Analysis of Indonesia’s natural rubber export competitiveness in the international market

Abstract

This research is about the export competitiveness of Indonesia's natural rubber in the international market. The purpose of this research is to analyze the competitiveness of Indonesia's natural rubber in the international market and to analyze the factors that influence the competitiveness of natural rubber exports in the international market. The analytical tools used are RCA, EPD, and panel regression models. The results of this research show the development of the RCA value of Indonesia's natural rubber during the period 2001-2023, with an RCA measurement range of -1 to 1, indicating that the RCA value of Indonesia's natural rubber consistently tends to have competitiveness in export destination countries. This means that Indonesia's natural rubber exported to the international market has competitiveness or comparative advantage. Based on the competitive advantage calculation using the EPD method, it was found that Indonesian natural rubber in the international markets of Thailand, Vietnam, China, and India is in quadrant I or Rising Star, where there is positive growth in export market share and positive product share growth. Indonesia, Thailand, Vietnam, China, and India have a rapidly growing market share, which means that natural rubber has the potential to become stronger and more competitive in the international market. The ECI value of Indonesian, Thai, Vietnamese, Indian and Chinese natural rubber to the international market, the average ECI value from 2000 to 2023 is greater than 1, which means that Indonesia, Thailand, Vietnam, India and China have comparative and competitive advantages in natural rubber exports.

 Keywords: Competitiveness; Export; Natural Rubber; International Market