Many Indonesian companies are not adequately prepared to compete in a global free trade market because of their low level of competitiveness. In this article, Ibrahim and Zailani examine the supply chain implementation in Indonesia's coffee industry and the specific issues that it faces in competing in a global market. Among them is the excess in supply and production in recent years—an effect of the global economic crisis—that has led to unemployment, retrenchment of workers and a reduction in production activities to save or reduce operational costs and to minimize loss in profits. A further challenge is the low quality of Indonesia's coffee, which results in relatively low prices on the international market. This is primarily caused by the poor and inefficient production process. The authors conclude that for Indonesia to increase efficiency and cost productivity in its coffee supply chains to face the challenges of globalization and the opening up of its own economy to global players, it needs to implement (and maintain) a well-structured global supply chain. This will require, first and foremost, the development of an integrated global supply chain infrastructure.
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Ibrahim W.H. and Zailani S.
International Business Management 4(3), 105-115