The Effect of Coffee Price Fluctuations, Access to Islamic Financing, and Islamic Financial Literacy on the Income of Coffee Farmers in West Lampung Regency from a Sharia Perspective

Abstract

This study aims to analyze the effect of coffee price fluctuations, access to Islamic financing, and Islamic financial literacy on the income of coffee farmers in West Lampung Regency from a sharia perspective. The research employs a quantitative approach with a causal associative design. The sample consists of 100 coffee farmers selected using purposive sampling. Data were collected through questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results show that coffee price fluctuations have a positive and significant effect on farmers’ income. Access to Islamic financing also has a positive and significant effect on income, while Islamic financial literacy has a positive but not significant effect. The R-square value of 0.398 indicates that the independent variables explain 39.8% of the variation in farmers’ income. From a sharia perspective, income generation must comply with Islamic principles such as fairness, transparency, and the prohibition of riba, gharar, and maysir. Therefore, strengthening access to Islamic financing and improving financial inclusion are essential to enhance farmers’ welfare in a sustainable and ethical manner.