Agri-food commodity mapping and trade between Indonesia and Australia

Syahrul Ganda Sukmaya,Saptana Saptana,Atika Dyah Perwita,M Senge,M.F Kamarudin,A.A Aziz,Z Rozaki,Triyono Triyono,M.M Tjale

doi:10.1051/e3sconf/202131602017

Abstract

This article investigates the dynamics of comparative advantage and trade performance in agri-food items between Indonesia and Australia. The method used in this study is to measure comparative advantage and export performance from 2000 to 2019 using balassa index (BI), Lafay index (LFI), and trade balance index (TBI). The findings show that Indonesia significantly reported negative TBI in trading both with the world and Australia, using a 'products mapping' methodology focused on trade balance index (TBI), Balassa index (BI), Lafay index (LFI), and other descriptive approaches. According to the results of both BI and LFI, Indonesia has a high rate of unfavorable TBI in total food items, both globally and in Australia, indicating that the nation has depended heavily on food imports for home use. Indonesia's competitive advantage in trade with Australia was 9/31 food items, according to the product mapping. Indonesia has competitive disadvantages and a negative TBI in 9/31 food items traded with Australia. Indonesia urgently needs to increase investment and enforce policies on domestic agriculture and food value chains to improve its exports and competitiveness, especially in products with natural advantages.

Highlights

After about ten years of negotiations, the typical average time for trade negotiations, Indonesia and Australia have reached an agreement on the bilateral economic agreement's effective date of entry into force
The method used in this study is to measure comparative advantage and export performance from 2000 to 2019 using balassa index (BI), Lafay index (LFI), and trade balance index (TBI)
From 2000 to 2019, Appendix 1 shows the results of a comparative competitiveness analysis of Indonesia and the rest of the world and Indonesia and Australia, utilizing BI, LFI, and TBI

Summary

Introduction

After about ten years of negotiations, the typical average time for trade negotiations, Indonesia and Australia have reached an agreement on the bilateral economic agreement's effective date of entry into force This arrangement does not just address trade problems; it considers long-term investment, so it is called a comprehensive economic cooperation agreement. Indonesia and Australia are the Cairns Group, APEC, RCEP, and the East Asia Summit Both countries lack bilateral economic cooperation and need to establish. Benesova et al [8] examine the agricultural sector's performance in Russia Their results show the Russian agri-food product had comparative advantages development countries such as Africa and Asia. This research analyzed the performance of Indonesia's and East Java's agricultural trade patterns to those of six major ASEAN exporting countries.

Methodology

Result and report

Conclusions

Commodity