Transforming Coffee Skin Waste into Compost Blocks: A Sustainable Innovation within PT Pusri’s Creating Shared Value Program in the Coffee Ringkeh Business Group

This study explores the innovation of utilizing coffee skin waste through the development of composting blocks as an environmentally friendly planting medium, while also assessing the financial feasibility and socio-economic contributions of such initiatives. Employing a mixed-method approach, the research integrates quantitative analysis of financial indicators—including Break-Even Point (BEP), Cost of Production (HPP), Benefit-Cost Ratio (BCR), Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period—with qualitative assessments of empowerment and community participation. The research was conducted with the Coffee Ringkeh Business Group in Tebat Benawa Village, South Sumatra, in collaboration with PT Pusri’s Creating Shared Value (CSV) program. The results show that compost block innovation effectively transforms agricultural waste into a sustainable product with significant environmental benefits. Financial analysis confirms the business’s economic viability, with favorable indicators suggesting strong potential for replication and scaling. Furthermore, PT Pusri’s CSV program has enhanced the group’s capacity through training, market facilitation, and women’s empowerment, contributing to inclusive rural entrepreneurship. Nevertheless, challenges such as limited technology access, weak market linkages, and socio-cultural constraints persist. At the same time, opportunities exist in the form of abundant raw materials, increasing demand for eco-friendly products, and alignment with Sustainable Development Goals (SDGs). In conclusion, integrating waste-to-value innovation with sustainable livelihood strategies not only supports environmental sustainability but also strengthens socio-economic resilience. This study underscores the importance of multi-stakeholder collaboration, policy support, and gender-inclusive approaches in fostering a circular economy for rural communities.