FACTORS AFFECTED THE DECLINE OF INDONESIA COFFEE COMPETITIVENESS IN EXPORT MARKET DURING 2009-2018
Arief Darmawan(1), Ratih Hurriyati(2), Heny Hendrayati(2), Adhie Surachman(1)

(1) Universitas Subang
(2) SPS - Universitas Pendidikan Indonesia

Abstract

Indonesia coffee is a golden product that becomes valuable export commodities since the 1700s, which makes Indonesia a leading world coffee producer. Coffee commodities are also have significant role as main livelihood for coffee producers that about 95% are MSMEs. There are setbacks on the Indonesia coffee market in 2009-2018. By the decline of its export market share by almost forty percent. Amidst the fact that the world coffee price and national coffee harvest fluctuating but steadily increasing. This research is intend to develop model that able to map the most related and affecting factors to the decline of Indonesia coffee export market share. The approach and methodology applied for this research are using time series data that officially published by the related governments, donors, privates, and NGOs institutions both national and international. Data analysis focused to export values as a dependent variable (Y) and export volume (X1), world coffee price (X2), production volume (X3), and agricultural credit (X4) as independent variables. The produced model shows that all but one independent variables are strongly affecting the dynamic of Indonesia coffee exports. The findings revealed the importance to adopt GVC and sustainable (green) aspects to recover the decline.

Keywords: Affecting Factors, Coffee Competitiveness, Export Market

Topic: Green Business