This study aims to measure and analyze the competitiveness of Indonesian tea industry in the world based on the performance of international trade. There are four steps taken continuously to achieve the objective. First, measuring the competitiveness of Indonesian tea industry with Relative Trade Advantage (RTA). Second, identifying the major factors impacting on competitive performance by conducting surveys to tea industry stakeholders. Third, analyzing the determinants of competitiveness of the tea industry through Porter's Diamond Model. Fourth, describing changes over time the determinant factors. Competitiveness level of Indonesian tea industry is the ability of domestic tea industry to survive in the competition in global market. This study compared the performance of Indonesian tea competitiveness in 2010 and 2016 with a number of considerations. Tea competitiveness level in the two years is above level 1 which means that Indonesian tea is more competitive than other domestic commodities. Surveys and in-depth interviews conducted on 12 respondents from state-owned enterprises, private sectors, government, associations, and research institutes showed that 10% plantation VAT and EU regulation which restricted tea with 0,02% anthraquinon inhibited the competitiveness performance of tea industry. Meanwhile, factors supported the competitiveness of tea industry are agrotourism and ready-to-drink tea companies growth.