Indonesian Coffee in The Global Value Chain: The Comparison of Global Partnership Sustainability Standards Implementation

Abstract

Global partnerships based on sustainability standards compiled by international NGOs are needed to achieve social, economic and environmentally sustainable development, as well as to deal with global uncertainty in trade and business of agricultural commodities, including coffee in Indonesia. This paper aims to compare the implementation of global partnership standards in coffee between Indonesia and other producer countries. The Study focused on sustainable standard-compliant in coffee such as 4C and Organic certification standards. Trade and sustainability map tools were described. The findings demonstrate that there were only 8 percent and 9 percent of the Indonesian coffee area certified by 4C and Organic, respectively. Indonesia placed at number fourth of 4C implementation in the worldwide after Brazil, Colombia, and Viet Nam. Indonesia is also placed at number fourth of Organic implementation in the worldwide after Mexico, Ethiopia, and Peru. To compete in the potential market, Indonesia's commitment to implement sustainable standard-compliant in coffee is needed. Therefore, Indonesia has to increase the coverage of sustainability standards certified area to meet the global market demand. The government also should implement the right policies and programs to enhance the sustainability compliance of national coffee stakeholders. Abstrak: Kemitraan global berdasarkan standar keberlanjutan yang disusun oleh LSM internasional diperlukan untuk mencapai pembangunan sosial, ekonomi dan lingkungan yang berkelanjutan, serta untuk mengatasi ketidakpastian global dalam perdagangan dan bisnis komoditas pertanian, termasuk kopi di Indonesia. Makalah ini bertujuan untuk membandingkan penerapan standar kemitraan global dalam kopi antara Indonesia dan negara-negara produsen lainnya. Fokus penelitian pada standar kepatuhan yang berkelanjutan dalam kopi seperti standar sertifikasi 4C dan Organik. Implementasi digambarkan dengan pendekatan kualitatif dalam rantai nilai global berdasarkan pada perangkat peta perdagangan dan keberlanjutan. Temuan menunjukkan bahwa hanya ada 8 persen dan 9 persen dari area kopi Indonesia yang disertifikasi oleh 4C dan Organik, masing-masing. Indonesia menempati urutan keempat implementasi 4C di seluruh dunia setelah Brasil, Kolombia, dan Vietnam. Indonesia juga berada di urutan keempat implementasi Organik di dunia setelah Meksiko, Ethiopia, dan Peru. Untuk bersaing di pasar potensial, komitmen Indonesia untuk menerapkan standar kepatuhan dalam kopi diperlukan. Oleh karena itu, Indonesia harus meningkatkan cakupan area bersertifikasi standar keberlanjutan untuk memenuhi permintaan pasar global. Pemerintah juga harus menerapkan kebijakan dan program yang tepat untuk meningkatkan kepatuhan keberlanjutan pemangku kepentingan kopi nasional. Kata kunci: kopi, kemitraan perdagangan global, standar keberlanjutan, rantai nilai global

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