Analysis of Competitiveness and Factors Affecting Indonesia's Selected Commodity Exports to Developing Eight Countries (D-8)

Abstract

Indonesia's exports to major trading partners show a declining trend in recent years. So that market diversification is important so that exports do not fully depend on the main trading partners. Looking at the development of Indonesia's exports to the Developing Eight Countries (D-8), this region can become a potential market to increase exports. This study aimed to analyze the competitiveness of commodities, and the factors that affect Indonesia's commodity exports to (D-8). The analysis period from 2009 to 2018 uses Revealed Comparative Advantage (RCA), Intra Industry Trade (IIT), Export Dynamic Product (EPD), and Gravity Model using panel data regression. Based on the results of RCA and EPD analysis, Indonesian commodities are able to compete and occupy a variety of positions, namely the Rising Star, Falling Star, Lost Oportunity, and Retreat positions. The IIT results show that most of Indonesia's trade relations with D-8 member countries are one-way (No Integration). Factors that influence exports are, GDP, real exchange rates, commodity prices, economic distances with different results for each commodity.