You're right.
I managed to create a drop folder (of type Local) via this config screen.
However, there're some parameters I don't really know how to configure.
Conversion Profile ID: left it as Passthrough - can't find any docs regarding this. Should I create my own conversion profile ID and assign it instead?
Ingestion Workflow: Content
Content Match Policy: match existing or keep in folder (I want to put the file in the filefolder first, and then programatically create media entry, DropFolderFile, etc... the workflow I described in the previous comment. So is it the right configuration?)
Drop Folder Batch Jobs Datacenter Location: I wrote 0, read that in Stackoverflow.
Drop Folder Storage Path: I wrote some path, but I can't seem to find the folder anywhere in the server (I expected it would be created in dropfolders/the/path/I/gave/{drop folder name}, but it doesn't exist anywhere.)