My nephew was recently in Bali and tried it. I had never heard of it. This is what he wrote:
"Koppi Luwak, also known as cat-poo coffee is made by finding the coffee beans that were eaten and pooped out by the local civet cats. The bean itself is still whole and ferments a certain way as it passes through the cat, lending a unique flavor. Though I'm a coffee expert by no means, I found it pleasant. I've heard that in the states, it goes for about $80-90 a cup!"
He visited a "humane" coffee plantation and snapped a pic of a napping Luwak, dozing away while fermenting the beans...