Journal of Economics and Management
Vol. 4 No. 3 (2026): Journal of Economics and Management, September 2026

From Commodity to Product: A Secondary Data Analysis of Value-Added Gaps in Coconut Agribusiness in Gorontalo, Indonesia and Thailand

Kalzum R Jumiyanti (Department of Development Economics, Universitas Gorontalo, Indonesia)
Barmin R Yusuf (Department of Development Economics, Universitas Gorontalo, Indonesia)
Deffrinica (Department of Management, Shanti Bhuana Institute, Indonesia)
Rais Dera Pua Rawi (Master'
s Program in Management, Muhammadiyah University of Sorong, Indonesia)

Houria Ben Gharbi (Department of Economics, Emir Abd El Kader University, Algeria)



Article Info

Publish Date
01 Sep 2026

Abstract

Indonesia is the world's largest coconut producer, contributing 27.5 percent of global output, yet earns lower coconut export revenues than Thailand, which produces only 1.09 percent. This paradox reflects a structural value-added gap rooted in different agribusiness orientations: Indonesia remains trapped in a copra commodity orientation, while Thailand has developed a high-value processed-product orientation. Methodologically, this study uses a comparative secondary-data analysis within the Global Value Chain (GVC) governance framework to characterize each region's value chain position, combined with the Hayami value-added method to quantify and compare value-added multipliers. The gap is operationalized as the difference in value-added multipliers and average export unit values between Gorontalo, Indonesia, and Thailand, using harmonized official data from FAO, WITS/UN Comtrade, BPS Gorontalo, and Scopus-indexed literature. Three findings emerge. First, Indonesia's average export price (USD 318 per tonne) is less than half of Thailand's (USD 694); the value-added multiplier for copra in Gorontalo ranges from 4 to 10 times, while processed products reach up to 35 times. Second, Gorontalo operates under market-type governance with farmers as price-takers, whereas Thailand has advanced towards modular-relational governance through integrated processing and export clusters. Third, the volatility of the Farmer Terms of Trade for Plantation Smallholders (NTPR), fluctuating between 142.40 and 158.98 within a single year, evidences structural dependence on global commodity price cycles. This study offers the first explicitly comparative, secondary-data value-added gap analysis between an Indonesian coconut region and Thailand, with policy implications for subnational commodity-to-product transformation.

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Journal Info

Abbrev

ecoma

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Journal of Economics and Management (ECOMA) is a peer-reviewed, open access, and online journal about research, reports, book reviews, and commentaries on all aspects of Economics and Management which is published by Lembaga Publikasi Ilmiah Nusantara or PUBLINE Institute. ECOMA provides open access ...