Page 197 - Contributed Paper Session (CPS) - Volume 7

CPS2058 Dewati W. et al.
exports increased two times within 10 years (2005 which only reached 690
thousand tons has increased to 1.2 million tons in 2015). In 2017, the share of
coffee exports reached 1.09% out of Indonesia's exports. However, the
development of Indonesian coffee exports is relatively limited compared to
Vietnam and Brazil. The development of coffee exports in Indonesia is
supported by the increase in coffee extract and essence exports since 2011,
while Vietnam and Brazil are still focusing on exports for non-roasted coffee.
ii. Market Share Analysis
The market share for roasted coffee commodity reached 6%, while market
shares for coffee extract and essence as well as non-roasted coffee are 5% and
0.08%, respectively. The development of Indonesian coffee extract and
essence has increased since 2010 with the Philippines as the main export
destination. The three largest coffee producing countries (Brazil, Vietnam, and
Indonesia) dominate the market for the non-roasted coffee market, while the
market distribution for roasted coffee is still low. Non-roasted coffee
production is dominated by countries in Europe such as Italy, Germany,
Switzerland. This happens due to some factors: 1) certain preferences for the
mentioned countries, and 2) shorter durability of roasted coffee compared to
non-roasted ones. Meanwhile, coffee extract and essence production are from
more varied countries such as Germany, Malaysia, the Netherlands, and
Indonesia. Some countries producing coffee are Brazil, Colombia, Vietnam,
and Indonesia. Indonesia exports coffee to some countries as the United
States, Germany, and Japan. Meanwhile, exports from Brazil are aimed at more
varied destinations, especially for countries in Europe. In 2015, Indonesia’s
coffee exports concentrated more in the United States (non-roasted coffee)
and the Philippines (coffee extract and essence).
iii. Survival Analysis/Firm Participation
Based on survival analysis, the addition of new export destination countries
from Indonesia and Vietnam tends to be bigger in number than Brazil. In 2016,
the destination countries for coffee exports from Indonesia and Vietnam
increased 10 and 11 countries respectively, higher than Brazil with only 7
countries. Some of Brazil's export destination countries that have not been
accessed by Indonesia and Vietnam are countries in Africa and South America.
iv. Quality Sophistication
In terms of quality, Indonesia's coffee export products are similar to Brazil
and Vietnam and are dominated by Arabica. The selling price of Indonesian
coffee lies between Vietnam and Brazil. Coffee commodities sold by Brazil are
dominated by Arabica which has a higher selling price, while Vietnam’s coffee
is dominated by Robusta which has a lower selling price.
b. Competitiveness Diagnostic
Based on AHP results, priorities that need to be improved to increase
coffee exports competitiveness are Market Access and Production. Meanwhile,

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