Analysis of International Coffee Export Development in Indonesia
- Posted by globaladmin
- On November 15, 2020
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- Coffee Export Development in Indonesia, Coffee Import & Export Inc, International Coffee, International Coffee Farms, International Coffee Importers & Exporters Inc, International Coffee Trading, International Coffee Trading Companies, International Export Coffee, World Coffee Exports
Coffee is one of the plantation plants which means very little about it. The beginning is from the side of creation. This plant supports the economy through the basis for the creation of raw materials and the basis for the absorption of labor. In 2019, the creation of Indonesian coffee reached 8, 8% of the total world creation, or put Indonesia as the third largest coffee producer globally after Brazil and Colombia.
The area of coffee plantations in 2019 was the third largest after oil palm and rubber. In 2020, the area of smallholder coffee plantations was estimated to reach 96.07% of the total coffee growing zone in Indonesia, whereas the creation of smallholder plantations reached 95.78% of the total coffee creation, whereas the creation of public and private plantations each was only 2.55% and 2, 18% 2).
A relatively similar proportion is also estimated to have existed in 2019-2020. This has led to smallholder plantations playing a vital role in the creation of national coffee. In addition, because coffee cultivation zones are scattered in all areas of Indonesia that are not listed as urban areas, the coffee zone has a significant function for rural development.
Sourced from the Decree of the Minister of Agriculture No. 3399 / KPTS / PD. 310/10/2009 determines that coffee along with 14 other commodities are strategic commodities that have become the national superiority so that it is prioritized for facilitation and growth. Second, coffee also has a position on the trade side.
Coffee is an agricultural product that is widely traded and becomes a very meaningful commodity after petroleum. Today, Indonesia is one of the most significant coffee suppliers in the world after Brazil, Vietnam, and Colombia. The proportion of Indonesian coffee products that are exported reaches 67% of the total creation and the rest is for domestic consumption.
Coffee exports are supported by a large supply of proportions. On the other hand, there is an opportunity from the trend of world coffee imports, which grew from the US $ 9.22 trillion in 2019 to the US $ 36 trillion in 2020. Realizing the ability of coffee exports, the Ministry of Trade categorizes coffee as one of 10 products. An export perspective continues to be encouraged by exports in order to continue to support Indonesia’s export performance in totality.
Judging from the performance in totality, Indonesian coffee exports fluctuate both in value and volume. The cumulative development of coffee exports for 20 years (2000- 2020) reached 111%, or US $ 1.47 billion in 2019 (0.88% of Indonesia’s total non-oil and gas exports). In terms of value, coffee exports increased by an average of 5.61% per year during the 2000-2020 period, but in its development sometimes faced changing trends.
Large fluctuations in the export value of coffee are not only due to technical matters and export volume, but also due to the very dependence of Indonesian coffee exports on commodities (coffee beans). The cost of coffee commodities is set internationally and fluctuates greatly so that this matter affects the overall performance of Indonesia’s coffee exports.
Not only is Indonesia’s coffee exports dependent on commodities, the export destination countries are also concentrated. In 2000, exports of Indonesian coffee beans were allocated to 39 export destination countries, with 26 of them being developed industrial countries in the Americas and Europe which accounted for 68% of total bean exports.
Exports to the 10 main destination countries account for 91.19% of Indonesia’s total coffee bean exports. In 2003, exports were destined for 79 countries with the composition of developed countries controlling close to 84% of total seed exports. Exports to the 10 main destination countries account for 76, 76% of Indonesia’s total coffee bean exports.
However, in 2019, the concentration of coffee bean exports to developed countries in the Americas, Europe, and Japan decreased to reach close to 63% with exports to the 10 main destination countries reaching 69.69%. The number of export destination countries has decreased to only 63 countries.
Export dependence on certain commodities and countries has an effect on coffee export fluctuation and coffee export performance. Based on the dependency theory, the permanent dependence of a growing country in developed countries is the cause of the interests of these metropolises as the world’s capitalist center.
One of the points of thought of this theory is that a peripheral country can grow and be able to independently improve its industry if it has little connection with a capitalist country. This is because the emergence of an underdeveloped region is the reason that these areas are export producers of primary raw materials that do not get the proper profit through international trade.
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