BEHAVIOR AND GROWING TREND OF THE INDONESIAN COFFEE EXPORT

Abstract

The fast growing trend of world coffee production in the 1990’s decade created an excess supply situation, which also encouraging more intense of market competition among the exporting countries. The decrease of share and value of the Indonesian coffee export in the world market in the period of 1990 to 2008 showed as indicator of lower competitiveness either in form of coffee beans or processed coffee. The objective of this study consisted of (1) to analyze the progress of Indonesian coffee export, (2) to analyze the export behavior of Indonesian coffee and (3) to identify the export competitiveness of Indonesian coffee products. The analysis methods used in this study were trend analysis, multiple regressions and analysis of Market Share. The result showed as follows: (1) there ware fluctuation of export volume and value growth in the period of 1990 – 2009. Volume and value of Indonesian coffee export have an increasing trend. Nevertheless, the increasing rate of Indonesian coffee export volume is higher than the increasing rate of export value. (2) factors influencing Indonesian coffee export were world coffee price, domestic coffee price and exchange rate, and (3) the position of the Indonesian coffee bean export was at the third rank after Brazil, and Vietnam in German market, while in the USA market it was at the fourth rank.