2019
DOI: 10.17358/jma.16.1.30
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The Interdependence of Indonesia Coffee Futures and Spot Market and Its Relationship with Offshore Futures Market

Abstract: In the Indonesia coffee premature market, it is important to confirm whether the futures market has interdependence with the spot market. Moreover, as the world largest coffee producers after Brazil, Vietnam and Colombia, it is also important to examine the interdependence between Indonesia's markets with the offshore futures market whose prices are used uses for local price determination. This study examined the granger causality relationship between Indonesia futures and spot market, and granger relationship… Show more

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Cited by 2 publications
(2 citation statements)
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“…South Sumatra, Lampung, North Sumatra, Nanggroe Aceh Darussalam, East Java, Bengkulu, South Sulawesi, East Nusa Tenggara, Central Java, and West Java are the ten largest coffee-producing provinces in Indonesia, according to data from the Ministry of Agriculture (Kementan, 2019). This situation shows that Indonesian coffee production influences aggregate coffee production (Wulandari et al, 2019).…”
Section: Introductionmentioning
confidence: 88%
“…South Sumatra, Lampung, North Sumatra, Nanggroe Aceh Darussalam, East Java, Bengkulu, South Sulawesi, East Nusa Tenggara, Central Java, and West Java are the ten largest coffee-producing provinces in Indonesia, according to data from the Ministry of Agriculture (Kementan, 2019). This situation shows that Indonesian coffee production influences aggregate coffee production (Wulandari et al, 2019).…”
Section: Introductionmentioning
confidence: 88%
“…A long-term relationship between futures and spot prices indicates that the market is efficient (Wulandari et al, 2019). Otherwise, the absence of a long-term relationship indicates that future prices provide inadequate information.…”
Section: Methodsmentioning
confidence: 99%