Abstract

International trade can be defined as trade transaction activities, carried out by citizens of a country and foreign nationals based on mutual agreement. Cocoa is one of the leading commodities struggling for export. Indonesian cocoa exports have changed in composition, cocoa butter contributes the largest export when compared to exports of other Indonesian processed cocoa products. The increasing world cocoa consumption will be an opportunity for Indonesia to increase cocoa butter exports. This study aims to: (1) Analyse the competitiveness of Indonesian cocoa butter exports in the international market based on comparative advantages. (2) Analyse the competitiveness of Indonesian cocoa butter exports in the international market based on competitive advantages. The object of this study focuses on the position and competitiveness of Indonesian cocoa butter exports in the international market by comparing the largest exporting countries on cocoa butter (HS 1804). The analysis methods used in this study were RCA, Product Mapping, and ECI The results of RCA analysis showed that Indonesian cocoa butter exports have comparative advantages and based on Product Mapping analysis, Indonesian cocoa butter exports are in group A, which means they have comparative advantages and export specialization. The results of the ECI analysis showed that cocoa butter exports have a competitive advantage and showed that Indonesia's cocoa butter exports have an upward trend. Indonesia has the opportunity to become a major country in dominating the cocoa butter market in the international market both in terms of comparative and competitive advantages. For this reason, in increasing competitiveness, efforts are needed to improve the quality of cocoa beans so that it will have an impact on the downstream industry, one of which is cocoa butter. There is also a need for further analysis of what factors affect the export of cocoa butter in Indonesia and its competitors.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.