International Trade Dynamics and Comparative Advantage of Indonesian Specialty Coffee Using Revealed Comparative Advantage and Constant Market Share Frameworks

Abstract

Indonesian specialty coffee has gained increasing international recognition because of its distinctive flavor profiles, geographical diversity, and growing demand in premium coffee markets. Despite these advantages, the competitiveness of Indonesian coffee exports continues to face challenges arising from intense competition among major coffee-exporting countries, fluctuating global demand, and changing international trade patterns. This study aims to synthesize existing evidence on the international trade dynamics and comparative advantage of Indonesian specialty coffee based on studies employing the Revealed Comparative Advantage (RCA) and Constant Market Share (CMS) frameworks. A qualitative systematic literature review was conducted by synthesizing twenty-five peer-reviewed studies published between 2015 and 2026 concerning coffee trade competitiveness, export performance, comparative advantage, and international market dynamics. The findings indicate that Indonesian specialty coffee possesses a comparative advantage in global markets; however, export competitiveness is influenced by product quality consistency, productivity, certification, value-added processing, market diversification, and international demand shifts. Furthermore, CMS analysis suggests that changes in market composition and competitiveness significantly affect Indonesia's export performance relative to competing producers such as Brazil, Vietnam, Colombia, and Ethiopia. Strengthening sustainable production systems, improving post-harvest quality, expanding specialty coffee certification, and diversifying export destinations are essential strategies for enhancing Indonesia's long-term competitiveness in the global specialty coffee market.