Export Competitiveness Analysis of Pepper (Piper Nigrum L) Commodity in the International Market

Abstract

Indonesia is popular as a country relying on the agricultural sector as livelihood and a backbone to support the national economy. One of the current challenges pepper producers encounters is increased competitiveness between producing countries. This increased competitiveness is reflected in the more considerable global pepper production growth than in export growth. This study aims to analyze (1) comparative competitiveness, (2) competitive competitiveness, and (3) trade specialization index. This study used time series secondary data from 2006 to 2020. The study employed an RCA to analyze comparative competitiveness, an EPD to analyze competitive advantage, and an ISP to analyze whether Indonesia tends to be an exporter or importer of pepper commodities. The research results showed that Indonesia, Vietnam, and Brazil are essential in the world pepper trade. The results of the calculation of the RCA index for the 2006-2020 period include that Indonesian, Vietnamese, and Brazilian peppers have a comparative advantage or strong competitiveness in the international market because the RCA value is > 1. Indonesian and Brazilian peppers are in the Rising Star position, indicating that these two countries have a comparative advantage and a competitive advantage. Meanwhile, Vietnam is in a lost opportunity position. The ISP values for Indonesian, Vietnamese, and Brazilian pepper have an average of 0.72, 0.82, and 0.77, respectively. This showed that these three countries have competitive solid capabilities or tend to become pepper-exporting countries.