Analysis of Indonesia's Soybean Competitiveness

Abstract

The current national soybean demand is reaching 4 million tons, but domestic production only meets 1/16 of that demand. The increasing domestic soybean demand, coupled with a decreasing national soybean production each year, has led to Indonesia's dependence on imports. There are numerous issues with the soybean commodity that have resulted in the weak competitiveness of Indonesian soybeans in the international market. However, several soybean production centers show that soybean cultivation is still viable for development. This research aims to analyze the competitiveness level of Indonesian soybean commodities. Revealed Comparative Advantage (RCA) analysis is utilized to assess the competitiveness level of Indonesian soybeans in the international market. The research findings that The RCA value is less than 1, indicating that Indonesian soybeans lack competitiveness or have weak competitiveness.