Determine competitiveness of Indonesian export commodities using static and dynamic revealed comparative analysis

Abstract

The government continues to promote non-oil and gas exports because oil and gas exports have continued to decline since the decades of the 90s. Main commodity products are still dominated by primary products such as mining, agriculture and some low technology manufactured products. This results in low added value of the product. Indonesia needs products that are highly competitive in the international market. This article aims to analyze the level of competitiveness of Indonesian products in world trade. The analytical tool used is the static revealed comparative advantage (SRCA) and dynamic revealed comparative advantage (DRCA). The data used from the International Trade Centre are classified according to the Harmonized System (HS) from 2013 to 2019. The result is that by using SRCA, Indonesia has competitiveness for products: tin and articles group only contribute to the export value of 0.95% of Indonesia's total exports. The biggest share of exports is the group of mineral fuels, mineral oils, and products of their distillation; bituminous substances; minerals, group of goods Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal by 13.60%. In the DRCA, the largest export value is 10 groups included in the rising star category: natural rubber and its derivatives, cars and other motorized vehicles, fatty acids and their derivatives for industry, lignite, lead not forged, ferroalloys, wire, cable, and the like, refined copper, petroleum and mineral, and margarine and its derivatives. This indicates these products had positive growth, but growth in Indonesia was higher than the growth of similar products in the world.