Analysis and strategy for improving Indonesian coffee competitiveness in the international market
DOI:
https://doi.org/10.26740/bisma.v12n2.p154-167Keywords:
competitiveness, export product dynamics, revealed comparative advantage, strategyAbstract
In order to face a competitive market environment, knowing the position of the product itself and competitors is needed. Coffee is the main tropical commodity traded in the world. Coffee has great potential and is very competitive. The research objective is to determine the competitiveness of Indonesian coffee and processed coffee beans exports in the international market by using Revealed Comparative Advantage (RCA) to analyze the trade that occurs in several other major exporters such as Brazil, Colombia, and Vietnam as competitors of Indonesian coffee and analyze strategies to increase the competitiveness of Indonesian coffee export in the international market. Indonesia has an average RCA value of 3.64 and is the smallest value compared to other world coffee exporting countries. The small RCA value indicates that Indonesia's comparative advantage still needs to be improved. Based on Export Product Dynamics (EPD), it is known that there are three countries, including Indonesia, which has lost opportunities to be able to trade with other countries, especially coffee products. This condition makes Indonesia needs to improve. Production activities and maintain quality. Indonesian coffee products have a variety of types, which, when used, will increase the competitiveness of the Indonesian state.
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Zuhdi, F.,and Suharno. (2015). Analisis Daya Saing Ekspor Kopi Indonesia Dan Vietnam Di Pasar ASEAN 5. Habitat. 26(3), 152-162.http://doi.org/10.21776/ub.habitat.2015.026.3.18
Central Statistics Agency. (2018). Statistik Kopi Indonesia 2018. Retrieved January 5, 2019, from BPS website: https://www.bps.go.id/publication/2019/12/06/b5e163624c20870bb3d6443a/statistik-kopi-indonesia-2018.html
Baroh, I., Hanani, N., Setiawan, B., and Koestiono, J. (2014). Indonesian Coffee Competitiveness in the International Market: Armington Model Application.American Journal of Economics. 4(4),184-194.http://doi.org/10.5923/j.economics.20140404.03
Baso, R.L., and Anindita, R. (2018). Analysis of competitiveness Indonesia's coffee. Jurnal ekonomi pertanian dan agribisnis. 2(1), 1-9.http://doi.org/10.21776/ub.jepa.2018.002.01.1
Destrianto, P. (2013). Penerapan metode inference tree dan forward chaining dalam sistem pakar diagnosis hama dan penyakit kedelai edamame berdasarkan gejala kerusakannya. Jurnal EECCIS. 7(1), 2127.Retrieved from https://jurnaleeccis.ub.ac.id/index.php/eeccis/article/view/197
Estherhuizen, D. (2006). An evaluation of the competitiveness of the South African agribusiness sector. Dissertation. Department of Agricultural Economics, Extension and Rural Development - Faculty of Natural and Agricultural Science - University of Pretoria
Fadah, I., and Handriyono. (2015). The Performance Improvement Model of Group and Partnership based Coffee Processing Enterprises in the Jember Regency. Journal of Social and Development Sciences. 6(1), 7-13.http://doi.org/10.22610 / jsds.v6i1.830.g830
Fadah, I., and Handriyono.(2016). Potential And Problems Of Small And Large Scale Processed Coffee Businesses In Jember Regency. Review of Integrative Business and Economics Research.5(2), 105113.http://repository.unej.ac.id/handle/123456789/89555
Firmansyah, F., Widodo, W., Karsinah, K., & Oktavilia, S. (2017). Export Performance and Competitiveness of Indonesian Food Commodities. JEJAK: Jurnal Ekonomi Dan Kebijakan. 10(2), 289-301. http://dx.doi.org/10.15294/jejak.v10i2.11294
Hidayat, A., and Soetriono. (2010). Daya Saing Ekspor Kopi Robusta Indonesia Di Pasar Internasional. Journal of Social and Agricultural Economics. 4(2), 6282.Retrieved from https://jurnal.unej.ac.id/index.php/JSEP/article/view/390
International Coffee Organization. (2019). Historical data on The Global Coffee Trade. Retrieved January 5, 2019, from ICO website: //www.ico.org/ new_historical.asp
International Trade Center. (2019). Publication based on countries/territories. Retrieved January 5, 2019, from ITC website: http://www.intracen.org/itc/publications/
Jamil, A.S. (2019). Daya Saing Ekspor Kopi Indonesia di Pasar Global. Agriekonomika, 8(1), 26-35. http://doi.org/10.21107/agriekonomika.v8i1.4924
Kurniasanti, S.A., Sumarwan, U., and Kurniawan, B.P.Y. (2014). Analisis dan model strategi peningkatan daya saing produk edamame beku. Jurnal manajemen & agribisnis. 11(3), 154- 163. http://doi.org/10.17358/jma.11.3.154-163
Ministry of Agriculture of Indonesia. (2016). Outlook Kopi. Jakarta: Pusat Data dan Sistem Informasi Pertanian Sekretariat Jenderal - Kementerian Pertanian 2016.
Narulita, S., Winandi, R., and Jahroh, S. (2014). Analisis Dayasaing Dan Strategi Pengembangan Agribisnis Kopi Indonesia. Jurnal Agribisnis Indonesia (Journal of Indonesian Agribusiness). 2(1), 63-74. http://doi.org/10.29244/jai.2014.2.1.63-74
Porter, M.E. (1985). Competitive Advantage. Creating and Sustaining Superior Performance. Free Press, New York.
Porter, M.E. (1990). The Competitive Advantage of Nations, Harvard Business Review, March-April.
Pradipta, A., and Firdaus, M. (2014). Posisi daya saing dan faktor-faktor yang memengaruhi ekspor buah-buahan indonesia. Jurnal manajemen dan agribisnis. 11(2), 129-143.http://doi.org/10.17358/jma.11.2.129-143
Purnamasari, M., Hanani, N.,and Huang, W. (2014). Analisis Daya Saing Ekspor Kopi Indonesia Di Pasar Dunia. AGRISE. 14(1), 58-66.
Rahardjo, B., Rokhani, H., Fahim. M.T. (2019). Coffee Shop Business Model Analysis. Integrated Journal of Business and Economics. 3(2), 140-152. http://doi.org/10.33019/ijbe.v3i2.153
Rosiana, N., Nurmalina, R., Winandi, R., & Rifin, A. (2017). The Level of Comparative Advantages of World Main Coffee Producers. Buletin Ilmiah Litbang Perdagangan, 11(2), 227-246. http://doi.org/10.30908/bilp.v11i2.274
Rosiana, N., Nurmalina, R., Winandi, R., and Rifin, A. (2018). Dynamics of Indonesian Robusta Coffee Competition Among Major Competitor Countries. Journal of Industrialand Beverage Crops. 5(1), 1-10.http://dx.doi.org/10.21082/jtidp.v5n1.2018.p1-10
Sachitra, V., and Chong, S.C. (2016). Firm level competitive advantage in the agricultural sector: a research agenda. British journal of economics, management & trade. 12(3), 1-12.http://doi.org/10.9734/BJEMT/2016/24152
Sari, D.R., and Tety, E. (2017). Export Competitiveness Analysis of Coffee Indonesiain The World Market. Jurnal Ilmiah Ekonomi dan Bisnis. 14(1), 105-114. http://doi.org/10.31849/jieb.v14i1.876
Serin, V., and Civan, A. (2008). Revealed Comparative Advantage and Competitiveness: A Case Study for Turkey toward the EU. Journal of Economic and Social Research. 10(2), 25-41.
Sun, W. and Govind, R. (2017). Product market diversification and market emphasis: Impacts on firm idiosyncratic risk in market turbulence. European Journal of Marketing, Vol. 51 No. 7/8, pp. 1308-1331. http://doi.org/10.1108/EJM-09-2016-0510
The Canada-Indonesia Trade and Private Sector Assistance. (2018).An Analysis of Global Value Chain for Indonesian Coffee Exports. Retrieved April 15, 2020, from http://www.tpsaproject.com/wp-content/uploads/2018-01-30-Report-1211.03c.pdf
Torok, A., Tamas, M., Attila, J. (2018). The Competitiveness of Global Coffee Trade. International Journal of Economics and Financial. 8(5), 1-6.http://doi.org/10.32479/ijefi.6692
United Nations Comtrade Database. (2018). The International Trade Statistics Yearbook. Retrieved January 5, 2019, from ICO website: https://comtrade.un.org/pb/
United States Department of Agriculture. (2016). Global agricultural information report: Indonesia coffee annual report 2016. Jakarta: FAS USDA.
Zuhdi, F.,and Suharno. (2015). Analisis Daya Saing Ekspor Kopi Indonesia Dan Vietnam Di Pasar ASEAN 5. Habitat. 26(3), 152-162.http://doi.org/10.21776/ub.habitat.2015.026.3.18
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Published
2020-04-28
How to Cite
Rahardjo, B., Akbar, B. M. B., Iskandar, Y., & Shalehah, A. (2020). Analysis and strategy for improving Indonesian coffee competitiveness in the international market. BISMA (Bisnis Dan Manajemen), 12(2), 154–167. https://doi.org/10.26740/bisma.v12n2.p154-167
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