Abstract
Salt is a strategic commodity and political commodity in Indonesia. However, during the research period, namely in 2015-2019, the national salt production has not been able to meet the demand for salt. This has resulted in national salt consumption still being dependent on imports. This results in a potential dependence on imported salt which can hamper the competitiveness of domestic salt. Local people are increasingly cornered and find it difficult to be competitive. This study aims to analyze the competitiveness of the national salt industry and formulate efforts to increase the competitiveness of the national salt industry. The method used in this research is the Revealed Comparative Advantage (RCA) and Revealed Symmetric Comparative Advantage (RSCA) analysis and the Analytical Hierarchy Process (AHP) method which is one of the analytical tools used to assist managerial decision-makers. The data used in this study are primary data in the form of interviews and questionnaires and secondary data obtained from literature studies. The results showed that the salt commodity was not competitive. This is because Indonesia's salt commodity does not have a comparative advantage. Keywords: AHP, competitiveness, salt industry, RCA, strategy
Highlights
Salt is a strategic commodity and political commodity in Indonesia (Salim & Munadi, 2016)
Not all coastlines can be used as salt production sites locations for the salt industry, Indonesia should have great potential as the largest salt producer in the world with the introduction of for consumption salt and salt for industryial needs (Suhendi et al 2020)
During the period of 2015-2019, national salt production had a low average value production and tended towith fluctuating production fluctuate,. even in In 2016, there was a supply shortage due to national harvest failure that caused a shortage of salt commodities in Indonesia
Summary
Salt is a strategic commodity and political commodity in Indonesia (Salim & Munadi, 2016). Since 2015, the salt commodity has increasingly experienced a balance between supply and demand. Not all coastlines can be used as salt production sites locations for the salt industry, Indonesia should have great potential as the largest salt producer in the world with the introduction of for consumption salt and salt for industryial needs (Suhendi et al 2020). Even in In 2016, there was a supply shortage due to national harvest failure that caused a shortage of salt commodities in Indonesia. The national salt demand is not affected by the low national salt production and continues to have an upward trend every year. To cover fill the gap between national salt production domestic supply and national salt demand, the government decide to do imports (Table 1)
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