vulnerabilities; and second, through
increased propensity to adopt resource-conserving and agroforestry techniques due
to more opportunity for knowledge exchange and a higher degree of social capital.
Keywords Agricultural technology · Climate change · Adaptation · Mitigation
A. Pratiwi (B)
Turku School of Economics, Economic Geography Unit, Turku, Finland
e-mail: ayu.pratiwi@utu.fi
G. Lee
Institute of Economic Research, Hitotsubashi University, Kunitachi, Japan
A. Suzuki
Graduate School of Frontier Sciences, Department of International Studies,
The University of Tokyo, Bunkyo City, Japan
© Springer Nature Switzerland AG 2021
R. Djalante et al. (eds.), Climate Change Research, Policy and Actions in Indonesia,
Springer Climate, https://doi.org/10.1007/978-3-030-55536-8_5
79