Indonesia Conference Directory

Corresponding Author
Desti Ayu Kristiani

Institutions
Kemendag

Abstract
The Ministry of Trade of the Republic of Indonesia sets a strategy to diversify export markets. Latin America is being indicated as the potential solution to improve Indonesia export performance, along with the economic slowdown in some developed countries after the global recession. This study aims to determine what factors has affected the trade flow of Indonesian manufacturing products to the Latin America region using gravity model, and panel data estimation. Some variables that has been included in the gravity model are conformity trade index, trade cost as an inhibited factor and other traditional gravity variable such as GDP and per capita GDP. The result showed that the conformity trade index does not significantly affect on the trade flow of manufacturing products from Indonesia to the Latin American region, while trade cost have negative and significant impact on trade flows between Indonesia and Latin American region. The coefficient estimation value of the trade cost was 0.0049 means that the trade will reduce by 0.0049% when the trade cost increase by 1%. The effect of the GDP is significantly affect the trade flows between Indonesia and Latin American region. Increase GDP by 1% will increase trade flow between Indonesia and Latin Amerika region by 1.34%. This study recommended that the criterias of priority for selecting countries as export destination is economic size (GDP and GDP per capita).

Keywords
Gravity Model, Indonesia, Latin America, Trade Cost, and Conformity Trade Index.

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/xeTXJL2U38dh

Corresponding Author
Rahayu Widyantini

Institutions
Indonesia Export Training Center
Directorate General National Export Development,
Ministry of Trade
Jl. Letjen S.Parman no 112 Jakarta Barat 11440, Indonesia

Abstract
The Global Value Chain (GVC) has driven by the global economy, the need for goods encourages the creation of distribution channels globally. GVC is a tool for tracking shifts in global production patterns, linking geographically dispersed activities and determining the roles played in both developed and developing countries. Coffee is one of Indonesias leading products by contributing 2.7% of the worlds exports and number four producers in the world in 2018. However, exports declined during the 2014-2018 period by 5% and decreased production capacity by 5.6% from 2017 -2018. The stakeholders involved in the coffee industry also still do not provide maximum results in expanding the overall value produced. With this description, it is necessary to see how Indonesia is in the GVC and explain the obstacles faced by stakeholders in maximizing the coffee value chain. The theory of diamond porters will be used for analysis. The results show that the total value created in the Indonesian coffee chain is truly sourced from within the country, demand conditions are very influential on Indonesias position in the GVC. The governments role in improving the coffee value chain also needs to be maximized, such as giving facilitation of certification and infrastructure improvements.

Keywords
GVC, Coffee, Position

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/Lh9DZTaAWjnX

Corresponding Author
Genoveva Genoveva

Institutions
Business Faculty
President University

Abstract
This research is conducted to analyze the perspective of halal tourism development in Jakarta by using city branding theory from Kavaratzis. By using Kavaratzis theory, variable used were Landscape strategy, City behavior, Organizational structure and Infrastructure. The problem is Jakarta as one of city that is prepared and developed by Indonesia Government as halal tourism destination in Indonesia cannot attract more Muslim tourists to visit Jakarta. By August 2018, most foreign visitors that came to Jakarta is tourists from non-Muslim countries. It means, Jakarta need new city branding strategy in order to be successful in developing halal tourism and also attract more Muslim tourists both local and international. This research was used quantitative research, descriptive method and using multiple regression analysis. A total of 155 respondents were collected from the population using purposive and non-probability sampling. Result of the analysis found that the adjusted R square is 58.3% could be explained by all the variable, whereas the remaining 41.7% of the development of halal tourism is influenced by other variables that was not developed in this research. Furthermore, the result from four independent variables, city behavior, organizational structure and infrastructure have a significant influence towards the development of halal tourism in Jakarta.

Keywords
: Landscape strategy, City behavior, Organizational structure, Infrastructure, Development of Halal Tourism

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/tfXAbBRrn9Qc

Corresponding Author
Amaliyah Asad

Institutions
University of Trilogi

Abstract
Some time later, the world economy experienced changes. The economic growth of the United States is estimated to remain strong. During the monetary crisis in 1998, the current state of the global economy had no effect on Cooperatives and SMEs. The reason is because at that time almost no SMEs borrowed money from foreign parties. However, this does not apply today. The contact of SMEs with foreign exchange is the cause. Besides that, SMEs in Indonesia also have problems with financial access and access to markets, namely the difficulty of adapting to technological advancements. Technological advances have touched on the development of digital with artificial intelligence components that can only be done if SMEs do Digital Transformation. SMEs must pay attention to their determinants of success, namely technological excellence, IT Capability, and IT Allignment with Business. These factors will be more quickly controlled and fulfilled if SME leaders have good vision and a strong understanding of Digital transformation. This research is a causal study with a quantitative approach. Causal research is research that analyzes causal relationships between variables that are independent variables and dependent variables. If the SME leadership is able to support the Digital transformation process that is carried out, then SMEs will be able to carry out business innovations that can grow rapidly. This will make SMEs have the ability to compete and certainly contribute to the nations economy.

Keywords
Technological Excellence, Digital Leadership, Business Innovation

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/mYzXcvJyFEuP

Corresponding Author
Achmad Fadillah

Institutions
a) School of Business (SB), IPB University (Bogor Agricultural University)
Jl. Raya Pajajaran, Bogor 16128, Indonesia
*achmadfadillah[at]apps.ipb.ac.id

Abstract
In the trade and business of agriculture commodities, global partnerships based on standards compiled by international NGOs is needed to achieve social, economic and environmental sustainability. However, the partnership by implementing these sustainability standard has not been fully effective in improving the performance of agricultural sector in Indonesia. In addition, the right business partnership strategy is needed to deal with global uncertainty in trade, industry and business of agricultural commodities. This paper aims to analyze the trade mapping of some important agricultural commodities peformance in Indonesia (Palm Oil, Coffee, Cocoa, and Tea) and the standards applied to these commodities (Rainforest Alliance - RA, Roundtable on Sustainable Palm Oil - RSPO, UTZ, Fairtrade International, 4C, Organic). The analysis demonstrated that in the Global Value Chain, Indonesian Palm Oil has followed the standards from Organic, RA, and RSPO. Indonesian Coffee has followed the standards from 4C, Fairtrade International, Organic, RA and UTZ. Meanwhile, Indonesia Cocoa and Tea have followed standards from Fairtrade International, Organic, RA, and UTZ. The performance rankings of the Indonesian commodity industry and trade in Palm Oil, Coffee, Cacao and Tea in the world were, first (with net trade 99.9), the 8th (with net trade 90.8), the 12th (with net trade 55.9), the 8th (with net trade 58.3), respectively. Based on the data analysis, the maintenance of Palm Oil business partnership scheme with current partner countries should be maintained and followed sustainability standards. Meanwhile, for Coffee, Cocoa, and Tea, it is necessary to increase the business partnership with other countries with potential markets and positive trading trend.

Keywords
Agribusiness; Commodities; Sustainability standards; Trade

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/WkjfM6zGmH2g

Corresponding Author
Asaduddin Abdullah

Institutions
School of Business IPB University, Jl. Raya Pajajaran, Babakan, Bogor Tengah, 16128, Indonesia

Abstract
Producing Fair Trade coffee is benefited farmers and their costumer. Smallholder coffee farmers were having benefit from better price and marketing channel. In the other hand, the customers were having benefit from the guaranteed product and promoting sustainable development. However, many customers unfamiliar with the term and perceived certified fair trade coffee as a luxury product. This paper employed comparative study to evaluate the income and expenditures, wealth and investments. Moreover, the attitudes and perceptions between the farmers also been explored as preparation to enter the global market. The data collected from a balanced sample of Fair-Trade farmers and Non Fair Trade producers of organic and conventional coffee in Indonesia. Propose the study will indicate that the extra cost that farmers spent to fulfil the Fair trader label are really beneficial for them.

Keywords
Fair Trade Label, Indonesian Coffee Farmers, Efficiency

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/xEMB4L7jDWXF

Corresponding Author
Asaduddin Abdullah

Institutions
School of Business IPB University (Bogor Agricultural University), Jl. Raya Pajajaran, Babakan, Bogor Tengah, 16128, Indonesia

Abstract
The price of corn is falling and the global chain feed company were maximizing their profit by a hedging strategy. Even though the corn price was believed to rise by nearly 25% above current levels by the end of this year, its uncertainty was high due to many feed companies was unsure if the price had touched the bottom. Therefore, the hedging strategy will not guarantee positive outcomes. This study used two Indonesia Listed feed company and their performance in hedging strategies. We employed simulation model to analyze the corn price. The results illustrate various corn price impacts on the feed company profit based on their cost-benefit structure. The study shows that the hedging strategy gave a profitable impact if the corn price was ranging between $ 3.50 to $ 3.70. While if the price stable at $ 4.00 in three consecutive weeks then the hedging policy should be considered the new price in combination with a proper inventory policy in order to maintain a higher profit. In the other hand the Indonesian government also has the policy to achieve self-sufficient corn production, but with the corn price is falling the government facing difficulties to fulfil. This concludes that the hedging policy should be evaluated from time to time to ensure its impact on the company in the global value chain.

Keywords
Global trade, Corn Commodity Price, Hedging Strategy, Simulation Scenario

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/udvtG3nXLQfV

Corresponding Author
Aditya Rangga Yogatama

Institutions
a) Center for Strategic Issues Management, the Ministry of Trade
Jl. M.I. Ridwan Rais No. 5, Central Jakarta 10110, Indonesia
* ytc.yoga[at]gmail.com

Abstract
The development of the global value chains (GVCs) in recent years has changed our perspective of international trade. The most important feature of GVC is the fragmentation of global production, where many intermediate goods are produced in different countries and then exported to other countries for further production. This paper aims to identify determinants of Indonesias bilateral trade balance using new measurements based on international input output data, called trade in value-added (TiVA). The use of TiVA can prevent double counting in the estimate of the bilateral trade balance. This estimate is caused by an increase in export production requiring an increase in intermediate imports as a consequence of fragmentation of international production in the GVCs. The method used in this paper is fixed effect data panel, applied to Indonesias trade balance gravity model. The estimation results show that GDP and FDI are the main determinants of Indonesias trade balance in terms of GVCs. The estimation results also show that using measurements based on gross trade balance causes a large overestimation. Finally, the finding suggests that the Indonesian government should develop a trade policy based on TiVA so that the policies will relevant to the development of GVCs.

Keywords
Trade balance; Trade in value-added; global value chains; Indonesia

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/pdvuDBUazgFm

Corresponding Author
Nyayu Lathifah Tirdasari

Institutions
School of Business IPB University (Bogor Agricultural University), Jl. Raya Pajajaran, Bogor Indonesia 16151

Abstract
Despite the potency of digital marketing for a business, its potential to increase family business to be a global player is often neglected. Even though the number of the family business in Indonesia is very large. The purpose of this paper is to add existing literature of family business that aims in two ways: first, to provide an empirical study on digital marketing practice that is implemented by family business, and second, to understand digital marketing roles in family business strategy to be a global player and third, to identify its gap in practices. The papers reviewed and concluded past and extant literature using keywords family business and digital marketing. The results found most family businesses had been using websites only to display information about the business. Many features of digital marketing were not being capitalized. The results highlighted the importance of digital marketing for the family business as one of their business strategies in the global market. This study may provide family business to increase their role as a player in the global value chain. It also contributes to the limited source of literature concerning family business in Indonesia.

Keywords
family business, digital marketing, global trade, business strategies

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/cEH6hj28gmx4

Corresponding Author
Arih Thoyyibatul Izdihar

Institutions
Politeknik Statistika STIS

Abstract
Electronic commerce is an excellent capital to support the Indonesian economy. However, e-commerce can shift the demand for labor through the reduction of conventional or retail employment and increase the demand for labor in the fields of technology, information, communication, and knowledge (ICTD) which has the potential to increase unemployment. However, there has been no empirical research that discussed the impact of e-commerce on the shifting demand for labor in Indonesia. The purpose of this research is to find out the description and the factors that influence the demand for ICTD and conventional labor in Indonesia year 2015 - 2017. The statistical method used is panel data regression. This study proves that shifts in labor demand have occurred in Indonesia. E-commerce has a positive and significant effect on the demand for ICTD labor and negative and significant effect on the demand for conventional labor. Based on this research, the government needs to prepare public access facilities to be able to take advantage of new technology and improve the retail sector in order to compete with e-commerce.

Keywords
Shifting of labor demand, e-commerce, and panel data regression

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/vFwjhTZaYcyU

Corresponding Author
Sri Sarjana

Institutions
a) SMK Negeri 1 Cikarang Barat, Jl. Teuku Umar No. 1 Cikarang Barat, Bekasi, Indonesia.
b) SMA Negeri 1 Cikarang Utara, Jl. KH Dewantara 91, Cikarang Utara, Bekasi, Indonesia.

Abstract
Global competition requires high speed, accuracy, creativity and consistency to win business through strengthening optimal competitiveness. Choosing the right business strategy create effective business achievements to be able to compete in the face of uncertain and turbulence economic conditions. This study empirically investigates important role of human capital, infrastructure, supply chain, and technology on companys business strategy in industrial estate and its impact on strengthening competitiveness of manufacturing industry. The author conducted survey of companies in industrial estate to test hypotheses and apply survey analysis techniques using structural equation modeling. Results of this study concluded that human capital, infrastructure, supply chain, and technology have positive influence on competitive strategies and have positive impact on competitiveness of manufacturing industries, especially those located in industrial estates. In addition, importance of choosing right business strategy greatly determines how much this business has superior competitiveness compared to its business competitors. This research is expected to be used as suggestion and reference for business units and manufacturing industries to be used as one of considerations in the development of companies in industrial estates that are being developed widely, especially outside Java by government to get best competitiveness.

Keywords
Competitiveness; Business strategy; Supply chain; Human capital

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/VuwbzJc3jDAQ

Corresponding Author
Ratnaningsih Hidayati

Institutions
Center for Trade Education and Training
Ministry of Trade Republic of Indonesia

Abstract
The development of information technology (IT) has disrupted the world business. E-commerce significantly increases effectiveness and efficiency in trade. This research analyzed factors affecting e-commerce adoption by the Small Medium Enterprises. A quantitative approach was applied in this study, with a questionnaire as a tool to determine the impact of internal and external factors regarding to the e-commerce adoption to the SMEs performance. A multiple linear regression analysis was used to test the hypothesis. The results showed that the variables of organizational support, technology competence, and external environment, simultaneously affect the performance improvement on e-Commerce adoption by SMEs in Jabodetabek Area.

Keywords
Keywords: organizational support, technology competence, external environment, e-commerce, performance improvement, SMEs.

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/zKfFNwvmup6P

Corresponding Author
Bachtiar H Simamora

Institutions
a) Sekolah Kajian Stratejik dan Global Universitas Indonesia
b) Universitas Pelita Harapan, Banten Indonesia
c)Management Department, BINUS Business School Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia 11480

Abstract
To succeed in the retail banking business, the bank must continue to innovate and apply the latest technologies into their business to meet the various needs of customers. Generation Y (Gen Y) is a very potential market segments, especially with the latest technology that are already phenomenal, so-called e-money or electronic money with a smartphone device. This study was conducted to evaluate the factors that affect on intention to use Sakuku e-money of Gen Y. Based on the Technology Acceptance Model, and previous research journals, we propose a model research with five direct and indirect factors that affect on intention to use Sakuku e-money of generation Y. This research was conducted in Indonesian territory involving 100 respondents aged 16 s / d 35 years, have a smartphone and non Sakuku users. The data collection is done by distributing a questionnaire containing 26 questions with Likert scale of 1 - 5. The data was analyzed using SEM-based PLS. The results showed five factors are significant, and two of them have the most powerful affect to increase intention to use Sakuku e-money of the Y generation in Indonesia. We recommend some strategy on how to increase the number of Sakuku e-money users of the Gen Y in Indonesia.

Keywords
Perceived usefulness, Perceived ease of use, Attitude towards behavior, Intention to use.

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/kj3qb82cNBKv

Corresponding Author
Nyayu Lathifah Tirdasari

Institutions
School of Business IPB University (Bogor Agricultural University), Jl. Raya Pajajaran, Babakan, Bogor Tengah, 16128, Indonesia

Abstract
Family business as the most business practice in the agricultural sector faces a challenge from global business via the Free Trade Agreement (FTA). The purpose of this paper is to provide business strategies that support the competitiveness of the family business in the global value chain. We reviewed related literature on family business and agriculture to describe the challenge and propose strategies that can bridge agricultural family business to become competitive. The study highlighted two challenges, namely labor usage, and capital usage. The amount of labor usage in Indonesia family business was higher than the global business. However, the competitiveness by labor usage was determined by knowledge transfer and farmers cooperation. Thus, the total value of capital usage in Indonesia family business was lower than the global business. The capital usage was driven the competitiveness by social capital reinforcement, capital allocation, and capital availability. In this case, Indonesian family business was found not able to take advantage of capital usage. The study proposed a strategy for the family business was to overcome the threat of labor usage by using its capital usage strength. These findings highlighted the importance of strengthening family business in agriculture sector based on each strength to overcome global trade challenge and take the opportunity from it. This paper may avail governments in drawing up policies for assisting the family business in the agriculture area to get global. It also contributes to the limited source of references literature regarding family business in agriculture in Indonesia.

Keywords
family business, agriculture, business strategy, global trade, global value chain

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/M6aCVr4w7Fyv

Corresponding Author
Khristian Edi Nugroho Soebandrija

Institutions
Industrial Engineering Department, Faculty of Engineering, Bina Nusantara University, Jakarta, Indonesia 11480.
Emails: Knugroho[at]Binus.Edu and Khristian.Edi.Nugroho[at]gmail.com

Abstract
Major portions of global trades occur via global value chains (GVCs) through production and service crosses multi countries borders. Countries, including Indonesia, as global citizens and GVCs participants, play vital role through ambidexterity methodology within exploitation of continuous improvement and exploration of breakthrough in in escalating complexity of GVCs. As part of the methodology, this paper elaborates both theoretical and empirical approaches on global trade, in order to generate formulas, input and considerations to Indonesian Government, in particular to Minister of Trade. Precisely, this paper elaborates the GVCs through its perspectives on Business Strategies, Industrial and System Engineering. The result of this paper prioritizes the provision of mentioned formulas, input and considerations to Indonesian Government; not limited to economic issues and trade policies. Subsequently, those considerations involve the disruptive innovation in digital transformation era in which Indonesia plays vital role as major player in global citizen of Industrial Revolution 4.0 and Making Indonesia 4.0.

Keywords
Global Trade; Global Value Chain; Ambidexterity; Business Strategies; Industrial and System Engineering

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/WTNLceFjPyZm

Corresponding Author
Lailan Tawila Berampu

Institutions
1.Student at the Doctoral Program in Management Sciences,Universitas Sumatera Utara
2.Senior Lecturer at the Faculty of Mathematics and Natural Sciences, Universitas Sumatera Utara
3,4. Senior Lecturer at the Faculty of Economics and Business,Universitas Sumatera Utara

Abstract
The GVC analysis which was previously called global commodity chain analysis was first developed to analyze trends in global manufacturing, and specifically to increase the role of retailers and brands in the name of companies in creating global production, distribution and marketing networks. In this study the authors analyzed the concept of glocalization on the global value chain in North Sumatra. The glocalization variables in this study were built on the basis of the hegemonic landscape in which there are cultural elements given by certain coffee brands and consumer experience of coffee. Conditions in North Sumatra, the global coffee shop is still the flagship coffee shop since the second wave of coffee industry to date. When anti-hegemonic discourse began to emerge in the third wave coffee industry, local coffee shops began to compete with global coffee brands through aesthetic diversity, communal solidarity, social values and adaptation to local coffee beans. The third wave coffee businessmen began to build their businesses by educating consumers to value local coffee shops as non-commercial environments where consumers are expected to be able to enjoy the servicescape of local coffee shops as a social and aesthetic interaction. However, based on the research results, the tendency for glocalization in North Sumatra is still in the form of creative consumption. The inconsistency of glocalization of the global value chain is also caused by global brands still embedded in consumer social networks and becoming integrated into the social world of consumers. The significance of this study is also due to the fact that it is still contradicted whether glocal and global studies are different studies or the same form of study.

Keywords
Glocalization, Global value chain, Coffee business, and third wave coffee

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/KgnpMf64uEbL

Corresponding Author
Naufa Muna

Institutions
*Trade Analysis and Development Agency, Ministry of Trade
Jakarta, Indonesia
naufa[at]yahoo.com

Business Economics Faculty, Prasetya Mulya University
Jakarta, Indonesia
wr_susila[at]yahoo.com

Abstract
Increasing the participation of Indonesian leading sectors or products in the Global Value Chain (GVC) is a strategic approach to improve Indonesia export and to promote economic growth. Following this argument, the objectives of this study are to (i) identify leading products to be increased in the GVC; (ii) identify the strength, weaknesses, opportunity, and challenges, and (iii) formulate policy recommendations to increase their participation in the GVC. The study used combination of domestic value added, product matching and literature reviews. The results of the analysis showed 9 leading sectors have been identified, namely, basic metals (7 products), chemicals and pharmaceuticals (33), electricals (12), food products (29), information and communication technologies (ICT) (20), non-metallic minerals (7), other manufacturing (12), and textiles (54). Positive trend exports of these products is the main strength, while their main weaknesses are high dependency of foreign import of raw materials, low labor skill, difficulty of local firm in finding trade partners abroad. Positive trend of world import demand is an opportunity, while the main challenge is inadequate availability and compatibility of supporting domestic services needed for trade and ICT as well as ensuring cost competitiveness. Therefore, policy recommendations for increasing participation in the GVC are (i) improving the availability and compatibility of domestic infrastructure and services needed for export operations and ICT, (ii) easing the supply chain for intermediate products whether from domestic or import, (iii) capacity building of labors, and (iv) attracting more FDIs.

Keywords
Global Value Chain, Domestic Value Added, Product Matching, Leading Products

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/BQApdDhPLKxu

Corresponding Author
Kumara Jati

Institutions
(a)Indonesian Trade Promotion Center-Chennai-India, Ministry of Trade of Republic of Indonesia.
kumara_jati[at]yahoo.com.

(b)Trade Analysis and Development Agency,
Ministry of Trade, Jakarta, Indonesia,
zizasalam[at]gmail.com.

(c)Trade Analysis and Development Agency,
Ministry of Trade, Jakarta, Indonesia,
dian.laksani[at]yahoo.com

(d)Trade Analysis and Development Agency,
Ministry of Trade, Jakarta, Indonesia,
rep.ci2e[at]gmail.com

(e)Trade Analysis and Development Agency,
Ministry of Trade, Jakarta, Indonesia,
ridho.meyrandoyo[at]gmail.com

(f)Trade Analysis and Development Agency,
Ministry of Trade, Jakarta, Indonesia,
b.sumarjono[at]yahoo.com

Abstract
Indonesia and India are two countries that have direct maritime borders. In 2019, the two countries celebrate 70 years of diplomatic relations. The two governments are also determined to increase the business opportunities, prosperity and improve the economy. The inter-sectoral linkages can provide a better understanding regarding the Global Value Chain (GVC) participation of two countries. The Input-Output Table Analysis found that bilateral trade of two countries was dominated by intermediate input commodities (Indonesia 94% and India 85%). Both countries have to increase the value added of export commodities, to strengthen the Global Value Chain (GVC) participation. The deregulation and debureaucratization of certain regulations is one of the business strategies to increase the bilateral trade of both countries. Indonesia and India bilateral trade analysis show that from 2014-2018 there was a trend of increasing trade by 5.13%, but in 2018 there was a decline in non-oil and gas exports from Indonesia to India, one of which was an increase in palm oil rates. There needs to be a diversification of export products from intermediate input commodity to final products commodity whose trade barriers are relatively low.

Keywords
Indonesia and India, Business Strategies, Global Value Chain (GVC), Input-Output Analysis, Bilateral Trade Analysis

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/LBNz8tvTYfCq

Corresponding Author
Fithriyyah Shalihati

Institutions
School of Business IPB University, Jl. Raya Pajajaran, Babakan, Bogor Tengah, 16128, Indonesia

Abstract
The coffee business is rising globally which is indicated by the growing number of coffee companies, coffee shops, and customers. This rising trend also includes the Indonesian coffee business, but Indonesian coffee bean production could not benefit from this trend. This paper aims to map the Indonesian coffee business positioning in the global value chain. We performed a strategic analysis using the BCG matrix approach by looking at the local coffee business growth rate and market share in Indonesia. The study identified two coffee business types, namely macro-scale business, and micro-scale business. Each group was differed by two categories: business characteristics and its impact on the Indonesia coffee bean production. The result shows that the Indonesian coffee business was still as a follower in the global coffee business trend. Thus, they need a strategic plan to move from a follower to be a global player. The study shows that the BCG matrix was a useful tool to map the Indonesia coffee business positioning and their future strategic plan.

Keywords
Coffee Business, Coffee Bean, BCG Matrix, Global Value Chain

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/gG46UHMchuep

Corresponding Author
Steven Raja Ingot

Institutions
Trade Analysis and Development Agency, Ministry of Trade, Republic of Indonesia
*sri.bako[at]gmail.com

Abstract
The Global Value Change (GVC) has proved to be an important factor that encouraged trade in the last 30 years. About two-thirds of world trade involves intermediate goods that cross the border during production through GVC and shown significant improvement of foreign content of export from 18% to 25% within 1995-2014. Economic cooperation is proven as a way to boost GVC participation within its member in the region, including the Regional Comprehensive Economic Partnership (RCEP) due to regulation uniformity. The study used Trade in Value Added (TiVA) data aims to identify Indonesias GVC participation within RCEP as well as its position in GVC participation. Specifically, this study uses the participation index, the index of the number of production stages and index of the distance of the final product. The study shows that Indonesias GVC participation is higher than neighboring countries such as Malaysia and Thailand however, compared to other East Asian countries Indonesia is still low. Most of Indonesias GVC participation is as a supplier of raw material. Within RCEP, Indonesias participation in GVC is still dominated by Low Technology Industries. To maximize Indonesia GVC participation within RCEP and boost trade, public-private cooperation and predictable trade, as well as investment climate reforms, is required.

Keywords
RCEP; GVC; Trade in Value Added

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/eafWBVcUgZvk

Corresponding Author
Siti Miratul Khasanah

Institutions
Trade Analysis and Development Agency, Ministry of Trade, Republic of Indonesia
*sitimiratulkhasanah[at]gmail.com

Abstract
Global Value Chain (GVC) is a useful tool to track shifting patterns of global production. To boost trade, an economic cooperation is proven helpful as it can increase added value trade within members. This study aims to analyze the position of Indonesia in the GVC in ASEAN-Canada region. The study used backward forward linkage indicators based on TiVA (Trade in Value Added) database. The study shows that within ASEAN, Indonesia has forward participation level equal to 0.3%. This number is equal to the Philippines but lower than Cambodia at about 0.4%. Indonesia is higher than other ASEAN countries average such as Malaysia, Thailand and Singapore at 0.2%. This implies that Indonesia is good in terms as supplier to Canada. Indonesia will be able to supply raw materials to Canada compared its ASEAN peers. This is supported by the facts that Indonesia is country graced with natural as well as human resources. Indonesia should continue to take active role on GVC to provide raw material for global products. In the future, Indonesia should be proactive as production based to be able to increase added value in becoming a forward country. Indeed it will positively impact Indonesias economy in a sustainable manner.

Keywords
ASEAN-Canada FTA; GVC; Added Value

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/8tTNrkUmqavZ

Corresponding Author
Annisa Ramadanti

Institutions
School of Business IPB University
Jl. Raya Pajajaran, Babakan, Bogor 16151

Abstract
Floriculture is a blooming venture globally especially for many developing countries including Indonesia. In Indonesia, the current floriculture trend is driven by the Korean style flower arrangement and online shop. This trend has increased imported flowers; however, there is limited knowledge on the Indonesian flower that demanded locally and globally by this trend. This paper aims to map Indonesian floriculture in the global value chain. The strategic analysis was carried out by Business Model Canvas (BMC) in combination with a business model environment analysis and Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis to describe the whole map and its building block perspective. The study revealed that Indonesia floriculture export faces great competition from Thailand and Vietnam despite the remarkable opportunities in global and local trade. Consequently, Indonesia floriculture needs a strategic plan to increase their flower export and becoming a major global floriculture player. Based on the study, BMC helps in mapping the flower export, thus business model environment analysis and SWOT analysis are helpful in designing its future strategic plan.

Keywords
Business Model Canvas, Floriculture, Flower Export, Global Value Chain, SWOT Analysis

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/KJGkPmQaVdbc

Corresponding Author
Mustofa Kamal

Institutions
Pusdiklatwas BPKP, Jalan Beringin II,Pandansari, Ciawi, Kab Bogor 16720 dan FH Unida Bogor

Abstract
This study aims to examine the development strategy and increase the role of small businesses in the E-market place for the procurement of government goods and services. One of the objectives of the procurement of government goods and services is to increase the participation of Micro, Small and Medium Enterprises. At least there are three government policies related to efforts to encourage the achievement of these objectives in the form of; provide opportunities for Micro, Small Business and Medium Enterprises, use information and communication technology and electronic transactions, and develop three Goods / Services Procurement E-marketplaces in the form of electronic catalogs, online stores, and Electronical tendering. Qualitative research is carried out using the applied law research approach. Secondary data analysis is carried out through a literature study of the mandatory policies and theories related to E-market place for procurement of government goods, small business development, and innovation. The results show that small businesses can use Strength, Weakness, Opportunity and Treath analysis to increase their role in E-marketplace procurement of government goods and services. Two strategies can be carried out by small enterprise, namely; strategies for improvement internal weaknesses in the form of strengthening business legality and innovating through information technology and strategies for cooperation or partnerships with business associations, online stores, medium-sized businesses and large enterprises, government cooperatives and micro, small and medium in the city /regency /province, and government procurement policy institutions.

Keywords
E-market place, small business, and innovation

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/ht4VdMXAvKm7

Corresponding Author
Irwanda Wisnu Wardhana

Institutions
the Indonesia Fiscal Policy Agency

Abstract
Prominent economists have diagnosed a growth trap problem that has hindered Indonesia from optimum economic development. For years, the economic growth rate has stuck at five percent. Furthermore, there is growing concern that Indonesia is experiencing premature deindustrialization. The terminology refers to a situation when the contribution of the manufacturing sector is declining and is lower than the services sector; before a country achieved a high-income status. This study aims to suggest strategic options to deal with the growth trap and the premature deindustrialization by optimizing opportunities offered by the global value chain practices. It will utilize the following tools of the strategy-formulation analytical framework. The Competitive Profile Matrix will compare the competitiveness of Indonesia and its rivals. In addition, the Grand Strategy Matrix to evaluate the competitive position and market growth among relevant countries. Finally, the Quantitative Strategic Planning Matrix (QSPM) will be employed to determine strategies to exploit global value chain opportunities. Suggested strategies from this research will be beneficial for policymakers to lay out policy proposals and actions.

Keywords
global value chain, growth trap, premature deindustrialization, strategy

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/FYbQHDw64azA

Corresponding Author
Miftakhul Jannah

Institutions
a) Politeknik Statistika STIS, Jalan Otto Iskandar Dinata 64 C, Jakarta Timur
b) Politeknik Statistika STIS, Jalan Otto Iskandar Dinata 64 C, Jakarta Timur

Abstract
In Indonesia, the increase in GDP of the Creative Economy from year to year indicates that there is good potential from creative economic sector in increasing the growth of the national economy. Judging from its contribution to National GDP, during the 2010-2016 period, the creative economy contributed an average of 7.45 percent to national GDP. However, until now the development of the creative economic sector has still not been able to reach the targets set by Badan Ekonomi Kreatif. GDP can be measured using three approaches, namely production, income and expenditure approaches. This research will focus on the production value approach. The purpose of this study is to know the general condition of the Indonesian creative industry and analyze the influence of input factors and ICT on the production value of Indonesias creative industry in 2012 -2015 using the panel data regression, FEM with SUR. The results showed that the ICT development index, labor, fuel, imported raw materials, machinery, the number of businesses with capital facilities had a positive and significant effect on the production value of the Indonesian creative industry, while the export value had no significant effect and had a positive relationship. Thus, to accelerate the GDP growth of the Creative Economy, it is necessary to carry out policies related to HR by increasing employment, improving the quality of education in Indonesia, mobilizing creative economic entrepreneurs to innovate and improve their technological capabilities, provide capital facilities to creative industries, and increase the use of machinery to speed up the production process.

Keywords
Creative Industries, ICT, Fixed Effect Model, Production Value

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/TA3HnrVdypWq

Corresponding Author
Tommy Hendrix

Institutions
Research Center for Science Technology Policy and Management Innovation
Indonesian Institute of Sciences

Abstract
Culinary industries nowadays have significant meaning in enhancing capacity product diversification, to endorse economic development. This significant change appears in order to unlock the positioning of the product in the market through a variety of foods industries also R & D results often becomes a solution for fostering the movement of creative industries to appears. Food canning technology has enough potential to be developed as an appropriate production process, increased market share, attractive packaging that consumers preferred and an affordable price. For examples canned gudeg process appears when market demand needs something different in a variety of product, case study we used trademark Bagong with five taste as product industry as traditional foods from Yogyakarta. The purpose of this paper was conducted to find the efficacy strategy for launching product Bagong Canned Gudeg as one of the flagship products of traditional food that has a high taste derived from the recipes ancestral people of Yogyakarta based on the development of utilization of technology R & D results. The method performed with qualitative datas has been analyzed using Test Product Preferences (Organoleptic Test) to know consumers favourite level of Bagong Canned gudeg with 5 product variants on various attributes, market segmentation and In-depth interviews have engaged to the business canned gudeg owner and company management with 74 respondents from Bandung, Bogor and Yogyakarta area. The result indicates that based on the results of the marketing analysis that done, the products developed worthy of being marketed and received positive results from the consumers (respondents). The results of this study as a reference and recommendation product launching Bagong Canned Gudeg in the market with a variety of product and other flagship through variations and provisions with a similar product.

Keywords
Bagong Canned Gudeg, Case Study, Efficacy Strategy, Launching New Product, Traditional Fo

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/Uy2bj7B3Fpvz

Corresponding Author
sri wahyuni -

Institutions
Indonesian Center for Agricultural Socioeconomic and Policy Studies

Abstract
One of The Indonesian government effort to achieve the community food security, is through Toko Tani Indonesia (TTI) or the Indonesian Farmers Shop which is shorthen the supply chain beside stabilize the price and the supply of basic food. To get maximum achievement, indicators of achiefmen have been designed by the Food Security Agency - Ministry of Agriculture. To reach better performance of TTI, research on the implementation of the program were conducted during 2018 in Banten, West and Central Java Provinces with total samples of 43 TTI. The information were collected from secondary and primary data, than Analyzed qualitatively. This paper presented the performance of TTI in providing: 1) Easy Access; 2) Stability of the supply and Price; 3) Efficiency in Supply Chain and 4) Strategy for better TTI performance. The results: 1) TTI only provide 0.073 percent of the nationals rice need. 2) TTI cannot support the stabilization of rice prices, because of the very low contribution and no continues availability, eventhough the rice price in TTI in 2017 Rp9.450 compare to local market Rp10.700. 3) TTI activities had shorthen the supply chain of rice from 7 actors to 4 actors. 4) Strategy to Improve TTI performance includes programs socialization, consumer criteria, provide assistance for the program who monitore the product quantity and quality. The Policy implications: 1) Intensively socialize the program; 2) Define the consumers criteria; 3) Maintaint The continuity of the rice availability and 3) developed TTI in wider areas.

Keywords
TTI, supply chain, rice and Actors

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/cFJxRU46Bj2t

Corresponding Author
Filda Rahmiati

Institutions
a) Faculty of Business, President University
Jalan Ki Hajar Dewantara, Jababeka Cikarang 17550, Indonesia
*filda.rahmiati[at]president.ac.id
b) School of Business & Management, Bandung Institute of Technology
Jalan Ganesha 10, Bandung 40132, Indonesia

Abstract
Purpose- One way to create a competitive advantage by applying tourism value chain to coordinating all tourism players in providing distinct travel experience. However, past studies analyzing tourist experience explaining on tourism value chain activities is still limited. Hence, understanding Tourism Value Chain from a customer perspective is a valuable contribution in creating a value which aimed for competitive advantage. This study purpose at exploring and developing a model of tourism value chain activities for competitive advantage. Design, Methodology and Approach - Examining and matching the existing literature. To provide understandable in nature, and seeks to generate new interpretation in the field of tourism. This study tries to explore the three stages involve in tourism value chain activities experienced by tourist. Findings -This study created value chain activities for creating a competitive advantage model based on tourist perspective the tourism value chain activities start from pre-trip, trip, until post-trip and finally measured the performance along the chain. Future studies are expected in implementing tourism value chain activities model in specific tourism destinations (country) to measure the tourism experience with the aim on creating competitive advantage.

Keywords
Tourism Value Chain; Competitive Advantage; Tourist Experience; Tourist Perspective

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/GUWJNeVmjhYd

Corresponding Author
Dzulfian Syafrian

Institutions
Durham University Business School
Durham - United Kingdom

Abstract
Upgrading local companies is one of the key concerns of host government, especially in developing countries, in the age of Global Value Chains (GVCs). GVCs provide both opportunities and threats for host countries. One side, GVCs are the window of opportunities for local companies to catch up with the global leaders. On the other hand, GVCs could provide only limited impact on host country economic development by only seeking and exploiting the location advantages of host country. This paper aims to elaborate some common upgrading challenges faced by local companies when they engage in GVCs. Four main upgrading challenges are identified, namely: hyper-dependency on a single buyer, financial pressures, inconsistent industrial policy, and global competition. A single case study research is employed to illustrate these situations and how these challenges inhibit a leading and potential local company to grow and upgrade its position in GVCs. Astra International and its automotive subsidiaries (Astra) are chosen as the case study for number of reasons. First, Astra is originally from Indonesia. The company was established by Indonesians and locates most of all their businesses and value chain activities in Indonesia. Secondly, Astra is one of the largest Indonesian companies which has about 200 subsidiaries and employs over 200,000 workers. Thirdly, this study case gives very rich insights for other Indonesian local companies and government how to grow, manage and support businesses in the age of GVCs. Several implications for managerial strategy and policy recommendation are also discussed.

Keywords
Global value chains, Global production networks, upgrading strategy

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/vQYw7qKRTD6H

Corresponding Author
Nurmitra Sari Purba

Institutions
a,b) STIS, Politechnic of Statistic,,East Jakarta, 13330, Indonesia

Abstract
Quantum dots (QDs) are colloidal semiconductor nanocrystals which have unique optical properties due to their three dimensional quantum confinement regime. According to MarketAndMarket report, the QDs market is estimated to grow from USD 2.57 Billion in 2018 to reach USD 8.47 Billion by 2023. The QDs market growth is mainly driven by the factors such as the increasing demand in high-quality display devices, growing implementation in numerous applications due to their miniature property, and rising adoption of energy-efficient and less or non-toxic in solar cells and photovoltaics. Based on data from 54 countries obtained from the World Bank, technology exports (US Dollar) have a positive and strong correlation with innovation variables, namely the number of journals and articles (0.8), resident patents (0.9) and non-resident patents (0.9). This study explores technology clusters through patent analysis. The aim of exploring technology clusters is to grasp competitors levels of sustainable research and development (R&D) and establish a sustainable strategy for entering an industry. 3914 patents are collected through scraping processes. This study uses the Text Statistics Mining method for text titles consisting of two phases: data preparation and data analysis phase. The data preparation phase uses the Text Mining method and the data analysis stage is done with statistics. Statistical analysis in this study used PCA combined with an unsupervised clustering algorithm, K-Means Clustering. The results of this study based on the Gap Statistics maximum value indicate 9 clusters are associated with fifteen terms in it can be used in information retrieval process.

Keywords
gap statistics, k-means++, pca, quantum dots, text mining

Topic
Business Strategies on GVC Participation

Link: https://ifory.id/abstract/RDQchjraNBtb