The Analysis of Competitiveness and Export Demand of Acehnese Coffee in the International Market

Abstract

Coffee is one of commodities that have been widely traded all over the world. Most of the coffee commodity traded in the international market is Arabica coffee, and it is only a small portion of them are Robusta coffee. Aceh region that located in the most western part of Indonesia, produces most types of Arabica, only a small part of Robusta. Nationally, on the other hand, Indonesia produces most kinds of Robusta, only small parts of Arabica. This study aims to: (1) identify the competitiveness of the coffee commodity from Aceh region in the international market, (2) analyse the effects of the competitiveness on the change of export level, and (3) analyse the factors that affect the demand for the exports of coffee in the international market.The reseach employs qualitative method with a secondary data of time series over a span of 22 years from 1990 to 2012. The model used are Revealed Comparative Advantage Model (RCA), Constan Market Share Model(CMS), Adjusment Partial Model/PAM.The results of the analysis of the factors that influence the demand for the exports of Acehnese coffee in the international market, using the model of partial adjustment models (PAM) with a lag of one year exports showed, both in the short and long period of time, all the variables included in the model estimates the demand function of exports significantly affect the demand for exports. Individually, variable lag of exports, world coffee exports, world coffee prices, exchange rates and consumption stock of importing countries are positively and significantly effects the export demand, while the variable of stock of world coffee exports and revenues of importing countries has a negative and not significant effect.Whereas the variable price of the world has a significant negative effect on the demand for commodity exports of Acehnese coffee in the international market.

Keywords: Competitiveness, Change in Exports, Exports Demand, International Market