Competitiveness of Indonesia’s Cocoa Beans Export in the World Market

Abstract

Abstract-The objectives of this article is to analyze the competitiveness of Indonesia's cocoa beans export. Two analysis is conducted using revealed comparative advantage (RCA) and Almost Ideal Demand System (AIDS). The result indicates that Indonesia has comparative advantage in producing cocoa beans although the other three producing countries has higher RCA index. Meanwhile, Indonesia and Ghana's cocoa beans are complementary and increase in cocoa beans world demand will benefit Indonesia the most.

Competitiveness of Indonesian Tea in International Market

“…the export ratio of every economy sector towards the total exports in a country, which is relative to the ratio of world exports for each sector related to total world exports. RCA was chosen because it can mitigate the impact of the effects of the government intervention, so that the comparative advantage of a commodity over time can be seen clearly (Ahtar et al 2009;Shoufen et al 2011;Natalia and Nurozy, 2012;Yanti and Widyastutik, 2012;Kathuria, 2013;Kuldilok et al 2013;Ozcelik and Erlat, 2013;Rifin, 2013). According to Batra and Khan (2005) RCA index is formulated as follows:…”

Analisis Permintaan Minyak Kelapa (Coconut Crude Oil) Indonesia di Pasar Internasional

“…Selain itu, model AIDS juga banyak digunakan untuk menganalisis analisis permintaan karena kekonsistenan secara teoritis dan fleksibilitas fungsinya (Chang dan Nguyen, 2002). Pada penelitian ini model AIDS yang digunakan sebagai berikut (Riffin, 2013 Analisis revealed comparative advantage (RCA) telah banyak digunakan sebagai alat untuk menganalisis data perdagangan dan keunggulan komparatif suatu komoditas. Konsep analisis RCA diperkenalkan oleh Balassa (1965) sebagai ukuran kinerja perdagangan relatif masing-masing negara pada komoditas tertentu.…”

Impacts of export tax of cocoa beans on Indonesian economy.

“…However, in small country case, the export tax (levy) causes the domestic price decreases and the world price unchanged. Rifin (2013) claimed that since 1982, Indonesian cocoa bean has gained competitiveness which indicated the value of revealed comparative advantage (RCA) by more than one. In addition, it was he argued the highest value of RCA was in 2006 at approximately 16.96.…”

“…On the other hand, cocoa beans from Ivory Coast, Ghana, and Nigeria had relatively higher RCA values. Rifin (2013) claimed that these higher values in RCA due to the domination of cocoa beans exports in Ivory Coast, Ghana, and Nigeria at around 24.52, 45.89, and 3.74%, respectively. Furthermore, Rifin (2013) argued that cocoa beans were inelastic which implies that price relatively insignificant to determine the level of cocoa's sales.…”

“…Rifin (2013) claimed that these higher values in RCA due to the domination of cocoa beans exports in Ivory Coast, Ghana, and Nigeria at around 24.52, 45.89, and 3.74%, respectively. Furthermore, Rifin (2013) argued that cocoa beans were inelastic which implies that price relatively insignificant to determine the level of cocoa's sales. Moreover, Rifin (2013) claimed that since the cocoa beans were inelastic, the only way to increase the export revenue from cocoa bean was through increasing the export volume and not by decreasing the price.…”