Page 196 - Contributed Paper Session (CPS) - Volume 7

CPS2058 Dewati W. et al.
determine the strategy to increase export competitiveness. One way to do that
is by diagnosing the obstacles of increasing competitiveness spatially as it is
important to identify the problems of major commodity exports. It will help
the process in policy making to increase export competitiveness.

2. The Research Objectives
The discussion to increase export competitiveness is still limited to certain
commodities only. According to Farole and Winkler, 2012, export
competitiveness in Indonesia's manufactures only addresses manufacturing
industries located in Java (apparel, wood furniture, and automotive
components). Some other commodities that require further discussion include
coffee which is one of Indonesia's main commodities. Accordingly, the
research objectives are formulated as follows: 1) to identify competitiveness
and critical points of coffee export, and 2) to make recommendations to
improve coffee export performance.

3. Methodology
The research used secondary and primary data and made a reference to
framework and toolkit in Trade Competitiveness Diagnostic (TCD) (World
Bank, 2011). The TCD framework consists of Trade Outcome Analysis (TOA)
uses secondary data analysis, Competitiveness Diagnostic uses primary data
analysis. TCD provides a framework for analyzing determinants of trade
competitiveness across three broad are as:1).Market access focuses on the
external trade policy environment that may facilitate or constrain exporters
from entering and maintaining competitiveness in markets. 2.Supplyside
factors covers a broad range of determinants including governance and
macrofiscal, trade, and domestic policies that establish the incentive
framework faced by the private sector; as well as the factor inputs that
determine competitiveness at the factory or farm gate.3.Trade promotion
infrastructure covers the range of interventions by government to address
market failures. The tools used in TCD are Analytical Hierarcy Process (AHP)
and focus disscusion group of coffee experts, corporations, farmers,
association, owner of coffee cafe, traders, exporters and official from regional
government. The respondent of AHP questionaire consist of 57 coffee experts
in Province of Lampung, Province of North Sumatera, Province of West
Sumatera and Province of Aceh.

4. Result
a. The Analysis of Coffee Trade Outcome
i. Export Growth
The development of Indonesian coffee exports has increased especially
after 2005 which is in line with the price increase. In terms of volume, coffee

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