Page 202 - Contributed Paper Session (CPS) - Volume 7

CPS2058 Dewati W. et al.
In addition, the loan to small businesses or Kredit Usaha Rakyat (KUR), a
program that can be used as a financing source to increase agricultural
productivity through replanting and rejuvenation. Several financial technology
companies engaged in agricultural sector including plantations such as Igrow,
Tanifund, Crowde, and Eragano.
iv.Improvement of Road Infrastructure and Production Support
Facilities.
The problem in road infrastructure is access from production centers
which is mainly in highland areas. The condition of plantation infrastructure in
Sumatera is still far from perfect, unpaved roads in several regions are one of
the problems and it hampers the production especially during rainy season.
Therefore, the role of government is needed to improve access to production.
The different conditions occur in Brazil and Vietnam with road access to
production centers are relatively better. Meanwhile, in Vietnam, the
government made infrastructure investments in five coffee-producing
provinces with an 80% share of exports (Dak Lak, Dak Nong, Lam Dong, Gia
Lai, Kon Tum) known as the Vietnam Coffee Belt. Meanwhile, to improve the
quality of coffee drying, Dome Infrastructure as a cover for the coffee drying
area is recommended.
v.Trade Promotion Infrastructure
From an institutional standpoint, a comprehensive institution is needed
from upstream to downstream of the coffee sector by strengthening state
owned enterprises as has been applied in Vietnam. Learning from coffee
development in Vietnam, Sumatera may learn the marketing strategy in
domestic and international markets. Also, learn from Vinacafe, a Vietnam
state-owned company, who engaged in upstream to mainstream coffee chains
who do the buying, processing and exporting coffee beans, roasted robusta
as well as importing fertilizers. The strategy is to strengthen the role of state
owned enterprise such as developing a core plasma scheme applied by
smallholders, strengthening the role of PT Perkebunan Nusantara.

5. Discussion and Conclusion
Based on TOA, the addition of new export destination countries from
Indonesia and Vietnam tends to be bigger in number than Brazil. In terms of
quality, Indonesia's coffee export products are similar to Brazil and Vietnam
and are dominated by Arabica. Base on AHP analysis, the main determinants
to develop Sumateran coffee’s competitiveness are 1). Market access, such as
tariff barriers from export destination countries and non-tariff barriers such as
certification standards; and 2). Condition factors to overcome low productivity,
limited infrastructures, and lack of human resource capabilities; 3) the
infrastructure for trade promotion and the macro incentive. We recommend
to establish a comprehensive institution, from upstream to downstream of the

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