Analysis the Competitive Advantage of Arabica Gayo Coffee Organic in Indonesia

Abstract

Coffee is one of the strategic and important commodities in Indonesia. In Aceh Province, coffee is one of the local superior commodities. Coffee production is a driving force in the economy of Aceh, particularly in the Gayo highlands. With no large private or state-owned plantations, this $150 million export industry is built on a foundation of smallholder farmers managing small plots that average less than 1.5 hectares with few inputs. With high international demand for the high body, the coffee receives high export prices and an efficient value chain with high levels of competition for coffee at various points along the process delivers a large proportion of that to the farmers. This study takes an in-depth look at the Arabica Gayo coffee organic sector, particularly focused on the current state of the coffee value chain and its implications for the competitive advantage of Arabica Gayo coffee organic which is originated from Indonesia.