Internationalization Strategies for Coffee SMEs through Freight Forwarding Services from an Indirect Export Marketing Perspective

Figure Ilustration AI

FORMOSA NEWS - Malang - Indirect Export Strategies Help Coffee SMEs Overcome Logistics Barriers and Enter Global Markets. A new study published in 2026 reveals that utilizing indirect export strategies through freight forwarding services allows local coffee small and medium enterprises (SMEs) to bypass complex regulatory hurdles and successfully penetrate the highly competitive global market. The comprehensive research was conducted by a collaborative team of experts including Evita Novilia, Sudarmiatin, and Heri Pratikto from Universitas Negeri Malang, alongside Gleydis Harwida from Universitas Nahdlatul Ulama Blitar. Published in the Formosa Journal of Sustainable Research, this study highlights how strategic third-party logistics networks act as crucial gateways for regional businesses that lack the internal resources to manage cross-border shipping independently. These insights provide an essential blueprint for accelerating economic growth among agricultural producers facing stringent international trade demands.

Navigating the Fourth Wave of Coffee
The global coffee industry is currently experiencing a major shift known as the "Fourth Wave of Coffee". Modern global consumers no longer prioritize sheer volume; instead, they heavily value premium quality, explicit traceability, and the unique socio-economic narratives behind their favorite brews. While this continuous growth in global consumption creates unprecedented opportunities for coffee-producing nations, it also introduces rigorous global standards regarding sustainability certifications, strict food safety, and carbon emission caps within international logistics networks. Indonesia stands as the world's fourth-largest coffee producer, possessing a distinct comparative advantage due to its diverse array of specialty coffee varieties. Mountainous regions across East Java including Blitar, Kediri, and Jombang successfully cultivate highly favored Liberica, Robusta, and Arabica beans. Yet, despite this immense agricultural potential, the export contribution of local Indonesian SMEs remains notably low. Most regional coffee entrepreneurs face steep barriers, such as limited market information, low managerial capabilities, complex certification protocols, and intimidating bureaucratic export procedures. For these rural coffee farmers, the primary hurdle is rarely the ability to harvest great-tasting coffee, but rather the logistical challenge of moving the product overseas efficiently.

Exploring Logistics Networks Through Real-World Experiences

To analyze how regional businesses navigate these commercial barriers, the research team implemented a qualitative approach focused on an exploratory-descriptive design. This methodology allowed the investigators to deeply explore the actual field experiences, operational processes, and structural interactions of active business actors within the native export chain. The researchers collected primary data through extensive in-depth interviews, direct field observations, and thorough document analysis. They utilized a purposive sampling technique to select highly relevant informants, including coffee SME owners, managers, export community leaders, and regional trade officers. The gathered data was systematically filtered through an interactive reduction model, ensuring the final narratives accurately reflect the real-world operational flow and compliance mechanisms of local distribution systems.

Key Findings: The Multi-Faceted Role of Freight Forwarders
The empirical findings from the study demonstrate that collaborating with external intermediaries is an adaptive mechanism that accelerates market entry while minimizing operational risks:

• Adaptive Strategy Selection: Due to acute resource constraints and a lack of specialized international trade knowledge, regional coffee SMEs systematically choose indirect export channels over direct ones to mitigate heavy compliance costs.
  
• Logistics Providers as Knowledge Gates: Freight forwarders do not merely move cargo; they function as crucial "knowledge intermediaries". They manage complex export documentation, such as Certificates of Origin and Phytosanitary certificates, and educate small businesses on evolving international trade laws.
  
• Substantial Contract Success: By building trustworthy relationships within these business networks, local coffee SMEs secured a commercial contract to export 12 tons of premium fruit-variety raw coffee beans to a neighboring country, yielding a transaction value of approximately 300 million IDR.
  
• Increased Bargaining Power: Utilizing strategic distribution channels has transformed the position of regional farmers. Instead of selling low-value items to predatory domestic middlemen, SMEs have gained the bargaining leverage necessary to sign direct trade contracts with international buyers under their own regional identities.
  

However, the authors note that this heavy reliance on third-party intermediaries possesses inherent strategic drawbacks. It limits the SMEs' direct control over the broader distribution chain, reduces direct interaction with global consumers, and yields lower added value compared to fully independent direct exporting.

Real-World Impact and Strategic Transformations
The practical implications of this study are highly relevant for business managers, educational institutions, and public policymakers. To achieve long-term economic sustainability, indirect export frameworks should be viewed as an evolutionary stepping stone rather than a permanent solution. By participating in these freight-forwarding networks, local businesses can maintain short-term financial stability while gradually accumulating international market knowledge.

Author Profiles
Evita Novilia, B.Econ. Researcher at the Graduate School of Universitas Negeri Malang. Her field of expertise centers on corporate internationalization strategies, indirect export marketing, and small business growth management.
Prof. Dr. Sudarmiatin, M.Si. Senior Professor of Business Economics at Universitas Negeri Malang. Her research focuses extensively on entrepreneurship, human resource strategies, and competitive marketing metrics for local MSMEs.
Prof. Dr. Heri Pratikto, M.Si. Academic Researcher at Universitas Negeri Malang. He specializes in organizational management, business networking dynamics, and supply chain operational efficiencies.
Gleydis Harwida, M.B.A. Lecturer and Business Analyst at Universitas Nahdlatul Ulama Blitar. Her expertise includes regional economic empowerment, commodity value chains, and sustainable development for agricultural enterprises.

Source
Evita Novilia, Sudarmiatin, Heri Pratikto, Gleydis Harwida (2026), Internationalization Strategies for Coffee SMEs through Freight Forwarding Services from an Indirect Export Marketing Perspective, Formosa Journal of Sustainable Research (FJSR), Vol. 5, No. 4 2026, Halaman 247-262
DOI: https://doi.org/10.55927/fjsr.v5i4.26
URL: https://journalfjsr.my.id/index.php/fjsr