Export and Competitiveness of Indonesian Coffee Bean in International Market: Strategic Implication for the Development of Organic Coffee Bean

The performance of Indonesian coffee bean export from 1995 to 2004 was not satisfactory. This implied that there were problems of the competitiveness of Indonesian coffee bean export. This study was expected to come up with some views related with the problem. This study was aimed to analyze the com...

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Main Authors: Bambang Drajat, Adang Agustian, Ade Supriatna
Format: Article
Language:English
Published: Indonesian Coffee and Cocoa Research Institute 2007-07-01
Series:Coffee and Cocoa Research Journal
Online Access:http://www.ccrjournal.com/index.php/ccrj/article/view/88
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author Bambang Drajat
Adang Agustian
Ade Supriatna
author_facet Bambang Drajat
Adang Agustian
Ade Supriatna
author_sort Bambang Drajat
collection DOAJ
description The performance of Indonesian coffee bean export from 1995 to 2004 was not satisfactory. This implied that there were problems of the competitiveness of Indonesian coffee bean export. This study was expected to come up with some views related with the problem. This study was aimed to analyze the competitiveness of Indonesian coffee bean export in international markets. Some policy implication would be derived following the conclusions. In addition, this study was aimed to deliver some arguments referring to organic coffee development as an alternative export development. Data used in this study was time series data ranging from 1995 to 2004 supported with some primary data. The export data were analyzed descriptively and the Revealed Comparative Advantage (RCA) Index employed to analyze the competitiveness of Indonesian coffee bean export. The results of the analysis gave some conclusions, as follows : (1) The export of Indonesian coffee bean was product oriented not market oriented. (2) The Indonesian coffee bean export was characterized with low quality with no premium price, different from that of Vietnam coffee export. (3) Besides quality, the uncompetitive Indonesian coffee export was related to market hegemony by buyers, emerging issue of Ochratoxin A. contamination and high cost economy in export. (4) The competitiveness of Indonesian coffee export was lower than those other countries, such as Columbia, Honduras, Peru, Brazil, and Vietnam. (5) Indonesia still held opportunity to develop organic coffee for export. Some policy implications emerged from the discussion were as follows : (1) The Government should facilitate market development through the provisions of market information and export incentives. (2) The Government should develop and applied national standard of coffee bean referring to that of international, as well as, improve processing technology equipments in the farm level for both wet and dry process. (3) Besides improving quality, the improvement of competitiveness should also be carried out by reducing up to elimination of operational costs before and in exporting ports through the provisions of fiscal and monetary incentives (taxes and interest rates). (4) The development of coffee organic started with socialization of some aspects related to standard and implementation of farming, processing and trade. The Government should facilitate producers and exporters of organic coffee with the provisions of market information and incentives. Key words: Export, coffee beans, competitiveness, organic coffee.
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spelling doaj.art-a0ab3a677aec41d5bb9d6ea884ab02a12022-12-22T00:37:27ZengIndonesian Coffee and Cocoa Research InstituteCoffee and Cocoa Research Journal0215-02122406-95742007-07-0123210.22302/iccri.jur.pelitaperkebunan.v23i2.8877Export and Competitiveness of Indonesian Coffee Bean in International Market: Strategic Implication for the Development of Organic Coffee BeanBambang Drajat0Adang Agustian1Ade Supriatna2Lembaga Riset Perkebunan IndonesiaPusat Analisis Sosial Sosial Ekonomi dan KebijakanBalai Besar Pengkajian Teknologi PertanianThe performance of Indonesian coffee bean export from 1995 to 2004 was not satisfactory. This implied that there were problems of the competitiveness of Indonesian coffee bean export. This study was expected to come up with some views related with the problem. This study was aimed to analyze the competitiveness of Indonesian coffee bean export in international markets. Some policy implication would be derived following the conclusions. In addition, this study was aimed to deliver some arguments referring to organic coffee development as an alternative export development. Data used in this study was time series data ranging from 1995 to 2004 supported with some primary data. The export data were analyzed descriptively and the Revealed Comparative Advantage (RCA) Index employed to analyze the competitiveness of Indonesian coffee bean export. The results of the analysis gave some conclusions, as follows : (1) The export of Indonesian coffee bean was product oriented not market oriented. (2) The Indonesian coffee bean export was characterized with low quality with no premium price, different from that of Vietnam coffee export. (3) Besides quality, the uncompetitive Indonesian coffee export was related to market hegemony by buyers, emerging issue of Ochratoxin A. contamination and high cost economy in export. (4) The competitiveness of Indonesian coffee export was lower than those other countries, such as Columbia, Honduras, Peru, Brazil, and Vietnam. (5) Indonesia still held opportunity to develop organic coffee for export. Some policy implications emerged from the discussion were as follows : (1) The Government should facilitate market development through the provisions of market information and export incentives. (2) The Government should develop and applied national standard of coffee bean referring to that of international, as well as, improve processing technology equipments in the farm level for both wet and dry process. (3) Besides improving quality, the improvement of competitiveness should also be carried out by reducing up to elimination of operational costs before and in exporting ports through the provisions of fiscal and monetary incentives (taxes and interest rates). (4) The development of coffee organic started with socialization of some aspects related to standard and implementation of farming, processing and trade. The Government should facilitate producers and exporters of organic coffee with the provisions of market information and incentives. Key words: Export, coffee beans, competitiveness, organic coffee.http://www.ccrjournal.com/index.php/ccrj/article/view/88
spellingShingle Bambang Drajat
Adang Agustian
Ade Supriatna
Export and Competitiveness of Indonesian Coffee Bean in International Market: Strategic Implication for the Development of Organic Coffee Bean
Coffee and Cocoa Research Journal
title Export and Competitiveness of Indonesian Coffee Bean in International Market: Strategic Implication for the Development of Organic Coffee Bean
title_full Export and Competitiveness of Indonesian Coffee Bean in International Market: Strategic Implication for the Development of Organic Coffee Bean
title_fullStr Export and Competitiveness of Indonesian Coffee Bean in International Market: Strategic Implication for the Development of Organic Coffee Bean
title_full_unstemmed Export and Competitiveness of Indonesian Coffee Bean in International Market: Strategic Implication for the Development of Organic Coffee Bean
title_short Export and Competitiveness of Indonesian Coffee Bean in International Market: Strategic Implication for the Development of Organic Coffee Bean
title_sort export and competitiveness of indonesian coffee bean in international market strategic implication for the development of organic coffee bean
url http://www.ccrjournal.com/index.php/ccrj/article/view/88
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AT adangagustian exportandcompetitivenessofindonesiancoffeebeanininternationalmarketstrategicimplicationforthedevelopmentoforganiccoffeebean
AT adesupriatna exportandcompetitivenessofindonesiancoffeebeanininternationalmarketstrategicimplicationforthedevelopmentoforganiccoffeebean