Competitiveness and Influence of Indonesia’s Coal Exports on International Trade: Case Study of 5 Destination Countries

Abstract

This study intends to evaluate the competitiveness of Indonesian coal commodities and to quantify the impact of GDP per capita, population, exchange rate, and price ratio on the volume of coal exported from Indonesia to other nations. Exporting countries (India, the Philippines, Japan, Malaysia, and Thailand). Badan Pusat Statistik (BPS), Bank Indonesia, the World Bank, and Trade Map, an analytical tool designed to assess the competitiveness of Indonesian coal exports in target nations, are the sources of the quantitative secondary data used in this study with a time period of 2017-2021. When estimating the variables that affect the value of coal exports in the destination country, panel data regression is used, specifically the RCA (Revealed Comparative Advantage) approach. The results indicate that Thailand had the highest average comparative advantage in terms of competitiveness during the 2017-2021 period. According to the estimation results, the population, exchange rates, and GDP per capita all have an impact on Indonesia's coal export volume, but the price ratio has no bearing. Because this research has not been previously investigated, the author may examine the competitiveness analysis and the variables influencing Indonesia's coal commodity exports to destination countries in 2017-2021.