Analysis of Trade Specialization: Indonesian Tobacco on International Market

Abstract

Tobacco is Indonesian export commodities that seeded and expected to developed in order to have a market share in international market. Market share analysis is used to determine the Indonesian tobacco market share in international markets, or how many percentage of market domination, while the analysis of trade spezialiton index is used to determine whether Indonesia should be the state tobacco exporter or importer of tobacco. If the ISP value ≥ 0.5, then Indonesia tend to be exporters of tobacco. Meanwhile, when the value obtained ISP <0.5 to close to 0, then Indonesia tend to be importers of tobacco. Based on the analysis of market share, Indonesia has a market share better than the French and Thailand. The average of Indonesian market in the period 2000-2014 was 2.30%, while France is 1.61% and Thailand is 1.45%. Then based on the analysis ISP, Indonesia is capable of being tobacco exporting countries due to the value of more than 0.5 ISP. Based on the analysis, we can conclude that Indonesia's market share is better than France and Thailand, furthermore in the future Indonesia will continue to be tobacco exporting countries in the world.