Abstract
Indonesia is one of the largest natural rubber exporters in the world. On the other hand, the potential for natural rubber in the world market is enormous. The Asian continent is the largest market for Indonesian natural rubber, followed by American and European markets. Currently there have been many studies on the competitiveness of Indonesian natural rubber exports to the international market, but so far there has not been much research on the competitiveness and potential of rubber exports specifically to European countries. This study aims to determine the competitiveness and the potential of Indonesian natural rubber in European countries, namely Germany, France, and Spain. The method used in this study is descriptive analytics, meanwhile Revealed Comparative Advantage (RCA) was used to determine Indonesia’s competitiveness in each of the partner countries, on the other hand Export Product Dynamic (EPD) was used to determine the performance of Indonesian natural rubber in partner countries. The RCA index shows that Indonesia has competitive advantages in the partner countries, and the EPD matrix indicated that Indonesia is in a rising star position in the German, French and Spanish markets. To strengthen this position, Indonesia needs to increase their export value through the increase in production.
Highlights
Indonesia is one of the biggest rubber exporters in the world, in 2019, 2.503.671 tons of natural rubber is exported from this country [1]
Those partner countries were chosen because the average export value of Indonesian natural rubber to these three countries is the highest in the European market
The development of Indonesia's Revealed Comparative Advantage (RCA) index to Germany, France and Spain can be seen in the following figures
Summary
Indonesia is one of the biggest rubber exporters in the world, in 2019, 2.503.671 tons of natural rubber is exported from this country [1]. Indonesia is recorded to have contributed 28.06 percent of the world's total natural rubber supply in the same year [2]. This contribution is the second largest contribution after Thailand (32.94 percent). Indonesia's natural rubber exports have shown positive performance in the last five years. The growth of Indonesia's natural rubber exports increased by 1 percent in the 2015 to 2019 period. The growth of Indonesia's natural rubber exports was much better than Thailand's negative export growth in the same period
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