Track: Industry Solutions

Abstract

This research aims to describe the factors that have led Brazil to become the world’s largest coffee producer in the world since the 1800s. At least there are factors that the Indonesian coffee industry needs to learn and see Brazil as a benchmark in the coffee industry. First, the government needs to expand the number of large estate plantations across Indonesia in order to significantly increase the coffee production with more effective agricultural strategies. Second, Indonesia needs to increase production of arabica coffee in order to meet larger international demand. Third, related and supporting industry needs to be more attentive and sophisticated in the involvement towards the value chain of coffee. Fourth, research and development is key to improve the strategy for Indonesia’s coffee industry to be more resilience towards challenges. Fifth, the government enact an important role to acknowledge and set regulations that are supportive towards stakeholders of the Indonesian coffee industry, especially for farmers. Sixth, Indonesia needs to expand the coffee plantation acreage to seize larger opportunities. Those factors which are also lacking in the Indonesian coffee sector, makes Brazil seen as benchmark for Indonesia. Comparative analysis is performed by means of competitive advantage with Porter’s Diamond Model theory approach. The result of this analysis serves as industry solutions for the Indonesian coffee industry. Qualitative method is used in analyzing the data by using interviews as primary data and journals, annual reports and books as secondary data.