Abstract
Coffee plantations in Indonesia are one of the main commodities from the agricultural sub-sector which are the most in demand after wood and rubber. Coffee commodity is considered attractive apart from its high demand, for many developing countries this commodity is also an influential source of income for non-oil and gas countries. In addition, coffee plantations also create jobs and a source of income for coffee farming communities (AEKI, 2013). On a global scale, Indonesia is ranked the fourth largest in the world after Brazil, Vietnam and Colombia. Therefore, Indonesia has the largest coffee export market that is in demand by the United States (USA), which reached a total export from 2000 to 2018 of 1,159,877 tons or reached a share of 15.43% with a total export value of USD 3.42 billion. And followed by Japan with a market share reaching 12.65% which is equivalent to 951,022 tons or reaching a total export value of USD 1.75 billion. This study examines the factors of Indonesian coffee demand for the two main export destination countries which are explained through the object of the research variable. The object of research that will be tested is the demand for Indonesian coffee in the United States market (Y1), demand for Indonesian coffee in the Japanese market (Y2), United States GDP (X1), Japan's GDP (X2), the exchange rate of the rupiah against the United States dollar (X3 ), Rupiah exchange rate against Yen ( X4 ), Domestic Arabica coffee price ( X5 ), Domestic Robusta coffee price ( X6 ), Colombian coffee price ( X7 ). Testing and data processing approced out through the ECM approach with time series data from the period 2000-2018.
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