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CPS2058 Dewati W. et al.
coffee sector chain, and strengthening the role of state owned enterprises as
has been successfully applied in Vietnam. To increase productivity of coffee
plantation through replanting and rejuvenation is considered most effective.
Accordingly, farmers can use existing Special KUR funds. Meanwhile, for cost
efficiency, it is necessary to support road infrastructure improvements in
coffee plantations as well as the application of post-harvest technology
through dome infrastructure such as drying houses. It is necessary to review
the application of 10% VAT for plantation products as well as the macro
incentives that can be given to farmers and coffee entrepreneurs as done by
other coffee producing countries. Moreover, institutional support from the
upstream to downstream parts of the coffee sector is also needed through
strengthening state owned enterprise.

References
1. Bogliacino and Pianta, 2013. The Dynamics of profits and wages :
Technology Offshoring & Demand.
2. UNCTAD, 2008. Export Competitiveness and Development in LDCs.
3. Farole, Thomas & Winkler, Deborah, 2012. Export Competitiveness In
Indonesia's Manufacturing Sector
4. Limao & Venables, 1999. Infrastructure, Geographical,Disadvantage &
Transport Costs.
5. World Bank, 2011. Trade Competitiveness Diagnostic Toolkit
6. Zhang, Kevin Hongling, 2014. What Drives Export Competitiveness? The
Role of FDI

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