IJAIR NAAS Score : 3.99 ,ISSN : 2319-1473

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    Indonesian Coffee Competitiveness in the International Market: Review from the Demand Side

    Istis Baroh; Nuhfil Hanani; Budi Setiawan; Djoko Koestiono
    The purpose of this study is to analyze the competitiveness of Indonesian coffee in domestic market and international market, in terms of the demand for Indonesian coffee. Secondary time series data from 1990 to 2011 are used to analyze the competitiveness of coffee in two different markets. Revealed Comparative Advantage (RCA) approach is employed to analyze the competitiveness in the domestic market, while Armington model is employed to analyze the competitiveness of Indonesian coffee in the international market. Based on the RCA index, Indonesian coffee competitiveness among 10 major commodities in the domestic market was at ranks 6th. While based on the Armington model, Indonesian coffee face different competitors in each export destination countries. This finding implies that Indonesia should establish cooperation with partner countries as well as countries which are neutral in order to compete with coffee from competitors.
    Select Volume / Issue:
    Year:
    2014
    Type of Publication:
    Article
    Keywords:
    Competitiveness; Revealed Comparative Advantage RCA; Armington Models
    Journal:
    IJAIR
    Volume:
    3
    Number:
    2
    Pages:
    605-609
    Month:
    September
    Hits: 9742

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