Competitiveness Indonesia tea in international market

Abstract

The condition of the international market which has become a free market raises various challenges in increasing the value of exports for tea producers, especially Indonesian tea producers. In the international market competition, Indonesian tea producers not only face an increasing number of production and export volumes in the international market, but also must be able to consider aspects of consumer orientation. Thus, this will increase the superiority of Indonesian tea in the international market, both competitive advantage and comparative advantage. By using data on the export value of tea commodities 2001-2017 from 6 major tea exporting countries, this paper aims to identify the comparative and competitive advantages of Indonesian tea in the international market. It was analysed by using RCA and ECI. The Indonesian tea trade still has a chance to be increased because of the competitiveness of Indonesian tea especially green tea with the code HS 090210 and HS 090220 has a comparative and competitive advantage.