Competitiveness and Export Similarity of Indonesia’s Coconut Oil

Anisa Nurina Aulia,Nur Chasanah,Agus Subhan Prasetyo,Ara Nugrahayu Nalawati

doi:10.32528/agribest.v4i2.3546

Abstract

Coconut oil is one of the vegetable oils that became potential export product in Indonesia. Philippines, Indonesia, and Malaysia are three of the biggest exporters of coconut oil in ASEAN, by knowing their position in the Internastional trade of Coconut Oil it become an evauation for the sustainability of the Indonesia’s coconut oil trade.,The aims of this research are knowing the position of Coconut Oil (Crude Coconut Oil with HS Code 151311 and Its derivative with HS code 151319) compared to the competitors during 2001 to 2017 by using Revealed Comparative Advantage (RCA), Acceleration Ratio (AR), Trade Specialization Index (ISP) and Export Similarity Index (ESI) for adding information about the similarity of the export structure of coconut oil from Indonesia, Philippines, and Malaysia to the world market. The results of the research show that Indonesia has high competitiveness, and has the highest acceleration in the growth of Crude Coconut Oil’s exports (HS Code 151311) compared to the Philippines and Malaysia. Meanwhile, Indonesia and Philipines have a higher similarity market of coconut oil than Indonesia and Malaysia. Indonesia should increase the capacity industries for derivative of crude coconut oil (HS code 151319) so it could increase volume and value export because it has a higher benefit than crude coconut oil.

Highlights

The prospect of the development of Indonesian coconuts for international trade is still promising because Indonesia is one of the coconut producer countries in the world
Indonesia should increase the capacity industries for derivative of crude coconut oil (HS code 151319) so it could increase volume and value export because it has a higher benefit than crude coconut oil
This study aims to determine the competitiveness position of Indonesian coconut oil with explanation about the specialization product and the acceleration export product, so the information about comparative advantage among exporting countries will be revealed deeply

Summary

Introduction

The prospect of the development of Indonesian coconuts for international trade is still promising because Indonesia is one of the coconut producer countries in the world. Based on data from FAOSTAT (2019) in 2008-2019, Indonesia ranks first in the world as a coconut producing country. Indonesia is ranked first as a coconut exporting country in the world with an average export contribution over the past five years (2007-2017) of 141,341 tons. Coconut production centers in the world based on FAO data for 2008-2012 are in five countries, namely Indonesia, the Philippines, India, Brazil, and Sri Lanka. The needs of various industries in several countries in the world for copra and coconut oil raw materials should be used as potential export destinations for Indonesia. For example in Europe, the demand for crude palm oil (CCO) is increasing, because back-to-nature trends in the food and cosmetics industry sector play a major role in increasing imports of coconut oil in Europe (Ministry of Trade, 2013)

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