Analysis of Indonesia coffee exports competitiveness in the United States and Japan to promote sustainable market

Abstract

Coffee is one of the main export commodity in Indonesia which has contributed to the foreign exchange. Indonesia is the fourth largest coffee producer in the world after Brazil, Vietnam and Colombia. The aim of this research was to analyze the level of competitiveness of Indonesian coffee exports to the United States and Japan markets. Data sources were obtained from the Indonesian Central Statistics Agency (BPS), UN Comtrade and Trade MAP. The data used is secondary time series data over a period of 5 years (2018-2022). The research method used Revealed Comparative Advantage (RCA) to calculate the level of competitiveness of Indonesian coffee exports to the United States and Japan markets. The research results showed that Indonesian coffee has a stronger competitiveness in the United States market compared to the Japanese market. However, when compared with Colombia, Brazil and Guantemala, the value of Indonesian RCA in the United States and Japanese markets is still far behind. Therefore, it is necessary to increase the production for sustainable coffee exports in the United States and Japan markets.