2021•International Journal of Scientific Research in Science Engineering and TechnologyOpen access

Factors Affecting the Volume of Indonesian Coffee Export to The International Market

Ulfa Herdira, Dedi Budiman Hakim

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Abstract

Agriculture is a vital sector in economic activity. In 2019, this sector played a significant role in the Gross Domestic Product of Indonesia. Coffee is one of the most critical agricultural commodities in Indonesia. This commodity is one of the most significant foreign exchange contributors. This study is conducted to identify and analyze the factors that affect the volume of Indonesian coffee export to the leading export destination. They are the US, Germany, Japan, Malaysia, Great Britain, Egypt, Belgium, Algeria, and India. By using the data panel regression method, this research obtained a result that the joint influence between the coffee production, free onboard coffee prices, GDP of importer countries, exchange rate, and financial crisis in 2008, together have a significant effect on the volume of Indonesian coffee export to the international market based on the significant test.

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Agriculture is a vital sector in economic activity. In 2019, this sector played a significant role in the Gross Domestic Product of Indonesia. Coffee is one of the most critical agricultural commodities in Indonesia. This commodity is one of the most significant foreign exchange contributors. This study is conducted to identify and analyze the factors that affect the volume of Indonesian coffee export to the leading export destination. They are the US, Germany, Japan, Malaysia, Great Britain, Egypt, Belgium, Algeria, and India. By using the data panel regression method, this research obtained a result that the joint influence between the coffee production, free onboard coffee prices, GDP of importer countries, exchange rate, and financial crisis in 2008, together have a significant effect on the volume of Indonesian coffee export to the international market based on the significant test.

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Available abstract

Agriculture is a vital sector in economic activity. In 2019, this sector played a significant role in the Gross Domestic Product of Indonesia. Coffee is one of the most critical agricultural commodities in Indonesia. This commodity is one of the most significant foreign exchange contributors. This study is conducted to identify and analyze the factors that affect the volume of Indonesian coffee export to the leading export destination. They are the US, Germany, Japan, Malaysia, Great Britain, Egypt, Belgium, Algeria, and India. By using the data panel regression method, this research obtained a result that the joint influence between the coffee production, free onboard coffee prices, GDP of importer countries, exchange rate, and financial crisis in 2008, together have a significant effect on the volume of Indonesian coffee export to the international market based on the significant test.

Key concepts: Indonesian, Agriculture, Commodity, Agricultural economics, Exchange rate, Business, Panel data, Gross domestic product

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