Proportion of exported non-oil and gas commodities for manufacturing industries, case study in the City of Cilegon

Julia Thio,Ridho Dayan Bagus,Afifudin Anggun Nurzahwa Haris,Jaa’Ana Nurur Riza,Fatma Kusuma Porodani,Ratih Fitria Putri,Fahma Husnalawati,R Che Omar,A Cardenas Tristan,J.T Sri Sumantyo,D.R Hizbaron,R.F Putri,B White,E Haryono

doi:10.1051/e3sconf/202132503006

Abstract

Export activities are important to the economic growth of the country, especially for developing countries. The city of Cilegon in Banten Province is the main city for the manufacturing industry in Indonesia, mainly for its iron and steel products. This study aims to determine the proportion of exported goods for the manufacturing industry in the City of Cilegon and make suggestions for further development. Data used are BPS publications 2016-2020, LQ is calculated to know the basis of the economic sector in the city. According to the calculation, the manufacturing industry in the City of Cilegon shares 59.70%, the highest among other regions. Commodities that dominated the export trade are footwear, plastic products, iron and steel products, while the US, China, and Japan were the countries that had the highest FOB. To escalate export performance and intensity, it is necessary to consider market and competitors’ networks, improvement of education and transport infrastructure, along with environmental and social-cultural impacts.

Highlights

Each country has different kinds of resources
The city of Cilegon in Banten Province is the main city for the manufacturing industry in Indonesia
The manufacturing industry is the basis of the economic sector in the City of Cilegon (Table 1)

Summary

Introduction

Each country has different kinds of resources (either its natural and human resources). Apart from making a profit, trade between countries (international trade) is meant to fulfil the citizens' needs. The difference in the quantity and quality of products from a country leads them to trade with other countries [1]. Globalization and open trade have helped the world economy to grow, especially for the origin country. According to Kalafsky and Gravers [2], exports have long been considered an important factor to enhance economic development by policymakers ( export-oriented manufacturing). Brightnell [3] said, “By distributing commodities in surplus to places where they are in deficit, a new form of global equality is imagined here through transoceanic shipping and borderless flow of luxury commodities”

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