Abstract:
This study analyses the dynamics of Indonesian coffee exports to Germany,
emphasizing the role of the Indonesian government in promoting a Fairtrade system
to enhance market access and competitiveness. Germany the second-biggest coffee
importer globally and the largest inside the European Union represents an essential
market for Indonesian coffee exports. Despite its promise, Indonesia encounters
considerable hurdles, such as intense competition from Brazil and Vietnam,
inadequate acceptance of sustainability certifications, and inefficiencies within the
supply chain.
The research utilizes a qualitative technique, integrating stakeholder
interviews, an analysis of export statistics from 2013 to 2023, and an examination
of governmental tactics. The results indicate that although Indonesia has premium
coffee varieties like Gayo and Toraja, its export performance to Germany is erratic
due to weak infrastructure, limited farmer capacity, and elevated certification
prices. Moreover, Germany's inclination towards environmentally certified coffee
underscores the significance of adherence to international standards such as
Fairtrade.
This study highlights the necessity of incorporating Sustainable
Development Goals (SDGs) and Environmental, Social, and Governance (ESG)
principles into Indonesia's coffee export policies. Initiatives to enhance training,
optimize logistics, and expand the implementation of sustainability certifications
are essential for augmenting Indonesia's market share. Furthermore, cooperation
among the government, corporate sector, and international organizations is crucial
to assist smallholder farmers and improve the overall value chain.
By addressing these difficulties, Indonesia may enhance its standing in
Germany's coffee market, improve the economic welfare of its farmers, and
advocate for sustainable and equitable trading practices. This report emphasizes the
essential importance of a strong Fairtrade system and sustainability-oriented
measures for attaining enduring growth in the global coffee market.
