A COUNTRY REPORT

Written by:
Novita Sriwahyuni
190202634
PIWAR 1C

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Table list of content

Cover……………………………………………………………………………………………………1

Tabe list of content………………………………………………………………………………….......2

Abstract .………………………………………………………………………………………………..2

Profile of Finland……………………………………………………………………………………….3

Transportations in Finland……………………………………………………………………………...3

Demography…………………………………………………………………………………………….4

Economy………………………………………………………………………………………………..5

Finland – Indonesia Relations………………………………………………………………………….5

Balance of Trade Finland – Indonesia………………………………………………………………….6

Potential business? And Why?............................................................................................................... 7

Indonesia as the coffee exporters…………………………………………………………………….8, 9

Import regulations In Finland………………………………………………………………………9, 10

Business Speification………………………………………………………………………………….10

Where to market?...................................................................................................................................11

Conclusion.……………………………………………………………………………………………12

Abstract

In this report I will be talking about A potential business that will make a lot of profit and growing
strong to be developed at one specific country, the country that I choose is not a highly populated
country, it is a small country in Europe with the most populated place is in its capital. It is Finland.
There are a few research that said Finland is the highest coffee consuming country in the world,
therefore it is coffee that I choose as a potential business.

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FINLANDS

Profile
1. Official name : Republic of Finland
2. Capital : Helinski
3. Location : Latitudes 60° and 70° N, and longitudes 20° and 32° E
4. Area : 338.424 km2, 10% water
5. Politic system : Unitary Parliamentary Republic
6. Currency : € (Euro)
7. Language : Finnish (89%), Sweden (5,3%), Sami

Transportation
The transport system of Finland is well-developed. Factors affecting traffic include the sparse
population and long distance between towns and cities, and the cold climate with waterways freezing
and land covered in snow for winter.
Like any other country, Finland has several methods for transportations
1. Road : The main road network comprises over 13,329 kilometres
(8,282 mi) of road.
2. Air Transport : There are 148 airfields, 74 of which have paved runways. 21
airports are served by scheduled passenger flights. By far the largest airport is Helsinki-
Vantaa Airport, and the second largest by passenger volume is Oulu Airport.
3. Railways : The Finnish railway network consists of a total of 5,919 kilometres
(3,678 mi) of railways built with 1,524 mm (5 ft). 3,072 km (1,909 mi) of track is electrified.
4. Water Transport : The Finnish Maritime Administration is responsible for the
maintenance of Finland's waterway network. Finland's waterways includes some 7,600
kilometres (4,700 mi) of coastal fairways and 7,900 kilometres (4,900 mi) of Finland
waterways (on rivers, canals, and lakes).

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Demography

Map of density population in Finland

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Economy

Finland’s economic freedom score is 74.9, making its economy the 20th freest in the 2019 Index. Its
overall score has increased by 0.8 point, with higher scores for fiscal health and government spending
outpacing small declines in judicial effectiveness and monetary freedom. Finland is ranked 11th
among 44 countries in the Europe region, and its overall score is above the regional and world
averages. The rule of law is well maintained, and a strong tradition of minimum tolerance for
corruption continues. Absent extraordinarily high levels of government spending, Finland would
likely rank among the world’s 10 freest economies. Finland maintains one of the world’s strongest
property rights protection regimes and adheres to many international agreements that aim to protect
intellectual property. Contractual agreements are strictly honored. The quality of the judiciary is
generally high. Corruption is not a significant problem in Finland, which was ranked 3rd out of 180
countries surveyed in Transparency International’s 2017 Corruption Perceptions Index.

The combined value of exports and imports is equal to 76.7 percent of GDP. Finland implements a
number of EU-directed nontariff trade barriers including technical and product-specific regulations,
subsidies, and quotas. The average applied tariff rate is 2.0 percent. Finland welcomes foreign
investment. The financial sector, with sound regulations, provides a wide range of services. The top
personal income tax rate is 31.25 percent, and the top corporate tax rate is 20 percent. The overall tax
burden equals 44.1 percent of total domestic income.

The graphic above shows the annual GDP per capita

Finland – Indonesia relations

The relations was officially established in 1954. Finland has an embassy in Jakarta, while Indonesia
has an embassy in Helsinki. Finland and Indonesia has agreed to forge a partnership in energy and
environment sector and also to promote cooperation and development for renewable and clean energy.

The partnership between Finland and Indonesia covers some sectors, including education, technology,
renewable energy, environment, economy and trade. There are numbers of Finnish companies
investing and operating in Indonesia.

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 Potential bussines? And Why?

Despite the fact that Finland is the happiest contry in the world, Based on research people on Finland
is the biggest coffee consumer country in the world, the people of Finland consume about 12 Kg
coffee in a year.
Finns which is what civilians of Finland called, say that coffee is their national drink, even when
coffee itself cannot grow on their country. In the past to show that a household is not poor people of
finland serve their guest a coffee. This could be seen as a potential bussiness. Coffee that imported to
Finland mostly comes from Africa, America and Europe, Brazil was the biggest coffee importer for
Finland taking up to 40% of it.

 The coffee culture in Finland

Finns start the day with a cup of filter coffee and for most people the first thing when they get back
home from work is to brew a cup of afternoon coffee. Also of course you start your workday with a
cup of coffee. Finland is the only country in the world where it is stated in some collective labor
agreement that there should be two 15 minute coffee breaks in a workday. 80% of coffee consumed in
Finland is (really) light roasted. Only in the past 10 years Finns have started to get accustomed to
darker roasts.
 Coffee is a must in any kind of occasions
Coffee is being drank in all sorts of celebrations and ceremonies. It is really odd if coffee isn’t served
at a wedding, a christening, a funeral or a birthday party. There are also many other occasions when it
is customary to have a cup of coffee and of course these occasions have their own names in Finnish
language: "läksiäiskahvit" (farewell coffee), "mitalikahvit" (medal coffee, when a Finn has won a
medal in some sports), "matkakahvi" (travelling coffee). A concept of its own is called "vaalikahvit"
(election coffee) which means that after you have voted in some election (parliamentary, presidential
etc.), you go to a café for a cup of coffee and a bun. The coffee and bun are kind of reward for a good
job, in this case for voting in an election.

 Days are divided by coffee breaks

A Finn’s day is heavily divided and sectioned by coffee breaks. One starts their workday with a cup of
coffee, another cup after lunch, then a coffee break with colleagues in the afternoon and after workday
we switch to free time with a cup of coffee. The elderly people might even have a cup in the evening
to have a good night sleep. Yep, I know that doesn’t make any sense. There are even in Finnish
language such words as "aamukahvi" (morning coffee), "päiväkahvi" (day coffee), "iltakahvi"
(evening coffee) and of course "saunakahvi" (sauna coffee).

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Indonesia as a coffee Exporters
Indonesia is one of the biggest coffee exporter troughout the world, there are so many kinds of
varieties. On 2018, Indonesia’s export of coffee is up to $817 million USD.
The picture below shows the distribution of coffee exported from Indonesia.

The coffee that produced in Indonesia is so divers, and there is even a traditionally produced coffee.
Indonesia has robust and Arabica coffee, Arabica coffee has lower level of caffeine than robust, but
taste more acid, the colour is also less dark. For the people who has taste both of it, most of them
prefer Arabica because it’s unique flavour. The price of Arabica is much more expensive than Robust
because of its high demand.
Indonesia has more than 30 kinds of coffee and here are a few of them that’s famous in foreign
market:

1. Gayo mountain coffee

This coffee grows really well in the plateu
located in Kabupaten Bener Meriah, Aceh
Tengah, and Gayo Lues area. Gayo has this
unique taste and a really good fragrant in them.

2. Toraja coffee
Just like the name, this coffee grows in Toraja,
South Sulawesi. There are two type of coffee
robusta and arabica coffee. The taste is so
special. Its not too strong and has a really soft
aftertaste

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 3. Kintamani coffee
This coffee grows well in Bali, some people
called this an origin coffee. When you sip it, the
first thing you taste is its bitterness and acidic
taste, but the sweet will come after it gets to
your throat. It has the aftertaste of orange and it
is so refreshing.

4. Wamena coffee
Growa in Baliem valley, Jayawijaya
mountain, Wamena. The farmers plant
this with a traditional tool and it is about
15-20 celcius degrees there making it an
ideal place to grow coffee. Its cultivation
doesn’t need any chemical help, it is an
organic coffee that is good for our
healthiness.

5. Java Ijen Raung coffee

This coffee grows in east Ijen crater,
Bondowoso. about 1400m above the see level. it
is lighter than other arabica coffee and has low
level of acid, it also has this unique nutty taste
that almost taste like a cocoa, with this soft
texture when you brewed it.

But in facts the Indonesian market of coffee in Finland is not so big. The amount export of coffee is
less than $800.000. As a big populated country with low rate of coffee consumption, Indonesia
produce big amount of coffee. This should be an enough reason to open a business there.

Import Regulations In Finland

To export coffee to Finland, as a member of European Union (EU) they have several conditions to
comply with.
 Food safety; trace ability, hygiene, and controls.
Food products must be traceable throughout the entire supply chain to guarantee food safety, to
allow appropriate action in cases of unsafe food and to limit risks of contamination. Quality is the
result of many factors in coffee production and processing. Most important are the place of origin
of the product, the specific coffee variety (Robusta or Arabica, and Arabica sub-varieties), the
adequate sowing and agronomic management, the harvest and post-harvesting processes and the
industrialisation of the bean.

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 General requirements on packaging and liability
The regulations for Finland’s import or export are also arranged by the organization. As in Exporting,
the EU’s Union Customs Code (Regulation (EU) No 952/2013 of the European Parliament and of the
Council of 9 October 2013 laying down the Union Customs Code) aims to complete the shift by
Customs to a paperless and fully electronic and interoperable environment. Certain items such as
alcoholic beverages, foodstuffs, pharmaceuticals, firearms and other articles that could pose a
potential threat to health, welfare, or spread animal and plant diseases are subject to restrictions.
These import/export items need to meet special requirements and certifications set by the EU or
Finnish standards. The Tarif Intégré de la Communauté (TARIC) database is available to help
determine if a license is required for a product. It is the responsibility of the importer or the authorized
agent to declare imported goods to Finnish Customs. This can be done through the Single
Administrative Document (SAD). The SAD form is an import declaration form for all EU Member
States. The following documents should be presented for imports into Finland:
• A customs declaration form endorsed by the National Board of Customs in Finland
• A valuation declaration for imports exceeding the value of EUR 5,045.64 ($5752.03 in 2019)
• A copy of the commercial invoice

Business specifications

Rather than opening a coffee shop or a café, it is much more effective to produce ground coffee and
export it. Opening a new branch in foreign country has more strict regulations and procedure.
Especially for a new and growing business, it’s a risky move knowing the distance that so far away.

As I mentioned before Finns drink their coffee before work, while working, coffee breaks and after
work. With that we can conclude that each office has their own coffee brewer. Making one cup of
coffee takes no more than 3 minutes, so much easier than walking across the street to go to the nearest
coffee shop that way we use more energy and effort. That’s why ground coffee is such a great market
to be developed. For your information Almost one of every hundred coffee beans in the world is
imported to Finland. When it comes to java, the Finns are in a league of their own. In Finland,
the average price of a home-brewed cup of coffee is currently 5.75
cents.

There are many big competitors for this fields. Such as Paulig the
bestselling coffee in Finland, Tchibo, Jacobs, Movenpick and Nescafe.
Most of these brands use Arabica coffee because Finns like to drink light
roasted coffee and taste slightly acidic rather than the dark and bitter one.
In Finland there is a long tradition of using coffee as a sales promotion
item in stores, sold at prices below its market cost to stimulate the sales of
more profitable goods. Competition is fierce and coffee price fluctuations
are as a result rarely visible at the checkout.

The fact that the country is a super environment friendly country, the
coffee that was sold mostly use glass or plastic packaging. This could be
another great opportunity for the packaging of the product. We could use a
biodegradable material for the packaging. Like paper or cardboard, that
way we can help to promote the campaign also a great idea to advertise the product.

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 Where to market?

As in the place where we open the business, I want to choose the highly populated city in Finland
which is the capital of the country, Helinski. With a population of 629,512 in 2017, an urban
population of 1,231,595, and a metropolitan population of above 1.4 million, the city is the most
populous municipality in Finland. Helsinki is a clean, modern, cultured, upscale, safe, sophisticated,
educated, technologically advanced, and is equipped with the level of public transportation (trains,
trams, subways, buses and water taxis) that makes automobile ownership unnecessary. As we know
Finland is among the safest country in the world that is why here is the best place to start a new
market. It’s a good place to start a new business and try to understand their demand, because if we
market it to the whole Finland there’s a possibility that the product doesn’t fit with the market or their
culture.

After it is certified and qualified. We will rent a place there as our warehouse so that we can distribute
our product much easier. The coffee bean then will be exported into our warehouse which located in
Helinski, Finland. Where will we distribute the product?
1. Offices, because in Finland each office provide their employee with a coffee machine usually
in the corner of every floor. So, all of the employee can make their own coffee on literally
anytime.
2. Grocery store, Finns also like to make their homemade coffee at home to serve guest or just to
enjoy it by themselves, and they usually buy ground coffee at a grocery store.
3. Café, There are so many cafés in Helinski. You can find them on every corner of the street.
They serve many kinds of coffee starting from dark to light, bitter to sweet, mocha to latte.
But they don’t grow, roast, and grind it by themselves some of them maybe. But most of them
buy roasted or grounded coffee from the distributor.
4. Hotel, some hotel provides their customer with several type of coffee on their menu. Some of
them also have like a bar where they serve drinks or coffee. And they usually supply the
coffee from the distributor.

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Conclusions
From the data above we can conclude that Coffee is indeed a potential and growing business in
Finland, but because of the far distance and the small market shares of Indonesian coffee there.
Indonesian coffee is not common for Finns.
Despite the small market of Indonesian coffee there, it is not an impossible thing to grow and start to
export Indonesian coffee. There are 5 coffee that is famous and has enter the foreign market, and most
of them are arabica coffee which is the coffee that dominates the Finland market. One of the reasons
why I choose Finland and Coffee is because Indonesia is one of the biggest coffee exporters in the
world, with the wide diversity of coffee and Finland is the highest coffee consuming country in the
world. In Finland, the range of coffee drinker there is almost at all age except baby. And Their coffee
culture is so unique, Almost all of offices in Finland has a coffee machines in every corner of the
room. It is stated in some collective labor agreement that there should be two 15 minutes coffee
breaks in a workday. People of Finland drink their coffee at anytime possible, while they start the day,
during and after their work hours, after they back home, even before they sleep. And coffee is a must
in any occasion, it is available in a party, a reunion, even in the sauna.
Rather than opening a coffee shop it’s more efficient to just export a ground coffee from Indonesia
and open a warehouse in Helinski, I choose Helinski because it is the most populated city in Finland,
a good place to start growing a new business. And then we will distribute it to office, grocery store,
café, and hotel.

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