For two decades the international coffee agreements since the 1960s, the cooperation between producers and consumers has been influenced by a desire to seek assurance and quality supply of coffee in international markets and the expansion of the source area pasoknya. To safeguard the interests of the consumer is always open to improving cost producing countries in the form of coffee beans. FOB price increase in coffee bean producing countries to be very effective stimulus for the expansion of production.
In that time, the consumer countries is not only willing to raise prices based on the principle that renumerative price, but if necessary also far above the original price helped push the supply and guarantee a better quality. International financial institutions like the IMF and World Bank also actively encourage the growth of supply and quality in producing countries.
Entering the 1980s had seen the signs of change in the balance between demand and supply. The number of production increased rapidly and so is the area of production sources become more varied with the presence of new arrivals. Quality of coffee in general also improved. This brings a new alternative for the consumer countries so that bargaining position in the ICO becomes stronger than the previous position of producer countries.
In these circumstances, consumer countries began loudly voicing the desire to manage the business world coffee can then be carried out based on the principle of market orientation, where prices are determined by supply and demand alone, and do not want any of this intervensi.Hal real meaning is to deny the principle used renumerative previously.
With the entry of the principle of market orientation, market intervention by the ICO in the form of quotas, which led many consumers and member states producing countries do not get a fair space, deleted. This situation quickly led into the form of cooperation is a new coffee agreement without economic clauses.
Now that warrant attention again how Indonesia was not returned to the expiration of quotas ICO sisteim the past, but how should this cooperation be developed within the ICO without directly interfering with the market and how Indonesia should be able to take maximum benefit from the ICO. In its present form, the ICO should be seen as an effective forum of dialogue between consumers and producers about various matters relating to the market as a contract, settlement of trade disputes in general quality standard, and as a forum of technical cooperation coffee culture.
Various cooperation projects currently developed in ICO with the help of UNCTAD / Common Fund until now very little attention by us. Similarly Dialogue Forum between the business community in the ICO is still less developed, but so many problems that require the coffee trade is a close cooperation between producers and consumers as the standard issues, contracts and dispute resolution. Indonesia should be able to apply various projects and problems that need for the development of the national coffee
