Abstract
The objectives of this research are to analyze (1) competitiveness and potential market attractiveness and business strength of rubber Sumatran in the ASEAN Market (2) Factors affect the Sumatran rubber industry competitiveness in the ASEAN market. The type of data used for this research development is primary and secondary data. Primary data were obtained from stakeholders, both exporters and producers in the rubber industry around North Sumatra and Riau. This research is using EPD and SEM PLS analysis methods. The Results of the RCA index shows that Indonesia ranks second after Vietnam for competitiveness. EPD analysis method shows that rubber and other rubber products are on the Lost Opportunity position in the ASEAN market. On the other hand, SEM PLS shows that in six latent variables, there are four variables that have an impact on Sumatran rubber industry competitiveness, two variables have a positive effect while the other two variables have a negative effect. Keywords: rubber Sumatran, ASEAN Market, competitiveness and potential market, SEM PLS, RCA
Highlights
ASEAN economic cooperation aims to accelerate economic growth, social progress, and cultural development in the Southeast Asian region
Indonesia is one of the second largest producers of natural rubber after Thailand, Malaysia and Vietnam occupy the third and fourth position Indonesia's rubber productivity is relatively less compared to the productivity of rubber plantations from other ASEAN neighboring countries, Thailand (1.8 tons/ha), Vietnam (1.7 tons/ha) and Malaysia (1.5 tons/ha)
Indonesia has not been able to become the world's major producer of rubber because the area of rubber plantations is dominated by smallholder rubber plantations that have low productivity
Summary
ASEAN economic cooperation aims to accelerate economic growth, social progress, and cultural development in the Southeast Asian region. ASEAN economic cooperation is directed at the establishment of theASEAN economic community (AEC). Indonesia is one of the second largest producers of natural rubber after Thailand, Malaysia and Vietnam occupy the third and fourth position (www.indonesia-investments.com) Indonesia's rubber productivity is relatively less compared to the productivity of rubber plantations from other ASEAN neighboring countries, Thailand (1.8 tons/ha), Vietnam (1.7 tons/ha) and Malaysia (1.5 tons/ha) (www.indonesia-investments.com.). This will certainly affect the competitiveness of Sumatra's rubber in the facing the AEC
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