Abstract
Tobacco is Indonesian export commodities that seeded and expected to developed in order to have a market share in international market. Market share analysis is used to determine the Indonesian tobacco market share in international markets, or how many percentage of market domination, while the analysis of trade spezialiton index is used to determine whether Indonesia should be the state tobacco exporter or importer of tobacco. If the ISP value ≥ 0.5, then Indonesia tend to be exporters of tobacco. Meanwhile, when the value obtained ISP <0.5 to close to 0, then Indonesia tend to be importers of tobacco. Based on the analysis of market share, Indonesia has a market share better than the French and Thailand. The average of Indonesian market in the period 2000 - 2014 was 2.30%, while France is 1.61% and Thailand is 1.45%. Then based on the analysis ISP, Indonesia is capable of being tobacco exporting countries due to the value of more than 0.5 ISP. Based on the analysis, we can conclude that Indonesia’s market share is better than France and Thailand, furthermore in the future Indonesia will continue to be tobacco exporting countries in the world.
Highlights
Indonesia is one of the countries that embrace open economy, embracing some strategies such as export development program, especially non-oil exports
Tobacco is a commodity of Indonesia that is prioritized to be developed in a period of agricultural development in the future (Indonesian Tobacco Farmers Association)
Exports’s producing countries compared to the total volume of exports of the world's tobacco (Hadianto, 2009). These results and discussion shows that Indonesian tobacco exports in the international market better than France and Thailand, with the average value each country's average is 2.30 percent, 1.61 percent, 1.45 percent
Summary
Indonesia is one of the countries that embrace open economy, embracing some strategies such as export development program, especially non-oil exports. One of the commodities which become unreliable Indonesian export commodities according to the Directorate General of Plantation Crops (2014) is tobacco. Tobacco is a commodity of Indonesia that is prioritized to be developed in a period of agricultural development in the future (Indonesian Tobacco Farmers Association) This can be proofed, until 2014 tobacco industry still plays a role in the wheel movements of the national economic, especially in tobacco-producing areas and central of the tobacco industry, by growing industrial/related services, providing business field and employment (Central Bureau of Statistics, 2015). The condition of increasing acreage as in 2008 to 2014 , showed that tobacco has potential condition to be developed (Directorate General of Plantation Crops, 2014). The amount of tobacco exports depend on the amount of tobacco production produced in the country (Table 1)
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