From Beans to Latte : Mapping Indonesia Position in Global Coffee Chain

Rafiazka Millanida H., Mohtar Masoed

2015 | Tesis | Ilmu Hubungan Internasional

ABSTRACT Indonesia is currently the third largest producer of coffee in the world. Indonesia produced 11,667 thousand bags or 700,020 metric ton of coffee in 2013. Of this total, 10,882 thousand bags or 652,920 metric ton were exported and 785 thousand bags or 47,100 metric ton were consumed domestically. With the embodied statistical record, it is a big deal for Indonesia as a developing country, to assess what the coffee study has to say about the role of commodity trade in development and provides several policy options to address the emerging imbalances in the global coffee chain due to limited upgrading and added-value measurement. This research aims to analyze the position of Indonesia in global coffee chain configuration using value chain approach. It is found that coffee as global commodity portrays unique interconnectedness of political economy among countries making it worthy to explore in academic analysis. Global coffee chain is dynamic landscape of political side on how government involves in formulating strategy to gain from coffee trading mechanism since coffee and its derived products are in the main export baskets of many countries as well as Indonesia. Moreover, global commodity chain constitutes economic side on how market as represented by firms in coffee industry enters the competition by offering functional upgrading to catch up the demand. This research argues that the changing patterns of global commodity trade evolve through three respective channels namely paradigm shift, behavior shift, and power shift. In addition, Indonesia is the third biggest coffee bean producer world wide with limited downstream activities. Afterwards, Indonesia should focus on functional upgrading to its coffee products through product innovation and segmentation in order to increase value added. Keywords: coffee, value chain, value added, political economy

Kata Kunci : Politik Ekonomi