Abstract

The economy of Timor-Leste depends more on the oil and gas sector. Therefore, the non-oil and gas sector has been less of a priority in the political agenda of this country. However, the studies on the economy in Timor-Leste, especially on commodity exports are underdeveloped, based on that, this research will discuss coffee production as a potential commodity and consider it as the largest share of the non-oil economy among other export products in Timor-Leste. The puRp. . ose of this study is to have a deeper comprehension of the business context, and the coffee export barriers and to identify and analyze the factors that might influence coffee exports. This research study used qualitative descriptive and quantitative analysis. The qualitative data was obtained through interviews with three exporters in Timor-Leste, and quantitative data using secondary data was obtained through the panel data analysis that was used for over 14 years (2004-2018) in seven importing countries. The data is analyzed by approaching descriptive and gravity models. Based on the results of the qualitative descriptive research on the context of the coffee business in Timor-Leste, there is a marketing flow that starts from farmers to retailers and will be passed on to the companies or from farmers directly to the companies. One of the constraints that are faced by exporting companies is the document procedure process which usually will take a long bureaucracy. Furthermore, the results of the study by using the gravity model explain that the variables that have a significant effect on the volume of coffee exports in Timor-Leste are the real GDP per capita of the exporting, and importing countries, and the total population of the importing countries.

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