PT NESTLÉ INDONESIA: CREATING SHARED VALUE FOR INDONESIAN COFFEE FARMERS

The case is about how Nestle Indonesia implemented itsCSV initiatives to the rural areas where its factories located. The case uses Nestle coffee factory in Panjang, Lampung as the background setting, and how Nestle helps the coffee farmers in Lampung to support its raw material needs (domestic and export) while guiding the farmers in making a profitable farming.

Coffee is also the 2^nd important commodity in the world, with Indonesia coming 4^th as coffee exporters. The supply of coffee comes from small scale farmers with limited resources while demand opportunity is attractive with possibility for different market segments. Indonesia’s coffee industryhas its own drawback with limited resources in term of farmers’ knowledge on good agricultural practice, farmers’ financial strength, and inherited old trees.