Analysis of Factors Affecting Coffee Export Demand in Indonesia

Abstract

Coffee is one of the main export plantation commodities that plays an important role in Indonesia's economic growth. Coffee commodities act as a source of income for coffee farmers and a source of foreign exchange for the country. This study aims to descriptively analyze the economic demand for coffee commodity exports in Indonesia and estimate the factors that affect the demand for coffee commodity exports in Indonesia during the co-19 pandemic. In this study, the dependent variable is the demand for Indonesian coffee exports and the independent variables are domestic coffee prices, international coffee prices, Indonesian coffee production, and exchange rates. Coffee production has increased but coffee exports have decreased. This is due to the increasing domestic demand for coffee with the increase in coffee lovers in Indonesia. This study uses estimation and proves how the variables of domestic coffee prices, international coffee prices, Indonesian coffee production, and exchange rates affect Indonesia's coffee export demand. The data used in this study are timeseries data in 2012-2021 and use Eviews 12 software to analyze the data using multiple linear regression. The results of this study indicate that international coffee prices, Indonesian coffee production, and exchange rates have a positive and significant effect on Indonesian coffee export demand and domestic coffee prices have a negative and insignificant effect on Indonesian coffee export demand.