Abstract

Until now, the domestic patchouli essential oil industry in Indonesia is still limited to exporting unprocessed products as finished products. In addition, farmers and cooperatives understanding is still low in implementing a good plantation manufacturing process. One indicator that can be seen is the number of imports of patchouli essential oil derivative products such as semi-finished ingredients from perfume and food flavors by Indonesia in the period of October-December 2008 amounting to US$ 401 million while exports were only US$ 103 million or a deficit of three to four times of exports. The purpose of this research is to analyze the comparative competitiveness, competitive competitiveness, and specialization of Indonesian patchouli essential oil trade in the international market. Countries that are used as comparison for Indonesia (rank 7) based on the average volume of exports are Brazil (rank 1), the United States (rank 2), Mexico (rank 8) and France (rank 9). This study uses the Revealed Comparative Trade Advantage (RCTA) analysis tool to analyze comparative competitiveness, the Export Competitiveness Index (XCI) to analyze competitive competitiveness, and the Trade Specialization Index (ISP) to analyze its trade specialties. The factors that significantly influence the competitiveness and trade specialization are the export and import value of patchouli essential oil and other goods from Indonesia and competing countries, the total export and import value of patchouli essential oil. Based on the results of the RCTA, XCI, and ISP analysis, the values obtained by Indonesia were 2.013, 1.012, and 0.412, respectively. Keywords: patchouli, essential oil, competitiveness, trade specialties

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