Competitiveness of Indonesian Crude Coconut Oil Export in Destination Countries

Abstract

This study aims to examine the competitiveness of Indonesian CCO in destination countries and examine what factors influence the competitiveness of Indonesian CCO in destination countries. The analytical methods used in this research were RCA, EPD, and panel data regression analysis. The time period used in this research was 1996 to 2017. The results of the study concluded that Indonesian CCO had competitiveness in the United States, the Netherlands, Malaysia, China, and Singapore. RCA index in each destination country showed that Indonesian CCO had a very strong comparative advantage. The EPD analysis showed that Indonesian CCO was in a rising star position in the Netherlands, Malaysia, China, and Singapore, while in the United States market Indonesian CCO was in a falling star position. The export volume of Indonesian CCO had positive effect, while trade openness of importing countries and export value of Philippines CCO had negative effect on the competitiveness of Indonesian CCO. The government and CCO exporters need to lobby the destination countries to import CCO from Indonesia, and to convince the destination countries, the quality of the CCO needs to be improved, so that Indonesian CCO will become more competitive than others.

Non-Tariff Measures and Competitiveness of Indonesia’s Natural Rubber Export in Destination Countries

“…The high contribution of Indonesia's natural rubber demonstrated significant potential to increase its competitiveness in central destination countries. It is closely related to the penetration and expansion of Indonesia's rubber commodity in these five countries (Cvetković & Petrovic-Randelovic, 2017;Yulhar & Darwanto, 2019). The high volume of Indonesia's natural rubber export depicted its high capacity for producing this commodity.…”

“…Several studies investigated factors affecting to NTMs and the competitiveness of agricultural commodities. Several research which utilized the Ordinary Lease Square (OLS model) in Indonesia revealed that export competitiveness was influenced by productivity, the Indonesia's Natural Rubber Productivity and ….. (Prasada and Dhamira) export price of agricultural commodities, and trade openness (Sa'diyah & Darwanto, 2020;Yanita, Napitupulu, & Rahmah, 2019;Yulhar & Darwanto, 2019). Another study on Indonesia's cocoa commodity analyzed using the ECM model discovered that the export competitiveness was affected by the exchange rate, the world price of cocoa, and the export duty (Hapsari & Yuniasih, 2020).…”

Kinerja Daya Saing Ekspor Crude Coconut Oil Indonesia Dan Pesaing Utama Di Pasar Internasional

“…Di sisi lain Indonesia juga masih memiliki potensi untuk memperluas jangkauan ekspor dari produk CCO ini. Hal ini diperkuat dengan penelitian yang dilakukan oleh Yulhar & Darwanto (2019) yang mana komoditas CCO Indonesia memiliki keunggulan komparatif yang kuat dan memiliki daya saing terhadap negara tujuan antara lain Amerika, Belanda, Malaysia, China, dan Singapura.…”

Distribution of a local variety of national leading commodities

“…Global pricing changes have a significant impact on the Indonesian market [9]. Indonesian coconut has a very significant comparative advantage, especially given the popularity of its raw coconut [10]. Because of its various advantages, including its processed products that have been exported to numerous foreign nations like Japan, China, Taiwan, and South Korea, the food crop commodity known as porang offers economic prospects [11].…”