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

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.


Introduction
Communities that are part of micro, small and medium enterprises are economic players that need to be taken into account.Its growth needs to get support and a place in driving a strong economy.Strengthening micro, small and medium enterprises is considered very strategic in development and economic growth.
Strengthening the economy has a strategic role in fighting poverty and unemployment.Strengthening the creative economy sector can also be a motivation to further develop this sector which will become a leading sector in the future.Community products often experience obstacles in the marketing process due to a lack of knowledge and information related to finding existing market opportunities and potential.Therefore, it is important to get good support in terms of increasing knowledge about markets, networks and market sustainability.
Coffee is one of the leading commodities in the plantation sector which contributes to the country's foreign exchange.[1] The coffee commodity is also the third plantation subsector that contributes to the country's foreign exchange besides gas and oil.Apart from domestic consumption, most coffee plants are exported to various parts of the world.
Nowadays, Indonesia become number four of the coffee exporting and producing country in the world after Brazil, Vietnam and Colombia [2].In 2022, the area of coffee plantations in Indonesia reached 1.29 million hectares, with total production of 794.8 thousand tons per year.The development of Indonesia's coffee area from 1984 -2022 according to its business status is dominated by public plantations of 95.77% which are spread across South Sumatra, Lampung, North Sumatra, Aceh and Bengkulu, and the rest is cultivated by large state plantations amounting to 2.07% and large private plantations amounting to 2.16% [3].
Judging from the area of coffee plantations, it can be concluded that national coffee producers consist of small farmers spread throughout the coffee production centers in the country.Businesses in the agricultural sector are still closely related to risk.Decision-making for small farmers will be influenced by farmers' preferences of risk.This will influence farmer decision-making and the sustainability of coffee farming [4,5,6].
According to 2020 International Coffee Organization data [2], there are ten countries that are the largest coffee producers and exporters in the world as shown in Figure 1.

Figure 1. World Coffee Producing and Exporting Countries in 2020
Figure 1 explains Based on data from the Central Statistics Agency for 2021 [7].Over the last 5 years, Indonesia has exported coffee to 5 countries including the United States, Japan, Italy, Malaysia and Egypt.Currently the United States and Japan are the largest coffee export destinations in Indonesia.
Based on Table 1 It can be seen that Indonesia has fluctuating coffee export volumes every year.From the results of Indonesia's trade with the United States in 2012 there was a significant increase but in the following year it decreased, reaching 57,694 tons/year.Meanwhile, the second volume of coffee exports came from Indonesia's coffee trade with Japan, reaching 27,297 tons, then in third place was Malaysia, reaching 29,059 tons, and the fourth and fifth positions were occupied by Italy and Egypt, reaching 24,590 tons and 48,521 tons/year.The aim of this research is to analyze the level of

Methods
The data used is time series data obtained from the Central Statistics Agency, United Nation of Commodity Trade (UNCOMTRADE) and Trade Map.The data used is the value of coffee exports and the total value of coffee exports.The data used is secondary data from 2018 to 2022.The method used uses Revealed Comparative Advantage (RCA), with the following equation [8].
Where: Xij = Value of Indonesian coffee exports to the United States and Japan Xj = Total export value of all Indonesian products to the United States and Japan Xiw = Worldwide coffee export value to the United States and Japan Xw = Total export value of all products from countries in the world to the United States and Japan RCA analysis is an analysis that can analyse the competitiveness of commodities from a country in its destination country [8], with the following conditions of : 1.If the RCA value < 1 meaning the country does not have a comparative advantage and is not competitive in a country compared to the average of other countries in the world.2. If the RCA value = 1, it means that the country has the same comparative advantage as the average of other countries in the world.3.If the RCA value > 1 means the product comes from a country have a comparative advantage and have high competitiveness compared to the average of other countries in the world.

Result Competitiveness of Indonesian coffee in the United States market
The export performance of a country producing certain commodities can be demonstrated through its competitiveness value [9,10,11].Indonesia, Brazil, Colombia and Guantemala are the largest coffee exporting countries in the world, where one of the largest coffee export destinations in Indonesia is the United States.Comparison of competitiveness between Indonesia, Brazil, Colombia and Guantemala in the United States market in the period 2018 -2022 is presented in Table 2. Table 2 explains the average value of competitiveness for Indonesia, Brazil, Colombia and Guatemala coffee in 2018 to 2022 period is still superior to Indonesia's at 466.887, while the average value of Indonesia's competitiveness in the 2018 to 2022 period is 23.578.Even though it has succeeded in excelling in the last few years, the competitiveness of Indonesia coffee tends to fluctuate and continue to decline until 2022.In fact, the coffee competitiveness value in 2022 is the lowest coffee competitiveness value for the last 20 years (2003-2022) in the United States, which is equal to 3.279.For a comparison of RCA Indonesia to the United States market, see Figure 2 2 explains that the competitiveness of Indonesian coffee in the United States market fluctuates from year to year.Colombia, Guatemala and Brazil have competitiveness that is superior compared to the competitiveness of Indonesian coffee from 2018 -2022.High or low a country's RCA value for a particular commodity is influenced by the transaction value of the export of a commodity as well as the total exports of all commodities in a particular country.Furthermore, the export value of these commodities tends to be influenced by commodity prices on the international market.In the international market, price has the power to measure the purchasing power of the world's population in consuming a product.The results of this research have similarities with research by Alexander and Nadapdap [12], that Indonesia in the period 2002 to 2017 had comparative competitiveness with an average RCA value of 4.11 and this was the lowest average RCA of the countries being compared, namely Brazil ; Colombia; and Vietnam.The results of this research show that the decline and weakening of the competitiveness of coffee commodities is due to changes in world coffee prices as well as low or falling export values.

Results Competitiveness of Indonesia coffee in the Japanese market
The export performance of the certain commodities countries producing can be shown through their competitiveness values [9,10,11] Table 3 shows that the average value of the competitiveness of Brazil, Colombia and Guatemala coffee in the period of 2018 to 2022 is still superior compared to Indonesia's at 3,389.171, while the average value of Indonesia's competitiveness in the period of 2018 to 2022 is 10,607.Even though it has succeeded in excelling in recent years, the competitiveness of Indonesia coffee tends to fluctuate and will continue to decline until 2022, in fact the coffee competitiveness value in 2022 is the lowest coffee competitiveness value for the last 20 years (2003-2022) in the Japanese market, which is equal to 1.205.For a comparison of RCA Indonesia to Japan, see Figure 3 3 explains that the competitiveness of Indonesian coffee exports in the Japanese market fluctuates from year to year.Colombia, Guatemala and Brazil have competitiveness that is superior to the competitiveness of Indonesian coffee from 2018-2022.The results of this research are similar to Firmansyah's research in 2016 [13] which also showed the same thing, the low value of a country's coffee exports can cause that country's RCA value to be lower than comparison countries.The results of this research are also in line with research by Baso and Anindita in 2018 [14], that Indonesia's RCA value is still lower than its competitor countries (Brazil, Colombia and Vietnam).Countries with a higher RCA value than Indonesia have a higher coffee export value and total export value, and the government is involved in supporting a country to become the largest coffee producer in the world.

Conclusion
Based on the RCA method regarding the competitiveness of Indonesian coffee export commodities to the United States and Japan markets from 2018 to 2022, Indonesian coffee has high competitiveness or above the world average.The results of the analysis show that the RCA value of Indonesian coffee in the destination countries, namely the United States and Japan, shows a result of >1.With the United States average of 23,578 and the Japanese average of 10,607.In addition, there is a positive relationship from the results of the RCA analysis because the results are >1 in the United States and Japan.
coffee exports to the United States and Japan markets, and the benefit of this research is to determine the level of competitiveness of Indonesian coffee exports to the United States and Japan markets and as reference material for readers and other researchers. below.

Figure 2 .
Figure 2. Comparison Chart of Indonesia to the United States RCA below.

Figure 3 .
Figure 3.Comparison Chart of Indonesia to Japan RCA

Tabel 1 .
Volume of Indonesia Coffee Export to Various Destination Country Source: Central Statistics Agency (BPS) 2022

Table 2 .
Comparison of RCA values for Indonesia, Brazil, Colombia and Guatemala coffee in United States Market

Table 3 .
. Indonesia, Brazil, Colombia and Guantemala are four countries which the top 10 world coffee exporters, where one of Indonesia's largest coffee export destination is Japan.Comparison of competitiveness between Indonesia, Brazil, Colombia and Guatemala in the Japanese market in the period 2018 -2022 is presented in Table3.Comparison of RCA values for Indonesia, Brazil, Colombia and Guantemala coffee in Japanese Market