Competitiveness of Indonesian Cocoa Products in Global Market
This study analyzes the competitiveness of Indonesian cocoa products and their derivatives in the international market, particularly in Germany and the USA. Using the RCA and RSCA approaches, the research assesses the comparative advantage of cocoa paste, cocoa powder, and cocoa butter in these markets from 2006 to 2015. The findings provide insights into the competitiveness of Indonesian cocoa products on a global scale.
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Presentation Transcript
THE COMPETITIVENESS OF INDONESIAN COCOA PRODUCT AND THEIR DERIVATES IN THE INTERNATIONAL MARKET ISTIS BAROH
INTRODUCTION Goverment Cocoa Derivates Export Duty Policy Domestic Cocoa Industry Competitiveness
THIS STUDY AIMS TO (1) ANALYZE THE COMPETITIVENESS OF COCOA PASTE PRODUCTS, COCOA POWDER AND COCOA BUTTER IN GERMANY AND THE USA. (2) TEST THE CALCULATION RESULTS OF THE RCA INDEX AND RSCA OF COCOA PASTE, COCOA POWDER AND COCOA BUTTER IN GERMANY AND THE USA.
RESEARCH METHOD DATA : SECONDARY DATA. THE DATA AND INFORMATION USED ARE TIME SERIES DATA 2006 - 2015 FROM THE UNITED NATIONS COMMODITY TRADE STATISTICS DATABASE, COUPLED WITH DATA AND INFORMATION FROM VARIOUS RELATED SOURCES RESEARCH ANALYSIS: RCA AND RSCA APPROACHES
RCA (REVEALED COMPARATIVE ADVANTAGE) THE RCA (REVEALED COMPARATIVE ADVANTAGE) APPROACH IS USED TO ANALYZE THE COMPETITIVENESS OF INDONESIAN COCOA PRODUCTS (COCOA PASTE, COCOA POWDER, AND COCOA FAT). IF THE CALCULATION OF THE RCA INDEX> 1, INDONESIAN COCOA PRODUCTS ARE COMPETITIVE AND IF THE RCA INDEX <1, INDONESIAN COCOA PRODUCTS ARE NOT COMPETITIVE. MATHEMATICALLY RCA IS FORMULATED: ???/?? ???/?? ??? = XIJ = EXPORT OF INDONESIAN COCOA TO GERMANY OR USA XJ = TOTAL COMMODITY EXPORTS OF INDONESIAN TO GERMANY OR USA XIW = EXPORT OF COMMODITY COCOA IN THE WORLD XW = TOTAL COMMODITY EXPORTS IN THE WORLD
RSCA (REVEALED SYMMETRIC COMPARATIVE ADVANTAGE) RSCA (REVEALED SYMMETRIC COMPARATIVE ADVANTAGE) IS USED TO AVOID UPWARD-BIASED PROBLEMS FROM THE RCA INDEX VALUE. WITH RSCA WE CAN MAKE THE RCA INDEX SYMMETRICAL WITH INTERVAL VALUES BETWEEN -1 AND +1 (PRASAD, 2004). THE RSCA VALUE POSITIVELY INDICATES THAT INDONESIAN COCOA PRODUCTS HAVE A HIGH COMPARATIVE ADVANTAGE IN THE GERMAN OR USA MARKET. CONVERSELY, IF THE RSCA VALUE IS NEGATIVE THEN INDONESIAN COCOA PRODUCTS DO NOT COMPETE IN THE GERMAN OR USA MARKETS BECAUSE THEY DO NOT HAVE COMPARATIVE AND INEFFICIENT ADVANTAGES. HERE'S THE RSCA FORMULA: ???? =(??? 1) (??? + 1)
TABLE 1. INDONESIAN RCA INDEX TO GERMANY (2006-2015) Table 1. Shows data from 2006 - 2015 Indonesian cocoa butter competitiveness on the German market with an average RCA index of 1.92 and RSCA 0.51. Cocoa paste has competitiveness with an average RCA index of 3.45 and RSCA 0.38. The competitiveness of Indonesian cocoa powder in Germany shows the average RCA 1.14 and RSCA index -0.24 which means that for these products Indonesia does competitiveness. products have not yet have
TABLE 2. INDONESIAN RCA AND RSCA INDEX TO USA (2006-2015) Table 2. Shows the competitiveness of cocoa products in the USA in 2006 - 2015. Cocoa fat products (cocoa butter) have an average RSCA index of 0.33 so that Indonesian cocoa fat products have competitiveness in the USA market. The average RSCA index for Indonesian cocoa paste products is -0.8 this shows that Indonesian cocoa paste does not yet have competitiveness in the USA market. Indonesian cocoa powder products have an average RSCA index of 0.83 indicating this product cannot compete in the USA market.
CONCLUSION IN GERMANY, INDONESIAN COCOA PASTE AND BUTTER HAVE COMPETITIVENESS, WHILE COCOA POWDER DOES NOT HAVE COMPETITIVENESS. IN THE USA, INDONESIAN COCOA BUTTER HAS COMPETITIVENESS, WHILE COCOA PASTE AND POWDER DO NOT HAVE COMPETITIVENESS.
