INDONESIAN GOVERNMENT STRATEGIES TO INCREASE THE NATIONAL EXPORT: THE CASE OF DECLINING EXPORTS OF INDONESIAN COFFEE TO JAPAN (2011-2014)

Abstract

Indonesia has a lot of natural resources. One of the most superior commodities in Indonesia is coffee. Coffee is one of the leading export commodities that have an important role in the economic development of Indonesia. Thus, it is necessary attention to coffee to be developed in order to increase coffee exports to the world. Japan is Indonesia's largest coffee importer country in Asia. The problem in Indonesian coffee is low coffee quality which is 96% coffee plantation in the hands of the people so it is difficult to generalize the coffee standard. And also the problem of the decline of Indonesian coffee exports to Japan due to the Japanese regulation of 0.01 ppm Carbaryl residue limit is considered too high compared to the existing provisions in the United States and Europe. So this study explains the Indonesian government strategies to increase national exports, in this case the decline of Indonesian coffee exports to Japan in 2011-2014. This research uses International Trade theory and also Complex interdependence concept of Robert Keohane and Joseph Nye to explain the relations between Indonesia and Japan. And the theory of national competitiveness advantage Michael Porter to analyze the Strategies that have been made and also opportunities and obstacles to coffee exports to Japan.