Abstract

The objective of this research is to analyze competitiveness of Indonesia pulp and paper products, particularly chemical wood pulp, newsprint, printing-writing paper and other paper-paperboard products in international market in the period 2002-2011. The Revealed Comparative Advantage (RCA) and the Trade Specialization Index (TSI) were then calculated to determine comparative and competitive advantages, respectively. In addition, the Constant Market Share (CMS) technique was also used to identify factors that affect competitiveness of those products.  The results show printing-writing paper and chemical wood pulp had an extremely strong comparative advantage (RCA index > 2,50), newsprint a moderate to strong comparative advantage (0,89 < RCA index ≤ 1,70), and other paper-paperboard a weak comparative advantage (0,63 < indeks RCA ≤ 0,92).  Further, TSI indicated newsprint (0,84 ≤ TSI ≤ 0,99) and printing-writing paper (0,84 ≤ TSI ≤ 0,93) were in a maturation stage,  chemical wood pulp in an export expansion stage (0,39 ≤ TSI ≤ 0,58) and other paper-paperboard in an import substitution stage (-0,14 ≤ TSI ≤ 0,16).  In order of importance, world market growth, competitiveness, and product composition were the influential factors that affect Indonesia’s pulp and paper products competitiveness. Keywords: pulp and paper, competitiveness, revealed comparative advantage, trade specialization index, constant market share

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